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<SEC-DOCUMENT>0001145549-04-000136.txt : 20040209
<SEC-HEADER>0001145549-04-000136.hdr.sgml : 20040209
<ACCEPTANCE-DATETIME>20040209095029
ACCESSION NUMBER:		0001145549-04-000136
CONFORMED SUBMISSION TYPE:	20-F/A
PUBLIC DOCUMENT COUNT:		44
CONFORMED PERIOD OF REPORT:	20021231
FILED AS OF DATE:		20040209

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA TBK
		CENTRAL INDEX KEY:			0001001807
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				999999999
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		20-F/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14406
		FILM NUMBER:		04576178
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F/A
<SEQUENCE>1
<FILENAME>u92256e20vfza.htm
<DESCRIPTION>PT TELEKOMUNIKASI INDONESIA TBK.
<TEXT>
<HTML>
<HEAD>
<TITLE>PT Telekomunikasi Indonesia Tbk.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2"> <HR size="1" width="100%" align="left" noshade>
</FONT>
</DIV>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<P align="center">
<B><FONT size="4">SECURITIES AND EXCHANGE COMMISSION</FONT></B>

<DIV align="center">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<P align="center">
<HR size="1" width="20%" align="center" noshade>

<P align="center">
<B><FONT size="4">Form&nbsp;20-F/A</FONT></B>

<DIV align="center">
<B><FONT size="2">(AMENDMENT NO.&nbsp;2)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF</FONT></B>

<DIV align="center">
<B><FONT size="2">THE SECURITIES EXCHANGE ACT OF 1934</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD align="left"><B><FONT size="2">For the fiscal year ended December&nbsp;31, 2002</FONT></B></TD>
    <TD align="right"><B><FONT size="2">Commission file number 1-14406</FONT></B></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="20%" align="center" noshade>

<P align="center">
<B><FONT size="4">Perusahaan Perseroan (Persero)</FONT></B>

<DIV align="center">
<B><FONT size="4">P.T.&nbsp;Telekomunikasi Indonesia
Tbk.</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">(Exact name of Registrant as specified in its
charter)
</FONT>
</DIV>

<P align="center">
<B><FONT size="4">Telecommunications Indonesia</FONT></B>

<DIV align="center">
<B><FONT size="2">(a state-owned public limited liability
company)</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">(Translation of Registrant&#146;s name into
English)
</FONT>
</DIV>

<P align="center">
<HR size="1" width="20%" align="center" noshade>

<P align="center">
<B><FONT size="2">Republic of Indonesia</FONT></B>

<DIV align="center">
<FONT size="2">(State or other jurisdiction of incorporation or
organization)
</FONT>
</DIV>

<P align="center">
<B><FONT size="2">Jalan Japati, 1</FONT></B>

<DIV align="center">
<B><FONT size="2">Bandung 40133</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">Indonesia</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(62)&nbsp;(21) 521-5109*</FONT></B>
</DIV>

<DIV align="center">
<FONT size="2">(Address of Registrant&#146;s principal executive
offices)
</FONT>
</DIV>

<P align="center">
<HR size="1" width="20%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Securities registered or to be registered
pursuant to Section&nbsp;12(b) of the Act.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="69%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Title of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Name of each exchange on</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Each class</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">which registered</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">American Depositary Shares representing
    Series&nbsp;B Shares, par value 500 Rupiah per share
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">New York Stock Exchange</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B Shares, par value 500 Rupiah per
    share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">New York Stock Exchange**</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Securities registered or to be registered
pursuant to Section&nbsp;12(g) of the Act.
</FONT>

<DIV align="center">
<FONT size="2">None
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Securities for which there is a reporting
obligation pursuant to Section&nbsp;15(d) of the Act.
</FONT>

<DIV align="center">
<FONT size="2">None
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate the number of outstanding shares of each
of the issuer&#146;s classes of capital or common stock as of
the close of the period covered by the annual report:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="79%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="18%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Series&nbsp;A Shares, par value 500 Rupiah per
    share
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">1
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Series&nbsp;B Shares, par value 500 Rupiah per
    share
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top">
    <FONT size="2">10,079,999,639
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark whether the registrant
(1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12&nbsp;months (or for such shorter period
that the Registrant was required to file such reports), and
(2)&nbsp;has been subject to such filing requirements for the
past 90&nbsp;days.
</FONT>

<P align="center">
<FONT size="2">Yes <U>&nbsp;</U>&nbsp;&nbsp;No
<U>&nbsp;X&nbsp;</U>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indicate by check mark which financial statement
item the Registrant has elected to follow.
</FONT>

<P align="center">
<FONT size="2">Item&nbsp;17
<U>&nbsp;</U>&nbsp;&nbsp;Item&nbsp;18 <U>&nbsp;X&nbsp;</U>
</FONT>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp; *&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Investor Relations Unit, Graha Citra Caraka, Jl.
    Gatot Subroto, No.&nbsp;52, 5th Floor, Jakarta 12570.
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">**&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Series&nbsp;B Shares were registered in
    connection with the registration of the American Depositary
    Shares. The Series&nbsp;B Shares are not listed for trading on
    the New York Stock Exchange.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<HR size="1" width="100%" align="left" noshade>

<DIV align="left">
<HR size="1" width="100%" align="left" noshade>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">TABLE OF CONTENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">DEFINITIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">FORWARD LOOKING STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">CONVENTIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">PART I</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#005">ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#006">ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#007">ITEM 3. KEY INFORMATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">ITEM 4. INFORMATION ON THE COMPANY</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#009">ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#010">ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#011">ITEM 7. MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#012">ITEM 8. FINANCIAL INFORMATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#013">ITEM 9. THE OFFER AND LISTING</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#014">ITEM 10. ADDITIONAL INFORMATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#015">ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#016">ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">PART II</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#018">ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#019">ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#020">ITEM 15. CONTROL AND PROCEDURES</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#021">ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#022">ITEM 16B. CODE OF ETHICS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#023">ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#024">ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#025">PART III</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#026">ITEM 17. CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#027">ITEM 18. CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#028">ITEM 19. EXHIBITS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#029">CONSOLIDATED BALANCE SHEETS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#030">CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#031">CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY --(Continued)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#032">CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY --(Continued)</A></TD></TR>
<TR><TD colspan="9"><A HREF="#033">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w1.txt">Ex-4.1 Agreement Sale & Purchase dated Apr 3,2002</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w2.txt">Settlement Agreement, dated July 31, 2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w3.txt">Credit Agreement, dated July 31, 2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w4.txt">Ex-4.4 1st Amendment Conditional Sale and Purchase</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w5.txt">EX-4.5 Conditional Sale & Purchase Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w6.txt">EX-4.6 Conditional Sale & Purchase Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w7.txt">Ex-4.7 Conditional Sale & Purchase Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w8.txt">Ex-4.8 Cooperation Agreement,dated Sept.3, 2002</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w11.txt">Ex-4.11 Master Procurement Partnership Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w12.txt">Ex-4.12 Am#1 to the Master Procurement Partnership</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w13.txt">Ex-4.13 Service Level Agreement,dated Dec.23, 2002</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w14.txt">Ex-4.14 Loan Agreement, dated Aug.27, 2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w15.txt">Ex-4.15 Master Procurement Partnership Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w16.txt">Ex-4.16 Service Level Agreement, dated Dec.23,2002</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w17.txt">Ex-4.17 Master Procurement Partnership Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w18.txt">Ex-4.18 Service Level Agreement, Aug.26,2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w19.txt">Ex-4.19 Partnership Agreement, dated Sept.24,2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w21.txt">Ex-4.21 Am#1 to the Development Contract,Aug.22/02</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w22.txt">Ex-4.22 Am#2 to the Development Contract,Oct.25/02</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w23.txt">Ex-4.23 Am#3 to the Development Contract,Dec.20/02</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w24.txt">Ex-4.24 Am#4 to the Development Contract,Mar.20/03</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w25.txt">Ex-4.25 Am#5 to the Development Contract,June26/03</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w26.txt">Ex-4.26 Master Procurement Partnership Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w27.txt">Ex-4.27 Partnership Agreement, November 12, 2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w28.txt">Ex-4.28 Contract Agreement, dated Dec.18, 2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w29.txt">Ex-4.29 Side Letter to Partnership Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w30.txt">Ex-4.30 Am#1 to Partnership Agreement, Sept.27/02</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w31.txt">Ex-4.31 Am#2 to Partnership Agreement, Dec.30/02</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w32.txt">Ex-4.32 Supply Contract, dated Nov.27,2002</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w33.txt">Ex-4.33 Cable Network Construction & Main. Agmt</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w34.txt">Ex-4.34 Amended & Restated KSO Agreement,Jan.20/04</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w35.txt">Ex-4.35 Service Level Agreement, March 24,2003</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv4w36.txt">Ex-4.36 Indemnity Agreement, dated Feb.9,2004</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv12w1.htm">Ex-12.1 Certification Pursuant to Section 302</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv12w2.htm">Ex-12.2 Certification Pursuant to Section 302</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv13w1.htm">Ex-13.1 Certification Pursuant to Section 906</A></TD></TR>
<TR><TD colspan="9"><A HREF="u92256exv13w2.htm">Ex-13.2 Certification Pursuant to Section 906</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "TABLE OF CONTENTS" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <FONT size="2">EXPLANATORY NOTE
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <FONT size="2">DEFINITIONS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <FONT size="2">FORWARD LOOKING STATEMENTS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <FONT size="2">CONVENTIONS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="center" valign="top">
    <B><FONT size="2">PART I</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;1.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
    ADVISERS*
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;2.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">OFFER STATISTICS AND EXPECTED TIMETABLE*
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;3.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">KEY INFORMATION
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;4.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">INFORMATION ON THE COMPANY
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;5.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">OPERATING AND FINANCIAL REVIEW AND PROSPECTS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;6.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;7.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">134</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;8.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">FINANCIAL INFORMATION
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;&nbsp;9.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">THE OFFER AND LISTING
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;10.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">ADDITIONAL INFORMATION
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;11.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT
    MARKET RISK
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">159</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;12.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES*
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <B><FONT size="2">PART II</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;13.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;14.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY
    HOLDERS AND USE OF PROCEEDS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;15.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">CONTROL AND PROCEDURES
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;16.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">RESERVED
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="center" valign="top">
    <B><FONT size="2">PART III</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;17.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">CONSOLIDATED FINANCIAL STATEMENTS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;18.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">CONSOLIDATED FINANCIAL STATEMENTS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Item&nbsp;19.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">EXHIBITS
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Omitted because the item is not applicable.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">i
</FONT>
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<P align="center">
<B><FONT size="2">EXPLANATORY NOTE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM was unable to meet its June&nbsp;30, 2003
deadline to file a fully compliant Annual Report on
Form&nbsp;20-F for 2002 because the audit firm it had originally
appointed to perform its 2002 audit was not qualified for SEC
purposes, and TELKOM&#146;s SEC-qualified 2002 auditors, KAP
Drs.&nbsp;Hadi Sutanto &#38; Rekan, the member firm of
PricewaterhouseCoopers in Indonesia (&#147;PwC&#148;), did not
begin their audit work until their appointment in July 2003.
TELKOM filed a non-compliant Annual Report on April&nbsp;17,
2003 and then filed Amendment No.&nbsp;1 to the Annual Report on
June&nbsp;11, 2003 to:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">remove the 2002 reports of TELKOM&#146;s prior
    auditors, KAP Eddy Pianto, and the auditors of TELKOM&#146;s
    subsidiary, Telkomsel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">identify the consolidated financial statements
    therein for 2002 as &#147;unaudited&#148; and indicate that
    TELKOM&#146;s consolidated financial statements therein for 2002
    had not been audited by an independent accounting firm qualified
    in accordance with SEC requirements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">furnish an explanation of the foregoing;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">describe the review by the SEC&#146;s Division of
    Corporation Finance of TELKOM&#146;s Annual Report on
    Form&nbsp;20-F for 2002 and of TELKOM&#146;s public statements
    regarding its annual report, and the referral of those matters
    to the SEC&#146;s Division of Enforcement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">discuss the material consequences of the
    deficiencies in its Annual Report on Form&nbsp;20-F for 2002, of
    TELKOM&#146;s public statements regarding such Annual Report and
    of an SEC enforcement action regarding the same; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">describe TELKOM&#146;s plan to bring its Annual
    Report into full compliance with applicable SEC regulations.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purpose of this Amendment No.&nbsp;2 to the
Annual Report for 2002 is to file a compliant Form&nbsp;20-F
with audited consolidated financial statements as of and for the
years ended December&nbsp;31, 2000, 2001 and 2002 and to modify
certain disclosures. This Amendment No.&nbsp;2 to the Annual
Report contains restated consolidated financial statements for
the three years ended December&nbsp;31, 2002, together with the
reports of Telkom&#146;s independent auditors with respect
thereto, and restated selected financial information as of and
for the years ended December&nbsp;31, 1998 and 1999. Such
restated consolidated financial statements and selected
financial information reflect certain adjustments and modify
certain disclosure to the notes from the previously filed
unaudited consolidated financial statements as of and for the
year ended December&nbsp;31, 2002, and the previously filed
audited consolidated financial statements as of and for the
years ended December&nbsp;31, 2000 and 2001 and selected
financial information as of and for the years ended
December&nbsp;31, 1998 and 1999. These adjustments, which are
described in detail in Notes&nbsp;4 and&nbsp;57(3)to the
consolidated financial statements and Item&nbsp;5. Operating and
Financial Review and Prospects&nbsp;&#151; Restatement of
Information Previously Reported, give effect to the following
key items:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">corrections to the Indonesian GAAP consolidated
    financial statements primarily relating to the accounting for
    long service awards, deferred taxes, and business acquisitions,
    as well as the assumptions underlying TELKOM&#146;s
    post-retirement healthcare plan; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">additional corrections for U.S.&nbsp;GAAP
    purposes primarily relating to accounting for installation
    revenue, deferred taxes, revenue sharing arrangements and
    business acquisitions.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under TELKOM&#146;s restated audited consolidated
financial statements, TELKOM&#146;s consolidated net income
under Indonesian GAAP decreased by 3.7% for 2002, 4.3% for 2001
and 7.8% for 2000 from consolidated net income previously
reported and TELKOM&#146;s consolidated stockholders&#146;
equity under Indonesian GAAP decreased by 8.1% as of
December&nbsp;31, 2002, 2.6% as of December&nbsp;31, 2001 and
2.9% as of December&nbsp;31, 2000 from consolidated
stockholders&#146; equity previously reported. See Item&nbsp;5.
Operating and Financial Review and Prospects.
</FONT>

<P align="center"><FONT size="2">1
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of the foregoing and because this Annual
Report was filed after the June&nbsp;30, 2003 deadline, TELKOM
may face an SEC enforcement action under U.S.&nbsp;securities
law and incur other legal liability and adverse consequences
such as a delisting of its ADSs from the New York Stock
Exchange. In addition, the staff of the SEC has described a
press release that TELKOM issued and furnished to the SEC on
Form&nbsp;6-K in May 2003 as &#147;grossly understating the
nature and severity of the staff&#146;s concerns&#148; regarding
matters related to TELKOM&#146;s filing of a non-compliant
Annual Report. Such press release could also form the basis of
an SEC enforcement action and other legal liability. TELKOM
cannot at this time predict the likelihood or severity of an SEC
enforcement action or any other legal liability or adverse
consequences.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as required to reflect the effects of the
restatements of our consolidated financial statements or as
otherwise expressly stated herein, this Amendment No.2 to Annual
Report is not intended to, and does not, update, in any material
respect, the disclosure contained in TELKOM&#146;s original
Form&nbsp;20-F filed on April&nbsp;17, 2003. The disclosure
contained in such original Form&nbsp;20-F is restated herein for
the convenience of the reader. Furthermore, in order to preserve
the nature and character of such disclosure and except as
required to reflect the effects of the restatements of our
consolidated financial statements or as otherwise expressly
stated herein, such disclosure relates primarily to events
occurring on or prior to December&nbsp;31, 2002 and not as of a
later date. Accordingly, events may have taken place since such
date that would have been required to be reflected in this
filing had they taken place prior to such date.
</FONT>

<P align="center"><FONT size="2">2
</FONT>

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<!-- link1 "DEFINITIONS" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center">
<B><FONT size="2">DEFINITIONS</FONT></B>

<DIV>&nbsp;</DIV>

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<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;ADS&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">American Depositary Share, which is a certificate
    (known as an ADR) being traded on a U.S.&nbsp;securities market
    (such as New York Stock Exchange) representing a number of
    foreign shares. One ADS of TELKOM represents twenty of
    TELKOM&#146;s Series&nbsp;B shares. The ratio of shares to ADS
    is 20:1.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;ADSL&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Asymmetric Digital Subscriber Line) is a
    technology that allows combinations of services including voice,
    data and one way full motion video to be delivered over existing
    copper feeder distribution and subscriber lines.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;AMPS&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Advanced Mobile Phone System) is an analog
    mobile cellular system standard.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;ARPU&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Average Revenue Per User) serves as an
    evaluation statistic in connection with a network
    operator&#146;s subscriber base.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;ASR&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Answer to Seizure Ratio). See &#147;Call
    Completion Rate&#148;.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;ATM&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Asynchronous Transfer Mode) is a transfer mode
    in which the information is organized into cells. It is
    asynchronous in the sense that the recurrence of cells
    containing information from an individual user is not
    necessarily periodic.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;B2B&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Business-to Business Electronic Commerce) is a
    technology-enabled application environment to facilitate the
    exchange of business information and automate commercial
    transaction designed to automate and optimize interactions
    between business partners.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;backbone&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the main telecommunications network
    consisting of transmission and switching facilities connecting
    several network access nodes. The transmission links between
    nodes and switching facilities include microwave, submarine
    cable, satellite, optical fiber and other transmission
    technology.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;bandwidth&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the capacity of a communications link.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;BTS&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Base Transceiver Station) refers to equipment
    that transmits and receives radio telephony signals to and from
    other telecommunication systems.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;call completion rate&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the percentage of calls that are successfully
    completed, as measured by the number of calls successfully
    answered divided by the number of call attempts that are
    recognized by the caller&#146;s local exchange, in the case of
    call completion rates for local calls, and call attempts that
    are recognized by the trunk exchange, in the case of call
    completion rates for long-distance calls. Call completion rate
    is measured by the answer to seizure ratio, or &#147;ASR&#148;.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;capacity utilization&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the ratio of lines in service to local
    exchange capacity or installed lines.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;CDMA&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Code Division Multiple Access) is a wide-band
    spread- spectrum network technology.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">3
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;DCS 1800&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Digital Communication System) is a mobile
    cellular system using GSM technology operating in the 1800Mhz
    frequency band.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;DGPT&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the Director General of Post and
    Telecommunications.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;distribution point&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the point of interconnection between the
    dropwire and the secondary cable running to a cabinet and/or a
    local exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;DLD&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to domestic long-distance
    telecommunications services such as long-distance telephone
    calls and leased lines services.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;downlink&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the receiving portion of a satellite
    circuit extending from the satellite to the Earth.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;dropwire&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the wire connecting the subscriber&#146;s
    premises to the distribution point.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;DTR&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Distributable TELKOM Revenues) is the monthly
    revenue share payable by each KSO Unit to TELKOM under the KSO
    Agreements, being a specified percentage of total KSO revenues
    in a KSO Unit after deduction of specified KSO operating
    expenses and MTR.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;dual band&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the capability of a mobile cellular
    network and mobile cellular handsets to operate across two
    frequency bands, for example GSM 900 and GSM 1800.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;duopoly system&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a system allowing only two national operators,
    which in Indonesia&#146;s case are Telkom and Indosat, to
    provide fixed-line telecommunication services.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;earth station&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the antenna and associated equipment used to
    receive or transmit telecommunication signals via satellite.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;existing installations&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refer to telecommunications facilities, including
    telephone lines, network infrastructure and related assets in
    existence in each KSO Division as of the beginning of each KSO
    Period plus certain facilities and equipment constructed or
    installed by TELKOM in the KSO Units after such dates to be
    managed by a KSO&nbsp;Investor.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;fixed cellular&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to a form of fixed wireless technology
    which uses conventional cellular network configurations to link
    a subscriber at a fixed location to a local exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;fixed wireless&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to a local wireless transmission link
    using cellular, microwave or radio technology to link a
    subscriber at a fixed location to a local exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;fixed wireline&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to a fixed path (wire or cable) linking a
    subscriber at a fixed location to a local exchange, usually with
    an individual phone number.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;frame relay&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a packet-switching protocol (in which messages
    are divided into packets before they are sent) for connecting
    devices on a computer network that spans a relatively large
    geographical area.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;Government&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the Government of the Republic of
    Indonesia.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;GPRS&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(General Packet Radio Service) is a data packet
    switching technology that allows information to be sent and
    received across a mobile network and only utilizes the network
    when there is data to be sent.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;GSM&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Global System for Mobile Telecommunication) is a
    European standard for digital cellular telephone.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;IDD&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(International Direct Dialing) is a service that
    allows a subscriber to make an international call without the
    assistance or intervention of an operator from any telephone
    terminal.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;installed lines&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refer to complete lines fully built-out to the
    distribution point and ready to be connected to subscribers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;intelligent network&#148; or &#147;IN&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a service-independent telecommunications
    network where the logic functions are taken out of the switch
    and placed in computer nodes distributed throughout the network.
    This provides the means to develop and control services more
    efficiently allowing new or advanced telephony services to be
    introduced quickly.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;ISDN&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Integrated Services Digital Network) is a
    network that provides end-to-end digital connectivity and allows
    simultaneous transmission of voice, data and video and provides
    high-speed internet connectivity.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;Kbps&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Kilobits per second) is a measure of speed for
    digital signal transmission expressed in thousands of bits per
    second.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;KSO&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Kerjasama Operasi) or Joint Operating Scheme, is
    a unique type of Build, Operate and Transfer arrangement with a
    consortium of partners in which the consortium invests and
    operates TELKOM facilities in regional divisions. The consortium
    partners are owned by international operators and private
    domestic companies, or in cases where TELKOM has acquired the
    consortium partner, by TELKOM.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;KSO Agreements&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refer to the agreements, as amended from time to
    time, governing the operation of the network in the relevant KSO
    region for the KSO Period.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;KSO Period&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to period covered by the KSO Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;KSO Unit&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to a regional division of TELKOM managed
    and operated&nbsp;&#151; pursuant to the relevant KSO Agreement.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;leased line&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a dedicated telecommunications transmissions
    line linking one fixed point to another, rented from an operator
    for exclusive use.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;lines in service&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refer to revenue-generating lines connected to
    subscribers, including payphones, but not including mobile
    cellular subscribers or lines used internally by TELKOM.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;local call&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the call among subscribers in the same
    numbering area without any prefix number being required.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;local exchange capacity&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the aggregate number of lines at a
    local exchange connected and available for connection to outside
    plant.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">5
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;MHz&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Megahertz) is a unit of measure of frequency. 1
    MHz is equal to one million cycles per second.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;microwave transmission&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a transmission consisting of electromagnetic
    waves in the radio frequency spectrum above 890&nbsp;million
    cycles per second and below 20&nbsp;billion cycles per second.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;MoC&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the Ministry of Communications.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;Modern License&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is an operational license, contemplated in the
    Telecommunication Law, which replaces the existing operational
    license for basic telecommunications services.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;MoF&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to the Ministry of Finance.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;MTR&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Minimum TELKOM Revenues) is the specified
    minimum amount payable monthly by each KSO Unit to TELKOM under
    the KSO Agreements.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;NMT-450&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Nordic Mobile Telephone) is a form of analog
    mobile cellular service primarily installed in vehicles.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;optical fiber&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">refers to cables using optical fiber and laser
    technology whereby modulating light beams representing data are
    transmitted through thin filaments of glass.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;outside plant&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the equipment and facilities used to connect
    subscriber premises to the local exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;PBH&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Pola Bagi Hasil) is a type of Build, Transfer
    and Operate arrangement scheme between TELKOM and domestic
    private companies. Under this scheme the private company invests
    in the telecommunication facilities to be operated by TELKOM.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;PSDN&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Packet Switched Data Networks) is a network
    using a switch device and sending packets of data through the
    network to some remote location.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;PSTN&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Public Switched Telephone Network) is a
    telephone network operated and maintained by TELKOM and the KSO
    Units for and on behalf of TELKOM.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;satellite transponder&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is the radio relay equipment embedded on a
    satellite that receives signals from earth and amplifies and
    transmits the signal back to earth.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;SIM&#148; or &#147;SIM card&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Subscriber Identity Module) is a
    &#147;smart&#148; card designed to be inserted into a mobile
    cellular telephone that uniquely identifies a GSM network
    subscription and that contains subscriber-related data such as
    phone numbers, service details and memory for storing messages.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;SMS&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">Short Messaging Service, a technology allowing
    the exchange of text messages between mobile cellular phones.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;switch&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a mechanical, electrical or electronic device
    that opens or closes circuits, completes or breaks an electrical
    path, or selects paths or circuits, used to route traffic in a
    telecommunications network.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">6
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"></TD>
    <TD width="1%"></TD>
    <TD width="71%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;trunk exchange&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">is a switch that has the function of connecting
    one telephony switch to another telephony switch, which can be
    either a local or trunk switch.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;USO&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Universal Service Obligation) is the service
    obligation imposed by the Government on all providers of
    telecommunications services for the purpose of providing public
    services in Indonesia.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;VoIP&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Voice over Internet Protocol) is a means of
    sending voice information using the Internet Protocol.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;VSAT&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Very Small Aperture Terminal) is a relatively
    small antenna, typically 1.5 to 3.0 meters in diameter, placed
    in the user&#146;s premises and used for two-way communications
    by satellite.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    <FONT size="2">&#147;WAP&#148;
    </FONT></TD>
    <TD></TD>
    <TD valign="top">
    <FONT size="2">(Wireless Application Protocol) is an open and
    global standard of technology platform that enables mobile users
    to access and interact with mobile information services such as
    e-mail, Web sites, financial information, on-line banking,
    information and entertainment (infotainment), games and micro
    payments.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "FORWARD LOOKING STATEMENTS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center">
<B><FONT size="2">FORWARD LOOKING STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This document contains certain forward looking
statements within the meaning of Section&nbsp;27A of the
Securities Act of 1933, as amended (the &#147;Securities
Act&#148;), and Section&nbsp;21E of the Securities Exchange Act
of 1934, as amended (the &#147;Exchange Act&#148;), and the
Private Securities Litigation Reform Act of 1995, with respect
to the financial condition, results of operations and business
of Perusahaan Perseroan (Persero) P.T.&nbsp;Telekomunikasi
Indonesia (&#147;TELKOM&#148; or the &#147;Company&#148;) and
its subsidiaries and certain plans and objectives of the Company
or the Company and its subsidiaries, wherever applicable, with
respect to these items&nbsp;&#151; in particular, among other
statements, certain statements in &#147;Item&nbsp;5. Operating
and Financial Review and Prospects&#148; including, without
limitation, those concerning the Company&#146;s expectations and
plans, strategy, management&#146;s objectives, trends in market
shares, market standing, overall market trends, risk management,
exchange rates and revenues and general and administration
expenses, and forward looking statements concerning the
Company&#146;s operations, performance and financial condition.
Such statements can be generally identified by the use of terms
such as &#147;believes,&#148; &#147;expects,&#148;
&#147;may,&#148; &#147;will,&#148; &#147;would,&#148;
&#147;could,&#148; &#147;plans,&#148; or
&#147;anticipates,&#148; and the negatives of such terms or
comparable terms. By their nature, forward looking statements
involve risk and uncertainty because they are related to events
which depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results
and developments to differ materially from those expressed or
implied by these forward looking statements. Important
information regarding risks and uncertainty is set forth
elsewhere in this annual report, including in
&#147;Item&nbsp;3.D. Risk Factors&#148;, &#147;Item&nbsp;5.E.
Off-Balance Sheet Arrangements&#148;, &#147;Item&nbsp;5.F.
Tabular Disclosure of Contractual Obligations&#148; and
&#147;Item&nbsp;11. Quantitative and Qualitative Disclosures
About Market Risk&#148;.
</FONT>

<!-- link1 "CONVENTIONS" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center">
<B><FONT size="2">CONVENTIONS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this Annual Report, unless otherwise specified
or the context otherwise requires, all references to
&#147;Indonesia&#148; are references to the Republic of
Indonesia and all references to the &#147;U.S.&#148; and
&#147;United States&#148; are references to the United States of
America. All references to the &#147;Government&#148; herein are
references to the government of the Republic of Indonesia.
References herein to &#147;Rupiah&#148; and &#147;Rp.&#148; are
to the lawful currency of Indonesia and all references to
&#147;US Dollars&#148; or &#147;US$&#148; are to the lawful
currency of the United States of America. For convenience,
unless otherwise specified, certain Rupiah amounts have been
translated into US Dollar amounts, based on the prevailing
exchange rate of Rp.8,950&nbsp;=&nbsp;US$1.00, being the middle
market spot rate of exchange for Rupiah against US Dollar quoted
by Reuters on December&nbsp;31, 2002. Such translations should
not be construed as representations that the Rupiah or US Dollar
amounts referred to could have been, or could be, converted into
Rupiah or US Dollars, as the case may be, at that or any other
rate or at all. The middle market spot rate of exchange for
Rupiah against US Dollar quoted by Bank Indonesia on
December&nbsp;31, 2002 was Rp.8,940 to US$1.00. See
&#147;Exchange Rate Information&#148; for further information
regarding rates of exchange between Rupiah and US Dollars.
</FONT>

<P align="center"><FONT size="2">8
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PART I" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center">
<B><FONT size="2">PART I</FONT></B>

<!-- link2 "ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS" -->
<DIV align="left"><A NAME="005"></A></DIV>

<P align="left">
<B><FONT size="2">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IDENTITY
OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE" -->
<DIV align="left"><A NAME="006"></A></DIV>

<P align="left">
<B><FONT size="2">ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OFFER
STATISTICS AND EXPECTED TIMETABLE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 3. KEY INFORMATION" -->
<DIV align="left"><A NAME="007"></A></DIV>

<P align="left">
<B><FONT size="2">ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KEY
INFORMATION</FONT></B>

<P align="left">
<B><FONT size="2">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected
financial data</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s consolidated financial statements
for the year 1998, and the Company&#146;s consolidated financial
statements for the year 1999, were audited by KAP Prasetio,
Utomo &#38; Co., the member firm of Arthur Andersen &#38; Co. SC
in Indonesia. The Company&#146;s consolidated financial
statements for the years 2000 and 2001 were audited by KAP Hans
Tuanakotta &#38; Mustofa, the member firm of Deloitte Touche
Tohmatsu in Indonesia. The Company&#146;s consolidated financial
statements for the year 2002 have been audited by KAP
Drs.&nbsp;Hadi Sutanto &#38; Rekan, the member firm of
PricewaterhouseCoopers in Indonesia. All such consolidated
financial statements were prepared in accordance with Indonesian
GAAP, which differs in certain significant respects from
U.S.&nbsp;GAAP. See &#147;Item&nbsp;5. Operating and Financial
Review and Prospects&nbsp;&#151; Summary of Material Differences
between Indonesian GAAP and U.S.&nbsp;GAAP&#148; and
Note&nbsp;57 to the Company&#146;s consolidated financial
statements, which provide a description of the significant
differences between Indonesian GAAP and U.S.&nbsp;GAAP and a
reconciliation to the amount of U.S.&nbsp;GAAP net income and
stockholders&#146; equity of Telkom for and as of the end of
each of the periods indicated in the consolidated financial
statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, subsequent to the disclosure of our
consolidated financial statements in the Annual Report on
Form&nbsp;20-F for 2002 and Amendment No.&nbsp;1 to the Annual
Report that was filed with the SEC on June&nbsp;11, 2003, TELKOM
restated its Indonesian GAAP consolidated financial statements
and the related reconciliation with U.S.&nbsp;GAAP for 1998,
1999, 2000, 2001 and 2002. These restatements, reflected in this
Amendment No.&nbsp;2 to the Annual Report, impacted our net
income, earnings per share and stockholders&#146; equity as
discussed in footnotes&nbsp;4 and&nbsp;5 to the table below. See
also &#147;Item&nbsp;5. Operating and Financial Review and
Prospects&nbsp;&#151; Restatement of Information Previously
Reported&#148; and Notes&nbsp;4 and&nbsp;57 to our consolidated
financial statements in Item&nbsp;18 for a further discussion of
these adjustments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following the dissolution of Andersen Worldwide
in 2002, KAP Prasetio, Utomo &#38; Co. ceased business
operations in Indonesia in August 2002. As a consequence, KAP
Prasetio, Utomo &#38; Co. has not reissued an audit opinion in
respect of the 1998 and 1999 consolidated financial statements
and, therefore, the information included in the relevant
selected financial information for 1998 and 1999 is derived from
unaudited consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the year 2002, six companies were
consolidated within the Company&#146;s consolidated financial
statements, namely: PT&nbsp;Telekomunikasi Selular
(&#147;Telkomsel&#148;, 65.0%), PT&nbsp;Dayamitra Telekomunikasi
(&#147;Dayamitra&#148;, 90.32%), PT&nbsp;Indonusa Telemedia
(&#147;Indonusa&#148;, 57.5%), PT&nbsp;Infomedia Nusantara
(&#147;Infomedia&#148;, 51.0%), PT&nbsp;Graha Sarana Duta
(&#147;GSD&#148;, 99.99%), and PT&nbsp;Pramindo Ikat Nusantara
(&#147;Pramindo&#148;, 100.0%).
</FONT>

<P align="center"><FONT size="2">9
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following tables set forth a summary of the
financial information of TELKOM as of and for the years
specified. This information should be read in conjunction with
&#147;Item&nbsp;5. Operating and Financial Review and
Prospects&#148; and is qualified in its entirety by reference to
TELKOM&#146;s consolidated financial statements and the related
notes thereto included elsewhere in this Annual Report.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="16%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(unaudited)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(unaudited)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$</FONT></B></TD>
</TR>

<TR>
    <TD colspan="6"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(Rp. in billion, except for data relating to shares, Dividends&nbsp;and&nbsp;ADS)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Consolidated Income Statement Data</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Indonesian GAAP<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating revenues<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Telephone
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Fixed lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Local and domestic long-distance usage
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,903</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,571</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,097</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,226</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,448</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">609</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Monthly subscription charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">683</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">799</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">887</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">998</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,475</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">165</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Installation charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">106</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">68</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">75</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">98</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">130</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">113</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">91</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">119</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">93</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">211</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">24</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total fixed lines revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,805</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,529</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,178</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,415</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,264</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">812</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Air time charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">852</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,458</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,484</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,988</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,454</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">610</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Monthly subscription charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">212</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">236</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">356</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">581</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">593</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">66</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Features
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Connection fee charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">20</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">51</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">43</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">129</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">172</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">19</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total cellular revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,089</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,749</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,890</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,708</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,227</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">696</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total telephone revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,894</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,278</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,068</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,123</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,491</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,508</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Joint Operation Scheme
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Minimum TELKOM Revenue (MTR)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,434</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,453</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,557</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,474</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,320</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">147</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Share in distributable TELKOM Revenue (DTR)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">143</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">209</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">695</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">733</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">801</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">89</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Amortization of unearned initial investor payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total revenue under Joint Operation Scheme
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,592</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,677</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,267</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,220</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,128</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">237</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interconnection
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">412</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">706</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">981</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,424</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,831</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">316</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">354</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">343</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">340</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">415</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">316</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">35</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Data and Internet
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">32</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">54</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">108</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">673</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,552</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">173</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Revenue-Sharing Arrangement
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">285</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">360</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">288</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">264</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">264</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">30</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other telecommunications-related services
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">21</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">19</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">138</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">165</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">221</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">25</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total Operating Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,590</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,437</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">12,190</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,284</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">20,803</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,324</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Personnel
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,171</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,349</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,770</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,281</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,388</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">490</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,468</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,627</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,419</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,870</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,474</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">388</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operation, maintenance and telecommunication
    services
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">726</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,146</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,386</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,150</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,290</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">256</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">General and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">675</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">571</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">872</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,343</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,146</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">128</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Marketing
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">51</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">76</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">147</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">220</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">375</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">42</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total Operating Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,091</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,769</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,594</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,864</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,673</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,304</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="6"><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(unaudited)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(unaudited)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as restated)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(Rp. in billion, except for data relating to shares, Dividends&nbsp;and&nbsp;ADS)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,499</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,668</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,596</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,420</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,130</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,020</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other income (charges)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Gain on sale of long term investment in Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,196</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">357</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(981</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,492</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(817</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,330</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,583</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(177</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">744</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">762</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">692</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">572</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">480</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">54</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Gain (loss) on foreign exchange&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,219</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">326</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(944</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(379</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">557</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">62</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Equity in net income (loss) of associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(62</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">137</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(232</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(86</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">178</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">101</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">313</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">353</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(4</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other Income (Charges)&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,340</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(166</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(988</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(870</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,619</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">293</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income Before Tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,159</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,502</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,608</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,550</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,749</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,313</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Tax expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(386</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,004</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(1,520</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(2,007</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(2,899</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(324</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income before minority interest in net income of
    subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">773</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,498</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,088</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,543</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,850</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">989</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Minority interest in net income of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(15</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(162</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(313</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(475</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(810</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(91</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">758</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,336</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,775</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,068</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">898</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Weighted average shares outstanding (millions)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,333</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,644</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,080</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,080</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,080</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">81.17</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">242.26</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">275.30</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">403.61</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">797.59</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income per ADS
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,623.49</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,845.29</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,505.96</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,072.20</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,951.80</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Dividend declared per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">48.48</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">50.99</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">107.76</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">88.16</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">210.82</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S.&nbsp;GAAP<SUP>(4)(5)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">844</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,679</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,216</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,298</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,587</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">90.44</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">277.80</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">219.87</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">426.41</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">851.91</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net income per ADS
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,808.76</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,555.90</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,397.47</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,528.17</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">17,038.21</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">As of December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(unaudited)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(unaudited)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(as</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(Rp. in billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Consolidated Balance Sheet Data</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Indonesian GAAP<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">26,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">28,574</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">32,019</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">33,036</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">44,307</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,951</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Current liabilities<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,650</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,058</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,138</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,543</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,708</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,085</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,567</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,630</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,048</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,447</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,383</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">602</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,537</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,541</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,546</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,730</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">12,006</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,341</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14,754</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">15,229</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,732</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">22,720</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">27,097</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,028</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">360</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">534</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">814</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,235</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,596</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">290</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Capital stock<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,667</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">563</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10,927</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">12,810</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14,473</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,081</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14,614</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,633</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S.&nbsp;GAAP<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">24,434</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">27,236</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">30,900</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">32,449</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">44,623</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,986</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,153</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,419</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">12,928</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,766</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,911</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,554</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Notes:
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For the year ended 2002, TELKOM has reclassified
    its revenue into eight major revenue categories: fixed-line,
    cellular, joint operation scheme (&#147;KSO&#148;),
    interconnection, network, data and internet, revenue-sharing
    arrangements and other telecommunications services. For the
    purpose of comparability, TELKOM has also reclassified its
    revenues for prior periods.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes current maturities of long-term debt.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Issued and Paid-Up Capital Stock consists of one
    Series&nbsp;A Dwiwarna share having a par value of Rp.500 and
    10,079,999,639 Series&nbsp;B shares having a par value of Rp.500
    from an authorized capital stock comprising one series&nbsp;A
    Dwiwarna share and 39,999,999,999 Series&nbsp;B shares.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">11
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Indonesian GAAP amounts for 2000, 2001, 2002 and
    prior years reflect adjustments related to long service awards,
    post-retirement healthcare benefits, deferred taxes, acquisition
    accounting, operating revenues, trade accounts payable,
    correction of loan balance, correction of taxes payable and
    certain other items, including the settlement of our dispute
    with AriaWest. See &#147;Item&nbsp;5. Operating and Financial
    Review and Prospects&nbsp;&#151; Restatement of Information
    Previously Reported&#148; and Note&nbsp;4 to the Company&#146;s
    consolidated financial statements.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">U.S.&nbsp;GAAP amounts reflect adjustments
    resulting from differences in the accounting treatment of
    termination benefits, foreign exchange differences on property
    under construction, interest capitalized on property under
    construction, revenue sharing arrangements, revaluation of
    property, plant and equipment, pension, equity in net income/
    (loss) of associated companies, amortization of land rights,
    stock issuance costs, employee bonuses, depreciation of
    equipment to be installed, revenue recognition, goodwill,
    capital leases, acquisition of a subsidiary, changes in equity
    of associates and deferred income taxes. See &#147;Item&nbsp;5.
    Operating and Financial Review and Prospects&nbsp;&#151; Summary
    of Material Differences between Indonesian GAAP and
    U.S.&nbsp;GAAP&#148; and Note&nbsp;57(1) to the Company&#146;s
    consolidated financial statements.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Exchange Rate Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to August&nbsp;14, 1997, Bank Indonesia
maintained the value of the Rupiah based on a basket of
currencies of Indonesia&#146;s main trading partners. In July
1997, the exchange rate band was widened, and on August&nbsp;14,
1997, Bank Indonesia announced it would no longer intervene in
maintaining the exchange rate at any pre-determined level.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table shows the exchange rate of
Rupiah to US Dollar based on the middle exchange rates at the
end of each month for the periods indicated. The Rupiah middle
exchange rate is calculated based on Bank Indonesia buying and
selling rates. No representations are made that the Rupiah or US
Dollar amounts referred to herein could have been or could be
converted into US Dollar or Rupiah, as the case may be, at any
particular rate or at all.
</FONT>

<P align="center"><FONT size="2">12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">At period</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">end</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Average<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">High<SUP>(2)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Low<SUP>(2)</SUP></FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">(Rp. per US$1.00)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1998
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,025</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1999
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,726</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,534</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,590</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,507</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,590</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,433</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,620</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,780</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,691</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,290</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,507</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,266</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,865</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,058</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,422</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,316</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,655</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,192</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,542</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,730</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,015</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,949</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,058</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,326</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,815</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2003
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,573</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,120</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,919</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,120</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,285</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,906</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,430</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,471</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,583</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">July
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,505</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,535</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,503</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,618</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">September
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,503</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">October
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,583</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">November
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,496</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,474</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,509</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,447</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">January&nbsp;16, 2004<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,363</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Notes:
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The average of the middle exchange rate announced
    by Bank Indonesia applicable for the period.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The high and low amounts are determined based
    upon the daily middle exchange rate announced by Bank Indonesia
    during the applicable period.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">There are no average, high and low rates
    applicable for the exchange rate as of January&nbsp;16, 2004 as
    this is a daily rate.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<I><FONT size="2">Source:</FONT></I><FONT size="2">&nbsp;Bank
Indonesia
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The exchange rates used for translation of
monetary assets and liabilities denominated in foreign
currencies are the buy and sell rates published by Bridge
Telerate and Reuters in 2001 and 2002 respectively. The buy and
sell rates published by Bridge Telerate were Rp.10,400 and
Rp.10,450 to US$1 as at December&nbsp;31, 2001. The Reuters buy
and sell rates, applied respectively to monetary assets and
liabilities, were Rp.8,940 and Rp.8,960 to US$1 as of
December&nbsp;31, 2002. The Company does not guarantee that
assets and liabilities denominated in foreign currencies can be
converted into Indonesian Rupiah at the rates of exchange as of
December&nbsp;31, 2002.
</FONT>

<P align="center"><FONT size="2">13
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The financial statements are stated in Rupiah.
The translations of Rupiah amounts into US Dollars are included
solely for the convenience of the readers and have been made
using the average of the market buy and sell rates of Rp.8,950
to US$1 published by Reuters on December&nbsp;31, 2002. The
translations should not be construed as representations that the
Rupiah amounts have been, could have been, or can in the future
be, converted into US Dollars at this or any other rate of
exchange.
</FONT>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization
and Indebtedness</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<P align="left">
<B><FONT size="2">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reason for the
Offer and Use of Proceeds</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<P align="left">
<B><FONT size="2">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk
Factors</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">TELKOM is filing this amended annual report
late and may face an SEC enforcement action, or other legal
liability or adverse consequences.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM was unable to meet its June&nbsp;30, 2003
deadline to file a fully compliant Annual Report on
Form&nbsp;20-F for 2002 because the audit firm it had originally
appointed to perform its 2002 audit was not qualified for SEC
purposes, and TELKOM&#146;s SEC-qualified 2002 auditors, KAP
Drs.&nbsp;Hadi Sutanto &#38; Rekan, the member firm of
PricewaterhouseCoopers in Indonesia, did not begin their audit
work until their appointment in July 2003. TELKOM filed a
non-compliant Annual Report on April&nbsp;17, 2003 and then
filed an amended Annual Report on June&nbsp;11, 2003 to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">remove the 2002 reports of TELKOM&#146;s prior
    auditors, KAP Eddy Pianto, and the auditors of TELKOM&#146;s
    subsidiary, Telkomsel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">identify the consolidated financial statements
    therein for 2002 as &#147;unaudited&#148; and indicate that
    TELKOM&#146;s consolidated financial statements therein for 2002
    had not been audited by an independent accounting firm qualified
    in accordance with SEC requirements;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">furnish an explanation of the foregoing;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">describe the review by the SEC&#146;s Division of
    Corporation Finance of TELKOM&#146;s Annual Report on
    Form&nbsp;20-F for 2002 and of TELKOM&#146;s public statements
    regarding its annual report, and the referral of those matters
    to the SEC&#146;s Division of Enforcement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">discuss the material consequences of the
    deficiencies in its Annual Report, of TELKOM&#146;s public
    statements regarding such Annual Report and of an SEC
    enforcement action regarding the same; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">describe TELKOM&#146;s plan to bring its Annual
    Report into full compliance with applicable SEC regulations.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of the foregoing and because this Annual
Report was filed after the June&nbsp;30, 2002 deadline, TELKOM
may face an SEC enforcement action under U.S.&nbsp;securities
law and incur other legal liability and adverse consequences
such as a delisting of its ADSs from the New York Stock
Exchange. In addition, the staff of the SEC has described a
press release that TELKOM issued and furnished to the SEC on
Form&nbsp;6-K in May 2003 as &#147;grossly understating the
nature and severity of the staff&#146;s concerns&#148; regarding
matters related to TELKOM&#146;s filing of a non-compliant
Annual Report. Such press release could also form the basis of
an SEC enforcement action and other legal liability. TELKOM
cannot at this time predict the likelihood or severity of an SEC
enforcement action or any other legal liability or adverse
consequences.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of TELKOM&#146;s failure to timely
file a fully compliant Annual Report on Form&nbsp;20-F for 2002
with the SEC and our May 2003 press release relating thereto,
TELKOM may have been in breach of certain covenants in its
Citibank and Bank Central Asia (BCA) debt facilities that
require TELKOM,
</FONT>

<P align="center"><FONT size="2">14
</FONT>

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<DIV align="left">
<FONT size="2">among other things, to comply with all laws and
regulations applicable to it and deliver financial statements to
the lenders. TELKOM obtained written waivers from both Citibank,
acting as agent for the lenders under the relevant facility
agreements, and BCA with respect to such breaches. However, any
of the adverse consequences referred to in the foregoing
paragraph could give rise to defaults under one or more of
TELKOM&#146;s debt facilities and cross defaults under other
debt facilities with respect to such defaults. If TELKOM were
unable to obtain waivers of any such defaults, indebtedness
outstanding under such debt facilities could become immediately
due and payable, which could have a material adverse effect on
TELKOM&#146;s financial condition and results of operations.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Risks Relating to Indonesia</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Current political and social events in
    Indonesia may adversely impact business activity in
    Indonesia.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since 1998, Indonesia has experienced a process
of democratic change, resulting in political and social events
that have highlighted the unpredictable nature of
Indonesia&#146;s changing political landscape. These events have
resulted in political instability, as well as general social and
civil unrest on a number of occasions in the past few years. For
example, in June&nbsp;2001, demonstrations and strikes affected
at least 19&nbsp;cities after the Government mandated a 30%
increase in fuel prices. Similar demonstrations occurred in
January 2003, when the Government again tried to increase fuel
prices, as well as electricity and telephone charges. In both
instances, the Government was forced to drop or substantially
reduce such proposed increases.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Recently, hostilities in the province of Aceh
have reached new heights. A prior peace pact, known as the
Cessation of Hostilities Agreement, has failed to maintain peace
between the Free Aceh Movement (GAM) militia and the Government,
and the Joint Security Committee formed by the two sides has
been disbanded. Increasing tension in Aceh has led to a recent
military build-up in the province and continued outbreaks of
violence, arson and social unrest. Human rights violators,
including those from high-ranking military positions, have
recently begun to be more actively prosecuted in Indonesia.
However, the success of these prosecutions has been mixed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the years 2002 and 2003, several bombing
incidents took place in Indonesia, including in Bali, at the
JW&nbsp;Marriott hotel in Jakarta and at the airport, shopping
centers and places of worship. Terrorist acts may be directed at
foreigners in Indonesia or in relation to political matters such
as the national general elections scheduled for 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the lead-up to the national general election
scheduled for 2004, in which Indonesians will for the first time
directly elect the President, Vice-President and representatives
in the Indonesian parliament via a proportional open voting
system, increased political activity can be expected in
Indonesia. Based on prior experience in recent general elections
in Indonesia, it can be expected that this campaigning may bring
a degree of political and social uncertainty to Indonesia during
the period leading up to the general election. As a result, the
business community may also be adversely affected, as foreign
and domestic investors may exercise caution and scale down or
postpone business activity during this period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Political and related social developments in
Indonesia have been unpredictable in the past, and there can be
no assurance that social and civil disturbances will not occur
in the future and on a wider scale, or that any such
disturbances will not, directly or indirectly, have a material
adverse effect on us or on an investment in the ADSs or Common
Stock and could continue to have, a material adverse effect on
investment and confidence in, and the performance of, the
Indonesian economy, and in turn our business.
</FONT>

<P align="center"><FONT size="2">15
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Declines or volatility in Indonesia&#146;s
    currency exchange rates can have a material adverse impact on
    business activity in Indonesia.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government&#146;s exchange rate policies and
any future changes in the value of the Rupiah against the
US&nbsp;Dollar or other currencies could adversely affect
TELKOM&#146;s financial condition and results of operations. On
August&nbsp;14, 1997, Bank Indonesia permitted the exchange rate
for the Rupiah to float without announcing a level at which it
would intervene. From August 1997 to mid-1998, the month-end
value of the Rupiah relative to the US&nbsp;Dollar declined from
approximately Rp.2,600 per US&nbsp;Dollar to as low as
approximately Rp.15,000 per US&nbsp;Dollar. There can be no
assurance that the Rupiah will not be subject to continued
depreciation or volatility, that the current exchange rate
policy will remain the same, that the Government will act when
necessary to stabilize, maintain or increase the value of the
Rupiah, or that any such action, if taken, will be successful.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Continued depreciation or volatility of the
Rupiah against the US&nbsp;Dollar or other currencies could
adversely affect general economic conditions in Indonesia.
Rupiah depreciation would also drive up the Rupiah cost of
TELKOM&#146;s capital expenditure program since most of the
equipment to be used in the expansion of TELKOM&#146;s network
capacity is sourced off-shore and priced in foreign currencies,
mainly in US&nbsp;Dollars and Euros, while almost all of
TELKOM&#146;s revenues are in Rupiah. Changes in the current
exchange rate policy may result in significantly higher domestic
interest rates, liquidity shortages, capital or exchange
controls or the withholding of additional financial assistance
by multilateral institutions. The foregoing consequences, if
they occur, could have a material adverse effect on
TELKOM&#146;s business. As at December&nbsp;31, 2002, the
exchange rate of Rupiah to US&nbsp;Dollar, based on the Reuters
average buy and sell rates, was Rp.8,950 per US&nbsp;Dollar.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fluctuations in the exchange rate between the
Rupiah and the US Dollar could affect, among other things, the
dollar value of any amounts a holder or beneficial owner of ADSs
will receive in the event we issue dividends, the US Dollar
value of the proceeds a holder or beneficial owner would receive
upon the sale in Indonesia of shares of the Common Stock and the
secondary market price of the ADSs.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indonesia relies heavily on aid from the
    International Monetary Fund and loans from the World Bank and
    the consequences of the withdrawal of such aid are
    unpredictable.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1997, having substantially depleted its
foreign currency reserves, the Government turned to the
International Monetary Fund (&#147;IMF&#148;) for financial
assistance to confront the economic crisis in Indonesia, and in
October 1997, the IMF agreed to provide financial assistance to
Indonesia contingent upon the implementation of numerous
economic reforms. The IMF has disbursed funds to the Government
since late 1997, although some disbursements have been delayed.
When the IMF has withheld disbursement of funds, it has done so
on the basis that the Government has not adequately complied
with the terms of its then-current letter of intent, such as
requirements to complete certain asset sales and implementation
of various reforms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government announced in 2002 that it intends
to discontinue its reliance on financial assistance from the
IMF. Given the Government&#146;s fiscal deficit and modest
foreign exchange reserves, the discontinuance by the IMF of the
disbursement of funds to the Government could cause the
Government to be unable to fund subsidies for staples such as
food and fuel, which, in turn, could have extremely serious
political and social consequences. Other consequences of any
such discontinuance are not known at this stage. There can be no
assurance that the Government would be able to obtain
alternative funding in the event the IMF ends its disbursements
of funds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The members of the Paris Club are another
important source of funding for the Government. The Paris Club
is an informal voluntary group of 19 creditor countries that
seeks to coordinate solutions for payment difficulties
experienced by debtor nations. As of December&nbsp;31, 2002,
lending from the Paris Club members to the Government accounted
for approximately one-third of the Government&#146;s total debt.
In April 2002, the Paris Club decided to reschedule the
Government&#146;s approximately US$5.4&nbsp;billion of principal
and interest that is due to certain creditors between April 2002
and December 2003 by extending the Government&#146;s payment
period.
</FONT>

<P align="center"><FONT size="2">16
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the IMF and the Paris Club, the
World Bank has been an important source of funds for Indonesia.
As of February 2003, the World Bank had provided a net amount of
financed projects amounting to US$3.5&nbsp;billion, with
disbursed projects totaling US$2&nbsp;billion. The World Bank
has cited the slow pace of institutional reforms in Indonesia,
as well as concern that the Government&#146;s decentralization
plan, particularly the empowerment of provincial governments to
borrow, could lead to the central Government&#146;s inability to
service its debts. The World Bank&#146;s lending program is
subject to regular compliance reviews and can be reduced or
withdrawn at any time. The impact of any reduction or
elimination of lending from the World Bank to Indonesia cannot
be assessed, but is likely to be materially adverse.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indonesia&#146;s high level of sovereign
    debts may result in it being unable to service its debt
    obligations when they become due.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indonesia&#146;s high level of sovereign debts
has forced it to negotiate with its major creditors several
times since the 1997 financial crisis. For example, the
Government held a round of talks with the Paris Club donor
countries and the IMF in April 2002 to discuss the rescheduling
of Indonesia&#146;s debt due in 2002. In such talks, the
Government sought to restructure not just debt principal, but
interest payments as well, totaling US$2.6&nbsp;billion.
Although the meeting resulted in the restructuring of debt
principal payments, no assurance can be given as to
Indonesia&#146;s capacity to meet its rescheduled debt payments.
No further meetings have been held since that time. Further
decisions to renegotiate existing indebtedness may affect
Indonesia&#146;s sovereign credit rating and could have a
material adverse impact on investor confidence in Indonesia.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Indonesia&#146;s sovereign debt rating
    continues to be reviewed and revised by international rating
    agencies.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning in 1997, certain recognized statistical
rating organizations, including Moody&#146;s Investors Service,
Inc. (&#147;Moody&#146;s&#148;) and Standard &#38; Poor&#146;s
Rating Services (&#147;S&#38;P&#148;), downgraded
Indonesia&#146;s sovereign rating and the credit ratings of
various credit instruments of the Government and a large number
of Indonesian banks and other companies. As of
September&nbsp;30, 2003, the Government&#146;s long-term foreign
currency debt and its short-term foreign currency debt were
rated &#147;B2&#148; and &#147;NP&#148;, respectively, by
Moody&#146;s. As of October&nbsp;8, 2003, the Government&#146;s
long-term foreign currency debt and its short-term foreign
currency debt were rated &#147;B&#148; and &#147;B&#148;,
respectively, by S&#38;P. These ratings reflect an assessment of
the Government&#146;s overall ability to pay its obligations and
its willingness to meet its financial commitments as they come
due. No assurance can be given that Moody&#146;s, S&#38;P or any
other international credit rating agency will not downgrade the
credit ratings of Indonesia or Indonesian companies. Any such
downgrade would have an adverse impact on liquidity in the
Indonesian financial markets and the ability of Indonesian
companies, including TELKOM, to raise additional financing and
the interest rates at which such additional financing is
available.
</FONT>

<P align="left">
<B><FONT size="2">Risks relating to TELKOM and its
subsidiaries</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM&#146;s expansion plans may strain
    key resources and thereby adversely affect its business,
    financial condition and prospects.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To remain competitive and position TELKOM in
gaining market share, TELKOM has identified its primary business
objective as becoming a full service and network provider. To
achieve this objective, TELKOM has determined that it should
increase its focus on multimedia and other types of services in
addition to its present core business concentration on local,
domestic long-distance and mobile cellular services. TELKOM also
expects to commence providing IDD services upon receipt of a
license from the Government. Although TELKOM has prepared the
system to implement IDD, there is no certainty regarding when
Telkom will receive such license. The implementation of measures
designed to achieve this objective could strain TELKOM&#146;s
managerial, financial and other resources, which could adversely
affect TELKOM&#146;s business, financial condition and prospects.
</FONT>

<P align="center"><FONT size="2">17
</FONT>
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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Failure to amicably resolve KSO disputes
    may in some areas result in limited network expansion in some
    regions and impede TELKOM&#146;s access to subscribers and
    ability to compete effectively.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under certain KSO Agreements, part of
TELKOM&#146;s fixed line network is managed by TELKOM&#146;s KSO
partner. As a result of the Indonesian economic crisis that
began in 1997, certain KSO partners have experienced substantial
difficulties in fulfilling their obligations to TELKOM under the
KSO Agreements, leading to disputes between TELKOM and certain
KSO partners. TELKOM has explored various options to resolve the
KSO issues and has also sought to negotiate the acquisition of
all or a majority of shares of certain KSO partners. In 2001,
TELKOM acquired a 90.32% equity interest in PT&nbsp;Dayamitra
Telekomunikasi Indonesia (&#147;Dayamitra&#148;), the KSO
partner for KSO&nbsp;VI. On April&nbsp;19, 2002, TELKOM entered
into a conditional sale and purchase agreement for the purchase
of all of the outstanding equity interests in PT&nbsp;Pramindo
Ikat Nusantara (&#147;Pramindo&#148;), the KSO partner for
KSO&nbsp;I, to be completed in three stages. As part of the
initial closing, it acquired legal ownership of 30% of the
shares of Pramindo in August 2002, and obtained control over
Pramindo, subject to certain conditions, including that Telkom
continues to meet its payment obligations under the terms of the
promissory notes issued as consideration for the purchase price
and the protective rights retained by the selling stockholders.
Under the agreement, the legal ownership of a further 15% of the
shares of Pramindo was transferred on September&nbsp;30, 2003,
and the legal ownership to the remaining 55% of the shares is
expected to be transferred on December&nbsp;15, 2004. On
July&nbsp;31, 2003, TELKOM purchased all of the outstanding
equity interests in PT&nbsp;AriaWest International
(&#147;AriaWest&#148;), the KSO partner for KSO&nbsp;III.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;20, 2004, TELKOM and
PT&nbsp;Mitra Global Telekomunikasi Indonesia (&#147;MGTI&#148;)
entered into an agreement to amend and restate the KSO Agreement
with respect to Regional Division&nbsp;IV. Under this amendment
agreement, for the remaining KSO period, TELKOM will be entitled
at its sole discretion and expense to construct new
telecommunications facilities in Regional Division&nbsp;IV and
MGTI will receive fixed monthly payments derived from revenues
generated by the Regional Division&nbsp;IV operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because the KSO partners are responsible for the
network development and have operational responsibility in the
KSO regions, the failure to amicably resolve the issues in a
particular KSO region may result in limited network expansion
and impede TELKOM&#146;s access to subscribers and its ability
to compete effectively in that region.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM&#146;s controlling
    stockholder&#146;s interests may differ from those of
    TELKOM&#146;s other stockholders.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government has an aggregate interest of
approximately 51.19% of the issued and outstanding shares of
TELKOM and has control of TELKOM and the ability to determine
the outcome of substantially all actions requiring the approval
of TELKOM shareholders. The Government is also the holder of the
Dwiwarna share of TELKOM, which has special voting rights and
veto rights over certain matters, including the election and
removal of the Directors and Commissioners of TELKOM. Through
the MoC, the Government also exercises regulatory power over the
Indonesian telecommunications industry. There might be
situations where the objectives of the Government, as
TELKOM&#146;s regulator and its controlling shareholder,
conflict with TELKOM&#146;s business goals. In addition, there
can be no assurance that the Government will not direct
opportunities to other telecommunications service providers in
which it holds an interest.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Certain systems failures could, if they
    occur, adversely affect TELKOM&#146;s results of
    operations.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s telecommunications services are
currently carried through its fixed-line, cellular and data
networks. All types of networks use last mile access, regional
metro junction, and long haul transmission networks as a common
network resource. For last mile access, TELKOM operates Copper
Access Network, Optical Access Network and Wireless Access
Network. The regional metro junction
</FONT>

<P align="center"><FONT size="2">18
</FONT>

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<DIV align="left">
<FONT size="2">and long haul transmission network operated by
TELKOM consists of optical fiber cable, microwave, submarine
cable and satellite transmission links.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any failure of this integrated network,
TELKOM&#146;s servers, or any link in the transmission chain
that results in an interruption in TELKOM&#146;s operations or
the provision of any service, whether from operational
disruption, natural disaster or otherwise, could damage
TELKOM&#146;s ability to attract and retain subscribers and
adversely affect its results of operations, financial condition
and prospects.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM&#146;s regulators and other
    telecommunications operators may challenge TELKOM&#146;s ability
    to apply PSTN tariffs to its new CDMA-based fixed wireless phone
    service, which is marketed under the brand name
    TELKOMFlexi.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2002, TELKOM introduced new
CDMA-based fixed wireless phone service, which is marketed under
the brand name TELKOMFlexi. This service is currently offered in
38 cities, 25 of which are financed entirely by TELKOM (in
non-BOT areas) and the remaining 13 are financed through the
Build, Operate and Transfer (BOT) scheme (in BOT areas).
CDMA-based fixed wireless technology enables rapid development
of telephone networks and reduces the capital expenditures per
line by obviating the need for the installation of underground
cables. TELKOMFlexi offers customers the ability to use a
wireless handset with limited mobility (within a local code
area). Customers have all features offered by cellular services
except roaming to other local area codes. Customers are charged
PSTN tariff rates for this service, which are substantially
lower than tariffs for cellular services. Telecommunications
regulators, cellular operators and cellular trade associations
have sought and may in the future seek to impose limitations on
TELKOM&#146;s ability to provide fixed wireless services at PSTN
rates. If any such limitations are imposed, TELKOM could lose
part or all of the benefit of its investment in the network that
supports the TELKOMFlexi service. TELKOM may also be subject to
disputes with its regulators or competitors.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM may need to raise funds required for
    certain future expenditure requirements and the terms of any
    debt financing may subject TELKOM to restrictive
    covenants.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM may need to raise significant additional
funds in order to support its growth, undertake acquisitions,
meet unexpected contingencies and develop new or enhanced
services and products. It may also need to respond to
competitive pressures, acquire complementary businesses or
technologies or take advantage of opportunities. TELKOM cannot
be certain that such additional funding, if needed, will be
available on acceptable terms. Furthermore, any debt financing,
if available, may involve restrictive covenants, which may limit
TELKOM&#146;s operating flexibility with respect to certain
business matters. If adequate funds are not available on
acceptable terms, TELKOM may be unable to develop or enhance its
services. It may also be unable to take advantage of future
opportunities or respond to competitive pressures, any of which
could have a material adverse effect on TELKOM&#146;s business,
results of operations and financial condition.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM&#146;s ability to develop adequate
    financing arrangements is critical to support its capital
    expenditures.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The telecommunications industry is capital
intensive in nature. In order to satisfy customer demand and
provide service and technology that is comparable to, and
compatible with, other telecommunications service providers,
TELKOM must continue to expand and modernize its network, which
involves substantial capital investment. TELKOM historically has
relied heavily on two-step loans obtained through the Government
and third-party financing, including vendor financing, to
support the development of its fixed line network. If TELKOM is
unable to obtain adequate vendor or other third-party financing
for its planned capital expenditures or otherwise fund such
expenditures through other financing arrangements, including
internal cash flows, TELKOM may have to forego, delay or
postpone certain of its planned capital expenditures. This may
prevent TELKOM from being able to expand sufficiently and
upgrade its network.
</FONT>

<P align="center"><FONT size="2">19
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Employee unions may negatively affect
    TELKOM&#146;s business.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Laws permitting the formation of labor unions,
combined with weak economic conditions, have resulted, and may
continue to result, in labor unrest and activism in Indonesia.
On February&nbsp;25, 2003, the Indonesian Parliament passed a
new employment law, Law No.&nbsp;13 of 2003 (the
&#147;Employment Law&#148;), which took effect on March&nbsp;25,
2003. The Employment Law covered the increment of severance
amount, service and compensation payment payable to terminated
employees as well as to allow employees to unionize without
intervention from employers. The Employment Law and new
implementation regulations that may be issued thereunder may
substantially affect labor relations in Indonesia. In May 2000,
TELKOM employees formed a union named &#147;Serikat Karyawan
TELKOM&#148; or &#147;SEKAR&#148;. Membership with SEKAR is not
compulsory. TELKOM believes that its relations with SEKAR are
good. However, there can be no assurance that the activities of
employee unions will not materially and adversely affect
TELKOM&#146;s business, financial condition and prospects.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">New technologies may adversely affect
    TELKOM&#146;s ability to remain competitive.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The telecommunications industry is characterized
by rapid and significant changes in technology. TELKOM may face
increasing competition from technologies currently being
developed or that may be developed in the future. New
technologies, services or standards could require significant
changes to its business model, the development of new products
or the provision of additional services. In addition, TELKOM may
need to substantially upgrade its network to implement
convergent technologies and update and expand its billing and
credit control systems to accommodate growth in its business and
the adoption of new technologies and services. New products and
services may be expensive to develop and may result in the
introduction of additional competitors into the marketplace.
TELKOM cannot accurately predict how emerging and future
technological changes will affect its operations or the
competitiveness of its services. Similarly, TELKOM cannot
provide any assurances that the technologies it adopts will not
soon thereafter become obsolete or subject to intense
competition from new technologies in the future.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM operates in a legal and regulatory
    environment that is undergoing significant reforms and such
    reforms may adversely affect TELKOM&#146;s
    business.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There are a number of uncertainties in the
current regulatory environment for the Indonesian
telecommunications industry. In particular, the
Telecommunications Law No.&nbsp;36 of 1999
(&#147;Telecommunications Law&#148;) provides key guidelines for
industry reforms, including industry liberalization,
facilitation of new entrants and changes to the industry&#146;s
competitive structure. The Telecommunications Law only outlines
the framework and substantive principles for the liberalization
of the telecommunications industry. TELKOM believes that there
is uncertainty in the Indonesian regulatory environment with
regard to, among other things:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Interconnection:
    </FONT></I><FONT size="2">TELKOM is obligated to allow other
    operators to interconnect their networks with those of TELKOM
    subject to entering into interconnection agreements with those
    other operators. Currently, TELKOM&#146;s ability to negotiate
    such interconnection agreements is limited by the provisions set
    forth in various Ministerial Decrees governing interconnection
    rates. Following the enactment of the Telecommunications Law, a
    restructuring of the interconnection policy has been proposed
    based upon a cost-based tariff as mutually determined by the
    operators rather than the revenue sharing scheme as currently
    implemented. As of the date of this Annual Report, the
    Government has not finalized regulations regarding the
    implementation of the new interconnection policy.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Licenses: </FONT></I><FONT size="2">The
    Government is in the process of amending certain TELKOM licenses
    to comply with the Telecommunications Law and to establish the
    so-called Modern License. The Government, with due regard to
    prevailing laws and regulations, may amend the terms of
    TELKOM&#146;s licenses and business authority at its discretion.
    Any breach of the terms and conditions of its licenses or
    business authority or failure to comply with applicable
    regulations may result in such
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">20
</FONT>

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    <TD width="1%"></TD>
    <TD width="96%"></TD>
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    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">licenses or business authority being revoked. Any
    revocation or unfavorable amendment of the licenses or business
    authority, or any failure to renew them on comparable terms,
    could have a materially adverse effect on TELKOM&#146;s
    business, financial condition, results of operations and
    prospects.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Tariffs: </FONT></I><FONT size="2">In 1995,
    the Government implemented regulations providing a formula to
    establish the tariff adjustment for domestic fixed line
    telecommunications services. However, such annual tariff review
    adjustment has not been applied on a consistent basis. In
    addition, amendments to the current price cap policy allow
    operators to calculate yearly tariff adjustments beginning
    January&nbsp;1, 2002, based on a formula to be stipulated by the
    Government. On January&nbsp;29, 2002, the Government issued a
    letter to TELKOM stipulating a 45.49% increase in domestic fixed
    line telephone tariffs to be implemented over three years
    (2002&nbsp;&#151; 2004). For the year 2002, the first tariff
    increase, with an average 15% increase, has been implemented. In
    January 2003, the Government postponed the second tariff
    increase due to numerous public protests. There is no assurance
    as to when or whether the 2004 tariff increase will be
    implemented by the Government. The 2003 tariff increment has
    been suspended by the Government.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Indonesian Telecommunications Regulatory
    Body</FONT></I><FONT size="2"> (ITRB): The Telecommunications
    Law contemplates the establishment of a new independent
    regulatory body to regulate, monitor, and control the
    telecommunications industry. The ITRB comprises officials from
    the Directorate General of Post and Telecommunication and the
    Committee of Telecommunications Regulations and was officially
    established on July&nbsp;11, 2003. There can be no assurance
    that the ITRB will not take actions that may be detrimental to
    TELKOM&#146;s business or prospects.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Competition in the Fixed Line Domestic
    Telecommunications Market:
    </FONT></I><FONT size="2">Historically, TELKOM has had the
    exclusive right to provide fixed line domestic
    telecommunications services in Indonesia. Pursuant to
    regulations introduced to implement the Telecommunications Law,
    the Government plans to terminate TELKOM&#146;s monopoly in
    providing fixed line domestic telecommunications services. It
    has issued Indosat a principal license to provide local
    telephone services from August 2002, an operational license for
    local telephone services, and announced that Indosat is expected
    to receive a license to provide domestic long-distance telephone
    services creating a &#147;duopoly system&#148; in
    Indonesia&#146;s fixed line domestic telecommunications market.
    Competition in the fixed line market could lead to a decline in
    TELKOM&#146;s existing subscriber base as subscribers choose to
    receive services from other providers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Compensation Risk:
    </FONT></I><FONT size="2">The Telecommunications Law provides
    that TELKOM and Indosat will be compensated for the early
    termination of their exclusive rights. TELKOM previously had
    exclusive rights to provide fixed local and domestic
    long-distance services in Indonesia. TELKOM&#146;s exclusive
    right to provide fixed local telecommunications services has
    been terminated by the Government as of August 2002 and
    currently TELKOM&#146;s exclusive right is limited to domestic
    long-distance services. TELKOM&#146;s exclusive right to provide
    domestic long-distance services was expected to be terminated by
    the end of 2003. However, to date, the exclusive right has not
    been terminated. The Government has determined the scheme of
    compensation for the termination of TELKOM&#146;s exclusive
    rights, which will consist of (i)&nbsp;expedited issuance of an
    IDD license to TELKOM; (ii)&nbsp;approval of the reissuance and
    transfer of TELKOM&#146;s DCS 1800 license to Telkomsel, which
    took place on July&nbsp;12, 2002; and (iii)&nbsp;a cash payment
    to be determined by the Government according to the valuation of
    an independent appraiser. TELKOM&#146;s KSO partners may be
    entitled in certain circumstances to a portion of the cash
    compensation component payable to TELKOM for the termination of
    its exclusive rights. The Government has appointed a reputable
    independent appraiser to resolve any difference of opinion
    regarding the value of the compensation, and the independent
    appraiser has finalized its work and submitted the result to the
    Government. However, to date, TELKOM has not received formal
    notice from the Government as to the final amount of
    compensation to be received by it.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">21
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">USO Risk: </FONT></I><FONT size="2">All
    telecommunications network operators and service providers are
    bound by a Universal Service Obligation, or USO, which requires
    provision of certain telecommunications facilities and
    infrastructure in rural and remote areas. As a local network
    provider, TELKOM is obligated to build and operate
    telecommunications networks in the USO areas. Historically,
    TELKOM has been obligated to contribute 5% of its capital
    expenditures to its USO requirements. TELKOM has typically
    experienced financial losses in providing such network capacity
    in rural and remote areas. To date, the Government has not
    finalized the new USO regulation for telecommunications
    operators in Indonesia.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There can be no assurance that the amendment or
interpretation or implementation of current laws and
regulations, or the introduction of additional laws or
regulations, will not adversely affect TELKOM&#146;s business,
financial condition and prospects.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM&#146;s increasingly important
    cellular operations face significant constraints and competitive
    pressures.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM provides cellular telecommunications
services primarily through its subsidiary Telkomsel (GSM 900 Mhz
and 1800 Mhz). Telkomsel has experienced rapid growth in its
subscriber-base in recent years, and its revenue has become an
increasingly large component of TELKOM&#146;s consolidated
revenue. Telkomsel&#146;s future growth depends upon its ability
to manage capacity and spectrum constraints. Telkomsel has
experienced such constraints in the past and may face such
constraints in the future, which may result in network
congestion, reduced service quality and an inability to increase
and retain its subscriber-base and as a result may impede future
growth. Telkomsel is seeking to substantially increase the
capacity of its cellular network over the next three years.
However, spectrum and capacity are subject to regulatory
approval and allocation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indonesian cellular telecommunications market
is highly competitive. Currently, Telkomsel competes primarily
with Indosat and Excelcomindo in attracting and retaining
subscribers for its mobile cellular telecommunications services.
There are also several other new competitors, including new CDMA
cellular operators. Competition between Telkomsel and all of
these operators is based on various factors such as pricing,
network quality and coverage, range of services offered and
customer service.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM&#146;s satellites have a limited
    life and substantial risk exists for TELKOM-1 and Palapa B-4 to
    be damaged or interrupted during operation, and satellite loss
    or reduced performance may adversely affect our financial
    condition, results of operations and ability to provide certain
    services.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s TELKOM-1 and Palapa B-4 satellites
have a limited operational life. A number of factors affect the
operational lives of satellites, including the quality of their
construction, the durability of their component parts, the
amount of fuel on board, the launch vehicle used and the manner
in which the satellite is monitored and operated. The satellites
could fail before the end of their useful lives, and repairing
these satellites while in orbit is not feasible. TELKOM
currently maintains in-orbit insurance covering the loss of the
TELKOM-1 and Palapa&nbsp;B4 satellites, providing for payments
of US$64.7&nbsp;million for TELKOM-1 and US$6.0&nbsp;million for
Palapa&nbsp;B-4 in the event of a total loss of the satellite.
TELKOM plans to launch a new TELKOM-2 satellite in November 2004
to replace the existing Palapa&nbsp;B4 satellite (which is
expected to be taken out of service around the end of 2004). The
loss of existing satellites and the failure to launch the new
satellite may have a material adverse effect on our financial
condition, results of operations and ability to provide certain
services.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM is subject to Indonesian accounting
    and corporate disclosure standards that differ in significant
    respects from those applicable in other countries.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There may be less publicly-available information
about Indonesian public companies, including TELKOM, than is
regularly disclosed by public companies in countries with more
mature securities
</FONT>

<P align="center"><FONT size="2">22
</FONT>

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<DIV align="left">
<FONT size="2">markets. TELKOM&#146;s audited consolidated
financial statements have been prepared in accordance with
Indonesian GAAP, which differs in certain material respects from
U.S.&nbsp;GAAP. See &#147;Item&nbsp;5. Operating and Financial
Review and Prospects&nbsp;&#151; Summary of Material Differences
between Indonesian GAAP and U.S.&nbsp;GAAP&#148; and
Note&nbsp;57 to the Company&#146;s consolidated financial
statements.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">You are unable to pursue claims against
    Prasetio, Utomo&nbsp;&#38; Co., a member firm of Arthur
    Andersen, which was the former auditor for
    Telkomsel.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prasetio, Utomo&nbsp;&#38; Co., formerly a member
firm of Arthur Andersen, no longer exists as a legal entity in
Indonesia following its dissolution in 2002. Accordingly, you
will not be able to seek or recover damages from Prasetio,
Utomo&nbsp;&#38; Co. or Arthur Andersen in connection with its
audit report for Telkomsel included in this Annual Report.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">TELKOM is incorporated in Indonesia, and it
    may not be possible for investors to effect service of process
    or to enforce judgments obtained in the United States against
    Telkom.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is a limited liability company
incorporated in Indonesia, operating within the framework of
Indonesian laws relating to public companies, and all of
TELKOM&#146;s significant assets are physically located in
Indonesia. In addition, the majority of TELKOM&#146;s
Commissioners and Directors reside in Indonesia and a
substantial portion of the assets of such persons is located
outside the United States. As a result, it may not be possible
for investors to effect service of process, including judgments,
on TELKOM or such persons within the United States, or to
enforce against TELKOM or such persons in the United States
judgments obtained in United States courts, including judgments
predicated upon the civil liability provisions of the Untied
States federal securities laws or the securities laws of any
state within the United States, or upon other bases.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has been advised by its Indonesian legal
advisor that judgments of United States courts, including
judgments predicated upon the civil liability provisions of the
United States federal securities laws, are not enforceable in
Indonesian courts, although such judgments could be admissible
as non-conclusive evidence in a proceeding on the underlying
claim in an Indonesian court. There is doubt as to whether
Indonesian courts will enter judgments in original actions
brought in Indonesian courts predicated solely upon the civil
liability provisions of the United States federal securities
laws. As a result, holders of ADSs or Common Stock would be
required to pursue claims against TELKOM or its Commissioners
and Directors in an Indonesian court.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Forward-looking statements reflect current
    expectations and may not be correct.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This document contains various forward-looking
statements, including statements regarding our expectations and
projections for future operating performance and business
prospects. The words &#147;believe&#148;, &#147;expect&#148;,
&#147;anticipate&#148;, &#147;estimate&#148;,
&#147;project&#148; and similar words identify forward-looking
statements. In addition, all statements other than statements of
historical facts included herein are forward-looking statements.
These statements reflect TELKOM&#146;s current expectations.
Although TELKOM believes that the expectations reflected in the
forward-looking statements are reasonable, TELKOM can give no
assurance that such expectations will prove to be correct. They
are subject to a number of risks and uncertainties, including
changes in the economic, social and political environments in
Indonesia. In light of the many risks and uncertainties
surrounding Indonesia, investors in the ADSs or the common
shares should bear in mind that TELKOM cannot guarantee that the
forward-looking statements described herein will transpire. All
subsequent written and oral forward-looking statements
attributable to TELKOM or persons acting on our behalf are
expressly qualified in their entirety by reference to these
risks.
</FONT>

<P align="center"><FONT size="2">23
</FONT>

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<!-- link2 "ITEM 4. INFORMATION ON THE COMPANY" -->
<DIV align="left"><A NAME="008"></A></DIV>

<P align="left">
<B><FONT size="2">ITEM
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION ON THE
COMPANY</FONT></B>

<P align="left">
<B><FONT size="2">A.&nbsp;&nbsp;History and development of the
Company</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Perusahaan Perseroan (Persero)
P.T.&nbsp;Telekomunikasi Indonesia Tbk. (&#147;TELKOM&#148; or
the &#147;Company&#148;), a majority state-owned company, is the
principal provider of fixed-line services in Indonesia.
TELKOM&#146;s majority-owned subsidiary Telkomsel is also the
largest Indonesian mobile cellular operator, as measured by
subscribers and revenues. The Company also provides a wide range
of other telecommunications services including interconnection,
network, data and internet services, and other
telecommunications services. Pursuant to its Articles of
Association, TELKOM was established for an unlimited period of
time. The Company&#146;s purposes and objectives are to operate
telecommunications networks and provide telecommunications and
information services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1884, the Dutch colonial government
established a private company to provide postal services and
domestic telegraph services and, subsequently, international
telegraph services. Telephone services were first made available
in Indonesia in 1882 and, until 1906, were provided by
privately-owned companies pursuant to a 25-year government
license. In 1906, the Dutch colonial government formed a
government agency to assume control of all postal and
telecommunications services in Indonesia. In 1961, most of these
services were transferred to a newly-established state-owned
company to provide postal and telecommunications services in
Indonesia, apart from services in Sumatera, which were
transferred in the 1970&#146;s. The Government separated postal
and telecommunications services in 1965 into two state-owned
companies, PN Pos and Giro, and PN Telekomunikasi. In 1974, PN
Telekomunikasi was further divided into two state-owned
companies, Perusahaan Umum Telekomunikasi (&#147;Perumtel&#148;)
to provide domestic and international telecommunications
services and PT&nbsp;Inti, to provide telecommunications
equipment manufacturing. In 1980, the international
telecommunications business was transferred to Indosat.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1991, Perumtel was transformed into a
&#147;Persero&#148;, or state-owned limited liability
corporation with commercial purposes, and renamed Perusahaan
Perseroan (Persero) P.T.&nbsp;Telekomunikasi Indonesia, known as
TELKOM. Prior to 1995, TELKOM&#146;s business operations were
segregated into twelve regional operating units, known as
&#147;Witels,&#148; which were centrally controlled from
TELKOM&#146;s headquarters in Bandung, West Java. Each Witel had
a management structure responsible for all aspects of
TELKOM&#146;s business in their respective regions, from the
provision of telephone services to property management and
security. The Company has its place of domicile in Indonesia and
its registered office at No.&nbsp;1, Jalan Japati, Bandung,
40133, Indonesia, Tel. No.&nbsp;(62) (22)&nbsp;452-1510.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 1995, TELKOM restructured its operations
by converting all twelve Witels into seven regional divisions
(Division I Sumatera; Division II Jakarta and the surrounding
areas; Division III West Java; Division IV Central Java;
Division V East Java; Division VI Kalimantan; and Division VII
Eastern part of Indonesia) and one Network Division. The Company
also entered into KSO Agreements pursuant to which it
transferred the right to operate of five of its seven regional
divisions (regional divisions I, III, IV, VI, and VII)&nbsp;to
private sector consortia, each of which involved one or more
prominent international telecommunications operators. The KSO
Agreements provided for the relevant KSO partner to manage and
operate the regional division for a fixed term, undertake the
construction of a specified number of fixed lines and, at the
end of the fixed term, transfer the existing and new
telecommunications facilities in the region to TELKOM for an
agreed amount of compensation. The KSO Agreements also provided
for TELKOM and the KSO partner to share revenues generated
during the term of the agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;14, 1995, the Government sold
TELKOM shares through an initial public offering. TELKOM shares
are listed on the Jakarta Stock Exchange and the Surabaya Stock
Exchange, and its shares, in the form of ADSs, are listed on the
New York Stock Exchange and the London Stock Exchange. Its
shares have also been publicly offered without listing on the
Tokyo Stock Exchange. TELKOM is currently one of the largest
companies by market capitalization in Indonesia, with a market
capitalization of approximately Rp.514,800&nbsp;billion as of
January&nbsp;20, 2004. The Government currently has an aggregate
interest of approximately 51.19% of the issued and outstanding
shares of TELKOM.
</FONT>

<P align="center"><FONT size="2">24
</FONT>

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<DIV align="left">
<FONT size="2">The Government also holds the Dwiwarna share of
TELKOM, which has special voting and veto rights over certain
matters.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following the Indonesian economic crisis that
began in mid-1997, certain KSO partners experienced difficulties
in fulfilling their obligations to TELKOM leading to certain
disputes. As a result, TELKOM has in recent years acquired or
entered into agreements to acquire control of its KSO partners
in regions&nbsp;I, III and VI. In 2001, TELKOM acquired 90.32%
of the shares of its KSO partner for Regional Division&nbsp;VI,
PT&nbsp;Dayamitra Telekomunikasi (&#147;Dayamitra&#148;), and
purchased a call option and granted a put option with respect to
the remaining shares of Dayamitra. In 2002, TELKOM entered into
an agreement to acquire 100% of the shares of its KSO partner in
Regional Division&nbsp;I, PT&nbsp;Pramindo Ikat Nusantara
(&#147;Pramindo&#148;). Under the terms of its agreement with
Pramindo, TELKOM agreed to acquire the shares of Pramindo in
three tranches, August 2002 (30%), September 2003 (15%) and
December 2004 (55%). TELKOM obtained management control of
Pramindo in August 2002. In 2003, TELKOM acquired 100% of the
shares of its KSO partner for Regional Division III,
PT&nbsp;AriaWest International (&#147;AriaWest&#148;). For a
more complete description of the foregoing transactions and
TELKOM&#146;s KSO arrangements, see &#147;Item&nbsp;10C.
Additional Information&nbsp;&#151; Material Contracts&#148; and
&#147;Item&nbsp;4B. Information on the Company&nbsp;&#151;
Business Overview&nbsp;&#151; Joint Operation Scheme (KSO)&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1999, the Government passed Telecommunications
Law No.&nbsp;36 which became effective in September of 2000. The
Telecommunications Law provides key guidelines for industry
reforms, including industry liberalization, facilitation of new
entrants and enhanced competition. Under the prior
telecommunications law, TELKOM and PT&nbsp;Indonesian Satellite
Corporation (&#147;Indosat&#148;) maintained joint ownership in
most telecommunications companies in Indonesia. The Governments
reforms called for the progressive elimination of these joint
shareholdings to promote competition. As a result, in 2001,
TELKOM acquired Indosat&#146;s 35% interest in Telkomsel,
resulting in TELKOM owning 77.72% of the shares of Telkomsel,
and Indosat acquired TELKOM&#146;s 22.5% interest in Satelindo
and 37.2% interest in Lintasarta. In 2002, TELKOM sold 12.72% of
Telkomsel to Singapore Telecom Mobile Pte Ltd (&#147;SingTel
Mobile&#148;), resulting in TELKOM&#146;s ownership being
reduced to 65% of the shares of Telkomsel. For a more complete
description of the foregoing transactions, see
&#147;Item&nbsp;10.C. Additional Information&nbsp;&#151;
Material Contracts&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Telecommunications Law, the
Government as of August&nbsp;1, 2001 terminated the exclusive
rights of TELKOM to provide fixed-line services in Indonesia and
Indosat to provide international direct dial services. The
termination of these exclusive rights once fully implemented is
expected to result in TELKOM and Indosat providing new
telecommunications services in competition with each other.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For a description of the important events in the
development of the Company&#146;s business since the beginning
of the Company&#146;s last three financial years to the date of
this Annual Report, see &#147;Item&nbsp;5A. Operating and
Financial Review and Prospects&nbsp;&#151; Operating
Results&nbsp;&#151; Overview&#148;. A description of the
Company&#146;s principal capital expenditures and divestitures,
since the beginning of the Company&#146;s last three financial
years to the date of this Annual Report is set forth in
&#147;Item&nbsp;5B. Operating and Financial Review and
Prospects&nbsp;&#151; Liquidity and Capital Resources&#148;.
Information concerning the principal capital expenditures and
divestitures currently in progress is also described in
&#147;Item&nbsp;5B. Operating and Financial Review and
Prospects&nbsp;&#151; Liquidity and Capital Resources&#148;.
</FONT>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business
Overview</FONT></B>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is the main provider of fixed-line
telecommunications services in Indonesia and is the majority
owner of Telkomsel, which is the largest Indonesian mobile
cellular operator, as measured by subscribers and revenue. The
Company also provides a wide range of other telecommunications
</FONT>

<P align="center"><FONT size="2">25
</FONT>

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<DIV align="left">
<FONT size="2">services including interconnection, network, data
and internet services, and other telecommunications services.
TELKOM reports revenues in the following categories:
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Fixed-line (which consists of fixed wireline and
    fixed wireless);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Cellular;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Joint Operation Scheme (KSO);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Interconnection;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Network;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Data and Internet;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Revenue Sharing Arrangements; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Other Telecommunications-related Services
    (including revenues from telephone directory services).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These revenue categories are all reported as part
of the &#147;Fixed Line&#148; segment in the consolidated
financial statements with the exception of the cellular business
which is reported as a separate segment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For 2002, no single customer, other than
interconnection customers, accounted for more than 1% of
TELKOM&#146;s total operating revenues, and TELKOM&#146;s top
100&nbsp;customers, other than interconnection customers,
together accounted for more than 5% of its total operating
revenues. For the purpose of calculating operating revenues,
TELKOM treats each state-owned enterprise owned by the
Government as a single customer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s business does not experience
significant seasonality.
</FONT>

<P align="left">
<B><FONT size="2">Fixed-Line Services</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed-line services are comprised mainly of local
and domestic long-distance services. TELKOM is the principal
provider of fixed-line services in Indonesia. In 2002, TELKOM
provided fixed-line services in Divisions I,&nbsp;II, V and VI.
In 2002, revenues from fixed-line services in these divisions
contributed Rp.7,264.1&nbsp;billion (US$811.6&nbsp;million), or
34.9% of total operating revenues. Beginning July&nbsp;31, 2003,
when TELKOM acquired KSO investor, PT&nbsp;AriaWest
International (&#147;AriaWest&#148;), TELKOM began providing
fixed-line services in Division III. Fixed-line services in
Divisions IV and VII continue to be provided through KSO joint
venture arrangements and revenue to TELKOM from these KSOs are
reported under Joint Operation Scheme. See
&#147;&#151;&nbsp;Joint Operation Scheme&#148; below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed-line subscribers pay one-time installation
charges, ongoing monthly subscription charges and usage charges
for local and domestic long-distance services. Usage charges are
generally uniform nationwide and are based on call distance,
call duration and the time of day at which calls are made. In
addition, subscribers are provided with a number of value-added
features, such as voicemail and information services and billing
and directory assistance, which are billed on a monthly basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has historically been the principal
provider of fixed-line services and Indosat has historically
been the principal provider of international direct dial
services in Indonesia. However, the Government as of
August&nbsp;1, 2002 has terminated TELKOM&#146;s exclusive
rights to provide local fixed-line services and Indosat&#146;s
exclusive rights to provide international direct dial services.
This may result in Telkom and Indosat engaging in competition
with each other.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CDMA Fixed
Wireless</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM began offering a limited mobility (within
a local area code) CDMA-based fixed wireless phone service under
the brand name &#147;TELKOMFlexi&#148; in December 2002.
TELKOM&#146;s rollout of this service began in the three cities
of Surabaya, Denpasar and Balikpapan and is now also available
in 35 other cities. TELKOM&#146;s rollout of this limited
mobility fixed wireless service is occurring concurrently
</FONT>

<P align="center"><FONT size="2">26
</FONT>

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<DIV align="left">
<FONT size="2">with its use of CDMA fixed wireless technology
for the development of its fixed-line network. CDMA-based fixed
wireless technology enables rapid development of telephone
networks and the reduction of capital expenditures per line by
reducing and often eliminating the need for layout of cables.
TELKOM intends to continue to rapidly develop its CDMA-based
fixed wireless network and expand its TELKOMFlexi service to
other cities and regions in Indonesia. As of December&nbsp;31,
2002, TELKOM had 396 BTSs and 829,547 line units deployed, of
which 380 BTSs and 775,647 line units were financed by TELKOM
itself and 16 BTSs and 53,900 line units were established under
the BOT scheme. As of December&nbsp;31, 2003, TELKOM has
achieved sales of 452,185 TELKOMFlexi Line Units (consisting of
443,977 Line Units in non-BOT areas and 8,208 Line Units in BOT
areas).
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOMFlexi revenues are reported under
fixed-line services. These revenues are being reported as
fixed-line revenues because this business is being conducted
pursuant to TELKOM&#146;s fixed-line license. See
&#147;&#151;&nbsp;Regulation&#148; below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOMFlexi subscribers have the option of
postpaid and prepaid services. Postpaid subscribers pay one-time
activation charges, ongoing monthly subscription charges and
usage charges for local domestic-long distance and international
services, which charges are generally the same as those paid by
fixed-line subscribers. Prepaid subscribers purchase SIM-cards
and refill vouchers in amounts of Rp.50,000, Rp.100,000 and
Rp.150,000 and pay only usage charges, which are higher than
those paid by postpaid subscribers. For prepaid services, a
customer purchasing a Rp.80,000 SIM card or a Rp.50,000 refill
voucher is counted as a subscriber for two months, a Rp.100,000
voucher or refill is counted as a subscriber for three months
and a Rp.150,000 voucher or refill is counted as a subscriber
for four months. Each time a customer purchases a refill such
two, three and four month period is recalculated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOMFlexi subscribers are also provided with a
number of value-added features, such as SMS, voicemail and
information services, such as billing and directory assistance.
The revenues from these services are reported in the Data and
Internet category. See &#147;&#151;&nbsp;Data and Internet
Services&#148; below.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IDD
Services</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is preparing to offer IDD services. TELKOM
expects to receive its formal &#147;Modern License&#148; from
the Government to provide these services as compensation for
loss of exclusivity for local and DLD services. IDD revenues
will be reported under fixed-line services. Through its VoIP
services, TELKOM already provides international long-distance
services. Revenues from VoIP services are, however, recorded
under &#147;Data and Internet Services,&#148; because this
service relies on data transmission over the internet. See
&#147;&#151;&nbsp;Data and Internet Services&#148; below.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Cellular Services</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM provides its mobile cellular services
mainly through its 65%-owned subsidiary Telkomsel. Cellular
revenues grew by 32.3% from Rp.4,708.0&nbsp;billion, or 28.9% of
TELKOM&#146;s total operating revenues, for the year ended
December&nbsp;31, 2001 to Rp.6,226.8&nbsp;billion
(US$695.7&nbsp;million), or 29.9% of TELKOM&#146;s total
operating revenues, for the year ended December&nbsp;31, 2002.
Over the same period, the number of Telkomsel&#146;s mobile
cellular subscribers has increased from approximately
3.3&nbsp;million at the end of 2001 to approximately
6.0&nbsp;million at the end of 2002. Based on data developed by
Telkomsel from various sources, Telkomsel had an estimated 52.8%
share of the GSM cellular market in Indonesia at the end of 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel provided GSM cellular services in
Indonesia through its own network and internationally through
167 international roaming partners in 70 countries as of the end
of 2002. Telkomsel currently has the largest network of any of
the cellular operators in Indonesia, providing coverage to over
85% of Indonesia&#146;s population and more than 600 cities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel provides its subscribers with the
option of a prepaid service under the brand name &#147;SimPATI
Nusantara,&#148; or a postpaid service under the brand name
&#147;KartuHALO.&#148; Telkomsel also offers tailor-made
postpaid services for corporate customers and a post-paid family
service under the
</FONT>

<P align="center"><FONT size="2">27
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">brand name &#147;HALOkeluarga&#148;. Postpaid
subscribers pay one-time activation charges, ongoing monthly
subscription charges and usage charges for local, domestic-long
distance and international services.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prepaid customers purchase a starter package, the
price of which starts at Rp.75,000, depending on the value of
the pre-paid voucher included in the package. The Rp.75,000
starter package contains a SimPATI SIM card worth Rp.50,000. The
Rp.100,000 and Rp.150,000 starter packages contain SimPATI SIM
cards worth Rp.50,000 and Rp.100,000, respectively. Customers
can buy pre-paid vouchers ranging in value from Rp.50,000 to
Rp.1,000,000 to increase the value of their SIM cards. The
customer&#146;s prepaid account can be topped up electronically
or by supplemental refill vouchers. When refill vouchers are
purchased, subscribers call an automated telephone number and
enter a 14-digit code printed on their voucher in order to
activate or supplement their account with the new prepaid
amount. The prepaid customer credits have a predetermined expiry
date and irrespective of usage will expire on such date. SimPATI
starter packages and refill vouchers may be purchased at any of
Telkomsel&#146;s service centres and distribution outlets.
Electronic refills may also be purchased at selected automatic
teller machines, via telephone banking or over the Internet.
Provided that they meet certain credit-related eligibility
requirements, SimPATI customers may sign up for Telkomsel&#146;s
post-paid KartuHALO services at any time without having to
change their telephone numbers. While SimPATI customers do not
pay an activation fee or monthly subscription charges, they pay
higher usage charges than postpaid subscribers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel also offers cellular users value added
services such as SMS, international roaming, GPRS, MMS,
multi-party calling, call forwarding, call waiting, caller
number display and non-display, mobile banking, SMS to e-mail
services and other personal mobile data services, the revenues
from which are reported in the Data and Internet category. See
&#147;&#151;&nbsp;Data and Internet Services&#148; below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth selected
historical information on Telkomsel&#146;s subscriber base for
the periods indicated:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="61%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">As of or for the year ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cellular subscribers<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KartuHALO (Postpaid)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">657,436</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">865,211</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">923,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SimPATI (Prepaid)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,029,903</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,386,821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,087,767</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deactivations<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KartuHALO (Postpaid)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">112,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">279,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SimPATI (Prepaid)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">113,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,403</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">470,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Average monthly churn rate<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KartuHALO (Postpaid)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SimPATI (Prepaid)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.7</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">ARPU<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KartuHALO (Postpaid) (Rp.&#146;000)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">281</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SimPATI (Prepaid) (Rp.&#146;000)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Prepaid subscribers may purchase SIM-cards and
    refill vouchers with values ranging from Rp.50,000 to as much as
    Rp.1,000,000. The following table shows the respective active
    periods for Telkomsel&#146;s prepaid packages:
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="54%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Value of Voucher or SIM Card</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Period during which subscribers will have access to services</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.50,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">60&nbsp;days
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.100,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">90&nbsp;days
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.150,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">150&nbsp;days
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.200,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">180&nbsp;days
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.300,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">210&nbsp;days
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.500,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">240&nbsp;days
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rp.1,000,000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">270&nbsp;days
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes voluntary and involuntary deactivations.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">28
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The average monthly churn rate for a year is
    computed by adding the monthly churn rates during the year and
    dividing by 12. The monthly churn rate is computed by dividing
    the number of subscribers deactivated during the month by the
    number of subscribers at the beginning of the month.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Refers to Average Revenue per User which is
    calculated by taking the sum of the ARPU for each month of the
    year and dividing by 12. ARPU is computed by dividing total
    cellular revenues for either postpaid or prepaid subscribers
    (excluding connection fees, interconnect revenues, international
    roaming revenues from visitors and dealer discounts) for each
    month by the respective average number of postpaid or prepaid
    cellular subscribers for that month.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Joint Operation Scheme</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM and its KSO partner, PT&nbsp;Mitra Global
Telekomunikasi Indonesia, provide fixed-line and other services
in Regional Division IV, and TELKOM and its KSO partner,
PT&nbsp;Bukaka SingTel International, provide fixed-line and
other services in Regional Division VII. Until July&nbsp;31,
2003, when TELKOM acquired AriaWest, TELKOM and AriaWest
provided fixed-line and other services in Regional Division III.
In 2002, TELKOM&#146;s revenues from KSO divisions in Regional
Divisions III,&nbsp;IV and VII contributed
Rp.2,128.1&nbsp;billion (US$237.8&nbsp;million), or 10.2% of
total operating revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s portion of KSO revenues for the
last three years (2000&nbsp;&#151; 2002) are indicated in the
following table:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">KSO Division</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">MTR</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">DTR</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">MTR</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">DTR</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">MTR</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">DTR</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(Rp. in billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(Rp. in billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(Rp. in billion)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Division&nbsp;I (Sumatera)<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">488.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">497.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">259.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">296.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Division&nbsp;III (West Java and Banten)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">344.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">366.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">390.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Division&nbsp;IV (Central Java)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">355.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">371.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">387.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Division&nbsp;VI (Kalimantan)<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Division&nbsp;VII (Eastern Indonesia)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">231.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">198.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">238.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">221.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">245.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">262.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,556.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">695.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">733.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,319.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">801.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2"> Notes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM consolidated Regional Division&nbsp;VI
    (Kalimantan) as of and for the year ended December&nbsp;31,
    2001, following the acquisition of a 90.32% equity interest in
    Dayamitra on May&nbsp;17, 2001. TELKOM consolidated
    Rp.260.3&nbsp;billion and Rp.323.4&nbsp;billion of operating
    revenues from Regional Division&nbsp;VI (Kalimantan) in 2001 and
    2002, respectively.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM consolidated Regional Division&nbsp;I
    (Sumatera) from August 2002, following an agreement to acquire
    100% of the equity interest in, and control of, Pramindo on
    August&nbsp;15, 2002. The numbers included in this table for
    Regional Division&nbsp;I (Sumatera) represent the revenues
    generated by Regional Division&nbsp;I from January&nbsp;1, 2002
    to July&nbsp;31, 2002. TELKOM consolidated Rp.364.4&nbsp;billion
    of operating revenues from Regional Division&nbsp;I (Sumatera)
    from August&nbsp;1, 2002 through December&nbsp;31, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM entered into agreements to establish the
KSOs in 1995 and pursuant to such agreements transferred the
right to operate Regional Divisions&nbsp;I, III,&nbsp;IV, VI,
and&nbsp;VII to private sector consortia, each of which involved
one or more prominent international telecommunications
operators. TELKOM retained the right to operate
divisions&nbsp;II and&nbsp;V, its two largest divisions. The KSO
Agreements provided for the relevant KSO partner to manage and
operate the Regional Division for a fixed term, undertake the
construction of a specified number of fixed lines and, at the
end of the fixed term, transfer the existing and new
telecommunications facilities in the region to TELKOM for a
pre-determined agreed amount of compensation. The KSO Agreements
also provided for TELKOM and the KSO partner to share revenues
generated during the term of the agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following the Indonesian economic crisis that
began in mid-1997, certain KSO partners experienced difficulties
in fulfilling their obligations to TELKOM. In order to assist
the KSO partners in meeting their obligations and to maintain
the continuity of the KSO Agreements, all of the KSO partners
entered into a memorandum of understanding (the &#147;MOU&#148;)
with TELKOM on June&nbsp;5, 1998 which reduced the minimum line
construction obligations of the KSO partners, decreased
TELKOM&#146;s share of KSO revenues for 1998 and 1999, and
cancelled TELKOM&#146;s option to purchase the assets of the
</FONT>

<P align="center"><FONT size="2">29
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">KSO before the end of the KSO period. Beginning
January&nbsp;1, 2000, the parties have reverted to the terms of
the original KSO agreements with respect to MTR and DTR
payments. Due to the severity of the crisis, these measures did
not solve the significant difficulties faced by the KSO partners
and TELKOM has in recent years acquired or entered into
agreements to acquire control of its KSO partners in regions
I,&nbsp;III and VI.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On May&nbsp;17, 2001, TELKOM acquired 90.32% of
the shares of its KSO partner for Regional Division VI,
PT&nbsp;Dayamitra Telekomunikasi (&#147;Dayamitra&#148;), and
purchased a call option and granted a put option with respect to
the remaining shares of Dayamitra, for an aggregate
consideration of approximately US$130.8&nbsp;million. An initial
payment of US$18.3&nbsp;million was made on May&nbsp;17, 2001,
US$8.9&nbsp;million was paid on August&nbsp;10, 2001 as a
post-closing, working capital adjustment to the purchase price
and the balance of US$103.6&nbsp;million was agreed to be paid
in eight quarterly installments of approximately
US$13.0&nbsp;million between August&nbsp;17, 2001 and
May&nbsp;17, 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;19, 2002, TELKOM entered into a
Conditional Sale and Purchase Agreement to acquire 100% of the
issued and paid up share capital of its KSO partner in Regional
Division I, PT&nbsp;Pramindo Ikat Nusantara
(&#147;Pramindo&#148;). Under the terms of the agreement, TELKOM
agreed to acquire the shares of Pramindo in three tranches: in
August 2002 (30%), September 2003 (15%) and December 2004 (55%).
TELKOM has provided US$384.4&nbsp;million in its accounts as the
aggregate consideration for this transaction. Of the
US$384.4&nbsp;million, TELKOM made an initial payment of
US$9.3&nbsp;million (Rp.82&nbsp;billion) in August 2002 and
issued promissory notes (series&nbsp;I and II)&nbsp;dated August
2002 for the remaining amount. The agreement grants the selling
shareholders a number of protective rights and is conditional
upon TELKOM meeting its payment obligations under the promissory
notes. The series&nbsp;I promissory notes have a face value of
approximately US$372.2&nbsp;million, while the aggregate amount
of the series&nbsp;II promissory notes is estimated to be
approximately US$2.9&nbsp;million. The promissory notes are
payable in ten unequal quarterly installments through December
2004 which are funded by monthly amounts transferred by TELKOM
to an escrow account. Under the agreement, TELKOM also provided
a loan of US$86&nbsp;million (Rp.765&nbsp;billion) to Pramindo
which was used to repay loans from the IFC, one of the selling
shareholders. TELKOM also made an additional payment of
Rp.250&nbsp;billion in respect of a working capital
reimbursement to the selling shareholders. TELKOM obtained
control of Pramindo as of the closing in August 2002. On
January&nbsp;29, 2004, TELKOM signed a short-term loan agreement
with ABN AMRO Bank NV Jakarta in the amount of approximately
US$130&nbsp;million. TELKOM intends to use the loan to
repurchase the series&nbsp;I promissory notes that are due on
June&nbsp;15, 2004, September&nbsp;15, 2004 and
December&nbsp;15, 2004 as the interest rate applicable to the
loan is less than the interest rate of the promissory notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;31, 2003, TELKOM acquired 100% of
the shares of its KSO partner for Regional Division&nbsp;III,
PT&nbsp;AriaWest International (&#147;AriaWest&#148;), and
entered into a settlement agreement pursuant to which Telkom and
AriaWest irrevocably settled, discharged and released claims and
counterclaims in their ICC arbitration proceeding for an
aggregate consideration of US$58.67&nbsp;million in cash
(US$20&nbsp;million of which was paid when the purchase
agreement was signed on May&nbsp;8, 2002 and the remaining
US$38.67&nbsp;million was paid on July&nbsp;31, 2003) and
US$109.1&nbsp;million in promissory notes. The promissory notes,
which are interest-free, are payable in 10 semi-annual
installments. At the same time, in consideration of the release
of AriaWest&#146;s outstanding obligations to its lenders,
TELKOM also repaid approximately US$99&nbsp;million of
AriaWest&#146;s debt (on behalf of AriaWest) and entered into a
new loan agreement for approximately US$197&nbsp;million with
AriaWest&#146;s lenders. As a result of the acquisition of
AriaWest and the settlement of the ICC arbitration, TELKOM has
reversed the provision of Rp.511.9&nbsp;billion which was
previously made with respect to certain receivables from KSO
Unit&nbsp;III and accrued the settlement amount of
Rp.179.0&nbsp;billion in its consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The ICC arbitration proceeding, which was settled
as of July&nbsp;31, 2003, involved claims by AriaWest that
TELKOM was in material breach of provisions of the KSO Agreement
with AriaWest based on, among other things, (i)&nbsp;the alleged
loss of certain exclusive rights granted to AriaWest by the
Government with respect to the provision of certain
telecommunication services in West Java; (ii)&nbsp;the alleged
failure of TELKOM to transfer control of the KSO Unit&#146;s
finances, employees and management
</FONT>

<P align="center"><FONT size="2">30
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">to AriaWest, and TELKOM&#146;s alleged
interference with AriaWest&#146;s efforts to exercise management
control over the KSO Unit; (iii)&nbsp;the alleged failure of
TELKOM to pay amounts identified in a forensic audit for
AriaWest as being unaccounted for, lost or otherwise
unreasonably disbursed by the KSO Unit during the period
December&nbsp;1, 1995 through September&nbsp;11, 2000;
(iv)&nbsp;TELKOM&#146;s acts and omissions which allegedly
caused the Government to reduce telecommunications tariffs in
1999 and to impose a zero tariff increase in 2000; (v)&nbsp;the
alleged wrongful termination by TELKOM of the KSO Agreement with
AriaWest and, subsequent to termination, alleged wrongful
imposition of interim management measures;
(vi)&nbsp;TELKOM&#146;s alleged failure to negotiate the terms
of certain construction projects proposed by AriaWest and
certain amendments to the KSO Agreement requested by AriaWest;
and (vii)&nbsp;TELKOM&#146;s alleged failure to cause the KSO
Unit to pay AriaWest certain disputed sums as reimbursement for
cash outlays by AriaWest or other funds claimed by AriaWest.
AriaWest sought at least US$1.3&nbsp;billion in damages in the
arbitration, although it did not specify the amount of damages
associated with most of its claims. TELKOM objected to the
ICC&#146;s jurisdiction over AriaWest&#146;s claims relating to
the alleged loss of AriaWest&#146;s exclusive rights and tariff
adjustment and, wholly apart from its jurisdictional objections,
TELKOM denied all of AriaWest&#146;s claims. TELKOM also
asserted claims against AriaWest for material breaches of the
KSO Agreement. Although TELKOM had not completed estimating the
amount of its losses, damages and costs, TELKOM was seeking
damages in connection with two of its counterclaims of at least
Rp.412&nbsp;billion in Minimum Telkom Revenue and more than
Rp.98&nbsp;billion in Distributable KSO Revenue due to TELKOM as
of July&nbsp;9, 2001, the date TELKOM terminated the KSO
Agreement, exclusive of late payment fees and interest.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, TELKOM entered into an agreement with
Indosat pursuant to which Indosat agreed, subject to the
satisfaction of certain conditions precedent, to acquire
TELKOM&#146;s assets in Regional Division IV for
US$375&nbsp;million. This agreement was part of the
cross-ownership transaction in 2001. In February of 2001, TELKOM
and Indosat announced the cancellation of the acquisition as
certain conditions precedent had not been satisfied. As a result
of the cancellation of the acquisition, TELKOM paid
US$198&nbsp;million to Indosat. On January&nbsp;20, 2004, TELKOM
and PT&nbsp;Mitra Global Telekomunikasi Indonesia
(&#147;MGTI&#148;) entered into an agreement to amend and
restate the KSO Agreement with respect to Regional
Division&nbsp;IV. Under this amendment agreement, for the
remaining KSO period, TELKOM will be entitled at its sole
discretion and expense to construct new telecommunications
facilities in Regional Division&nbsp;IV and MGTI will receive
fixed monthly payments derived from revenues generated by the
Regional Division IV operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;11, 2002, TELKOM and its KSO partner
for Regional Division&nbsp;VII, PT&nbsp;Bukaka SingTel
International (&#147;Bukaka SingTel&#148;), entered into a
Memorandum of Understanding pursuant to which they agreed to
cooperate in providing infrastructure for fixed wireless access
using CDMA 2000&nbsp;IX in KSO&nbsp;VII region. To date, the
terms of such Memorandum of Understanding have not yet been
implemented in a definitive agreement.
</FONT>

<P align="center"><FONT size="2">31
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information regarding the KSOs as of December&nbsp;31, 2002,
which has been derived from the KSO Agreements, amendments to
the KSO Agreements and other related sources.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="20%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Division I*</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Division III</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Division IV</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Division VI</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Division VII</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <FONT size="1">KSO Partner
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Pramindo Ikat Nusantara
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">AriaWest International
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Mitra Global Telekomunikasi Indonesia
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Dayamitra Telekomunikasi
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Bukaka SingTel
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="11"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="1">Shareholders in the KSO:
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <FONT size="1">Foreign telecommunications operator
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">France Cables et Radio&nbsp;SA (28.00%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">MediaOne International BV (35.00%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Telstra Global Ltd. (20.37%) and Nippon Telegraph
    and Telephone Corporation (15.27%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">TM Communications (H.K.) Ltd. (9.68%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Singapore Telecommunication International
    Pte.&nbsp;Ltd. (40.00%)
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="1">Indonesian and Other Shareholders
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">PT&nbsp;Telekomunikasi Indonesia, Tbk (30.00%);
    PT&nbsp;Astratel Nusantara (24.50%); Indosat (9.10%); Marubeni
    Corporation (5.60%); International Finance Corporation (2.10%);
    NMP Singapore Pte. Ltd. (0.70%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">PT&nbsp;Aria Infotek (52.50%); The Asian
    Infrastructure Fund (12.50%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">PT&nbsp;Widya Duta Informindo (31.31%); Indosat
    (30.55%); Itochu Corporation (1.25%); Sumitomo Corporation
    (1.25%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">PT&nbsp;Telekomunikasi Indonesia, Tbk (90.32%)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">PT&nbsp;Bukaka Telekomindo International (60.00%)
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <FONT size="1">MTR (in Rp.&nbsp;billions) <SUP>#</SUP>
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">507.9
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">390.1
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">387.5
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">141.3
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">245.8
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="1">Revenue Sharing (TELKOM&nbsp;:&nbsp;KSO Partners)
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">30&nbsp;:&nbsp;70
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">30&nbsp;:&nbsp;70
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">30&nbsp;:&nbsp;70
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">30&nbsp;:&nbsp;70
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">35&nbsp;:&nbsp;65
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <FONT size="1">End of KSO Period
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">2010
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">2010
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">2010
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">2010
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">2010
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="92%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">*&nbsp;Note:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Under Indonesian GAAP, TELKOM is required to
    consolidate Pramindo Ikat Nusantara due to TELKOM&#146;s control
    of the company.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">#&nbsp; Note:&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The numbers included here are gross MTR revenues
    before elimination for consolidation purposes of MTR revenues
    from Pramindo (Regional Division&nbsp;I)&nbsp;and Dayamitra
    (Regional Division&nbsp;VI).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The KSO&nbsp;Agreements provide for the relevant
KSO partner to manage and operate the Division until the end of
the KSO period, undertake the construction of a specified number
of fixed lines and, at the end of the fixed term, transfer the
new telecommunications facilities in the Regional Division to
TELKOM for an agreed amount of compensation. The KSO Agreements
also provide for TELKOM to receive a one-time initial payment
from the KSO partners and guaranteed minimum monthly payments,
or Minimum Telkom Revenues or MTR, and additional monthly
revenue sharing payments, or Distributable Telkom Revenues or
DTR, from the revenues of the KSO Unit after payment of MTR and
certain operating expenses. The KSO partners were granted
licenses to enter into KSO arrangements with TELKOM to provide
fixed-line services in the respective regions.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Interconnection Services</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM receives revenues from other
telecommunications operators providing fixed-line, cellular,
international long-distance and other services that interconnect
with TELKOM&#146;s network. In 2002, revenues from
interconnection services contributed Rp.2,831.3&nbsp;billion
(US$316.3&nbsp;million), or 13.6% of total operating revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM enters into interconnection agreements
with one to three year terms with other telecommunications
network operators, including Indosat and Satelindo,
Indonesia&#146;s IDD service providers and the cellular
operators, establishing the fees payable by the respective
operators and the procedures for routing calls through the
networks of the respective operators. Most of the short term
(one-year) interconnection agreements are entered into with
telecommunications network operators.
</FONT>

<P align="center"><FONT size="2">32
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s interconnection traffic volumes are
set forth in the following table for the periods indicated:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="46%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(millions of minutes)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Mobile Cellular
    Interconnection<SUP>(1)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Digital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">920.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,396.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,968.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,284.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,757.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">873.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,687.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,645.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,807.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Analog
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">119.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,707.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,357.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,761.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,044.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,685.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Fixed Wireless
    Interconnection<SUP>(2)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">136.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total wireless paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,771.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,432.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,873.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,158.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,821.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Fixed Wireline
    Interconnection<SUP>(3)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Satellite Phone Interconnection</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">International
    Interconnection<SUP>(4)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">408.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">345.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">286.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">303.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">309.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">251.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">250.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">241.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">200.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">717.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">654.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">596.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">528.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Total</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,490.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,930.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,488.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,760.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,275.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,006.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,185.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,014.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,966.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,496.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,115.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,503.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,726.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,375.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes interconnection with Telkomsel.
    TELKOM&#146;s paid minutes from Telkomsel for 1998-2002 are set
    forth in the following table.
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(millions of minutes)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Incoming paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">706.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,025.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,289.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,672.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Outgoing paid minutes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">325.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">430.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">771.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,266.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,001.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Fixed wireless interconnection minutes are
    derived from interconnection with the network of PT&nbsp;Radio
    Telepon Indonesia (&#147;Ratelindo&#148;).
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For 1998, consists only of four months ended
    December&nbsp;31, 1998. Fixed wireline interconnection minutes
    are derived from interconnection with PT&nbsp;Batam Bintan
    Telekomunikasi (&#147;BBT&#148;).
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">33
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">International interconnection minutes are derived
    from interconnection with Indosat&#146;s and Satelindo&#146;s
    international networks, which does not include minutes from
    mobile cellular and fixed wireless operators that interconnect
    directly with international gateways.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Network
Services</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM provides satellite transponder leasing,
satellite broadcasting, VSAT, audio distribution,
satellite-based leased lines and terrestrial-based leased lines
as network services. In 2002, revenues from network services
contributed Rp.316.1&nbsp;billion (US$35.3&nbsp;million), or
1.5% of total operating revenues. TELKOM&#146;s customers for
network services include businesses and other telecommunications
operators. Customers may enter into agreements which can be for
services as brief as a few minutes in the case of broadcasts or
long-term agreements for services over the course of one to five
years.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Data and
Internet Services</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM provides SMS for fixed line, fixed
wireless and cellular phones, multimedia dial-up Internet access
and other multimedia services, VoIP services for international
calls and ISDN lines. In 2002, revenues from data and internet
services contributed Rp.1,551.6&nbsp;billion
(US$173.4&nbsp;million), or 7.5% of total operating revenues.
The Company is also in the process of developing a broadband
access network utilizing ADSL, hybrid fiber coaxial cables and
satellites.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, an average of 296,963 telephone
subscribers accessed our TELKOMNet Instant dial-up Internet
service per month, representing an increase of 60.3% over the
prior year. Subscribers utilized a total of 1.72&nbsp;billion
minutes of dial-up service in 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In September 2002, TELKOM commenced premium VoIP
international calling service under the name
&#147;TELKOMGlobal-017&#148; and standard VoIP international
calling service under the name &#147;TELKOMSave&#148; and TELKOM
is currently providing both services in several cities in
Indonesia. Its VoIP services currently allow subscribers access
to 493 destination points in 253 countries through agreements
which TELKOM has entered into with Global Communications Inc.
and Singapore Telecommunications Limited that allow TELKOM to
access their international networks. VoIP is a low-cost phone
service that is accessed by dialing a special international
long-distance prefix (in TELKOM&#146;s case, 017). The Company
plans to increase the number of access points in Indonesia and
abroad from which its customers are able to access its VoIP
services. In 2002, an average of 66,058 telephone subscribers
used either TELKOM Save or TELKOMGlobal each month, representing
an increase of 19.9% over the prior year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain information about TELKOM VoIP services is
set forth in the following table:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="22%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Item</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">TELKOMGlobal 017</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">TELKOMSave</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tariff
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">60% of normal IDD rate
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Up to 40% of normal IDD rate
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dial
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">One stage
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Two stage
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Quality/ Technology
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Premium VoIP
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Standard VoIP
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Revenue-Sharing
Arrangements (PBHs)</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, revenues from revenue-sharing
arrangements amounted to Rp.263.8&nbsp;billion
(US$29.5&nbsp;million), or 1.3% of TELKOM&#146;s total operating
revenues. TELKOM currently has approximately 17 revenue sharing
arrangements. Under such arrangements, investors finance the
costs of developing and constructing telecommunications
facilities, and TELKOM and the investors share the revenues from
such facilities for a fixed period of time. Generally, during
the revenue sharing period TELKOM manages and operates the
facilities and bears the cost of repairs and maintenance, though
the investors retain legal ownership to the property, plant and
equipment constructed during this period. At the end of each
revenue-sharing period, the investors transfer the ownership of
the facilities to TELKOM. The revenue-sharing arrangements
generally provide for investors to receive all revenues from
installation charges and for the investors and TELKOM to share
revenues from usage and
</FONT>

<P align="center"><FONT size="2">34
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">subscription charges. However, TELKOM is no
longer interested in entering into revenue sharing arrangements
on the terms outlined above, as TELKOM is seeking to improve the
terms of such revenue sharing arrangements.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other
Telecommunications-related Services</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM also provides a variety of other services,
such as:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">telephone directory, which TELKOM provides
    through its majority-owned subsidiary, Infomedia;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cable and pay television and related services,
    which it provides through its majority-owned subsidiary,
    Indonusa; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">telex and telegram services.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, revenues from other
telecommunications-related services amounted to
Rp.221.0&nbsp;billion (US$24.7&nbsp;million), or 1.1% of
TELKOM&#146;s total operating revenues.
</FONT>

<P align="left">
<B><FONT size="2">Network Infrastructure</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fixed-line
Network and Backbone</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Fixed-Line Network.
</FONT></I><FONT size="2">TELKOM&#146;s fixed-line network
comprises a hierarchy of exchanges ranging from local exchanges
through trunk exchanges. Each local exchange is connected to the
subscriber&#146;s premises by equipment and facilities called
outside plant. Outside plant includes wireline (optical fiber
and copper) and wireless local transmission links and the
distribution facilities joining them. All of TELKOM&#146;s
switching facilities at the local and trunk exchanges are now
digital. TELKOM believes that this substantially increases
network efficiency, performance, and call routing flexibility.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s total number of fixed-lines in
service in all divisions, including those lines in KSO divisions
which are owned by the KSO partners and will be transferred to
TELKOM at the end of the KSO period, has increased from
approximately 7.22&nbsp;million as of December&nbsp;31, 2001 to
approximately 7.75&nbsp;million as of December&nbsp;31, 2002, of
which approximately 5.97&nbsp;million were for residential
customers, approximately 1.36&nbsp;million were for business
customers, approximately 19,800 were for social customers, which
include churches, hospitals, schools and government offices, and
approximately 400,000 were for public telephones, including
kiosk phones, or public phones.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth statistics
relating to TELKOM&#146;s fixed-line network since 1998:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">As of or for the Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001<SUP>(6)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>(7)</SUP></FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating Statistics</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exchange capacity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,324,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,449,552</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,515,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,135,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,643,688</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,827,993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,909,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,946,407</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,669,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,459,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,152,017</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,358,731</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,462,022</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,804,444</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,103,638</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installed lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,907,036</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,957,815</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,086,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,725,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,165,770</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,290,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,471,447</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,581,779</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,316,406</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,234,892</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,197,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,429,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,668,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,041,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,400,662</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lines in service<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,014,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,256,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,610,363</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,270,243</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,710,427</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,556,820</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,823,201</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,052,242</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,948,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,039,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,571,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,080,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,662,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,218,938</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,750,035</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">35
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">As of or for the Year Ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1998<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1999<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001<SUP>(6)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>(7)</SUP></FONT></B></TD>
</TR>

<TR>
    <TD colspan="5"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lines in service per 100 inhabitants
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.95</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.78</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Combined
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subscriber lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,888,479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,101,885</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,394,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,005,106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,394,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,466,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,709,066</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,923,223</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,831,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,952,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,354,993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,810,951</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,317,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,836,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,347,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Public telephones
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">155,107</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">216,288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">265,137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">315,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,019</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,527</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">216,651</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">269,242</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">345,307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">382,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">402,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased lines in service
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,371</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,446</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,973</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,760</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,702</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,631</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,131</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,604</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subscriber Pulse Production<SUP>(3)(4)
    </SUP>(millions)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,810</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,628</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,047</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,905</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,859</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,128</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="5" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Call completion rate (%)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Local
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Combined
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Domestic long-distance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Combined
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fault rate<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.92</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.69</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Combined
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.81</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.94</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lines in service per employee
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-KSO Divisions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">233</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Divisions<SUP>(8)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">149</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">174</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="5"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Combined
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">223</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Lines in service comprise subscriber lines and
    public telephone lines, and include the following number of
    lines in service operated by TELKOM pursuant to revenue sharing
    arrangements as of December&nbsp;31, 1998: 406,487, 1999:
    405,643, 2000: 409,818, 2001: 430,477 and 2002: 443,316.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Excludes leased lines for TELKOM&#146;s network
    and multimedia businesses.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">36
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of pulses generated from local and
    domestic long-distance calls, excluding calls made from pay
    phones and cellular phones.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Faults per 100 connected lines per month. The
    calculation formula was changed in January 2002 to include
    indoor installation and mass fault. The previous measure of
    fault consisted of exchange and outdoor cable fault.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For 1998, 1999 and 2000, Non-KSO Divisions refer
    to Divisions II and V, while KSO Divisions refer to Divisions
    I,&nbsp;III,&nbsp;IV, VI and VII.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For 2001, Non-KSO Divisions refer to Divisions
    II, V, and VI, while KSO Divisions refer to Divisions
    I,&nbsp;III,&nbsp;IV, and VII.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For 2002, Non-KSO Divisions refer to Divisions
    I,&nbsp;II, V, and VI, while KSO Divisions refer to Divisions
    III,&nbsp;IV, and VII.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes lines in KSO Divisions
    I,&nbsp;III,&nbsp;IV, VI and VII which are owned by the KSO
    partners and will be transferred to TELKOM at the end of the KSO
    period.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information relating to the Company&#146;s (including KSOs)
fixed-line network in each of its operating divisions as of
December&nbsp;31, 2002:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="23%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division I</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division II</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division III</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division IV</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division V</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division VI</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division VII</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(West Java</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Central</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(East</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(East</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Sumatera)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Jakarta)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Banten)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Java)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Java)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Kalimantan)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Indonesia)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Local Exchange Capacity
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,264,324</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,316,552</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">879,004</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">770,289</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,660,456</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">402,356</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">810,657</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,103,638</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total Lines in Service
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,115,875</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,824,556</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">672,597</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">646,701</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,427,660</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">342,336</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">720,310</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,750,035</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Capacity Utilization (%)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">88.26</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">85.17</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">76.52</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">83.96</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">85.98</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">85.08</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">88.86</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">85.13</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Installed Lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,193,793</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,079,884</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">726,219</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">728,752</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,521,452</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">370,641</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">779,921</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,400,662</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Installed Lines Utilization Rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">93.47</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">91.71</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">92.62</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">88.74</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">93.84</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">92.36</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">92.36</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">92.26</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Employees<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,302</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,433</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,773</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,033</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,282</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,299</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,329</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">34,678</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Population (millions)<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">47.36</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">26.01</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">25.89</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">44.16</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">36.22</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13.40</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">31.85</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">224.89</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Line Penetration(%)<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.36</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10.86</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.60</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1.46</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3.94</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.55</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.26</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3.45</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes employees seconded to KSOs in Divisions
    III,&nbsp;IV and VII.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Source: </FONT></I><FONT size="2">Indonesian
    Central Bureau of Statistics (estimated figures).
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on the estimated population figures.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Backbone.
</FONT></I><FONT size="2">TELKOM&#146;s telecommunications
network consists of transmission and switching facilities
connecting several network access nodes. The transmission links
between nodes and switching facilities include microwave,
submarine cable, satellite, optical fiber and other transmission
technology. The following table sets forth certain information
on the transmission capacity of TELKOM&#146;s backbone
transmission facilities as of December&nbsp;31, 2002.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capacity</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(number of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Transmission medium</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">circuits)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">capacity</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Optical fiber cable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">221,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Microwave
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Submarine cable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">394,136</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For more information on TELKOM&#146;s satellites,
see &#147;Other Network Infrastructure&#148; below.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Wireless
Network</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Telkomsel. </FONT></I><FONT size="2">Since its
incorporation in 1995, Telkomsel has been providing GSM cellular
services throughout Indonesia through its own network. Telkomsel
has the largest network coverage of any of the cellular
operators in Indonesia, providing coverage to more than 85% of
Indonesia&#146;s population and more than 600 cities. Telkomsel
currently operates a nationwide GSM/DCS cellular network using a
total of 30&nbsp;MHz of radio frequency bandwidth. This consists
of 7.5&nbsp;MHz in the 900 MHz band and
</FONT>

<P align="center"><FONT size="2">37
</FONT>

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<DIV align="left">
<FONT size="2">22.5&nbsp;MHz in the 1800&nbsp;MHz band,
including the additional 15&nbsp;MHz that was transferred from
TELKOM to Telkomsel. Both networks operate as a single
integrated dual band network. Telkomsel has rolled out GPRS
services in several major cities in Sumatera, Java, Bali,
Kalimanta and Sulawesi since October 2002.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telkomsel network is an integrated network of
(i)&nbsp;base transceiver stations containing transmitters,
receivers and other equipment that communicate by radio signals
with cellular telephone handsets within the range of the base
transceiver station, (ii)&nbsp;digital switch centres that route
calls to the proper destinations and (iii)&nbsp;transmission
facilities that link the digital switch centres to other cell
sites. The various components of the network are connected
primarily by microwave transmission, trunk lines owned by
Telkomsel and other fixed lines. In addition, through agreements
with TELKOM, Telkomsel leases certain of TELKOM&#146;s
facilities, including leased lines, integrated management system
and information system facilities, land, sites and towers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, Telkomsel expanded its network capacity
by adding, among other equipment, 1,488&nbsp;BTSs and 13,080
transmitting and receiving exchanges. As of December&nbsp;31,
2002, Telkomsel&#146;s digital network had 3,483&nbsp;BTSs, 37
cellular switching centers, 130&nbsp;base station controllers
and 28,061 transmitting and receiving exchanges. In the first
three quarters of 2003, Telkomsel added an additional
1,111&nbsp;BTSs, 8,984 transmitting and receiving exchanges and
switching capacity for an additional 5,390,000 subscribers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For each of the years ended December&nbsp;31,
2000, 2001, and 2002, Telkomsel made capital expenditures for
the development and expansion of its cellular network of
US$90&nbsp;million, US$233&nbsp;million and US$494&nbsp;million,
respectively. During 2003, Telkomsel budgeted capital
expenditures for the development and expansion of its cellular
network totaling approximately Rp.5,903.0&nbsp;billion
(US$621.0&nbsp;million), against actual capital expenditures of
approximately US$559&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to 2002, TELKOM (through its business
division, Telkom Mobile) and Telkomsel, had been independently
working on the construction of separate DCS 1800 networks.
TELKOM had been granted 15&nbsp;MHz of radio frequency bandwith
in the 1800 MHz band. In January 2002, Telkomsel entered into a
co-operation agreement with TELKOM (the &#147;Co-operation
Agreement&#148;), the purpose of which was to set the framework
for the transfer of TELKOM&#146;s mobile telecommunications
business and its DCS 1800 licence to Telkomsel, and for
Telkomsel to assume certain obligations and assets of TELKOM
connected with the DCS 1800 network, including the assumption of
TELKOM&#146;s rights and obligations under a supply contract
with Siemens. Pursuant to the Co-operation Agreement, on
April&nbsp;3, 2002, Telkomsel purchased TELKOM&#146;s assets
relating to Telkom Mobile and TELKOM transferred its Telkom
Mobile employees to Telkomsel. Telkomsel also assumed all of
TELKOM&#146;s rights and obligations under various contracts
connected with its Telkom Mobile business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the terms of the Co-operation Agreement,
TELKOM procured to have its DCS 1800 licence cancelled and
re-issued to Telkomsel so that Telkomsel would have 15 MHz of
radio frequency in addition to its own 7.5 MHz of radio
frequency in the 1800 MHz band. The MoC re-issued the license to
Telkomsel on July&nbsp;12, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, in order to operate a cellular
service using its own allocated frequency in the 1800 MHz band,
Telkomsel&#146;s network is required by the relevant regulations
to undergo feasibility testing by the MoC, following which, if
successful, a certificate will be issued to Telkomsel permitting
it to operate the network. At present, Telkomsel has constructed
DCS 1800 networks in Jakarta and several other Indonesian
cities. The Jakarta network underwent feasibility testing in
2001. Telkomsel, which commenced operation of its Jakarta DCS
1800 network in order for the feasibility test to be conducted,
is currently continuing to operate the network while awaiting
the issue of the requisite feasibility certificate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel has also applied for feasibility
testing in the nineteen other cities in which it has constructed
DCS 1800 networks. It is currently awaiting a response from the
MoC. In the meantime, in
</FONT>

<P align="center"><FONT size="2">38
</FONT>

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<DIV align="left">
<FONT size="2">anticipation of the feasibility tests, Telkomsel
has commenced operation of the DCS 1800 service in each of these
cities.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">CDMA Fixed Wireless.
</FONT></I><FONT size="2">TELKOM began offering a limited
mobility CDMA-based fixed wireless phone service under the brand
name &#147;TELKOMFlexi&#148; in December 2002. TELKOM currently
offers its TELKOMFlexi service in 38 cities. TELKOM&#146;s
rollout of this limited mobility fixed wireless service is
occurring concurrent with its use of CDMA fixed wireless
technology for the development of its fixed-line network.
CDMA-based fixed wireless technology enables rapid development
of telephone networks and the reduction of capital expenditures
per line by reducing and often eliminating the need for layout
of cables. TELKOM intends to continue to rapidly develop its
CDMA-based fixed wireless network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, TELKOM had 396 BTSs
and 829,547 line units deployed, of which 380 BTSs and 775,647
line units were financed by TELKOM itself and 16 BTSs and 53,900
line units were established under the BOT scheme. As of
December&nbsp;31, 2002, TELKOMFlexi has 8,529 line units
deployed. As of December&nbsp;31, 2003, TELKOM has achieved
sales of 452,185 TELKOMFlexi Line Units (consisting of 443,977
Line Units in non-BOT areas and 8,208 Line Units in BOT areas).
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Data
Networks</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM began operating data network services in
1997 and has since continued to develop and expand its network
progressively. As of December&nbsp;31, 2002, TELKOM&#146;s
IP-based network covered most of the metropolitan areas of
Indonesia, with points of presence (POP) in 132 locations. The
IP-based network served as the backbone network for high quality
virtual private network (VPN) and for internet service
providers. TELKOM has installed remote access servers in 59
locations in Indonesia and offers dial-up internet services
under the name of &#147;TELKOMNet Instan&#148;. For corporate
customers remaining high performance and secured virtual private
network, TELKOM provides a premium service known as VPN Gold.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Network
Infrastructure</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also operates the TELKOM-1 and a
Palapa B-4 satellites and 155 earth stations including one
satellite control system. TELKOM-1 has 36&nbsp;transponders
including 12 extended C-band transponders and 24 standard C-band
transponders, while Palapa B-4 has 24 standard C-band
transponders. TELKOM uses its satellites for the following
purposes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Network backbone transmission;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rural telecommunications services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Back-up transmission capacity for the national
    telecommunications network;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Satellite broadcasting, VSAT, and multimedia
    services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Satellite transponder capacity leasing;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Satellite-based lease line; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Teleport (earth station satellite uplinking and
    downlinking services to and from other satellites).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Network and Satellite Development.</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed-line
Network Development</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM continues to develop and expand its
network infrastructure. In December 2002, TELKOM signed
agreements with a consortium led by Samsung Electronics and a
consortium led by Ericsson, and in March 2003, TELKOM signed an
agreement with Motorola, Inc. for the development of a total of
1.6&nbsp;million lines based on CDMA fixed wireless technology.
These projects are expected to be completed by the middle of
2006. See &#147;Item&nbsp;10C. Additional
Information&nbsp;&#151; Material Contracts.&#148;
</FONT>

<P align="center"><FONT size="2">39
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM also has several ongoing network
developments projects, which include the development of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fiber optic backbone infrastructure in Sumatera
    to provide additional backbone capacity and to extend the
    backbone to the island of Batam, which will facilitate
    connections in the future from Batam to nearby Singapore;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fiber optic regional junction in Surabaya, East
    Java; TELKOM has finished a detailed survey and is currently
    conducting a design review; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">fiber optic regional junction in greater Jakarta.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To further develop its other communications
services, TELKOM also plans to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Implement soft switch technologies to move
    towards a next generation network;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Expand the broadband access network utilizing
    ADSL, which currently only covers Division II (Jakarta) and
    Division V (East Java);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Enhance its network through the progressive
    replacement of its old copper access network with optical access
    network;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Develop and promote additional advanced telephony
    services and features; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Continue network integration and quality
    improvement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IDD Network
Development</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has been making preparations to provide
IDD and its derivative services. It expects to receive its
&#147;Modern License&#148; by the beginning of 2004. TELKOM has
also upgraded switches in Batam, Jakarta and Surabaya to have
international gateway capabilities. Since 2002, TELKOM operates
microwave links to connect Batam Island (Indonesia) and Sentosa
Island (Singapore) and Batam island (Indonesia) and Johor
(Malaysia). Due to the high demand for international bandwidth
in the Asean region, TELKOM, Singapore Telecom and CAT Telecom
agreed to build a submarine fiber optic cable to connect
Indonesia (Batam), Singapore (Changi) and Thailand (Songkhla),
which is known as TIS Cable System, and the cable was ready for
service in November 2003. TELKOM also extended its international
cable by purchasing bandwidth capacity to connect Hong Kong and
expects to enter into a similar agreement to purchase bandwidth
capacity to connect the US by the beginning of 2004. TELKOM is
developing the ground segment to connect the Intelsat Satellite.
These steps will provide more flexibility for TELKOM to
interconnect with foreign operators. In order to make
interconnection with foreign operators, TELKOM is entering into
agreements with dominant operators in some potential countries.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TELKOM-2
Satellite</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has signed a US$73&nbsp;million contract
with Orbital Sciences Corporation to build the TELKOM-2
satellite based on Orbital&#146;s STAR-2 platform, to replace
TELKOM&#146;s existing Palapa B-4 satellite, whose operational
lifespan expires in late 2004. The TELKOM-2 satellite is to have
a capacity of 24 standard C-band transponders, with transponder
specifications similar to those of the TELKOM-1 satellite.
TELKOM-2 is to be designed for a 15&nbsp;years in-orbit life and
is expected to provide increased coverage of the Asian region
and the Indian subcontinent when compared to Palapa B-4. TELKOM
believes that the satellite will support TELKOM&#146;s network
for voice, video and data communications.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company plans to launch TELKOM-2 between
November&nbsp;1, 2004 and January&nbsp;31, 2005. On
November&nbsp;8, 2002, TELKOM signed a US$62.9&nbsp;million
agreement with Arianespace S.A., which covers the cost of the
launch of TELKOM-2.
</FONT>

<P align="center"><FONT size="2">40
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
Expenditures</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For more information on TELKOM&#146;s principal
capital expenditures, see &#147;Item&nbsp;5B. Operating and
Financial Review and Prospects&nbsp;&#151; Liquidity and Capital
Resources&nbsp;&#151; Capital Expenditures&#148;.
</FONT>

<P align="left">
<B><FONT size="2">Business Strategy</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s vision is to become a leading
InfoCom player in the region, with a mission to provide one-stop
services with excellent quality and competitive price to
customers and to manage its business using best practices,
utilizing competitive advantages, and maximizing synergies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM believes that Indonesia&#146;s
telecommunications market remains underdeveloped with a
penetration rate below 3.45 lines per 100 inhabitants for
fixed-lines and around 5 lines per 100 inhabitants for cellular
as of December&nbsp;31, 2002 based on projected population
figures from the Central Bureau of Statistics. TELKOM believes
that the strong demand for telecommunications services has
largely been responsible for the growth of its fixed-line and
wireless business in recent years and will continue to offer
favorable growth opportunities in the future. TELKOM expects
that fixed-line and wireless services will continue to provide
the substantial majority of its operating revenues in the near
term, although it plans to increase the proportion of its
revenues derived from its other communications services. It has
developed broad strategies to retain its existing customers, to
acquire new and lost customers, and to further penetrate the
market, through customer relationship management, product
leadership and diversification, pricing, and one-gate
distribution channels.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The key elements of TELKOM&#146;s strategy are:
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strengthening
the Fixed-line Business</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indonesia has one of the lowest fixed-line
penetrations in Southeast Asia. The following table sets forth
the penetration rate for each Division as of December&nbsp;31,
2002:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="18%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division I</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division II</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division III</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division IV</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division V</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division VI</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Division VII</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">LIS
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,115,875</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,824,556</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">672,597</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">646,701</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,427,660</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">342,336</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">720,310</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,750,035</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Population
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">47,364,639</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">26,009,810</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">25,888,678</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">44,160,324</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">36,215,344</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,400,801</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">31,853,965</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">224,893,561</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Penetration
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.36</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">10.86</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.60</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1.46</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3.94</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.55</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.26</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3.45</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, approximately
47.81% of total lines in service were in the major metropolitan
areas of Jakarta, Surabaya, Semarang, Bandung, Medan, and
Denpasar.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM aims to strengthen its fixed-line business
by:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increasing its fixed-line penetration rate more
    quickly and with lower capital expenditure per line through the
    rapid roll-out of fixed wireless technology, revenue sharing
    arrangements, and pay as you grow schemes;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increasing ARPU through the use of TELKOMFlexi
    and value added services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">concentrating on its top 20 products in the top
    40 cities and targeting the top 20% of its customers with ARPUs
    of more than Rp.150,000 by providing multiservice bundling,
    broadband access, a customer care service center for business
    customers, price packaging, and other benefits;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">strengthening its interconnection business by
    establishing a service center dedicated to telecommunications
    operators and other interconnection customers, opening more
    gateways to other telecommunications operators, offering more
    attractive pricing, and providing enhanced billing services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">protecting its DLD traffic from competing VoIP
    operators by, among other things, seeking a rebalancing of
    tariffs in which local tariffs are increased;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">promoting kiosk phones as a point of sale for
    TELKOM&#146;s services; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">41
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">preparing to provide IDD services upon receiving
    a license to do so, which is expected by the first half of 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strengthening
its Backbone Network</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to provide a better quality of service
to its customers, TELKOM intends to continue to increase the
capacity, reach and quality of its network by, among other
things, using an optical network for high speed backbone
transmission infrastructure such as HPBT Sumatera (2002-2003),
Trans Borneo and Trans Sulawesi (2004-2005) and by launching the
new TELKOM 2 satellite to replace the existing Palapa B4
satellite (which ends its operation around the end of 2004). In
addition, TELKOM aims to manage synergies among utility
providers in order to enhance backbone capacity and access
network penetration, expanding its optical network, upgrading to
a next generation network with the installation of advanced
switching systems, constructing international microwave and
submarine links, and upgrading its systems to provide integrated
billing for new services.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Maintaining Telkomsel&#146;s Dominant
    Position in the Industry</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company regards the cellular business as
having the greatest opportunity for revenue growth. The Company
provides its cellular services primarily through Telkomsel, a
market leader in the cellular business in Indonesia. Based on
industry statistics, Telkomsel had an estimated market share in
2002 of approximately 52.8%, making it the largest nationwide
licensed GSM mobile cellular operators in Indonesia. TELKOM
intends to promote the further development of Telkomsel&#146;s
business by, among other things, offering bundling of, and
one-stop shopping for, TELKOM&#146;s and Telkomsel&#146;s
products and services and approving Telkomsel&#146;s capital
expenditure program which will provide for expansion of network
capacity and enable Telkomsel to meet the needs of its growing
customer base through 2005. In order to focus on Telkomsel and
GSM technology, TELKOM has sold its interests in cellular
operators Telesera, Metrosel and Komselindo which utilize analog
and other first generation non-GSM technologies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Singapore Telecom Mobile Pte Ltd (&#147;SingTel
Mobile&#148;) has a 35% interest in Telkomsel. TELKOM believes
that SingTel Mobile&#146;s equity interest in Telkomsel
increases Telkomsel&#146;s ability to access SingTel
Mobile&#146;s technological and commercial expertise in the
cellular business and increases opportunities for cooperation
between Telkomsel and SingTel Mobile in the development of new
products, thereby strengthening and better positioning Telkomsel
to face competition from other mobile cellular operators.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The key elements of Telkomsel&#146;s strategy for
its business include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">taking advantage of commercial, operational and
    network synergies with TELKOM and sharing best-practices and
    know-how with SingTel Mobile;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ensuring that Telkomsel has the necessary network
    capacity at predefined quality levels to handle subscriber
    growth;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">maintaining or improving market share, ARPU and
    churn rates by continuously aligning the characteristics and
    features of Telkomsel&#146;s service offerings to the evolving
    needs of its customer;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ensuring that Telkomsel has the IT infrastructure
    in place to fulfill its vision and mission, with special focus
    on areas such as billing, service delivery and customer service;
    and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">achieving service levels at par with world class
    mobile service providers through its call center footprint and
    aggressive pursuit of service oriented goals.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Developing its Fixed Wireless
    Business</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM began offering a limited mobility
CDMA-based fixed wireless phone service under the brand name
&#147;TELKOMFlexi&#148; in December 2002. TELKOM&#146;s rollout
of this service began in the three cities of Surabaya, Denpasar
and Balikpapan and is now available in 38 cities throughout
Indonesia,
</FONT>

<P align="center"><FONT size="2">42
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">including Jakarta, Malang, Batam, Makasar,
Banjarmasin, Medan and Palangkaraya. TELKOM plans to continue to
expand its CDMA-based fixed wireless networks in all of its
regional divisions by constructing CDMA-based fixed wireless
networks. Compared to fixed wireline networks, CDMA-based
networks are generally faster and easier to construct and
provide customers with greater flexibility and mobility. TELKOM
believes the deployment of a CDMA-based fixed wireless network
and its TELKOMFlexi business will provide TELKOM with a
competitive advantage in the face of liberalization and
increased competition in the fixed-line market.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Reducing Cost of Capital</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM recognizes that in the increasingly
competitive Indonesian telecommunications market, internally
generated cash flows and direct borrowing from banks and other
lenders may not be sufficient to fund aggressive plans to grow
its business. As a result, TELKOM has sought to implement
innovative financing techniques for its additional network
capacity in order to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce capital expenditures per subscriber, its
    cost of capital and the demands placed on its cash flows;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">share investment risks with its suppliers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce its asset base and outsource non-core
    businesses; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">mitigate financing, commercial, operational,
    technical and capacity risks.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM calls such financing techniques &#147;pay
as you grow&#148;. As currently formulated, &#147;pay as you
grow&#148; involves arrangements in which TELKOM and its
equipment suppliers agree that a percentage of the contract cost
will be paid up front (for example, 25%) and the balance will be
paid once lines are put into service. TELKOM and its suppliers
also agree to work together to plan and design networks, assess
capacity requirements and determine timetables for procurement.
TELKOM expects that only a relatively small number of equipment
vendors will be invited to participate in pay as you grow
programs and supply a substantial portion of TELKOM&#146;s
infrastructure and other equipment needs.
</FONT>

<P align="left">
<B><FONT size="2">Customer Service</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">TELKOM</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM provides the following means of accessing
customer services:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Walk-in customer services points.
    </FONT></I><FONT size="2">Customer service points provide
    convenient and comprehensive access to TELKOM&#146;s customer
    services, and handle product and service information requests
    and complaints, activation of services, customer billing,
    payments, account suspensions, service features, and marketing
    promotions. TELKOM has more than 100 customer service points in
    total, including eight large centers in Jakarta and two in
    Surabaya and customer service points operated by its KSO Units.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Call centers and
    Internet.</FONT></I><FONT size="2"> TELKOM operates call centers
    in many cities in Indonesia, including in the KSO regions.
    Customers are provided a toll free number to speak directly to
    customer service operators who are trained to handle customer
    requests and complaints and to provide up-to-date information on
    matters such as customer bills, promotions and service features.
    Billing information may also be obtained through the Internet
    for customers in Jakarta. Customers are also provided access to
    directory services for which a charge is levied. TELKOM intends
    to promote the use of call centers and the Internet over walk-in
    customer service points for its retail customers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Enterprise center and account management
    teams. </FONT></I><FONT size="2">TELKOM regards the top 20% of
    its customers, particularly corporations with national
    operations, as its most important customers. To focus on these
    customers, TELKOM has set up an enterprise center in Jakarta,
    which seeks to develop its business in this segment of the
    market. TELKOM provides these customers with account
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">43
</FONT>

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    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">management teams, each comprising an account
    manager supported by personnel from the relevant operational
    departments, to provide a single point of contact for all of the
    customer&#146;s communications needs. To cater to such
    customers, the enterprise center works on integrating various
    product and service offerings to provide total communications
    solutions, including Internet access and customized data
    communications-related products and services. TELKOM has also
    set up similar account management teams at a regional level, in
    Divisions II and V, to focus on corporations with regional
    operations within Indonesia. TELKOM currently has over 16
    national-level account management teams, and over 23
    regional-level account management teams that cover Divisions II
    and V. It plans to further increase the number of such teams.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM has had a service level guarantee program
    for its fixed-line customers in Divisions II and V since May
    2001, and has been implementing a service level guarantee
    program on a national basis since June 2002. The service level
    guarantee program provides guarantees of certain minimum levels
    of service relating to new line installations, restoration of
    disconnected lines and billing complaints and provides for
    non-cash compensation, such as free subscription for a certain
    period, to be awarded to customers where such minimum service
    levels are not met.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Telkomsel</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel provides the following means of
accessing customer services:
</FONT>
<P>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">GraPARI Customer Services Centres:
    </FONT></I><FONT size="2">Telkomsel&#146;s GraPARI customer
    service centres (&#147;GraPARI centres&#148;) provide convenient
    and comprehensive access to Telkomsel&#146;s customer services.
    GraPARI centres handle product and service information requests
    and complaints, and typically focus on activation of services,
    customer billing, payments, account suspensions, service
    features, network coverage, IDD, roaming information and
    marketing promotions. See &#147;&#151;&nbsp;Sales, Marketing and
    Distribution&#148;.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Caroline:
    </FONT></I><FONT size="2">&#147;Caroline&#148;, or Customer Care
    On-Line, is a 24&nbsp;hour toll-free telephone service.
    Telkomsel&#146;s customers may speak directly to customer
    service operators who are trained to handle customer requests
    and complaints and to provide up-to-date information on matters
    such as customer bills, payments, promotions and service
    features.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Anita:
    </FONT></I><FONT size="2">&#147;Anita&#148;, or Aneka Informasi
    dan Tagihan, is an SMS service available only to
    Telkomsel&#146;s KartuHALO subscribers. Subscribers may use
    dedicated Anita telephone lines to obtain billing information as
    well as usage information through SMS.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Sales, Marketing and Distribution</FONT></B>

<DIV>&nbsp;</DIV>

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">TELKOM</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM distributes and sells its principal
products and services, excluding mobile cellular services,
through six primary distribution channels:
</FONT>
<P>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Walk-in customer service points.
    </FONT></I><FONT size="2">Customers have access to certain
    products and services in these walk-in customer service points.
    See &#147;&#151;&nbsp;Customer Service&#148; above.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Account management teams.
    </FONT></I><FONT size="2">Account management teams promote
    TELKOM&#146;s products and services in an integrated manner to
    TELKOM&#146;s larger business customers. See
    &#147;&#151;&nbsp;Customer Service&#148; above.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Public telecommunications kiosks.
    </FONT></I><FONT size="2">Small businesses in cooperation with
    TELKOM have established public telecommunications kiosks, or
    &#147;Wartels&#148; and &#147;Warnets,&#148; throughout
    Indonesia. Customers can access basic telecommunications
    services, including local, domestic long-distance and
    international telephony, send facsimiles, telex and telegrams,
    access the Internet and purchase phone-cards. TELKOM generally
    provides discounts to such kiosks ranging from 20% to 30%
    compared with subscriber telephone rates. Kiosks operate on a
    non-exclusive basis and may provide products and services of
    other operators.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">44
</FONT>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Independent dealers and retail outlets.
    </FONT></I><FONT size="2">These are located throughout Indonesia
    and primarily sell calling cards and phone-cards. Independent
    dealers and retail outlets pay a discount to face value for all
    products they receive, operate on a non-exclusive basis, and may
    also sell products and services of other operators.
    </FONT></TD>
</TR>

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    <TD>&nbsp;</TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Website. </FONT></I><FONT size="2">Through its
    website, customers can obtain information on TELKOM&#146;s major
    products and services and access to certain of its multimedia
    products.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Public telephones.
    </FONT></I><FONT size="2">Customers can make local, domestic
    long-distance and international telephone calls through public
    telephones.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s marketing communications program
includes the use of print and television advertising, customer
service and distribution personnel and infrastructure and
special promotional campaigns to strengthen its brand name,
increase its profile and educate the general public about itself
and its products and services. TELKOM is developing its
marketing communications program to promote all of its core
businesses as it seeks to evolve into a full service
telecommunications provider.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD>
    <B><I><FONT size="2">Telkomsel</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel sells its cellular services through
three primary distribution channels: (i)&nbsp;its
61&nbsp;GraPARI centres, (ii)&nbsp;a network of authorized
dealers (operating over 4,000 retail outlets throughout
Indonesia) selling primarily SimPATI Sim-cards and pre-paid
vouchers and (iii)&nbsp;other outlets such as banks, post
offices and photo shops. Independent dealers and other outlets
pay a discount to face value for all products they receive, such
as starter packs and pre-paid vouchers. Independent dealers sell
Telkomsel&#146;s cellular services on a non-exclusive basis and
may also sell products and services of other cellular operators.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel markets its KartuHALO product and
services to specific target groups, focusing on corporate
end-users, HALO keluarga and professionals who tend to generate
higher usage and, therefore, higher revenues. Telkomsel has
established dedicated corporate account teams to market its
services to large corporate customers and to manage on-going
client relationships. Its SimPATI products and services are
targeted at a much broader customer base.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel advertises through a variety of media
for strategic branding and promotions. In addition, Telkomsel
employs marketing methods such as bill inserts and point-of-sale
displays in order to target programmes, events and promotions at
particular segments of the market. Telkomsel&#146;s marketing
strategy also includes conducting on-going market analysis to
better understand its targeted subscribers and to gather
feedback on customer preferences with a view to improving and
introducing new services to cater to the requirements of
existing customers and to attract new subscribers.
</FONT>

<P align="left">
<B><FONT size="2">Billing, Payment and Collection</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s customers are billed on a monthly
basis. Customers are billed according to the regional division
in which they are located, although they may request bills from
several regions to be combined. The billing process is
computerized within each region. Payment can be made within the
respective regions, through designated automated teller
machines, at post offices and banks that act as collecting
agents, and in certain areas by direct deposit via telephone
transfer or by automatic debit through banks and internet
banking. However, for overdue payments, customers are required
to make such payments only at TELKOM&#146;s customer service
points. TELKOM issues bills on the fifth day of each month and
payment of the bill is due by the 20th&nbsp;day of that same
month. If payment is not received by the due date of the bill,
customers are provided with reminders by way of automated
telephone calls and reminder letters, nominal late fees are
levied and increasing levels of call barring are implemented.
Services will be terminated if no payment is received after
three months from the due date, although TELKOM does not cut off
service to its Government subscribers. After an account is
terminated, the customer may only re-subscribe for services
after making the overdue payment, including late fees, and by
making a completely new application.
</FONT>

<P align="center"><FONT size="2">45
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a summary of TELKOM&#146;s
overdue payment policy:
</FONT>

<CENTER>
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<TR>
    <TD width="18%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="18%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="29%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="26%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Stage</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Overdue Payment</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Charge</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Penalty</FONT></B></TD>
</TR>

<TR>
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    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">I
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">1-10&nbsp;days
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">5% of the total outstanding receivables, subject
    to the minimum charge of Rp.5,000
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Not isolated
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">II
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">11-40&nbsp;days
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">10% of overdue bill subject to minimum charge of
    Rp.10,000
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Out-going isolation (i.e.&nbsp;restricted to
    receiving incoming calls only)
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">III
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">41-70&nbsp;days
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">5% of overdue bill subject to minimum charge of
    Rp.15,000
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Out-going isolation (i.e.&nbsp;restricted to
    receiving incoming calls only)
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">IV
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">71&nbsp;days&nbsp;&#150; 3&nbsp;months
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Late fees 50% of new installation fees
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Total isolation
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">V
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">More than 3&nbsp;months
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Customer must fulfill overdue payment 100% of
    installation fee
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Terminated
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM currently provides billing services for
Indosat and Satelindo in connection with their IDD services, for
which it charges a flat fee for each bill, although it may start
billing directly after Indosat enters the domestic market and if
TELKOM enters the IDD market.
</FONT>

<DIV>&nbsp;</DIV>

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    <TD></TD>
    <TD>
    <B><I><FONT size="2">Management of Customer
    Receivables</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM does not screen its customers for
creditworthiness and does not collect deposits from subscribers,
although its call barring procedures for non-payment of bills
have contributed towards the reduction of bad debt.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the case of private retail customers, TELKOM
generally provides for 100% of the outstanding debt where the
amount has been outstanding for more than three months. In the
case of Government and military customers, TELKOM generally
provides for 25% of the outstanding debt where the amount has
been outstanding between seven and 12&nbsp;months, 50% where the
amount has been outstanding between 13 and 24&nbsp;months, and
100% where the amount has been outstanding for more than
24&nbsp;months.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Telkomsel</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel bills its KartuHALO post-paid
subscribers on a monthly basis, in arrears based on (i)&nbsp;the
minutes of use for cellular services, (ii)&nbsp;any additional,
chargeable value-added services utilised during the period, and
(iii)&nbsp;subscription charges for basic and other services
included in their subscription plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel offers its KartuHALO post-paid
subscribers a variety of payment options, including payment by
cash, cheque, credit card, direct deposit via telephone transfer
or automatic debit through banks and participating credit card
companies. Payments may be made at any of Telkomsel&#146;s
GraPARI centres, designated automatic-teller machines or through
over-the-counter facilities (mostly at post offices and banks
with whom Telkomsel has an arrangement).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel issues bills on the fifth day of each
month and payment of the bill is due by the twentieth day of
that same month. If payment is not received by the due date of
the bill, subscribers are given a reminder by way of a telephone
call or SMS and the customer will be barred from making any
outgoing calls or receiving any incoming roaming calls. If there
is no payment of the overdue sum within one month from the due
date of the relevant bill, the customer will be further barred
from receiving all incoming calls. If no payment is received
within two months of the due date of payment, the
customer&#146;s account will then be terminated, although
Telkomsel will continue to seek payment and may seek the
assistance of a debt collection agency. After an account is
terminated, the customer may
</FONT>

<P align="center"><FONT size="2">46
</FONT>
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<DIV align="left">
<FONT size="2">only re-subscribe for services after making the
overdue payment and by making a completely new application.
Telkomsel does not charge any late fees or interest on its
overdue accounts.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Insurance</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, TELKOM&#146;s
property, plant and equipment, including optical fibers but
excluding multi-pair cables, were insured against the risk of
fire, theft and other specified risks for an aggregate coverage
value of Rp.20.3&nbsp;trillion and US$1.4&nbsp;billion.
Additional insurance coverage of US$6.0&nbsp;million and
US$64.7&nbsp;million exists, respectively, for the
Palapa&nbsp;B-4 and TELKOM-1 satellites. TELKOM does not
maintain business interruption insurance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s subsidiaries separately insure
their property in such amounts and in accordance with the
policies determined and implemented by the subsidiaries
themselves.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Telkomsel</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel has an electronic equipment and
industrial all risks insurance policy underwritten by
PT&nbsp;Asuransi Ramayana Tbk. The policy provides cover for
Telkomsel&#146;s network equipment, facilities, infrastructure
and buildings although it excludes losses suffered as a result
of war, civil war, rebellion, revolution, terrorism,
insurrection or military or usurped power, amongst other
exclusions. Telkomsel also has general insurance for motor
vehicle liabilities and comprehensive general liabilities.
Telkomsel does not maintain business interruption insurance.
</FONT>

<P align="left">
<B><FONT size="2">Indonesian Telecommunications
Industry</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since 1961, telecommunications services in
Indonesia have been provided by a succession of state-owned
companies. As in other developing economies, the expansion and
modernization of telecommunications infrastructure play an
important role in Indonesia&#146;s general economic development.
Moreover, the nation&#146;s large population and rapid economic
growth have led to significant unmet demand for
telecommunications services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government has extensive regulatory authority
and supervisory control over the telecommunications sector,
primarily through the MoC. The Government has historically
maintained a monopoly over telecommunications services within
Indonesia. Recent reforms have attempted to create a regulatory
framework to promote competition and accelerate the development
of telecommunications facilities and infrastructure. The
regulatory reforms embodied in new regulations, which came into
effect on September&nbsp;8, 2000, are intended to increase
competition by removing monopolistic controls, increase the
transparency and predictability of the regulatory framework,
create opportunities for strategic alliances with foreign
partners and facilitate the entrance of new participants to the
industry. The deregulation of the telecommunications sector is
closely linked to the national economic recovery program
supported by the IMF.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed-line and cellular penetration are low in
Indonesia by international standards. As of December&nbsp;31,
2002, Indonesia had an estimated fixed-line penetration of 3.45%
and an estimated cellular penetration of 5.0%, based on
projected population figures for 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM believes that there are a number of trends
in the telecommunications industry in Indonesia which include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Continued growth.</FONT></I><FONT size="2">
    TELKOM believes the telecommunications industry will continue to
    grow, as continued development of Indonesia&#146;s economy is
    expected to increase demand for telecommunications services.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Migration to wireless
    networks.</FONT></I><FONT size="2"> TELKOM anticipates that
    wireless services will become increasingly popular as a result
    of wider coverage areas and improving wireless network quality,
    declining handset costs and the proliferation of prepaid
    services.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">47
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Increasing
    competition.</FONT></I><FONT size="2"> TELKOM anticipates an
    increasingly competitive Indonesian telecommunications market as
    a result of the Government&#146;s regulatory reforms.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Regulations</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government exercises both regulatory
authority and supervisory control over the telecommunications
industry in Indonesia. The legal framework for the
telecommunications industry is based on specific laws,
government regulations and ministerial decrees enacted and
issued from time to time. The Government currently regulates the
telecommunications sector through the MoC. The MoC is
responsible for the overall supervision and regulation of the
industry. Within the MoC, various directorates and bureaus carry
out specific regulatory duties. The MoC has authority to issue
implementing decrees, which are typically broad in scope,
thereby giving the MoC considerable latitude. Pursuant to such
decrees, the MoC defines the scope of exclusivity, formulates
and approves tariffs, determines USOs and controls many factors
affecting TELKOM&#146;s competitive position, operations and
financial condition. The MoC, as regulator, has the authority to
grant new licenses for the establishment of new joint ventures
and other arrangements, particularly in the telecommunications
sector.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to March 1998, the Ministry of Tourism,
Post and Telecommunications (the &#147;MTPT&#148;) was
responsible for the regulation of telecommunications in
Indonesia, but, with reorganization of the Government following
the 2001 General Elections, the MoC was given the regulatory
responsibilities. Through the DGPT, a directorate under the MoC,
the Government regulates the radio frequency spectrum allocation
for all operators, including TELKOM, which are required to
obtain a license from the MoC for each of their services
utilizing radio frequency spectrum. All telecommunications
operators are also required to pay for radio frequency spectrum
usage. The Government also requires all telecommunications
operators to pay a concession license fee of 1% of its collected
operating revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The overall program of telecommunications sector
deregulation is closely linked to the national economic recovery
program supported by the IMF. The national plan is documented in
the Memorandum of Economic and Financial Policies (the
&#147;MEFP&#148;), as further clarified in the Letters of Intent
to the IMF in January and May 2000. The main focus of the MEFP
is to stabilize the economy and regain trust through a
comprehensive plan based on:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Deregulation;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Promoting competition;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Liberalization;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Restructuring;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Improving market access;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Introducing market-oriented regulations;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government&#146;s telecommunications reform
policy is formulated in its &#147;Blueprint of the Indonesian
Government&#146;s Policy on Telecommunications&#148;, as
contained in the MoC&#146;s Decree No.&nbsp;KM 72 of 1999 dated
July&nbsp;20, 1999 (the &#147;Blueprint&#148;). The policies
stated in the Blueprint are intended to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Increase the sector&#146;s performance in the era
    of globalization;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Liberalize the sector with a competitive
    structure by removing monopolistic controls;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Increase transparency and predictability of the
    regulatory framework;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Create opportunities for national
    telecommunications operators to form strategic alliances with
    foreign partners; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">48
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Create business opportunities for small and
    medium enterprises and to facilitate new job opportunities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The recent regulatory reforms of the Indonesian
telecommunications sector have their foundation in
Telecommunications Law No.&nbsp;36 of 1999, which came into
effect on September&nbsp;8, 2000 (the &#147;Telecommunications
Law&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;15, 2003 the Government issued
the Economic Policy Package pursuant to Presidential Instruction
No.&nbsp;15 dated September&nbsp;15, 2003. The Government
intends to improve efficiency, capacity and equity in
telecommunications by putting in place the infrastructure for an
additional 3&nbsp;million fixed lines and 43,000 fixed lines in
remote areas.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telecommunications
Law</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telecommunications Law provides key
guidelines for industry reforms, including industry
liberalization, facilitation of new entrants and enhanced
transparency and competition. Under the Indonesian regulatory
framework, the Telecommunication Law only outlines the
substantive principles of the subject matter. Detailed
provisions implementing the Telecommunications Law will be
provided in the implementation regulations consisting of
Government regulations, ministerial decrees, and decrees of the
Director General of Post and Telecommunication.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The new Telecommunications Law eliminates the
concept of &#147;organizing entities&#148;, thus ending
TELKOM&#146;s and Indosat&#146;s status as organizing entities
with responsibility for coordinating domestic and international
telecommunications services, respectively, for the industry. To
enhance competition, the Telecommunications Law specifically
prohibits monopolistic practices and unfair competition among
telecommunications operators.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The role of the Government is to become that of
an impartial policy maker and supervisor of telecommunications
sector. As stipulated in the Telecommunications Law and to
ensure transparency in the regulatory process, an independent
regulatory body was established on July&nbsp;11, 2003 to
regulate, monitor, and control the telecommunication industry.
The Indonesian Telecommunications Regulatory Body
(&#147;ITRB&#148;) is comprised of officials from the DGPT and
the Committee of Telecommunication Regulations. Members of the
Committee of Telecommunication Regulations were appointed on
December&nbsp;19, 2003.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Service
Categories</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telecommunications Law classifies
telecommunications providers into three categories:
(i)&nbsp;telecommunications network providers,
(ii)&nbsp;telecommunications services providers and
(iii)&nbsp;special telecommunications providers. Under these
categories, telecommunications network operations and/or
provision of telecommunications services may be carried out by
any legal entity established for that purpose. The
Telecommunications Law is expected to eliminate artificial
barriers to service bundling and pave the way for market
liberalization.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Telecommunications Law, licenses are
required for each category of telecommunications service. A
telecommunications network provider is licensed to own and/or
operate a telecommunications network. A telecommunications
service provider is licensed to provide services by leasing
network capacity from other network providers. Special
telecommunications licenses are required for providers of
private telecommunications services or purposes relating to
broadcasting and national security interests. MoC Decree
No.&nbsp;KM20/2001 and MoC Decree No.&nbsp;KM21/2001 implement
the provisions in the Telecommunications Law regarding these new
categories of telecommunications network and services operations.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Modern
License</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Telecommunications Law the existing
licenses for telecommunication services will be replaced with
the so-called &#147;Modern License&#148;. In addition to
granting the license holder the right to
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">provide telecommunication services, the Modern
License also imposes certain mandatory obligations on the
license holder. These obligations include, among others,
construction obligations, service obligations and Universal
Service Obligations (&#147;USO&#148;). The license holder is
required to fulfill the mandatory obligations set forth in its
Modern License, and the failure to comply with such obligations
may result in the revocation of its Modern License. The draft
implementation regulations relating to the Modern License have
been proposed but not yet enacted. TELKOM has received its
Modern License for fixed-line services and DLD Services.
However, to date TELKOM has not received its &#147;Modern
License&#148; for IDD services.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exclusivity</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the previous regulatory regime that
precedes the Telecommunications Law, TELKOM was granted a
monopoly to provide domestic local fixed-line telecommunications
services until December&nbsp;31, 2010 and domestic long-distance
telecommunications services until December&nbsp;31, 2005.
Indosat and Satelindo were granted a duopoly for exclusive
provision of basic international telecommunications services
until 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telecommunications Law did not expressly
terminate the existing exclusivity rights of TELKOM, Indosat and
Satelindo. In an effort to support the undertakings of TELKOM
and Indosat during their respective initial public offerings and
to maintain the Government&#146;s credibility among foreign
investors, the Government announced that termination of the
exclusivity rights will be subject to agreement between the
relevant incumbents and the Government, whereby incumbents will
be eligible for compensation in exchange for early termination
of these exclusivity rights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;1, 2001, the Government through
the DGPT, announced the early termination of TELKOM&#146;s and
Indosat&#146;s exclusivity rights for local and domestic-long
distance telecommunications services (in the case of TELKOM) and
IDD (in the case of Indosat), through MoC Decree
No.&nbsp;KM21/2001 (&#147;Operation of Telecommunications
Services&#148;). The announcement stated that it is the
Government&#146;s intention that Indosat would receive a license
to provide local telephone services and a license to provide
domestic long-distance and that TELKOM would receive a license
to provide IDD services at the end of 2003. The Government
appointed an appraiser to try to resolve differences of opinion
regarding the amount of compensation to be provided to TELKOM
and Indosat for early termination of their exclusivity rights.
To date, the Government has not declared the amount of such
compensation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As affirmed by the Government, TELKOM would
receive a license to provide IDD services, and Indosat would
receive a license to provide domestic long-distance services by
the end of 2003. However, to date, TELKOM has not received the
IDD license as yet.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interconnection</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the express prohibitions on
activities that may create monopolistic practices and unfair
business competition, the Telecommunications Law provides for
fair interconnection of networks to allow &#147;any to any
connectivity&#148;. Interconnection fees are to be agreed by
each network provider and calculated in a transparent manner.
The Telecommunications Law provides guidance with respect to the
interconnection scheme between telecommunication network
providers. Generally, interconnection costs paid for
interconnection with TELKOM&#146;s fixed-line network are based
on termination and origination charging, which is determined in
accordance with MoC Decree No.&nbsp;37/1999, while
interconnection costs paid by mobile cellular operators are
based principally on negotiations between the network providers
and in the event no agreement is reached by the providers, the
interconnection costs are to be determined in accordance with
MoC Decree No.&nbsp;46/1998. However this interconnection scheme
is due to be reassessed in an anticipated MoC decree on
interconnection.
</FONT>

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</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indonesian
Telecommunications Regulatory Body</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;11, 2003, the Indonesian
Telecommunications Regulatory Body as the implementation of the
Telecommunications Law was established. The Indonesian
Telecommunications Regulatory Body, under Decree of MoC
No.&nbsp;KM 31 of 2003, is authorized to regulate, monitor, and
control the operations of the telecommunications sector. The
Indonesian Telecommunications Regulatory Body comprises
officials from the Directorate General Postal and
Telecommunication and the Committee of Telecommunication
Regulations. Combined with further privatization of TELKOM and
Indosat, the establishment of such an independent regulatory
body is intended to reduce the Government&#146;s role in the
telecommunications industry from that of being the
telecommunications industry&#146;s financier, operator,
regulator and licenser to becoming primarily the industry&#146;s
licenser and regulator.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer
Protection</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Telecommunications Law, each operator
must provide guarantees for consumer protection in relation to
quality of services, usage or service fees, compensation and
other matters. The law also allows customers injured or damaged
by negligent operations to file claims against negligent
providers.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Universal
Service Obligations</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Telecommunications Law, all
telecommunications network operators and service providers are
bound by a Universal Service Obligation (&#147;USO&#148;), which
requires provision of telecommunications facilities and
infrastructure or other compensation to all operators. A draft
regulation with respect to USO issues has been prepared to
implement these objectives. Under the draft, the local network
provider will be responsible for network installation in the USO
areas. TELKOM currently is the local network provider in all
parts of Indonesia. Thereafter, costs arising from providing
networks in the USO areas will be passed onto other network and
service providers that send traffic to the recipient network
providers in the form of USO fees. This draft regulation has not
yet been finalized and is, therefore, subject to change.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Implementing
Regulations</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To date, the Government has issued several
implementing regulations relating to the Telecommunications Law,
including Government Regulation&nbsp;No.&nbsp;52/2000
(&#147;Operation of Telecommunications&#148;) and Government
Regulation&nbsp;No.&nbsp;53/2000 (&#147;Utilization of Radio
Frequency Spectrum and Satellite Orbit&#148;), as well as
ministerial decrees, including Ministerial Decree
No.&nbsp;KM20/2001 (&#147;Operation of Telecommunications
Networks&#148;), No.&nbsp;21/2001 (&#147;Operation of
Telecommunications Services&#148;), No.&nbsp;12/2002
(&#147;Completing MTPT Decree No.&nbsp;KM. 79/PR-301/MPPT-95 on
Procedures for the Tariff Adjustment of Domestic Basic
Telecommunications Services&#148;), Ministerial Decree
No.&nbsp;KM40/2002 (&#147;Guidance for Tariff Implementation of
State Revenue on Tax from Cost of Utilization Right of Radio
Frequency Spectrum&#148;), Ministerial Decree No.&nbsp;KM23/2002
(&#147;Internet Telephony Service for Public&#148;), and
Ministerial Decree No.&nbsp;KM.31/2003 (&#147;Indonesian
Telecommunication Regulatory Body&#148;). The MoC and DGPT are
in the process of finalizing a number of additional ministerial
decrees that are intended to implement other aspects of the
Telecommunications Law, including with respect to special
telecommunications operations, USO and interconnection.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Satellite
regulation</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The international satellite industry is highly
regulated. In addition to being subject to domestic licensing
and regulation in Indonesia, the placement and operation of
TELKOM&#146;s satellites are also subject to registration with
the Radio Communications Bureau of the International
Telecommunications Union and the Intelsat consultation process.
</FONT>

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</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed
Wireless Access regulation</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of January&nbsp;29, 2004, the Ministry of
Communications (the &#147;MoC&#148;) has not issued any
regulation concerning fixed wireless access. However, the DGPT
issued a press release on November&nbsp;3, 2003 stating that it
has prepared a new decree with respect to fixed wireless access
service, which decree is expected to provide that only fixed
network operators holding licenses issued by the MoC and using
radio frequency access networks may offer fixed wireless access
service. In addition, the press release provides that each fixed
wireless access provider may only provide fixed wireless access
service within its designated area code, and that fixed wireless
access service may not incorporate roaming and auto mutation
features. Accordingly, customers cannot use their fixed wireless
access phones to make or receive calls when they are located
outside their respective &#147;home&#148; areas. Fixed wireless
access providers are also required to charge rates that are less
than cellular operators.
</FONT>

<P align="left">
<B><FONT size="2">Competition</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed-line</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is the main provider of fixed-line
services in Indonesia. Generally, all customers must obtain
fixed-line services from TELKOM and telecommunications operators
must interconnect with TELKOM&#146;s fixed-line network in order
to provide access to fixed-line and cellular subscribers. With
the enactment of the Telecommunications Law and the announced
intention of the Government to terminate TELKOM&#146;s exclusive
right to provide fixed-line services, it is expected that the
market will be open to full competition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;1, 2001, the Government through
the MoC, announced the early termination of TELKOM&#146;s
exclusivity rights for local and domestic-long distance
telecommunications services. The announcement stated that the
Government&#146;s intention was for Indosat to receive a license
to provide local telephone services from August 2002 and a
license to provide domestic long-distance services from August
2003. At this present time, Indosat has been granted an
in-principle and an operating license for the development of
local fixed-line telecommunications.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The end of TELKOM&#146;s exclusive right to
provide fixed-line services is expected to result in direct
competition between TELKOM and Indosat for fixed-line customers
and over time reduce the need for other telecommunications
operators to interconnect with TELKOM&#146;s fixed-line network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM also faces direct and indirect competition
from mobile cellular services, fixed cellular services, SMS,
VoIP services and e-mail. TELKOM expects that the increasing
uses of these services may adversely affect future demand for
its fixed-line services.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cellular</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cellular market in Indonesia is currently
dominated by Telkomsel, Excelcomindo and Indosat. As of
December&nbsp;31, 2002, these nationwide GSM operators
collectively had over 95% of the Indonesian cellular market. The
number of cellular subscribers in Indonesia totaled
approximately 6.5&nbsp;million at the end of 2001 and
11.4&nbsp;million at the end of 2002, representing an annual
growth rate of 74.0% during that period. Despite this rapid
growth, the cellular penetration rate in Indonesia, at
approximately 5% at the end of 2002, has remained relatively low
compared to many other countries. During the last two years,
competition among cellular operators has intensified.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As part of the elimination of TELKOM&#146;s and
Indosat&#146;s cross-shareholdings in several telecommunications
companies in 2001, TELKOM sold its 22.5% interest in Satelindo
to Indosat and Indosat sold its 35% interest in Telkomsel to
TELKOM. This has resulted in the cellular market becoming more
competitive as contemplated by the Blueprint and the
Telecommunications Law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">GSM mobile cellular operators compete principally
on the basis of pricing, brand, network coverage, distribution,
technology, value-added services and service quality. TELKOM
believes that
</FONT>

<P align="center"><FONT size="2">52
</FONT>

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<DIV align="left">
<FONT size="2">Telkomsel is able to compete effectively in the
Indonesian cellular market due to the quality and coverage of
its mobile cellular network and the strength of its brand name.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s new CDMA-based fixed wireless phone
service, TELKOMFlexi, which offers limited mobility and charges
customers at PSTN tariff rates that are substantially lower than
tariffs for cellular services, may over time offer a competitive
alternative to GSM services and attract Telkomsel customers that
prefer lower tariff rates in exchange for limited mobility.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, Telkomsel was the
largest national licensed provider of GSM services in Indonesia,
with approximately 6.01&nbsp;million cellular subscribers and a
market share of approximately 52.8%. Satelindo was the second
largest provider with approximately 3.07&nbsp;million cellular
subscribers and a market share of approximately 27.0% as of
December&nbsp;31, 2002. Excelcomindo had approximately
1.57&nbsp;million subscribers and a market share of
approximately 13.8% as of December&nbsp;31, 2002. IM3,
Indosat&#146;s cellular subsidiary, was a new entrant to the GSM
cellular market in 2001, and, as of December&nbsp;31, 2002, IM3
had approximately 511,000 subscribers and a market share of
approximately 4.5%. In addition to the nationwide GSM operators,
a number of smaller regional GSM, analog and CDMA cellular
providers operate in Indonesia.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth summary
information as of December&nbsp;31, 2002 on each of the three
dominant nationwide licensed GSM mobile cellular operators:
</FONT>

<P align="center">
<B><FONT size="2">Nationwide Licensed GSM Mobile Cellular
Operators In Indonesia</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="22%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Operator</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Telkomsel</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Satelindo</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Excelcomindo</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Launch date
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">May 1995
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">November 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">October 1996
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Licensed frequency bandwidth (GSM&nbsp;900 &#38;
    1800)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <BR>
    <FONT size="2">30&nbsp;MHz
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">15 MHz
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <BR>
    <FONT size="2">15 MHz
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Licensed coverage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Nationwide
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Nationwide
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Nationwide
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Network coverage
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Nationwide
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Major cities in significantly populated areas of
    Java and Bali, as well as major cities in Sumatera, Sulawesi and
    Kalimantan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta and primary business cities in Java,
    Bali, Lombok, Medan and Batam
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <FONT size="2">Market share (as of
    December&nbsp;31,&nbsp;2002)<SUP>(1)</SUP>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">52.8%
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">27.0%
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">13.8%
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">Subscribers (as of
    December&nbsp;31,&nbsp;2002)<SUP>(1)</SUP>
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">6.01&nbsp;million
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">3.07&nbsp;million
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">1.57&nbsp;million
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Notes:
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on statistics compiled by TELKOM.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">IDD</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;1, 2001, the Government through
the DGPT, announced the early termination of Indosat&#146;s
exclusivity rights for IDD. The announcement stated the
Government&#146;s intention that TELKOM would receive a license
to provide IDD services by the end of 2003. Although TELKOM has
not yet received its license, it has made preparations to start
offering IDD services pending receipt of the license. TELKOM has
upgraded some switching to have International Gateway
capabilities in Batam, Jakarta and Surabaya. These gateways have
received certificate of operation (<I>sertifikat ULO</I>) from
the DGPT. In order to have connection with overseas operator,
TELKOM already built two microwave links to connect
Batam&nbsp;&#151; Singapore and Batam&nbsp;&#151; Pangerang
(Malaysia). Also, Telkom, SingTel and CAT developed the TIS
submarine cable system in 2003 connecting Batam, Singapore and
Thailand. As a new player in IDD, TELKOM cooperates with some
global operators to get direct or
</FONT>

<P align="center"><FONT size="2">53
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">indirect connection to reach all offshore
destinations. All these preparations will make TELKOM ready to
start its international services including IDD.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">VoIP</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM formally launched its VoIP services in
September 2002. VoIP uses data communications to transfer voice
traffic over the Internet, which usually provides substantial
cost savings to subscribers. In addition to TELKOM, Indosat,
Satelindo, Atlasat, Gaharu provide VoIP services in Indonesia.
Other unlicensed operators also provide VoIP services that may
be accessed through the Internet as well as from software that
allows PC to PC voice communications through the Internet. VoIP
operators offering international services also compete with IDD
operators, such as Indosat and Satelindo and, in the future,
TELKOM.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">VoIP operators compete primarily on the basis of
pricing and service quality. Certain VoIP operators have started
offering services such as budget calls and prepaid calling cards
which is expected to result in greater competition among VoIP
operators.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Satellite</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In recent years, competition in the Asia-Pacific
satellite business has been intense. Companies in this business
compete primarily on coverage power, product offerings and
price. The Indonesian satellite industry is loosely regulated,
and in practice operates in accordance with an
&#147;open-sky&#148; policy. This means that Indonesian
satellite operators must compete with foreign satellite
operators.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Other</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the last three years, competition with
respect to multimedia, Internet and data communications-related
services has intensified principally due to the issuance of new
licenses as a result of the deregulation of the Indonesian
telecommunications industry. TELKOM expects competition to
continue to intensify. Multimedia, Internet and data
communications-related service providers in Indonesia compete
principally on the basis of price, range of services provided,
network quality, network coverage and customer service quality.
</FONT>

<P align="left">
<B><FONT size="2">Licences</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telecommunications Law requires
telecommunication network operators and telecommunication
service operators, including TELKOM, to obtain licenses to
operate telecommunications networks and provide
telecommunications services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Fixed-line.
</FONT></I><FONT size="2">Currently, TELKOM provides local and
domestic long-distance fixed-line services based on Government
Regulation No.&nbsp;25/1991 and Government Regulation
No.&nbsp;8/1993, which permits TELKOM to provide basic and
non-basic fixed-line telecommunications. Based on
KM&nbsp;No.&nbsp;39 of 1993 concerning basic telecommunication
operation, TELKOM was permitted to enter into joint operation
schemes (KSO) with its existing KSO partners for the provision
of fixed-line services in their respective regions. The
Government has amended certain fixed-line licenses of TELKOM to
comply with the new Telecommunication Law and TELKOM has
received its Modern License. In accordance with the terms of the
Modern License, TELKOM has taken certain preparatory actions,
such as building telecommunication networks in remote areas.
TELKOM also provides its TelkomFlexi fixed wireless services
pursuant to its authorization to provide fixed-line services and
applies PSTN tariffs for this service, which are substantially
lower than those for cellular services. TELKOM&#146;s ability to
provide fixed wireless services at PSTN tariff rates may be
challenged by TELKOM&#146;s regulators, other cellular operators
and cellular trade associations. See &#147;Item&nbsp;3.D. Risk
Factors&nbsp;&#151; TELKOM&#146;s regulators and other
telecommunications operators may challenge TELKOM&#146;s ability
to apply PSTN tariffs to its new CDMA-based fixed wireless phone
service, which is marketed under the brand name
TELKOMFlexi&#148;.
</FONT>

<P align="center"><FONT size="2">54
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Cellular.</FONT></I><FONT size="2"> Telkomsel
currently holds licenses to operate a nationwide GSM&nbsp;mobile
cellular telephone network, to use 7.5&nbsp;MHz of radio
frequency bandwidth in the 900&nbsp;MHz band and to use
22.5&nbsp;MHz of radio frequency bandwidth in the 1800&nbsp;MHz
band. Telkomsel also holds licences from BKPM which permit
Telkomsel to develop cellular services with national coverage,
including the expansion of its network capacity. In addition,
Telkomsel holds permits and licences from and registrations with
certain regional governments and/or governmental agencies,
primarily in connection with its operations in such regions, the
properties it owns and/or the construction and use of its base
transceiver stations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">IDD. </FONT></I><FONT size="2">TELKOM has
received an in-principle license to provide IDD services from
the Government and will require an operating license to actually
commence providing such services. The Government announced its
intention to grant an IDD license to TELKOM by the end of 2003.
However, to date TELKOM has not received a permanent operating
license.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">VoIP. </FONT></I><FONT size="2">TELKOM also
holds a comprehensive license to provide VoIP services, which it
received in May 2002.
</FONT>

<P align="left">
<B><FONT size="2">Tariffs and Interconnection Charges</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government divides tariffs into two
categories:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Tariffs for the provision of telecommunications
    services; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Tariffs for provision of telecommunications
    networks.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Tariffs for the Provision of
    Telecommunications Services</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, the MoC sets the maximum tariffs that
can be charged for telecommunications services in Indonesia.
Telecommunications operators may charge customers at rates below
the maximum tariff, although most operators tend to charge at
the maximum rate. In this regard, TELKOM&#146;s operating
divisions have authority to make adjustments to prices based on
specific guidelines. These guidelines allow operating divisions
the flexibility to adjust prices based on, among other things,
specific market conditions, volume of usage and the provision of
bundled services.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Fixed-line Tariffs</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed-line tariffs consist of installation,
monthly subscription and usage charges. Notwithstanding the
Government&#146;s intention to increase fixed-line tariffs in
recent years, public opposition has led to TELKOM maintaining
its fixed-line tariffs at the levels established on
February&nbsp;1, 2002. Fixed-line tariffs were also not changed
in 2000 and 2001 but were reduced from the announced tariff of
24% to 15% in 1999 due to public opposition. See
&#147;Item&nbsp;3.D. Risk Factors&nbsp;&#151; TELKOM operates in
a legal and regulatory environment that is undergoing
significant reforms and such reforms may adversely affect
TELKOM&#146;s business&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government establishes fixed-line tariffs by
reference to a price cap formula that calculates the maximum
average percentage increase in fixed-line tariffs for a
particular year. The maximum increase equals the Indonesian
Consumer Price Index (CPI) for the preceding year, as published
by the Indonesian Central Bureau of Statistics, minus an
efficiency factor (the &#147;X-factor&#148;), which the
Government determines by taking into consideration certain
factors including improvements in the cost efficiency of the
services resulting from technological improvements, the
interests of affected telecommunications operators and the
purchasing power of customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In calculating the maximum total percentage
increase in tariffs for a particular year, the tariff components
for installation, monthly charges and usage charges are weighted
in proportion to the contribution made to total revenue of those
services (basket revenues) in the prior year. The weighted
average increase in prices charged for the services for any year
must be equal to or less than the price cap percentage. In
addition to tariff increases, the tariff components can also be
&#147;rebalanced&#148; from time
</FONT>

<P align="center"><FONT size="2">55
</FONT>

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<DIV align="left">
<FONT size="2">to time such that the tariffs for installation,
monthly and usage charges increase at different rates or certain
tariffs decrease while others increase.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current maximum tariffs chargeable by TELKOM,
which became effective on February&nbsp;1, 2002, are set forth
below:
</FONT>

<P align="center">
<B><FONT size="2">Tariff Rate Structure Effective From
February&nbsp;1, 2002:</FONT></B>

<P align="left">
<B><FONT size="2">Installation and Monthly Charges:</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Access charges</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Business</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Residential</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Social</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Installation</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">175,000&nbsp;&#150; 450,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">75,000&nbsp;&#150; 295,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">50,000&nbsp;&#150; 205,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Monthly Subscription</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">30,700&nbsp;&#150; 46,100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">16,500&nbsp;&#150; 26,100</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">11,100&nbsp;&#150; 16,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Usage charges:</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="5"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="5" align="center" nowrap><B><FONT size="1">Beginning February&nbsp;1, 2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="5" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Pulse</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Pulse Duration</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Local</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Up to 20 km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">195</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">3&nbsp;min (off peak)<BR>
    and 2 min (peak)
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Over 20 km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">195</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">2 min (off peak)<BR>
    and 1.5 min (peak)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rounding</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Time</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Per Minute</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Block Duration</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Domestic Long-distance</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">0-20&nbsp;km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">69&nbsp;&#150; 102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">1 min</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">20-30&nbsp;km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">102&nbsp;&#150; 136</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">1 min</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">30-200&nbsp;km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">327&nbsp;&#150; 1,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">6 sec</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">200-500&nbsp;km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">463&nbsp;&#150; 2,271</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">6 sec</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Over 500&nbsp;km
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">570&nbsp;&#150; 2,842</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom" nowrap><FONT size="2">6 sec</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;29, 2002, the MoC announced that
fixed-line tariffs would be increased by an average of 45.49%
over three years. Effective February&nbsp;1, 2002, the MoC
increased fixed-line tariffs by an average of 15%. Although
fixed-line tariffs were expected to be increased again effective
January&nbsp;1, 2003, public opposition following the
announcement by TELKOM of tariff increases led to the suspension
on January&nbsp;16, 2003 of the implementation of such
increases. There has been no indication by the MoC whether
fixed-line tariffs will be increased in 2004 or thereafter or
whether the Government intends to carry out its plan to increase
fixed-line tariffs by 45.49% within three years of January 2002,
which would require an increase of 30.49% from current levels by
January 2005.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Cellular Tariffs</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Indonesian cellular telecommunications market
generally operates on a &#147;calling party pays&#148; system,
which requires that the originators of telephone calls pay for
calls. Cellular operators in Indonesia set their own tariffs,
subject to specified maximum limits established by the
Government. The Government has announced that it intends to move
towards a formula-based tariff structure for cellular services,
however, it has not announced a proposed framework for such a
formula.
</FONT>

<P align="center"><FONT size="2">56
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Postpaid Tariffs.
</FONT></I><FONT size="2">The cellular tariffs for postpaid
subscription services consist of activation, monthly
subscription and usage charges. The following table sets forth
the maximum cellular tariffs for postpaid services, effective
February&nbsp;25, 1998:
</FONT>

<P align="center">
<B><FONT size="2">Mobile Cellular Tariff (maximum postpaid
tariff)</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Activation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Rp.200,000
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monthly Charge (including frequency charge)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Rp.65,000/month
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Usage Charge:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Air Time
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Rp.325&nbsp;- 406/minute
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Roaming
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Rp.1,000/call
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Local Cellular Conversation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">50% PSTN local tariff/ minute
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">DLD Cellular Conversation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">PSTN DLD tariff/ minute
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to the amendments in 1998 to implement the
current cellular tariff structure, the Government amended the
cellular tariff structure in 1997 and 1994.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel charges new postpaid subscribers a
maximum one-time connection fee of Rp.200,000 for service
activation, although discounts may be granted. After initial
connection, Telkomsel charges a monthly subscription fee of
Rp.65,000 per month and airtime charges ranging from Rp.325 per
minute during low usage hours to Rp.406 per minute during peak
hours.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Prepaid Tariffs. </FONT></I><FONT size="2">For
prepaid cellular services, activation charges may be freely
determined by cellular operators while usage charges are limited
to a maximum of 140% above the peak usage charge for postpaid
services. Telkomsel charges its prepaid customers airtime
charges ranging from Rp.700 per minute during low usage hours to
Rp.910 per minute during peak hours.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leased Line
Tariffs</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government determines the maximum tariffs for
leased lines. The Government reduced leased line tariffs
substantially in 1997 and 1998. On January&nbsp;1, 1997, the
Government decreased tariffs for leased lines by an average of
52%. Leased line tariffs for other telecommunications operators
and Government bodies were further reduced by up to 30%
effective January&nbsp;1, 1998. The Government has announced
that it intends to move towards a formula-based tariff structure
for leased line services, however, it has not announced a
proposed framework for such a formula.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the maximum leased
line tariffs, effective January&nbsp;1, 1998 and still valid as
of the date hereof:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Maximum tariff</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Installation charge</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Customer access
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">600,000&nbsp;&#150; 700,000<SUP>(1)</SUP>
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other operator access
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">900,000
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Monthly subscription charge</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Analog line
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Local (or up to 25 km)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">60,000&nbsp;&#150; 250,000<SUP>(2)</SUP>
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inter-local (over 25 km)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">779,400&nbsp;&#150; 3,557,750<SUP>(3)</SUP>
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Digital line
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Local (or up to 25 km)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">380,000&nbsp;&#150; 172,268,000<SUP>(4)</SUP>
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inter-local (over 25 km)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">1,009,850&nbsp;&#150; 2,308,628,250 <SUP>(5)</SUP>
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">57
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Notes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Price differs by equipment provided by TELKOM.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Price differs by user (private, other licensed
    operator, or government) and equipment provided by TELKOM.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Price differs by user (private, other licensed
    operator, or government) and distance.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Price differs by user (private, other licensed
    operator, or government) and speed.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Price differs by user (private, other licensed
    operator, or government), speed, and distance.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VoIP
Tariffs</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Charges for VoIP services may be freely
determined by VoIP operators. TELKOM has launched its VoIP
services, which currently consists of TELKOM Global-017 and its
cheaper alternative, TELKOM Save. TELKOM believes that the
tariff for TELKOM Global-017 service and the TELKOM Save service
are approximately 60% and 40%, respectively, of the tariff
charged by IDD operators in Indonesia.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kiosk phone
Tariffs</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Charges for kiosk phones may be freely determined
by operators. Kiosk phones are public phones that are operated
by third-parties. TELKOM gains 70% of basic tariff charged by
operators to its customers on calls placed from kiosk phones.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;7, 2002, the Government enacted a
new regulation, MoC Decree 46/2002, relating to the kiosk-phone
business. The Decree provides that (i)&nbsp;local and long
distance domestic phone calls shall generate at a minimum 30% of
the kiosk phones&#146; revenue; (ii)&nbsp;international phone
calls shall generate at a minimum 8% of the kiosk phones&#146;
revenue; and (iii)&nbsp;airtime from the cellular operators
shall generate at a minimum 10% of the kiosk phones&#146;
revenue.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tariffs for
Other Services</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The amount of the tariffs for telephony and
multimedia services are determined by the service provider by
taking into account the expenditures and market price. The
Government only determines the tariff formula for basic
telephony services, while there is no stipulation for the tariff
of other services.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tariffs for
Interconnection and Access</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government currently establishes the
percentage of tariffs to be received by each operator in respect
of calls that transit multiple networks. The Telecommunications
Law and Government Regulation&nbsp;No.&nbsp;52 of 2000 provides
for the implementation of a new policy to replace the current
revenue sharing policy. Under the new policy, which has not yet
been implemented, the operator of the network on which calls
terminate would determine the interconnection charge to be
received by it based on a formula to be mandated by the
Government, which would be intended to have the effect of
requiring that operators charge for calls based on the costs of
carrying such calls. While the Government has announced that it
intends to move towards such a cost-based approach, it has not
yet established the formula or otherwise implemented this
approach.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interconnection
with Fixed-line Network</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government&#146;s National Fundamental
Technical Plan set forth in Decree 4 of 2000 sets out the
technical requirements and routing plans for interconnection of
the networks of various telecommunications operators among
themselves and with TELKOM&#146;s fixed-line network. Under the
National Fundamental Technical Plan, all operators are permitted
to interconnect with TELKOM&#146;s fixed-line network for access
thereto and to other networks, such as international gateways
and the networks of other cellular operators. In addition,
cellular operators may interconnect directly with other networks
without connecting to TELKOM&#146;s fixed-line network. The fees
for interconnection within Telkom&#146;s fixed-line network are
set forth in Decree 506 of 1997, 46 of 1998, 37 of 1999 and 30
of 2000.
</FONT>

<P align="center"><FONT size="2">58
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cellular
Interconnection</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In respect of local interconnection calls between
a cellular network and TELKOM&#146;s fixed-line network, TELKOM
receives a share of the local interconnection call tariff equal
to the local fixed-line usage tariff (50% of the prevailing
tariff for local pulse per minute).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The existing Interconnection Decree, effective
April&nbsp;1, 1998, assumes that it is possible for
long-distance calls to be carried by more than one network.
Pursuant to the Interconnection Decree, for domestic
long-distance (&#147;DLD&#148;) calls which originate on
TELKOM&#146;s fixed-line network, TELKOM is entitled to retain a
portion of the prevailing DLD tariff, which ranges from 40% of
the tariff in cases where the entire DLD portion is carried by a
cellular operator up to 85% of the tariff in cases where the
entire DLD portion is carried by TELKOM&#146;s fixed-line
network. For DLD calls that originate from a cellular
subscriber, TELKOM is entitled to retain a portion of the
prevailing DLD tariff, which ranges from 25% of the tariff in
cases where the call originates from a cellular subscriber,
transits TELKOM&#146;s fixed-line network and terminates with
another cellular subscriber with the entire DLD portion carried
by a cellular operator, up to 85% of the tariff in cases where
the entire DLD portion is carried by TELKOM&#146;s fixed-line
network and terminates on TELKOM&#146;s fixed-line network.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed Wireless
Interconnection</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed wireless networks may interconnect to
TELKOM&#146;s fixed-line network at TELKOM&#146;s gateway.
Currently, Ratelindo and Indosat are the only other fixed
wireless operators in Indonesia. Local calls between
TELKOM&#146;s fixed-line network and Ratelindo&#146;s network
are operated on a &#147;sender keeps all&#148; basis. For DLD
calls that originate on Ratelindo&#146;s network and transit
TELKOM&#146;s fixed-line network, TELKOM receives 35% of the
prevailing DLD tariff from such calls. For DLD calls that
originate on TELKOM&#146;s fixed-line network, TELKOM retains
65% of the revenue from such calls.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed Wireline
Interconnection</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since September&nbsp;1, 1998, TELKOM has been
receiving a share in Batam Bintan Telekomunikasi
(&#147;BBT&#148;), which is a local operator with a special
coverage area on Batam Island, for each successful call that
transits or terminates on TELKOM&#146;s fixed-line network.
Under the interconnection agreement, TELKOM receives 75% of the
prevailing DLD tariff for DLD calls that originate and terminate
on TELKOM&#146;s fixed-line network. For local interconnection
calls, revenues are shared on a &#147;sender keeps all&#148;
basis. For calls originating from BBT and terminating at a
cellular network and vice versa which transit through
TELKOM&#146;s fixed-line network, TELKOM receives 50% of the
local interconnection call tariff which amounts to 50% of the
prevailing tariff for local pulse per minute for local calls and
60% of the prevailing DLD tariff for DLD calls. For DLD calls
that originate from BBT terminating at a fixed cellular network
which transit through TELKOM&#146;s fixed-line network, TELKOM
receives 50% of the prevailing DLD tariff. In addition, BBT is
to receive 50% of TELKOM&#146;s interconnection revenue (access
and usage), for all incoming and outgoing international calls
from and to BBT that transit through TELKOM&#146;s fixed-line
network.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International
Interconnection</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection for international calls consists
of access charges, usage charges and charges for Universal
Service Obligations. The following table sets forth the
international interconnection tariff, effective as of
December&nbsp;1, 1998, for calls which originate, transit or
terminate on TELKOM&#146;s fixed-line network pursuant to
Ministerial Decree No.&nbsp;37 of 1999:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="66%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Tariff</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Access Charge
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">Rp.850/successful call</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Usage Charge
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">Rp.550/successful paid minute</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">USO
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">Rp.750/successful call</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">59
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Local Fixed-line
Interconnection with Indosat</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In September 2002, TELKOM and INDOSAT signed an
agreement for local fixed-line interconnection. Pursuant to the
Agreement, for interconnection local calls, the operator of the
network on which the calls terminate receives Rp.57 per minute.
In addition, with respect to interconnection long distance calls
from or to Indosat, pending the implementation of the duopoly
system for long distance calls, the retail revenue is kept by
TELKOM and Indosat will receive for the local originating or
local terminating calls, Rp.240 per minute.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Satellite Phone
Interconnection</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since the fourth quarter of 2001, TELKOM has been
receiving a share of revenues arising from interconnection
transactions with PSN, a national satellite operator. Under the
agreement, in respect of the interconnection of calls between
TELKOM and PSN, TELKOM receives Rp.800 per minute for network
charges and an additional Rp.300 per minute origination fee if
the call originates from TELKOM&#146;s fixed-line network.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VoIP
Interconnection</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to Ministerial Decree No.&nbsp;23 of
2002, access charges and network lease charges for the provision
of VoIP services are to be agreed between network operators and
VoIP operators. TELKOM receives connection fees for calls that
originate or terminate on TELKOM&#146;s fixed-line network.
TELKOM&#146;s interconnection agreements with VoIP operators
provide for TELKOM to receive the following fees:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For calls originating on TELKOM&#146;s network:
    Rp.240 per minute
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For calls terminating on TELKOM&#146;s network:
    Rp.240 per minute
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For calls transiting on TELKOM&#146;s network:
    Rp.525 per minute (zone 1), Rp.870 per minute (zone 2)&nbsp;and
    Rp.1170 per minute (zone 3).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to Ministerial Decree No.&nbsp;23 of
2002, a clearing house may be established for the purpose of
calculating interconnection charges among network operators and
VoIP operators.
</FONT>

<P align="left">
<B><FONT size="2">Trademarks, Copyrights, and Patent</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has a number of registered intellectual
property rights consisting of trademarks and copyrights. TELKOM
has registered with the Ministry of Justice of Indonesia
(i)&nbsp;trademarks for its corporate name, logo and certain
services including the names of TELKOM&#146;s products, and
(ii)&nbsp;copyrights of books and artworks. TELKOM is also in
the process of registering a number of patents for technologies
relating to, among others, cellular phones and network, PSTN,
switching systems and related administration systems. These
intellectual property rights are important to TELKOM&#146;s
business.
</FONT>

<P align="left">
<B><FONT size="2">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business and
Organizational Structure</FONT></B>

<P align="left">
<B><FONT size="2">Information on Subsidiaries and Associated
Companies</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, TELKOM had
ownership interests in 18&nbsp;companies, six of which are
consolidated subsidiaries and the remaining 12 are
unconsolidated associated companies. The business activities of
the six consolidated subsidiaries (as further described below)
are described as part of TELKOM&#146;s business in this
Form&nbsp;20-F. For a description of the activities of
TELKOM&#146;s unconsolidated associated companies, please see
&#147;Unconsolidated Associated Companies&#148; below.
</FONT>

<P align="center"><FONT size="2">60
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth TELKOM&#146;s
direct ownership interest in companies as of December&nbsp;31,
2002. TELKOM&#146;s ownership interests in associated companies
may be increased or diluted as a result of TELKOM&#146;s planned
restructuring of its legal ownership interests in these
companies to focus on phone, mobile and multimedia businesses.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Legal Ownership (%)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Subsequent</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Events)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Business Operations</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="11" align="left" valign="top">
    <B><FONT size="2">Where TELKOM owns more than 50% or fully
    controls the company:</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Dayamitra Telekomunikasi
    (&#147;Dayamitra&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">90.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fixed-phone (KSO-VI Kalimantan)
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Graha Sarana Duta (&#147;GSD&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.99</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Real estate, construction and services
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Indonusa Telemedia (&#147;Indonusa&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">57.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Interactive multimedia, special pay TV
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Infomedia Nusantara
    (&#147;Infomedia&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">51.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Telephone directory and other information
    services (electronic based business, call center and data
    segment)
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomunikasi Selular
    (&#147;Telkomsel&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">65.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">GSM cellular phone services
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pro Infokom Indonesia (&#147;PII&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(3)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Telecommunication &#38; information services,
    especially e-Government, e-Indonesia programs and B2B
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pramindo Ikat Nusantara
    (&#147;Pramindo&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">30.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fixed-phone (KSO-I Sumatera)
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;AriaWest International
    (&#147;AriaWest&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(6)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fixed-phone (KSO-III W. Java &#38; Banten)
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Selular Raya
    (&#147;Telesera&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(7)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">AMPS cellular phone services
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="9" align="left" valign="top">
    <B><FONT size="2">Where TELKOM owns between 20% to
    50%:</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Citra Sari Makmur (&#147;CSM&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">VSAT and other telecommunications services
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Menara Jakarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">20.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(9)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Infrastructure for multimedia services
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Metro Selular Nusantara
    (&#147;Metrosel&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">20.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(10)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">AMPS cellular services
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Mobile Selular Indonesia
    (&#147;Mobisel&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">NMT-450 cellular services
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Multimedia Nusantara (&#147;Metra&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">31.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(5)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Multimedia, special pay TV
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Napsindo Primatel International
    (&#147;Napsindo&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">32.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(2)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Network Access Point
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">61
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="29%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Legal Ownership (%)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Subsequent</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Events)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Business Operations</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pasifik Satelit Nusantara
    (&#147;PSN&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">22.57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(11)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Satellite transponder &#38; communications
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Patra Telekomunikasi Indonesia
    (&#147;Patrakom&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">30.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">VSAT services
    </FONT></TD>
</TR>

<TR>
    <TD colspan="9" align="left" valign="top">
    <B><FONT size="2">Where TELKOM owns less than 20%</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Batam Bintan Telekomunikasi
    (&#147;Babintel&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Fixed-phone (in Batam &#38; Bintan islands)
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Komunikasi Selular Indonesia
    (&#147;Komselindo&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">14.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">(8)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">AMPS cellular services
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pembangunan Telekomunikasi Ind.
    (&#147;Bangtelindo&#148;)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Construction and consulting
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Notes:
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">On August&nbsp;8, 2003, TELKOM and
    PT&nbsp;Centralindo Pancasakti Cellular (&#147;CPSC&#148;)
    signed a share swap agreement pursuant to which TELKOM received
    an additional 30.58% (1,712,370) of the shares of
    PT&nbsp;Indonusa Telemedia (&#147;Indonusa&#148;) from CPSC.
    Following this transaction, TELKOM&#146;s ownership in Indonusa
    increased to 80.08%. Pursuant to an EGM of the shareholders of
    Indonusa on October&nbsp;29, 2003, all of the shareholders
    agreed to convert an additional Rp.13,500&nbsp;million of debt
    owed by Indonusa to TELKOM into newly issued shares of Indonusa.
    Following such conversion, TELKOM&#146;s ownership in Indonusa
    increased from 88.08% to 90.39%.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM increased its ownership in
    PT&nbsp;Napsindo Primatel International (&#147;Napsindo&#148;)
    from 32% to 60% by acquiring 28% of the shares of Napsindo from
    PT&nbsp;Info Asia Sukses Makmur Mandiri (&#147;InfoAsia&#148;).
    The agreement between TELKOM and InfoAsia was signed on
    December&nbsp;30, 2002. The agreement states that the interest
    will be transferred to TELKOM if the payment has been finalized.
    The agreed price was paid on 28&nbsp;January 2003, on which date
    TELKOM acquired control of Napsindo. TELKOM currently owns 60%
    of Napsindo.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">In January 2003, TELKOM, PT&nbsp;Indonesia
    Comnets Plus (&#147;ICON+&#148;), a subsidiary of Perusahaan
    Perseroan (Persero) Listrik Negara (&#147;PLN&#148;), and
    PT&nbsp;Prima Infokom Indonesia established PT&nbsp;Pro Infokom
    Indonesia (&#147;PII&#148;) to provide B2B, e-Government and
    e-Indonesia services. TELKOM currently holds 51%, while ICON+
    25% and Prima Infokom Indonesia holds 24%. Pursuant to an
    Executive General Meeting of the shareholders of PII on
    October&nbsp;9, 2003, ICON+ and PT&nbsp;Prima Infokom Indonesia
    stated their intention to dispose of their shareholding in PII
    to TELKOM. Following that date, TELKOM has been negotiating with
    the other two shareholders for a fair price of the shares.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">On April&nbsp;19, 2002, TELKOM and the
    shareholders of PT&nbsp;Pramindo Ikat Nusantara
    (&#147;Pramindo&#148;) signed a Conditional Sale and Purchase
    Agreement for the sale of the Pramindo shares. TELKOM received
    30% of the shares of Pramindo in August 2002, and in September
    2003 received an additional 15%, while the remaining 55% will be
    received on December&nbsp;15, 2004, subject to certain
    conditions, including that TELKOM continues to meet its payment
    obligations under the terms of the promissory notes issued as
    consideration for the purchase price and protective rights
    granted to the selling shareholders. TELKOM obtained control of
    Pramindo at the closing on August&nbsp;15, 2002 and consequently
    has consolidated 100% of Pramindo from that date even though its
    ownership in Pramindo was only 30% as of December&nbsp;31, 2002.
    On January&nbsp;29, 2004, TELKOM signed a short-term loan
    agreement with ABN AMRO Bank NV Jakarta in the amount of
    approximately US$130&nbsp;million. TELKOM intends to use the
    loan to repurchase series&nbsp;I of the promissory notes that
    are due on June&nbsp;15, 2004, September&nbsp;15, 2004 and
    December&nbsp;15, 2004 as the interest rate applicable to the
    loan is less than the interest rate of the promissory notes,
    thereby allowing TELKOM to accelerate the acquisition of the
    remaining 55% shareholding in Pramindo to as early as March 2004.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM increased its ownership to 100% in
    PT&nbsp;Multimedia Nusantara (&#147;Metra&#148;) by acquiring
    69% (1,725,000) of the shares of Metra from PT&nbsp;Indocitra
    Grahabawana under a share swap transaction. The transaction was
    closed on April&nbsp;8, 2003. TELKOM intends to use Metra to
    operate multimedia services in line with TELKOM&#146;s strategy
    to focus on phone, mobile and multimedia services.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">On July&nbsp;31, 2003, TELKOM and the
    shareholders of PT&nbsp;AriaWest International
    (&#147;AriaWest&#148;) consummated the sale and purchase of
    AriaWest, pursuant to which TELKOM acquired 100% of AriaWest
    from PT&nbsp;Aria Infotek (52.50%), MediaOne International I
    B.V. (35%), and The Asian Infrastructure Fund (12.50%). TELKOM
    currently owns 100% of AriaWest.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM delivered 100% (25,000) of its shares in
    PT&nbsp;Telekomindo Selular Raya to PT&nbsp;Centralindo
    Pancasakti Cellular (&#147;CPSC&#148;) pursuant to an agreement
    signed on August&nbsp;8, 2003 between TELKOM and CPSC. TELKOM no
    longer owns any shares in this company.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">62
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Pursuant to the agreement signed on
    August&nbsp;8, 2003 between TELKOM and CPSC, TELKOM sold 14.20%
    (29,069,250 shares) of PT&nbsp;Komunikasi Selular Indonesia
    (&#147;Komselindo&#148;) to CPSC. TELKOM no longer owns any
    shares in this company.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">On April&nbsp;8, 2003, TELKOM sold all of its
    shareholding (10,000 shares) in PT&nbsp;Menara Jakarta to
    PT&nbsp;Indocitra Grahabawana as part of the share swap
    transaction with PT&nbsp;Indocitra Grahabawana. As of the date
    of the transaction, TELKOM owned 21.34% of PT&nbsp;Menara
    Jakarta. TELKOM no longer owns any shares in this company.
    </FONT></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">10)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">As part of the agreement signed on August&nbsp;8,
    2003 between TELKOM and CPSC, TELKOM sold 20.17% (2,612,015
    shares) of PT&nbsp;Metro Selular Nusantara
    (&#147;Metrosel&#148;) to CPSC. TELKOM no longer owns any shares
    in this company.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">11)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">As part of the agreement signed on August&nbsp;8,
    2003 between TELKOM and CPSC, CPSC issued an option to TELKOM to
    buy its 16.85% (16,641,367) shares of PT&nbsp;Pasifik Satelit
    Nusantara (&#147;PSN&#148;) within a period of one year starting
    from the date of the signing of share-swap agreement. The call
    option is guaranteed by Rp.169&nbsp;billion of promissory notes
    which become payable on August&nbsp;8, 2004. During the call
    option period, all of CPSC&#146;s rights in relation to the
    shares are granted to TELKOM. In addition, PSN and its
    creditors; PT&nbsp;Bank Mandiri, PT&nbsp;Bank Merincorp,
    PT&nbsp;Danareksa, PT&nbsp;Bank Rakyat Indonesia, and Credit
    Suisse First Boston International (CSFBI), have agreed to a debt
    to equity conversion, pursuant to which PSN is required to issue
    approximately 20&nbsp;million new shares to the creditors. The
    conversion will in effect dilute the shareholding percentage of
    the existing shareholders of PSN, including TELKOM. Following
    the debt to equity conversion, TELKOM&#146;s share in PSN has
    been diluted to 18%.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unconsolidated
Associated Companies</FONT></I></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PT&nbsp;Multimedia
Nusantara (&#147;Metra&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Metra was established on May&nbsp;28,1997 as a
company that provides pay television and multimedia
telecommunications service. On establishment, Metra was owned by
TELKOM (31%), Indosat Mega Media (15%), TVRI Foundation (5%),
and Indocitra Grahabawana (49%). Pursuant to a share swap
agreement dated April&nbsp;8, 2003, TELKOM increased its
ownership in Metra to 100% by acquiring the remaining 69%
shareholding from Indocitra Grahabawana, who acquired those
shares from the other shareholders of Metra. See
&#147;PT&nbsp;Menara Jakarta&#148; below.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PT&nbsp;Napsindo
Primatel Internasional (&#147;Napsindo&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Napsindo was established on December&nbsp;29,
1998. Napsindo&#146;s primary business is Network Access Point
(NAP) for Internet Traffic Consolidation in Indonesia. In
January 2003, TELKOM increased its ownership by acquiring a 28%
shareholding from another shareholder (PT&nbsp;Info Asia Sukses
Makmur Mandiri). TELKOM&#146;s ownership interest is currently
60%. Napsindo is currently in the business of providing capacity
for international telecommunication links and is taking steps to
convert its core business to the provision of network access
protocol.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PT&nbsp;Patra
Telekomunikasi Indonesia (&#147;Patrakom&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Patrakom was established in September 1995 and is
currently owned by TELKOM (30%), Indosat (10%), Elnusa (40%),
and Tanjung Mustika (20%). Patrakom provides satellite
communication and related services and facilities to companies
engaged in the petroleum industry. As part of a continuous
process of evaluation and restructuring by TELKOM of the status
of its affiliates, as well as the Government&#146;s policy to
eliminate cross-ownership between TELKOM and Indosat, TELKOM is
in the process of negotiation with other shareholders regarding
a possible decrease or increase of ownership in Patrakom.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PT&nbsp;Citra
Sari Makmur (&#147;CSM&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">CSM was established in February 1996 and is
currently owned by TELKOM (25%), PT&nbsp;Tigatra (38.29%), and
Bell Atlantic Indonesia Inc. (36.71%). CSM is incorporated in
Indonesia and provides telecommunications services relating to
VSAT applications and other telecommunications technology and
related facilities. Pursuant to an Executive General Meeting of
the shareholders of CSM on April&nbsp;25, 2003, the shareholders
resolved that TELKOM may transfer its shares in CSM to
PT&nbsp;Tigatra pursuant to a sale and purchase agreement with
terms to be agreed upon between TELKOM and PT&nbsp;Tigatra.
TELKOM is currently negotiating with PT&nbsp;Tigatra for a fair
price for the shares.
</FONT>

<P align="center"><FONT size="2">63
</FONT>

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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PT&nbsp;Pasifik
Satelit Nusantara (&#147;PSN&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PSN was established in July 1991 and as of
December&nbsp;31, 2002, TELKOM owned 22.57%. PSN is currently
owned by TELKOM (18.00%), Elektrindo Nusantara (16.85%),
Skaisnetindo Teknotama (8.71%), Primaupaya Lintasswara (6.15%),
Hughes Space and Communications International (5.77%), Telesat
Canada (5.77%), and others (38.75%) (including holders of
American Depositary Shares of PSN who own 19.68% of PSN). PSN
provides satellite-based communication services to countries
within the Asia Pacific region. As of December&nbsp;31, 2002,
PSN had approximately 20,000 mobile satellite subscribers. PSN
conducted an initial public offering of its common stock and
listing on NASDAQ in June 1996, but was delisted on
November&nbsp;6, 2001 due its failure to meet certain Nasdaq
National Market Listing requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;8, 2003, TELKOM entered into a
share-swap agreement with PT&nbsp;Centralindo Pancasakti
Cellular (&#147;CPSC&#148;) in which the Company agreed to
receive a call option to buy 16.85% shares in PSN within the
period of 1&nbsp;year starting from the signing of the
share-swap agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Currently TELKOM is investigating the benefits
associated with an increase of its ownership in PSN to develop a
retail satellite based service such as cellular via satellite
and to support the government program for providing
telecommunications lines to remote areas.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Batam Bintan Telekomunikasi
    (&#147;BBT&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">BBT was established in June 1996 and is currently
owned by TELKOM (5%) and Batamindo Investment (95%). BBT
provides telephony fixed line telecommunications services at
Batamindo Industrial Park in Muka Kuning, Batam Island and at
Bintan Beach International Resort and Bintan Industrial Estate
in Bintan Island which are special economic and tourist
development zones on those islands. As at December&nbsp;31,
2002, BBT had approximately 2,635 subscribers.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Mobile Selular Indonesia
    (&#147;Mobisel&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mobisel was established on November&nbsp;30, 1995
by TELKOM (25%), TELKOM&#146;s Pension Fund (5%) and
PT&nbsp;Rajasa Hazanah Perkasa (&#147;Rajasa&#148;) (70%). See
&#147;Item&nbsp;5. Operating and Financial Review and
Prospects&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mobisel currently provides NMT-450 services
formerly provided by TELKOM and Rajasa pursuant to a PBH in
Java, Bali, Lombok, Sumatera and Lampung. Mobisel is also
preparing to launch a CDMA-based network in Lampung, which is
expected to take place during the first quarter of 2004. As of
December&nbsp;31, 2002, Mobisel had approximately 6,823
subscribers. TELKOM has decided to divest its ownership in
Mobisel and is in the process of identifying purchasers for its
existing stake.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to an Extraordinary General Meeting held
on July&nbsp;28, 2003, the shareholders of Mobisel agreed to
restructure Mobisel. The restructuring program includes
(i)&nbsp;a debt to equity conversion involving accrued
interconnection expenses owed by Mobisel to TELKOM; (ii)&nbsp;a
share split with a new class of series&nbsp;B shares being
issued to the new shareholders while shares held by the existing
shareholders are reclassified as series&nbsp;A shares; and
(iii)&nbsp;the equity investment of approximately
US$2&nbsp;million by PT&nbsp;Multi Investama. Following the
completion of this restructuring program, TELKOM&#146;s
ownership in Mobisel is diluted from 25% to 7.44%.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Pembangunan Telekomunikasi Indonesia
    (&#147;Bangtelindo&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Bangtelindo was established in December 1993 in
Indonesia. The shareholders of Bangtelindo are TELKOM (3.18%),
TELKOM&#146;s Pension Fund (82%), and others (14.82%).
Bangtelindo&#146;s primary business is providing consultancy
services on the installation and maintenance of
telecommunications facilities.
</FONT>

<P align="center"><FONT size="2">64
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Komunikasi Selular Indonesia
    (&#147;Komselindo&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Komselindo was established on January&nbsp;25,
1995 by TELKOM (35%) and PT&nbsp;Elektrindo Nusantara
(&#147;Elektrindo&#148;) (65%) to operate an AMPS mobile
cellular network which was previously operated pursuant to a
revenue sharing arrangement between TELKOM and Elektrindo.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;14, 2002, Komselindo proposed a
settlement plan to its creditors for debt restructuring through
a debt to equity conversion. The debt to equity conversion
included Komselindo liabilities to TELKOM amounting to
Rp19.4&nbsp;billion. Pursuant to an Extraordinary General
Meeting held on August&nbsp;30, 2002, the shareholders of
Komselindo agreed to a rights issue. TELKOM did not exercise its
right to subscribe for additional shares pursuant to the rights
issue, and as such, its ownership in Komselindo has been reduced
to 14.20%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Komselindo had a total of 35,637 subscribers in
Jakarta, Bandung, Medan, Manado and Ujung Pandang areas as of
December&nbsp;31, 2002. Following a share swap agreement signed
on August&nbsp;8, 2003 between TELKOM and CPSC, TELKOM
transferred its 14.20% shareholding in Komselindo to CPSC.
Following such transfer, TELKOM no longer owns any shares in
Komselindo.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Metro Selular Nusantatra
    (&#147;Metrosel&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Metrosel was established in November 1995. As of
December&nbsp;31, 2002, Metrosel was owned by TELKOM (20.17%),
PT&nbsp;Centralindo Pancasakti Cellular (&#147;CPSC&#148;)
(37.03%), Asia Link BV (35.00%), TELKOM&#146;s Pension Fund
(3.00%) and PT&nbsp;Dwimarga Dwi Utama (4.80%). Metrosel
provides the AMPS services previously provided by TELKOM and
CPSC pursuant to a revenue sharing arrangement in Central and
East Java.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM transferred its switching operations to
Metrosel in 1996 as payment for the purchase price of its equity
interest in the company. Prior to 1996, TELKOM and Metrosel had
a revenue sharing arrangement. Following the transfer in 1996,
the revenue sharing arrangement is terminated. As of
December&nbsp;31, 2002, Metrosel had a total of approximately
56,196 subscribers. Pursuant to an Extraordinary General Meeting
held on May&nbsp;14, 2003, the shareholders of Metrosel approved
the transfer by CPSC, PT&nbsp;Dwimarga Dwi Utama and Asia
Link&nbsp;BV of their combined 76.83% equity interest in
Metrosel to Mobile-8 Telecom. Following this transaction, the
shareholders of Metrosel were as follows: Mobile-8 Telecom
(76.83%), TELKOM (20.17%) and the TELKOM pension fund (3%).
Under an agreement dated August&nbsp;8, 2003 between TELKOM and
CPSC, TELKOM transferred its 20.17% stake in Metrosel to CPSC.
Following such transfer, TELKOM no longer owns any shares in
Metrosel.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Menara Jakarta
    (&#147;MJ&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MJ was established on November&nbsp;29, 1996. As
of December&nbsp;31, 2002, MJ was owned by TELKOM (21.34%),
PT&nbsp;Indocitra Grahabawana (&#147;Indocitra&#148;) (54.44%),
PT&nbsp;Indosat Mega Media (21.34%), and Yayasan Televisi
Republik Indonesia (2.88%). MJ planned to construct and operate
building towers and related telecommunications facilities. Since
1999, MJ has terminated its construction projects, pending
improvement in the economic and social situation in Indonesia.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM divested its 21.34% ownership in MJ to
Indocitra through a share swap transaction in exchange for
Indocitra&#146;s 69.0% equity interest in Metra, which it
acquired from the other shareholders of Metra. The process was
completed in April&nbsp;8, 2003. Following the completion of
such process, TELKOM no longer owns any shares in MJ.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Radio Telekomunikasi Indonesia
    (&#147;Ratelindo&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;28, 2001, TELKOM and CMA Fund
Management Ltd. signed a Sale and Purchase Agreement for the
sale of TELKOM&#146;s 12.86% share ownership in Ratelindo to CMA
Fund Management Ltd. Following the closing of this sale in March
2002, TELKOM no longer holds any ownership interest in Ratelindo.
</FONT>

<P align="center"><FONT size="2">65
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">PT&nbsp;Telekomindo Selular Raya
    (&#147;Telesera&#148;)</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM increased its ownership interest in
Telesera to 100% by acquiring 30.23% of Telesera shares from
TELKOM Pension Fund on September&nbsp;29, 2002. Telesera
provides AMPS cellular networks in Bali, Kalimantan and Southern
Sumatera and had a total of 9,671 subscribers as of
December&nbsp;31, 2002. Notwithstanding the 100.00% equity
interest, Telesera&#146;s financial statements are not
consolidated and are accounted for using the equity method as
TELKOM&#146;s control over Telesera was expected to be
temporary. On August&nbsp;8, 2003, TELKOM and CPSC signed a
share swap agreement pursuant of which TELKOM delivered 100%
(25,000) of its shares in Telesera to CPSC. Following the
completion of this share swap, TELKOM no longer owns any shares
in Telesera.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">D.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Property, Plant and Equipment</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except for ownership rights granted to
individuals in Indonesia, the title to land rests with the
Indonesian State under the Basic Agrarian Law No.&nbsp;5/1960.
Land use is accomplished through landrights, notably rights to
build (<I>Hak Guna Bangunan</I>) and rights to use (<I>Hak
Pakai</I>), whereby the holder of the landright enjoys the full
use of the land for a stated period of time, subject to renewal
and extensions. In most instances, the landrights are freely
tradeable and may be pledged as security under loan agreements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM, excluding its subsidiaries, currently
owns approximately 3,000 properties. TELKOM holds registered
rights to build for the majority of its real property. Pursuant
to Government Regulation No.&nbsp;40 of 1996, the maximum
initial periods for rights to build are 30&nbsp;years and may be
extended for an additional 20&nbsp;years. Most of TELKOM&#146;s
real property is used to host equipment for the provision of
telecommunications operations including exchanges, transmission
stations and microwave radio equipment. None of TELKOM&#146;s
properties are mortgaged. TELKOM is not aware of any
environmental issues which may affect the utilization of its
properties.
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;5.</FONT></B></TD>
    <TD>
    <B><FONT size="2">OPERATING AND FINANCIAL REVIEW AND
    PROSPECTS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">The following discussion and analysis should
be read in conjunction with the consolidated financial
statements of TELKOM for the three years ended December&nbsp;31,
2000, 2001 and 2002 included elsewhere in this Annual Report.
These consolidated financial statements were prepared in
accordance with Indonesian GAAP, which differs in certain
material respects from U.S.&nbsp;GAAP. See Note&nbsp;57 to the
consolidated financial statements in Item&nbsp;18 for our
U.S.&nbsp;GAAP Reconciliation.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Subsequent to the filing of our consolidated
financial statements in our Annual Report on Form&nbsp;20-F for
2002 and Amendment No.&nbsp;1 to the Annual Report that was
filed on June&nbsp;11, 2003, we made certain adjustments to the
Indonesian GAAP and U.S.&nbsp;GAAP amounts previously disclosed
for 2000, 2001, 2002 and prior years which we believe are
required to be made pursuant to Indonesian GAAP and
U.S.&nbsp;GAAP. These adjustments made in this amended Annual
Report on Form&nbsp;20-F impacted our net income, earnings per
share and stockholders&#146; equity as discussed in
&#147;&#151;&nbsp;Restatement of Information Previously
Reported&#148; below and Notes&nbsp;4 and&nbsp;57 to the
consolidated financial statements in Item&nbsp;18. See
&#147;Explanatory Note.&#148;</FONT></I>

<P align="left">
<B><FONT size="2">Restatement of Information Previously
Reported</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequent to the filing of our consolidated
financial statements in our Annual Report on Form&nbsp;20-F for
year ended December&nbsp;31, 2002 and Amendment No.&nbsp;1 to
the Annual Report that was filed with the SEC on June&nbsp;11,
2003, we made certain adjustments to the Indonesian GAAP and the
related reconciliation with U.S.&nbsp;GAAP amounts previously
disclosed for 2000, 2001, 2002 and prior years which we believe
are required to be made pursuant to Indonesian GAAP and
U.S.&nbsp;GAAP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Set forth below are the effects of the
restatements on the previously reported consolidated net income
and stockholders&#146; equity for the years ended
December&nbsp;31, 2000, 2001 and 2002 respectively. The
corrections of the Indonesian GAAP consolidated financial
statements primarily relate to the accounting for long service
awards, deferred income taxes, and business acquisitions, as
well as the
</FONT>

<P align="center"><FONT size="2">66
</FONT>

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<DIV align="left">
<FONT size="2">assumptions underlying TELKOM&#146;s
post-retirement healthcare plan. Certain additional corrections
were required for U.S.&nbsp;GAAP purposes primarily relating to
our accounting for revenue recognition, deferred income taxes,
revenue sharing arrangements and business acquisitions.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in
Indonesian GAAP Information Previously Reported</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effect of the restatements on net income for
the years ended December&nbsp;31, 2000, 2001 and 2002 is set
forth in the table below. Restatements of
Rp.205,610&nbsp;million relating to periods prior to 2000 were
recorded as a reduction of the respective equity accounts as of
January&nbsp;1, 2000.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under Indonesian GAAP as previously
    reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,010,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,250,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,345,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(i)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,116</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,675</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(151,773</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Post-retirement healthcare benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(141,160</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(186,758</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(414,564</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54,027</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(286,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition accounting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iv)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,008</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,763</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating revenue
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(v)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,695</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,359</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,975</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vi)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of loan balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(viii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel equity transactions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ix)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,158</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other items
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(x)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,503</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Corporate tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(xi)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,965</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsequent event:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AriaWest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(xii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">332,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(234,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(181,719</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(305,565</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under Indonesian GAAP as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">827.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">797.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per ADS (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,972.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,432.76</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,558.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,505.96</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,072.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,951.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">67
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effect of the restatements on
stockholders&#146; equity as of December&nbsp;31, 2000, 2001 and
2002 is set forth in the table below:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under Indonesian GAAP
    as previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,909,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,323,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,899,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(i)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(210,159</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(275,834</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(427,607</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Post-retirement healthcare benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(341,106</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(527,864</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(942,428</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83,588</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">525,528</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(136,875</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition accounting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iv)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,008</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(353,810</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(v)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,565</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vi)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of loan balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(viii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel equity transactions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ix)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other items
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(x)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,503</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Corporate tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(xi)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,965</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsequent event:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AriaWest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(xii)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">332,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(436,112</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(242,614</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,285,566</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under Indonesian GAAP
    as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These adjustments have been reflected in the
restated audited consolidated financial statements included in
Item&nbsp;18 and are summarized as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(i)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Long service awards.</FONT></I><FONT size="2">
    TELKOM&#146;s employees are entitled to receive certain cash
    awards, such as long service, housing, transport and other
    allowances, based on length of service. Depending on the type of
    award, they are either paid at the time an employee reaches a
    certain anniversary date or upon termination or retirement if
    the employee has met the requisite number of years of service.
    TELKOM had not previously made provision for these liabilities
    and was only accounting for the awards at the time payments were
    made to the employees. TELKOM has determined that these awards
    should have been accounted for under the accrual method.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ii)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Post-retirement healthcare
    benefits.</FONT></I><FONT size="2"> TELKOM provides a
    post-retirement healthcare plan for pensioners who were employed
    by TELKOM for over 20&nbsp;years. As described in Notes&nbsp;2r
    and 47 to the consolidated financial statements in Item&nbsp;18,
    these costs are accounted for in accordance with U.S.&nbsp;GAAP
    applying SFAS 106. TELKOM has been recognizing the benefit
    obligations and the related benefit costs based on actuarial
    calculations.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">TELKOM has requested the Company&#146;s actuary
    to review the actuarial calculations in respect of disclosures
    for the post-retirement healthcare plan for the years 2000 and
    2001. As a consequence of this review, the Company&#146;s
    actuary in consultation with the Company&#146;s management has
    deemed it necessary to withdraw its original reports and
    substitute revised reports.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The Company has determined that the change in
    actuarial calculations represents the correction of an error and
    therefore requires retroactive restatement of its 2000 and 2001
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">68
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">financial statements. The Company did not
    previously engage an actuary for 2002 but has done so for the
    purposes of these restated financial statements.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iii)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Deferred income
    taxes.</FONT></I><FONT size="2"> TELKOM has identified the need
    to make adjustments to correct errors to prior calculations of
    deferred income taxes to reflect certain temporary differences
    between the tax bases of assets and liabilities and their
    reported amounts in the consolidated financial statements.
    TELKOM also has concluded it should remove the deferred tax
    liability previously recorded in relation to the undistributed
    earnings of its subsidiaries and associates, principally those
    relating to Telkomsel, because the Company did not correctly
    determine the amount of the temporary difference. (See
    &#147;Adjustments related to Stockholders&#146; Equity&#148;
    below).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(iv)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Acquisition
    accounting.</FONT></I><FONT size="2"> In respect of the
    acquisition of Pramindo in August 2002, the Company previously
    consolidated a 30% interest in Pramindo in accordance with the
    30% legal ownership interest in the shares held by the Company.
    The Company did not, however, consider other factors affecting
    its ability to exercise control over Pramindo and its right to
    obtain all of the future economic benefits of ownership as
    though the Company owned 100% of the shares. The factors that
    the Company has now considered include, among others, the fact
    that the selling price is fixed, its ability to vote 100% of the
    shares at general stockholders meetings, subject to certain
    protective rights retained by the selling stockholders, its
    ability to appoint all of the board members and management and
    its consequent ability to exclusively determine the financial
    and operating policies of Pramindo subject to certain protective
    rights, its issuance of irrevocable and unconditional promissory
    notes in settlement of the purchase consideration to the selling
    stockholders, the placement of the 70% of Pramindo shares not
    yet transferred to the Company in an escrow account by the
    selling stockholders, the protective provisions in the various
    agreements for the Company to take over all shares (including
    powers of attorney issued by the selling stockholders) or
    collapse the KSO arrangement once the full amount payable for
    the shares has been paid. (See Note&nbsp;6b to the consolidated
    financial statements). As a consequence, the Company has
    determined that consolidation of a 100% interest in Pramindo
    from the date of acquisition is appropriate.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">In addition, in connection with the acquisition
    of Pramindo in August 2002 and Dayamitra in May 2001, TELKOM did
    not properly allocate the purchase consideration to certain
    acquired assets. The restated consolidated financial statements
    for 2001 and 2002 reflect adjustments to record such assets at
    their fair values as of the date of acquisition and subsequent
    depreciation thereof.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">TELKOM previously presented the consolidation of
    newly acquired subsidiaries from the beginning of the year of
    acquisition, consistent with the principles of U.S.&nbsp;GAAP
    set out in &#147;Accounting Research Bulletin 51: Consolidated
    Financial Statements&#148;. In 2002, the Company has changed the
    manner in which it presents acquisitions to a presentation
    starting from the date of acquisition in accordance with
    PSAK&nbsp;4. This change does not affect the reported net income
    in any of the years presented.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The Company also should have reflected an element
    of this transaction as a transaction between entities under
    common control (see &#147;Adjustments Related to
    Stockholders&#146; Equity&#148; below).
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(v)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Operating revenues.</FONT></I><FONT size="2">
    As a result of a review of certain terms of the revenue sharing
    agreements and other telecommunication service agreements,
    TELKOM has determined that there were certain errors in previous
    calculations relating to the amortization of unearned revenue
    which resulted in a net overstatement of revenues recorded in
    the consolidated financial statements for 2001 and an
    understatement of such revenue in 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">69
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(vi)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Trade accounts
    payable.</FONT></I><FONT size="2"> As a result of the
    reconciliation of balances with other telephone operators in
    2002, TELKOM determined that there were some errors in trade
    accounts payable balances that resulted in an overstatement of
    the payables recorded in the consolidated financial statements
    for 2001 and 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(vii)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Correction of loan
    balance.</FONT></I><FONT size="2"> As a result of reconciliation
    of outstanding loans at the end of 2002, TELKOM determined that
    there was a double recording of a loan balance which had a
    corresponding effect of overstating the foreign exchange loss in
    the consolidated financial statements for 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(viii)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Correction of taxes
    payable.</FONT></I><FONT size="2"> As a result of reconciliation
    of taxes payable at the end of 2002, TELKOM determined that
    there was an over-accrual of value-added tax payable.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ix)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Telkomsel equity
    transactions.</FONT></I><FONT size="2"> As a result of the sale
    of a 12.72% interest in Telkomsel (see Note&nbsp;1b to the
    consolidated financial statements) in 2002, an adjustment should
    have been made to stockholders&#146; equity to reflect the
    realisation of a gain in the 2002 statement of income
    attributable to past equity transactions in Telkomsel.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(x)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Other items.</FONT></I><FONT size="2"> Other
    adjustments represent individually insignificant adjustments to
    correct errors as a result of understatement of depreciation
    expenses, understatement of allowance for doubtful accounts and
    amortization of deferred interest and other issues.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(xi)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">Corporate tax.</FONT></I><FONT size="2">
    Certain of the above adjustments have also impacted the
    corporate tax calculation for the 2001 and 2002 tax years. As a
    result, TELKOM has reflected the related adjustments to the
    corporate tax charge in the restated consolidated financial
    statements for the respective years.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Subsequent event</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(xii)</FONT></TD>
    <TD align="left">
    <I><FONT size="2">AriaWest.</FONT></I><FONT size="2"> Subsequent
    to the date on which TELKOM issued the 2002 consolidated
    financial statements, TELKOM settled its dispute with AriaWest.
    In the previously issued consolidated financial statements for
    2002, TELKOM had made provisions against its trade receivables
    relating to the dispute with AriaWest and recorded
    Rp.830&nbsp;billion received from KSO III as &#147;Advances from
    customers and suppliers&#148; in the balance sheet pending
    settlement of the dispute. As a result of the settlement, the
    Company has reversed these provisions (see Notes&nbsp;9
    and&nbsp;56d to the consolidated financial statements), applied
    the advance received against the outstanding trade receivable
    and accrued the settlement amount (see Note&nbsp;56d to the
    consolidated financial statements).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Adjustments Related to Stockholders&#146;
Equity</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">a.</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM incorrectly recorded an adjustment
    directly to stockholders&#146; equity in the previously issued
    2002 consolidated financial statements to reverse the deferred
    tax liability TELKOM had previously recorded in relation to the
    undistributed earnings of Telkomsel. This balance should have
    been reversed as part of the accounting for the cross ownership
    transactions in 2001 (see Note&nbsp;5 to the consolidated
    financial statements) and has been adjusted as part of the
    corrections to the Company&#146;s deferred tax accounting
    referred to in (iii)&nbsp;above.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">b.</FONT></TD>
    <TD align="left">
    <FONT size="2">At the time TELKOM acquired Pramindo in August
    2002, 13% of the issued and paid up share capital of Pramindo
    was owned by Indosat, a company that, at that time, was majority
    owned and controlled by the Government, the Company&#146;s major
    stockholder. In the previously issued consolidated financial
    statements for 2002, the Company did not account for the
    acquisition of Pramindo recognizing that a portion of the
    transaction was between entities under common control. As a
    result, TELKOM has made an adjustment as a result of accounting
    for the acquisition of 13% of Pramindo as a transaction between
    entities under common control by debiting the &#147;Difference
    in value from restructuring transactions of
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">70
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">entities under common control&#148; in
    stockholders&#146; equity to reflect the excess of the purchase
    price over the proportional historical book value of the net
    assets of Pramindo that were acquired from Indosat.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Reclassifications</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain accounts were reclassified to conform
with Indonesian GAAP and U.S.&nbsp;GAAP presentation
requirements. These reclassifications did not affect the net
income in the years presented. The following items discuss the
significant reclassifications that have been made:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">a.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of completed constructions in
    progress of Rp.765,753&nbsp;million and advances and other
    non-current assets of Rp.83,608 million to fixed assets in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">b.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification in 2002 of intangible assets
    amortization of Rp.166,721&nbsp;million (2001:
    Rp.42,643&nbsp;million) and amortization of goodwill of
    Rp.21,269&nbsp;million (2001: Rp.13,066&nbsp;million) from other
    charges to operating expenses.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">c.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of other accounts receivable to
    trade accounts receivable of Rp.82,174&nbsp;million in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">d.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of related party trade accounts
    receivable to third party trade accounts receivable of total
    Rp.27,677 million in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">e.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of restricted time deposits from
    non-current assets to current assets of Rp.46,027&nbsp;million
    in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">f.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of billing processing fees
    revenue of Rp.30,359&nbsp;million from other income to other
    operating revenue in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">g.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of restricted time deposits from
    temporary investments to other current assets of Rp.500,000
    million in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">h.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of provision for post-retirement
    benefits from accrued expenses of Rp.1,602,494 million in 2002
    (2001: Rp.1,045,525 million).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">i.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification in 2002 of revenue of certain
    subsidiaries from other income (charges) to operating revenues
    amounting to Rp.98,877 million, Rp.144,055 million and
    Rp.217,567 million in 2000, 2001 and 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the significant effects of the
restatements and reclassifications on the Company&#146;s
consolidated balance sheet is set forth in the table below:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="24%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,870,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,870,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">573,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">694,074</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">694,074</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,037,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,308,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,569</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,569</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,415,686</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,890,679</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">145,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,299,704</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,299,704</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,308,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,300,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,980,544</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,547,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property, plant and equipment&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,019,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,019,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,288,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,891,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,645,780</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,448,606</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances and other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">867,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">867,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">694,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">677,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">528,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,474</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intangible assets&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,356,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,052,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,898,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,719,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,719,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,161,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,735,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,341,623</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,760,066</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,470,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,322,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">71
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="24%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">685,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">685,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">721,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">719,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,032,942</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">790,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">939,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">939,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,056,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,039,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,356,284</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,272,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,708</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">732,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">732,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,875,023</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,877,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,212,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,109,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">993,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">621,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,437,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,510,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,949,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances from customers and suppliers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,132,319</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">293,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities of long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">818,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">818,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,542,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,542,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,012,251</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,590,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,509,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,137,752</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,075,323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,542,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,854,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,708,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,787,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,703,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,767,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,818,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,521,209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,083,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned income on revenue- sharing arrangement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">267,843</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,797</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for long service award
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,159</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for post-retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">712,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,045,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,602,494</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liabilities for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,618,979</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total non-current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,786,375</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,881,381</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,836,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,177,238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,124,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,389,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference in value of restructuring transactions
    between entities under common control
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,402,343</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,992,233</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,032,455</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,288,271</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426,397</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">609,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Translation adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">235,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unappropriated retained earnings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,777,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,082,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,770,303</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,893,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,565,511</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,383,466</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,909,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,323,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,899,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities and stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,470,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,322,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">72
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the significant effects of the
restatements and reclassifications on the Company&#146;s
consolidated statements of income is set forth on the table
below:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;Million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.&nbsp;Million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,111,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,130,789</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,399,737</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,433,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,594,119</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,515,089</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,864,400</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,998,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,672,603</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income/(charges)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(888,953</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(987,830</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(928,411</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(869,516</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,940,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,618,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,789,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,608,229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,687,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,549,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,342,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,748,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,466,267</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,520,294</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,070,654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,006,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,745,857</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,898,971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pre-acquisition loss (income)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(142,817</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(312,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(312,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,108,626</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(810,222</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,010,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,250,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,345,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic and diluted earnings per share (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">827.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">797.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Earnings per ADS (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,972.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,505.96</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,432.76</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,072.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,558.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,951.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">(b)</FONT></B></TD>
    <TD>
    <B><FONT size="2">Changes in U.S.&nbsp;GAAP Information
    Previously Disclosed</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the restatements to TELKOM&#146;s
Indonesian GAAP financial statements described above, TELKOM has
also made certain adjustments to the previously reported
consolidated stockholders&#146; equity as of December&nbsp;31,
2000, 2001 and 2002 and consolidated net income for the years
then ended, that only had an impact on previously reported
U.S.&nbsp;GAAP amounts. The total impact of these adjustments on
consolidated stockholders&#146; equity as of December&nbsp;31,
2000, 2001 and 2002 and consolidated net income for the years
then ended are presented below. Restatements of
Rp.264,192&nbsp;million relating to periods prior to 2000 were
recorded as a reduction to opening retained earnings as of
January&nbsp;1, 2000.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="52%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under U.S.&nbsp;GAAP as previously
    reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,952,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,036,641</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,274,249</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impact of Indonesian GAAP restatements on
    U.S.&nbsp;GAAP net income:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Aggregate Indonesian GAAP restatements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(234,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(181,719</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(305,565</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amount which are not restatements for
    U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(i</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,632</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(66,456</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(218,335</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(192,351</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(372,021</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">73
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="49%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of restatements on previously reported
    U.S.&nbsp;GAAP net income:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installation revenue:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of accounting change
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(814,799</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current year amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,870</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,041</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iv</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">347,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(337,864</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Dayamitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(v</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,809</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,374</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vi</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,820</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(517,473</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">453,910</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(314,969</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under U.S.&nbsp;GAAP as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400.46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">920.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">851.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per ADS (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,857.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,009.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,401.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,397.47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,528.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,038.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="52%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under U.S.&nbsp;GAAP as
    previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,146,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,240,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,745,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impact of Indonesian GAAP restatements on
    U.S.&nbsp;GAAP stockholders&#146; equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Aggregate Indonesian GAAP restatements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(436,112</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(242,614</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,285,566</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amounts which are not restatements for
    U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(i</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(598</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,229</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,527</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(436,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(253,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,298,093</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of restatements on previously reported
    U.S.&nbsp;GAAP equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installation revenue
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(707,477</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(626,048</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(648,918</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(166,575</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(128,925</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(60,966</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iv</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">119,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421,243</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,284</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Dayamitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(v</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,968</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vi</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,174</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,867</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(49,592</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(781,665</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(221,255</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(536,224</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under U.S.&nbsp;GAAP as
    restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,927,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These adjustments have been reflected in
Note&nbsp;57(3) to the consolidated financial statements in
Item&nbsp;18 to this Annual Report and are summarized as follows:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">i)&nbsp;&nbsp;&nbsp;&nbsp;Impact of Indonesian
GAAP Restatements
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The restatements to the financial position and
    results of operations under Indonesian GAAP as described above,
    have the same impact on consolidated stockholders&#146; equity
    and net income presented under U.S.&nbsp;GAAP, except for
    restatements with respect to revenue sharing
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">74
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">arrangements and related deferred taxes.
    Accordingly, no restatement of stockholders&#146; equity or net
    income under U.S.&nbsp;GAAP is required with respect to these
    items.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">ii)&nbsp;&nbsp;&nbsp;Installation Revenue
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">TELKOM was required to adopt the provisions of
    the Securities and Exchange Commission&#146;s (SEC) Staff
    Accounting Bulletin (SAB) No.&nbsp;101, &#147;Revenue
    Recognition in Financial Statements&#148; in 2001, and
    retroactively apply its provisions as of January&nbsp;1, 2000.
    TELKOM did not initially record the full impact of SAB
    No.&nbsp;101 on its results. SAB 101 requires TELKOM to defer
    certain non-recurring fees, such as service activation and
    installation fees, and recognize those revenues over the
    expected term of the customer relationship. For 2000, the
    adjustment presented includes an amount which represents the
    initial impact of adopting SAB&nbsp;101. For U.S.&nbsp;GAAP
    purposes this should be recorded as a cumulative effect of an
    accounting change.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">iii)&nbsp;&nbsp;Revenue Sharing Arrangements
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Based on further review, TELKOM has concluded
    that the accounting provided for the revenue sharing
    arrangements under Indonesian GAAP requires an adjustment to
    conform to U.S.&nbsp;GAAP. A discussion of the differences in
    accounting for the revenue sharing arrangements under the
    respective GAAPs may be found in Note&nbsp;57(1)d to the
    consolidated financial statements.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">iv)&nbsp;&nbsp;Deferred Taxes
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">As discussed above, the deferred tax liability
    related to investments in consolidated subsidiaries has been
    adjusted in the restated Indonesian GAAP financial statements to
    conform to SFAS&nbsp;109. Accordingly, an adjustment was made to
    eliminate the U.S.&nbsp;GAAP and Indonesian GAAP difference
    related to the deferred tax liability on the undistributed
    earnings of subsidiaries and associates.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">TELKOM has also made adjustments in relation to
    other restated amounts.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">v)&nbsp;&nbsp;&nbsp;Acquisition of Dayamitra
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The adjustment reflects the U.S.&nbsp;GAAP
    requirement, as described in Note&nbsp;57(1) to the
    Company&#146;s consolidated financial statements, to record the
    Dayamitra acquisition as an acquisition of 100% of the
    outstanding interest during the year ended December&nbsp;31,
    2001, and the effect of the reversal of foreign exchange
    capitalized by Dayamitra as the related assets were carried at
    fair value upon application of purchase accounting.
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Effect on</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Net income</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Option
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign exchange capitalized
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,859</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137,292</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,809</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">vi)&nbsp;&nbsp;Others
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Other adjustments represent individually
    insignificant adjustments consisting of land rights amortization
    and certain capitalized foreign exchange gains and losses.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
Results</FONT></B>

<P align="left">
<B><FONT size="2">Overview</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is the principal provider of local and
domestic telecommunications services in Indonesia, as well as
the leading provider of mobile cellular services, through its
majority owned subsidiary
</FONT>

<P align="center"><FONT size="2">75
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Telkomsel. TELKOM&#146;s objective is to become a
leading full service and network provider in Indonesia through
the provision of a wide range of communications services. At
December&nbsp;31, 2002, TELKOM had approximately
7.75&nbsp;million fixed lines in service and Telkomsel had
approximately 6.01&nbsp;million mobile cellular subscribers.
TELKOM also provides a wide range of other communication
services, including telephone network interconnection services,
multimedia, data and internet communication- related services,
satellite transponder leasing, leased line, intelligent network
and related services, cable television and VoIP services.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM believes that the Indonesian economic and
industry factors that have materially affected TELKOM, as well
as the environment in which it operates, during the two-year
period from 2000 through 2001, are (i)&nbsp;the general economic
situation in Indonesia and (ii)&nbsp;the limited increases in
tariffs. TELKOM believes that its operating results in 2002 were
significantly affected by (i)&nbsp;the limitation increases in
tariffs, (ii)&nbsp;the increase in Telkomsel&#146;s revenues,
(iii)&nbsp;the sale of a 12.72% equity interest in Telkomsel to
SingTel, and (iv)&nbsp;the implementation of an early retirement
program.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s operating results, discussed below
under &#147;Results of Operations&#148;, for the three year
period from 2000 through 2002 reflected significant growth in
revenues, particularly in the fixed line business and cellular
business. The growth in revenues in the fixed line business
reflects both increased fixed lines in service in the non-KSO
and KSO regions and, to some extent, the acquisition and
subsequent consolidation of Pramindo in 2002 and Dayamitra in
2001. The growth of revenues in the cellular business primarily
reflects growth in the number of cellular subscribers. The
growth in operating expense was primarily driven by increases in
personnel expense and, to a lesser degree, by an increase in
depreciation and operation, maintenance and telecommunications
services expense. The increase in personnel expense was driven
principally by the implementation of an early retirement program
in 2001. In 2002, Telkom also recorded a gain on long term
investment of Rp.3,196.4&nbsp;billion arising from the sale of a
12.72% shareholding in Telkomsel to SingTel Mobile.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Economic
Situation in Indonesia</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has been significantly affected by a
severe economic crisis that Indonesia has experienced since the
second half of 1997. As a result of the crisis, the Rupiah has
depreciated significantly and has experienced periods of
significant volatility. From August 1997 to mid 1998, the
month-end value of the Rupiah relative to the US&nbsp;Dollar
declined from approximately Rp.2,600 per US&nbsp;Dollar to a low
of Rp.15,000 per US Dollar. As of December&nbsp;31, 2002 and
January&nbsp;16, 2004, Bank Indonesia&#146;s middle exchange
rate was Rp.8,940 and Rp.8,363, respectively, per US$1.00.
Indonesia has also experienced higher rates of inflation and
interest rates in recent years. For the years ended
December&nbsp;31, 2000, 2001 and 2002 the annual inflation rate
was 9.35%, 12.55% and 10.03%, respectively, while the interest
rate on a one-month Bank Indonesia Certificate (SBI) at
December&nbsp;31, 2000, 2001 and 2002 was 14.5%, 17.6% and
12.9%, respectively. At December&nbsp;31, 2003, the interest
rate on a one-month Bank Indonesia Certificate (SBI) was 8.3%.
See Item&nbsp;3D. Risk Factors&nbsp;&#151; &#147;Risk relating
to Indonesia&nbsp;&#151; Declines or volatility in
Indonesia&#146;s currency exchange rates can have a material
adverse impact on business activity in Indonesia&#148; and
&#147;Item&nbsp;3A. Selected Financial Data&nbsp;&#151; Exchange
Rates Information&#148;.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited
Increases in Tariffs</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since 1995, Indonesian law has provided for
domestic fixed line tariff adjustments to be determined by a
price cap formula that calculates the maximum total percentage
increase in tariffs for a particular year. The maximum increase
equals the Indonesian Consumer Price Index (&#147;CPI&#148;) for
the preceding year, as published by the Indonesian Central
Bureau of Statistics, minus an efficiency factor (the
&#147;X-factor&#148;), which the Government determines by taking
into consideration certain factors including improvements in the
cost efficiency of the services resulting from technological
improvements, the interests of affected telecommunications
operators and the purchasing power of customers. Although the
regulations provide for an annual tariff review and adjustment,
economic conditions in Indonesia led to tariffs being frozen in
2000 and 2001. See &#147;Item&nbsp;3D. Risk Factors&nbsp;&#151;
Risk Relating to
</FONT>

<P align="center"><FONT size="2">76
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">TELKOM and its subsidiaries&nbsp;&#151; TELKOM
operates in a legal and regulatory environment that is
undergoing significant reforms and such reform may adversely
effect TELKOM&#146;s business&#148;.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;29, 2002, the MoC announced that
fixed-line tariffs would be increased by an average of 45.49%
over three years. Effective February&nbsp;1, 2002, the MoC
increased fixed-line tariffs by an average of 15%. Although
fixed-line tariffs were expected to be increased again effective
January&nbsp;1, 2003, public opposition following the
announcement by TELKOM of tariff increases led to the suspension
on January&nbsp;16, 2003 of the implementation of such
increases. There has been no indication by the MoC whether
fixed-line tariffs will be increased in 2003 or thereafter or
whether the Government intends to carry out its plan to increase
fixed-line tariffs by 45.49% within three years of January 2002,
which would require an increase of 30.49% in fixed line tariffs
from current levels by January 2005.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Increase in Telkomsel&#146;s
    revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel, a subsidiary of TELKOM engaged in the
cellular telephone business, experienced a 84.8% growth in its
total number of cellular subscribers from 2001 to 2002, due to
the increased usage of mobile phones in Indonesia. In addition,
both air time charges and monthly subscription charges increased
in 2002, which contributed to Telkomsel&#146;s increase in
cellular telephone revenues. Telkomsel&#146;s revenues accounted
for approximately 30.0% of TELKOM&#146;s consolidated total
operating revenues as of December&nbsp;31, 2002.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Sale of 12.72% equity interest in Telkomsel
    to SingTel</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;30, 2002, TELKOM completed the sale
of a 12.72% shareholding in Telkomsel to Singapore Telecom
Mobile Pte Ltd (&#147;SingTel Mobile&#148;). Following the sale,
TELKOM&#146;s ownership in Telkomsel reduced from 77.72% to 65%,
while SingTel Mobile&#146;s ownership interest increased from
22.28% to 35%. TELKOM received US$429&nbsp;million in cash for
the sale. As a result, TELKOM booked an accounting gain of
Rp.3,196.4&nbsp;billion related to the transaction, representing
the difference between transaction value over the book value of
the shares in Telkomsel. The taxable gain from this transaction
was much lower than the accounting gain as the shares sold to
SingTel Mobile had a tax basis equal to their market value at
the time such shares were acquired from Indosat in 2001 as part
of the cross-ownership transaction.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Early Retirement Program</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, TELKOM implemented a voluntary early
retirement program for certain eligible employees. TELKOM
continued its voluntary early retirement program for 2002.
TELKOM expects that an aggregate of approximately 7,000
employees will take early retirement over the three-year period
from 2002 to 2004, depending on the availability of excess cash
to pay early retirement. In 2002, TELKOM accrued
Rp.671.0&nbsp;billion (US$75.0&nbsp;million) for costs
associated with its early retirement program.
</FONT>

<P align="left">
<B><FONT size="2">Basis of Presentation</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Consolidation of TELKOM&#146;s Financial
    Statements</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM consolidates its financial statements and
those of subsidiaries in which TELKOM has direct ownership
interest of more than 50% or where TELKOM controls the
subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM consolidated Pramindo&#146;s financial
statements into its 2002 financial statements from August 2002
when it acquired a controlling interest in Pramindo. TELKOM
initially acquired 30% of Pramindo in 2002 and now holds 45%.
TELKOM expects to obtain the legal title to the remaining
balance of the shares in Pramindo in 2004. TELKOM consolidates
100% of Pramindo because it has full control over the management
and operations of Pramindo and the right to obtain all of the
future economic benefits of ownership of Pramindo as though it
owned 100% of the shares, in each case pursuant to the
Conditional Sale and Purchase Agreement with the other
shareholders of Pramindo.
</FONT>

<P align="center"><FONT size="2">77
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Foreign Exchange Translations</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the consolidated financial statements, the
exchange rates used for translation of monetary assets and
liabilities denominated in foreign currencies are the buying and
selling rates published by Reuters in 2002 and Bridge Telerate
in 2001. The buying and selling rates, applied respectively to
monetary assets and liabilities, were Rp.10,400 and Rp.10,450 to
U.S.$1.00 as of December&nbsp;31, 2001, and Rp.8,940 and
Rp.8,960 to U.S.$1.00 as of December&nbsp;31, 2002. These rates
differ from the rates used for convenience translations in this
Annual Report, including in the tables appearing in the
discussion and analysis below. See Note&nbsp;2e and 3 to the
consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The financial statements are stated in Rupiah.
The translations of Rupiah amounts into United States Dollars
are included solely for the convenience of the readers and have
been made using the average of the market buy and sell rates of
Rp.8,950 to US$1.00 published by Reuters on December&nbsp;31,
2002. The convenience translations should not be construed as
representations that the Rupiah amounts have been, could have
been, or can in the future be, converted into United States
Dollars at this or any other rate of exchange.
</FONT>

<P align="left">
<B><FONT size="2">TELKOM&#146;s Operating Revenues</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets out TELKOM&#146;s
operating revenues, itemized according to main products and
services, for the three years 2000 through 2002, with each item
also expressed as a percentage of total operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating Revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fixed lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,177.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,415.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,264.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">811.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,890.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,708.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,226.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">695.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue under Joint Operation Scheme
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,267.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,219.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,128.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">237.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interconnection revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,423.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,831.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data and Internet
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">673.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,551.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">340.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">415.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue sharing arrangement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">263.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications-related services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">138.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">221.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Operating Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,324.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s exclusive right to provide domestic
local service was terminated in August 2002 while its exclusive
right to provide domestic long-distance service is expected to
be terminated upon TELKOM&#146;s receipt of an operational
&#147;Modern License&#148; to provide IDD business. As a result
of the termination of TELKOM&#146;s exclusive right to provide
domestic long-distance service, Indosat, a competitor of TELKOM,
will likely enter into the market. TELKOM expects that revenue
from providing interconnection services to these new entrants
will increase and its market share of fixed line services will
decrease slightly in the future because of the liberalization of
the market.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Fixed Line Telephone Revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The components of fixed line revenues are local
and domestic long-distance usage charges, monthly subscription
charges, installation charges, phone-kiosks, phone cards and
others.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Local and domestic long-distance usage, and
monthly subscription charges are determined by
telecommunications operators based on a formula set by the
Government that determines maximum
</FONT>

<P align="center"><FONT size="2">78
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">tariff levels. The maximum tariff levels apply
uniformly throughout Indonesia. TELKOM&#146;s monthly
subscription charges are based on a uniform schedule of charges
that vary according to type of user and the type of services
provided. Local and domestic long-distance usage charges vary
depending on the distance called, duration, and time band, while
installation charges, phone cards and other services charges are
set by individual operators. See Item&nbsp;5A. Operating
Results&nbsp;&#151; Overview&nbsp;&#151; Limited Increases in
Tariffs.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Most fixed line revenues are recognized as
services as provided, except the installation charges are
recognized as revenue when a fixed line (referred to as an
&#147;installation&#148; in the consolidated financial
statements) is placed in service. Revenues from phone cards are
recognized as deferred income when the phone card sales occur)
and transferred to revenue upon usage of the units and stored on
the card or when the card expires, whichever is the earlier.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed line telephone revenues for the three years
2000 through 2002 are set out below, with each item also
expressed as a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Fixed Line Telephone Revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Local and domestic long-distance usage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,097.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,225.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,447.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">608.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monthly subscription charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">887.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">997.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installation charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">130.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Phone cards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">181.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,177.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,415.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,264.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">811.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Cellular Telephone Revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The main components of cellular telephone
revenues in 2002 were air time charges and monthly subscription
charges, which totalled Rp.5,453.6&nbsp;billion
(US$609.3&nbsp;million) and Rp.593.3&nbsp;billion
(US$66.3&nbsp;million), respectively. Cellular telephone
revenues also include features and connection fee charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Air time charges and monthly subscription charges
are determined by telecommunications operators based on maximum
tariff levels fixed by the Government. The maximum tariff levels
apply uniformly throughout Indonesia. See &#147;Item&nbsp;5A.
Operating Results&nbsp;&#151; Overview&nbsp;&#151; Limited
Increases in Tariffs&#148;. Connection fee charges are
determined by individual operators. Only postpaid subscribers
pay connection and monthly subscription fees, while prepaid
customers generally pay higher air time usage charges. In
TELKOM&#146;s consolidated statements of income, a portion of
revenues from sales of prepaid starter packs is also recorded as
connection fees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the case of postpaid subscribers, monthly
subscription charges are recognized when earned (i.e., in the
month to which they apply), while connection fee revenue is
recognized as income when connections take place. In the case of
prepaid subscribers, revenues from &#147;starter packs&#148; are
recognized upon delivery to distributors, dealers or directly to
customers, while revenues from pulse refill vouchers are
recognized initially as unearned income and thereafter
recognized proportionately as revenue based on successful calls
made using the stored value of the voucher or when the unused
stored value has expired. Revenues recognized are net of dealer
discounts.
</FONT>

<P align="center"><FONT size="2">79
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cellular telephone revenues for the three years
2000 through 2002 are set out below, with each item also
expressed as a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Cellular Telephone Revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Air time charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,484.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,987.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,453.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">609.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monthly subscription charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">356.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">581.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">593.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Connection fee charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Features
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,890.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,708.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,226.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">695.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joint
Operation Scheme (&#147;KSO&#148;) Revenues</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">KSO revenues consist of:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Initial payment made by the KSO partners, which
    is amortized over the life of the KSO Agreement;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Minimum TELKOM Revenues (&#147;MTR&#148;), being
    a specified minimum payment, which is payable monthly; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Distributable TELKOM Revenues (&#147;DTR&#148;),
    being a specified percentage of KSO revenues after deduction of
    operating expenses and MTR obligation, which is payable monthly.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">KSO Revenues for the three years 2000 through
2002 are set out below, with each item also expressed as a
percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">KSO Revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minimum TELKOM Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,556.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,319.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share in distributable TELKOM Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">695.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">732.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">801.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned initial investor
    payments under Joint Operation Scheme
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,267.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,219.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,128.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">237.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Interconnection Revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection revenues consist primarily of
fees charged to other domestic and international carriers when
calls originating in their networks interconnect with
TELKOM&#146;s fixed line network and Telkomsel&#146;s mobile
cellular network. Interconnection revenues also include
international roaming by overseas operators to Telkomsel&#146;s
mobile cellular network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fees charged for interconnection are determined
contractually between operators, subject to maximum fee levels
established by Government regulation. Revenues from
interconnection with other domestic and international
telecommunications carriers are recognized as incurred and are
presented on a net basis. Interconnection revenues are typically
accrued initially and settled among operators quarterly, and can
fluctuate significantly as a result of adjustments among
operators to accrued amounts at the time of settlement.
</FONT>

<P align="center"><FONT size="2">80
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection revenues for the three years 2000
through 2002 are set out below, with each item also expressed as
a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Interconnection Revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkom<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">810.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,212.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,740.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">211.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">981.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,423.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,831.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">After elimination of unconsolidated net
    interconnection revenues with Telkomsel.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">After elimination of unconsolidated net
    interconnection revenues (expense) with TELKOM.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Data and Internet Revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Data and Internet revenue for the three years
2000 through 2002 are set out below, with each item also
expressed as a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Data and Internet Revenue</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SMS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">344.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">997.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Multimedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">218.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">VoIP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">152.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">ISDN
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">673.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,551.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Network Revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Network revenue for the three years 2000 through
2002 are set out below, with each item also expressed as a
percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Network Revenue</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite transponder
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">203.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased line
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">156.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">211.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">340.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">415.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">81
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Revenues Under Revenue Sharing
    Arrangements</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenue under Revenue Sharing Arrangements for
the three years 2000 through 2002 are set out below, with each
item also expressed as a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Revenues Under Revenue Sharing
    Arrangement</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net share in revenue earned under Revenue Sharing
    Arrangement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">211.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned income under Revenue
    Sharing Arrangement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">263.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Other Telecommunications-related Services
    Revenues</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other telecommunications-related services
revenues represents telex and telegram revenues and revenues
from the telephone directory business. Due to the fact that
technology development in the telecommunications industry is
growing rapidly, telex and telegram revenues are in decline.
</FONT>

<P align="left">
<B><FONT size="2">TELKOM&#146;s Operating Expenses</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets out TELKOM&#146;s
operating expenses, itemized according to functional type, for
the three&nbsp;years 2000 through 2002, with each item also
expressed as a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating Expenses</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,419.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,869.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,473.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">388.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operations, maintenance and telecommunications
    services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,385.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,149.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,290.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">255.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Personnel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,770.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,281.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,387.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">490.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">871.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,343.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,146.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Marketing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">220.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">375.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Operating Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,594.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,864.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,672.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,304.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Depreciation Expense</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation expense relates to TELKOM&#146;s
property, plant and equipment. TELKOM depreciates its property,
plant and equipment, except land, using the straight-line
method, based on the useful lives of the assets, commencing in
the month such assets were placed into service. See
notes&nbsp;2k, 2l, 2m, 14 and 16 to the consolidated financial
statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with Indonesian GAAP, TELKOM
capitalizes interest costs and foreign exchange gains or losses
for assets under construction, and depreciates these amounts
over the useful lives of the assets to which they relate. In
2000, 2001 and 2002, TELKOM capitalized interest costs for
assets under construction of Rp.62.5&nbsp;billion,
Rp.8.1&nbsp;billion and Rp.20.1&nbsp;billion
(US$2.2&nbsp;million), respectively. In 2000 and 2001, TELKOM
capitalized foreign exchange losses for assets under
construction of Rp.179.2&nbsp;billion and Rp.1.7&nbsp;billion,
respectively, and in 2002, capitalized foreign exchange gain of
Rp.27.6&nbsp;billion (US$3.1&nbsp;million).
</FONT>

<P align="center"><FONT size="2">82
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Operation, Maintenance and
    Telecommunications Services Expense</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operation, maintenance and telecommunications
services expense for the three years 2000 through 2002 are set
out below, with each item also expressed as a percentage of
operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operations, Maintenance and Telecommunications
    Services Expense</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operations and maintenance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">575.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">891.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,042.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Radio frequency usage charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Electricity, gas and water
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of phone cards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Concession fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Insurance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased line
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Motor vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Travel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone kiosks&#146; commissions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">372.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">520.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,385.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,149.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,290.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">255.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Personnel Expense</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The main components of personnel expenses in 2002
were salaries and related allowances, which were
Rp.1,410.7&nbsp;billion (US$157.6&nbsp;million), and vacation
pay, incentives and other allowances, which were
Rp.655.5&nbsp;billion (US$73.2&nbsp;million).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Personnel expense for the three years 2000
through 2002 are set out below, with each item also expressed as
a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Personnel Expense</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Salaries and related allowances
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">703.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">883.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,410.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vacation pay, incentives and other allowances
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">364.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">655.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Severance for early retirement plan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">717.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">289.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">362.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Employee income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic post-retirement benefit cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">374.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">616.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Housing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Medical
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,770.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,281.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,387.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">490.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">83
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">General and Administrative
    Expense</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The main components of general and administrative
expenses in 2002 were professional fees and collection costs,
which totalled Rp.219.0&nbsp;billion (US$24.5&nbsp;million) and
Rp.224.8&nbsp;billion (US$25.2&nbsp;million), respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">General and administrative expenses for the three
years 2000 through 2002 are set out below, with each item also
expressed as a percentage of operating revenues:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">General and Administrative Expense</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts and inventory
    obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Professional fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">325.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Collection costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">181.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">224.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Training, education and recruitment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">122.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Travel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">188.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Security and screening
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing and stationery
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Meetings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Research and development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred stock issuance costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">871.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,343.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,146.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Marketing Expense</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Marketing expenses consist of advertising,
customer education, promotions and customer research expenses.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Year ended December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Marketing Expense</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advertising
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">169.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">310.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Customer education
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">220.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">375.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Results of Operations</FONT></B>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Year ended December&nbsp;31, 2002 compared
    to year ended December&nbsp;31, 2001</FONT></I></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <I><FONT size="2">Operating Revenues.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total operating revenues grew by
Rp.4,519.0&nbsp;billion, or 27.8%, from Rp.16,283.8&nbsp;billion
in 2001 to Rp.20,802.8&nbsp;billion (US$2,324.3&nbsp;million) in
2002. Operating revenues increased for fixed line, cellular,
interconnection and data and Internet. The decline in KSO
revenue was primarily due to the
</FONT>

<P align="center"><FONT size="2">84
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">elimination of MTR and DTR revenue recognized by
TELKOM for the KSO&nbsp;I Unit as a result of TELKOM&#146;s
acquisition and consequent consolidation of Pramindo in 2002.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Fixed Line Telephone Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed line revenues grew by
Rp.848.9&nbsp;billion, or an increase of 13.2%, from
Rp.6,415.1&nbsp;billion in 2001 to Rp.7,264.1&nbsp;billion
(US$811.6&nbsp;million) in 2002. Local and domestic long
distance revenue for 2002 increased by Rp.222.2&nbsp;billion, or
an increase of 4.3%, from Rp.5,225.7&nbsp;billion in 2001 to
Rp.5,447.9&nbsp;billion (US$608.7&nbsp;million) in 2002. Monthly
subscription charges increased by Rp.477.2&nbsp;billion, or an
increase of 47.8%, from Rp.997.7&nbsp;billion in 2001 to
Rp.1,474.8&nbsp;billion (US$164.8&nbsp;million) in 2002.
Installation charges increased by Rp.32.2&nbsp;billion, or an
increase of 32.9%, from Rp.98.0&nbsp;billion in 2001 to
Rp.130.2&nbsp;billion (US$14.5&nbsp;million) in 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The increases were primarily attributable to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">7.4% growth in the number of fixed lines in
    service in the non-KSO and KSO regions, including kiosk phones,
    from 7,218,938 lines at December&nbsp;31, 2001 to 7,750,035
    lines at December&nbsp;31, 2002, particularly 33.7% growth in
    the non-KSO regions.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the consolidation of KSO I Unit revenues, as a
    result of TELKOM&#146;s acquisition of Pramindo on
    August&nbsp;15, 2002, which contributed Rp.364.4&nbsp;billion
    (US$40.7&nbsp;million) to the increase in operating revenues.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from phone cards for 2002 increased by
Rp.3.8&nbsp;billion to Rp.29.3&nbsp;billion
(US$3.3&nbsp;million), an increase of 15.0% compared to 2001.
The increase in phone card revenues was primarily due to a
one-time expense incurred by TELKOM in 2001 for the termination
of a revenue sharing arrangement with a vendor that previously
issued phone cards on behalf of TELKOM, as well as the
consolidation of the revenues of Regional Division I in 2002.
Revenue from others increased by Rp.113.5&nbsp;billion to
Rp.181.9&nbsp;billion (US$20.3&nbsp;million), an increase of
166.1% compared to 2001. Revenue from others increased
significantly due to an increase in revenue from premium-paid
calls.
</FONT>

<P align="left">
<FONT size="2">Cellular Telephone Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cellular telephone revenues grew by
Rp.1,518.8&nbsp;billion, or an increase of 32.3%, from
Rp.4,708.0&nbsp;billion in 2001 to Rp.6,226.8&nbsp;billion
(US$695.7&nbsp;million) in 2002. Air time charges for 2002
increased by Rp.1,465.8&nbsp;billion to Rp.5,453.6&nbsp;billion
(US$609.3&nbsp;million), an increase of 36.8% compared to 2001.
Monthly subscription charges increased by Rp.11.8&nbsp;billion
to Rp.593.3&nbsp;billion (US$66.3&nbsp;million), an increase of
2.0%. Connection fee charges increased by Rp.43.8&nbsp;billion
to Rp.172.3&nbsp;billion (US$19.3&nbsp;million), an increase of
34.0%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The increases were primarily attributable to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">84.8% growth in Telkomsel&#146;s total cellular
    subscribers, from 3,252,032 subscribers in 2001 to 6,010,772
    subscribers in 2002, which was caused by 76.3% growth in
    net-additional subscribers from 1,564,693 subscribers in 2001 to
    2,758,740 subscribers in 2002. In addition, 6.7% growth in
    postpaid subscribers to 923,005 subscribers, and 113.2% growth
    in prepaid subscribers to 5,087,767 subscribers at
    December&nbsp;31, 2002; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">3.8% growth in postpaid monthly ARPU to
    Rp.298,000 (US$33.3), offset by a 7.2% decline in prepaid
    monthly ARPU to Rp.103,000 (US$11.5) in 2002 due in part to
    Telkomsel&#146;s attraction of additional low-usage customers
    and the upgrading of the high-usage prepaid customers to
    postpaid.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the higher rate of growth in the
number of prepaid subscribers, the proportion of prepaid
subscribers increased from 73.4% in 2001 to 84.6% in 2002. As a
result of the change in the subscriber mix, and despite an
increase in postpaid monthly ARPU, blended monthly ARPU
decreased from approximately Rp.171,000 in 2001 to approximately
Rp.145,000 (US$16.2) in 2002.
</FONT>

<P align="center"><FONT size="2">85
</FONT>

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<P><HR noshade><P>
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<P align="left">
<FONT size="2">Interconnection Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net interconnection revenues grew by
Rp.1,407.6&nbsp;billion, or an increase of 98.9%, from
Rp.1,423.7&nbsp;billion in 2001 to Rp.2,831.3&nbsp;billion
(US$316.3&nbsp;million) in 2002. Net interconnection revenues
comprises net interconnection revenues from TELKOM&#146;s fixed
line network (after eliminating net interconnection revenues for
interconnections with Telkomsel&#146;s mobile cellular network)
and net interconnection revenues from Telkomsel&#146;s mobile
cellular network (after eliminating net interconnection expense
from interconnections with TELKOM&#146;s fixed line network).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net interconnection revenues from TELKOM&#146;s
fixed line network increased by Rp.1,528.4&nbsp;billion to
Rp.2,740.7&nbsp;billion (US$306.2&nbsp;million), an increase of
126.1% compared to 2001. This increase primarily results from an
increase in cellular phone traffic and the consolidation of
Pramindo. Net interconnection revenue from Telkomsel&#146;s
mobile cellular network decreased by Rp.120.8&nbsp;billion to
Rp.90.6&nbsp;billion (US$10.1&nbsp;million), a decrease of
57.1%, due to the additional elimination of revenues related to
consolidation of KSO I.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002 as compared to 2001, interconnection
revenues involving international direct dialing IDD calls
increased by 195.0%, from Rp.116.8&nbsp;billion to
Rp.344.5&nbsp;billion (US$38.5&nbsp;million) primarily due to an
increase in incoming IDD traffic.
</FONT>

<P align="left">
<FONT size="2">KSO Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">KSO revenues declined by Rp.91.5&nbsp;billion, or
4.1%, from Rp.2,219.5&nbsp;billion in 2001 to
Rp.2,128.1&nbsp;billion (US$237.8&nbsp;million) in 2002. MTR
decreased by Rp.154.5&nbsp;billion, or 10.5%, from
Rp.1,474.2&nbsp;billion in 2001 to Rp.1,319.7&nbsp;billion
(US$147.5&nbsp;million) in 2002. DTR increased by
Rp.68.0&nbsp;billion, or 9.3%, from Rp.732.9&nbsp;billion in
2001 to Rp.801.0&nbsp;billion (US$89.5&nbsp;million) in 2002.
Amortization of unearned initial payments decreased by
Rp.5.0&nbsp;billion to Rp.7.4&nbsp;billion
(US$0.8&nbsp;million), a decrease of 40.3%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The decrease in KSO revenues was attributable to
the acquisition of Pramindo (KSO Unit I)&nbsp;in 2002 as well as
the acquisition of Dayamitra (KSO Unit VI)&nbsp;in May 2001 and
primarily reflected consolidated KSO revenues from these KSO
units that were consolidated to TELKOM under fixed line revenues
rather than under KSO revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed lines in service in the KSO regions
increased 7.0%, from 3,269,033 lines at December&nbsp;31, 2001
to 3,497,819 lines at December&nbsp;31, 2002, if KSO I Unit and
KSO VI Unit are included, or 5.1%, from 1,941,227 lines to
2,039,608 lines, if KSO I Unit and KSO VI are excluded.
</FONT>

<P align="left">
<FONT size="2">Data and Internet Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Data and Internet revenues grew by
Rp.878.4&nbsp;billion, or 130.5%, from Rp.673.2&nbsp;billion in
2001 to Rp.1,551.6&nbsp;billion (US$173.4&nbsp;million) in 2002,
mainly attributed from the significant growth in SMS and VoIP
services. SMS revenues for 2002 increased by
Rp.652.6&nbsp;billion to Rp.997.2&nbsp;billion
(US$111.4&nbsp;million), an increase of 189.4%. Multimedia
revenues for 2002 increased by Rp.119.5&nbsp;billion to
Rp.337.8&nbsp;billion (US$37.8&nbsp;million), an increase of
54.7% compared to 2001 that was driven by additional
subscribers. VoIP revenues for 2002 increased by
Rp.126.6&nbsp;billion to Rp.152.2&nbsp;billion
(US$17.0&nbsp;million), an increase of 494.8% compared to 2001
as TELKOM only introduced its VoIP services at the end of 2001.
</FONT>

<P align="left">
<FONT size="2">Network Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Network revenues declined by
Rp.98.8&nbsp;billion, or 23.8%, from Rp.415.0&nbsp;billion in
2001 to Rp.316.1&nbsp;billion (US$35.3&nbsp;million) in 2002.
Satellite transponder revenues for 2002 declined by
Rp.13.3&nbsp;billion to Rp.190.2&nbsp;billion
(US$21.2&nbsp;million), a decline of 6.6% compared to 2001,
primarily due to a reduction in the number of subscribers
resulting from an over-supply of satellite transponders, as well
as the impact of Rupiah appreciation against the
U.S.&nbsp;Dollar in the U.S.&nbsp;Dollar-denominated tariff.
Leased line revenues for 2002 declined by Rp.85.5&nbsp;billion
to Rp.125.9&nbsp;billion (US$14.1&nbsp;million), a
</FONT>

<P align="center"><FONT size="2">86
</FONT>

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<DIV align="left">
<FONT size="2">decline of 40.5% compared to 2001, as a result of
further elimination due to the consolidation of Pramindo and, to
a lesser degree, from a decrease in demand from some major
customers who chose to develop their own network in certain high
traffic areas.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Revenues under Revenue Sharing Arrangements
(&#147;PBH&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues under Revenue Sharing Arrangements
decreased by Rp.0.5&nbsp;billion, or 0.2%, from
Rp.264.3&nbsp;billion in 2001 to Rp.263.8&nbsp;billion
(US$29.5&nbsp;million) in 2002, mainly due to the termination of
certain revenue sharing arrangements. Net share for revenue
earned under revenue sharing arrangement for 2002 increased by
Rp.20.0&nbsp;billion to Rp.211.5&nbsp;billion
(US$23.6&nbsp;million), an increase of 10.5% compared to 2001
due to an increase in the number of lines in service and the
applicable tariffs during 2002. Amortization of unearned income
under revenue sharing arrangements for 2002 decreased by
Rp.20.5&nbsp;billion to Rp.52.3&nbsp;billion
(US$5.9&nbsp;million), a decline of 28.2% compared to 2001, due
to the termination of certain revenue sharing arrangements.
</FONT>

<P align="left">
<FONT size="2">Other Telecommunications-related Services
Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other telecommunications-related service revenues
increased by Rp.56.0&nbsp;billion, or 33.9%, from
Rp.165.0&nbsp;billion in 2001 to Rp.221.0&nbsp;billion
(US$24.7&nbsp;million) in 2002 mainly due to an increase in
revenue from call centers, as well as an increase in revenue
from telephone directory services. In addition, there was also a
decrease in telex and telegram usage due to the increase usage
of facsimile.
</FONT>

<P align="left">
<FONT size="2">Operating Expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total operating expenses grew by
Rp.2,808.2&nbsp;billion, or 31.7%, from Rp.8,864.4&nbsp;billion
in 2001 to Rp.11,672.6&nbsp;billion (US$1,304.2&nbsp;million) in
2002. The increase was mainly attributable to a substantial
increase in personnel expense, as well as increases in
marketing, depreciation and operation, maintenance, and
telecommunications services expense, slightly offset by a
decline in general and administrative expense.
</FONT>

<P align="left">
<FONT size="2">Personnel Expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Personnel expenses grew by
Rp.2,106.3&nbsp;billion, or 92.3%, from Rp.2,281.2&nbsp;billion
in 2001 to Rp.4,387.6&nbsp;billion (US$490.2&nbsp;million) in
2002. The main contributor to the increase are:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(i)</FONT></TD>
    <TD align="left">
    <FONT size="2">The increase of non-recurring employee expenses:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">severance for early retirement plan increased by
    Rp.577.3&nbsp;billion to Rp.717.3&nbsp;billion
    (US$80.1&nbsp;million), an increase of 412.4% compared to 2001,
    primarily reflecting early retirement that was accrued in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">net periodic pension cost increased by
    Rp.276.1&nbsp;billion to Rp.362.3&nbsp;billion
    (US$40.5&nbsp;million), an increase of 320.1%, reflecting the
    increase of pension benefit.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(ii)</FONT></TD>
    <TD align="left">
    <FONT size="2">The increase of recurring employee expenses:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">vacation pay (mainly long-leave allowances),
    incentives and other allowances increased by
    Rp.290.8&nbsp;billion to Rp.655.5&nbsp;billion
    (US$73.2&nbsp;million), an increase of 79.7%, reflecting
    primarily new bonus scheme introduced in 2002 which amounted to
    Rp.171.0&nbsp;billion and the consolidation of KSO I Unit and
    Pramindo vacation pay, incentives and other allowances;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">long service awards increased by
    Rp.195.4&nbsp;billion to Rp.289.9&nbsp;billion
    (US$32.4&nbsp;million), an increase of 206.7%, due to the
    introduction of long leave allowance payable by TELKOM to
    eligible employees; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">87
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">net periodic post-retirement benefit cost
    increased by Rp.242.0&nbsp;billion to Rp.616.5&nbsp;billion
    (US$68.9&nbsp;million), an increase of 64.6%, primarily due to
    an increased number of pensioners from the early-retirement
    program.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Meanwhile, employee income tax increased by
Rp.68.6&nbsp;billion to Rp.201.5&nbsp;billion
(US$22.5&nbsp;million), an increase of 51.7%, reflecting
primarily increase in salary and the benefits paid under the
early-retirement program.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of personnel expenses did not
contribute significantly to operating expenses in 2002.
</FONT>

<P align="left">
<FONT size="2">Depreciation Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation expenses grew by
Rp.603.6&nbsp;billion, or 21.0%, from Rp.2,869.8&nbsp;billion in
2001 to Rp.3,473.4&nbsp;billion (US$388.1&nbsp;million) in 2002,
primarily as a result of the consolidation of Pramindo&#146;s
depreciation expense amounting to Rp.93.2&nbsp;billion, as well
as the increase of Telkomsel&#146;s depreciation expense
amounting to Rp.467.9&nbsp;billion reflecting continued capital
expenditures.
</FONT>

<P align="left">
<FONT size="2">Operations, Maintenance and Telecommunications
Services Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operation, maintenance and telecommunications
services expenses grew by Rp.140.3&nbsp;billion, or 6.5%, from
Rp.2,149.9&nbsp;billion in 2001 to Rp.2,290.2&nbsp;billion
(US$255.9&nbsp;million) in 2002. The increase was mainly
attributable to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the consolidation of relevant Pramindo expenses
    in the various components of operation, maintenance and
    telecommunications services expenses in 2002, which amounted to
    Rp.57.4&nbsp;billion;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">total radio frequency usage charges increased by
    Rp.191.4&nbsp;billion, mainly contributed from the increase in
    usage charges from Telkomsel by Rp.191.8&nbsp;billion from
    Rp.88.6&nbsp;billion in 2001 to Rp.280.4&nbsp;billion
    (US$31.3&nbsp;million) in 2002, or 216.5%, in line with the
    74.6% increase in the number of BTS from 1,995 in 2001 to 3,483
    in 2002;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">total concession fees increased by
    Rp.100.3&nbsp;billion or 157.8% compared to 2001 due to an
    increase in the applicable tariff payable by Telkomsel to the
    Government and an increase in the number of Telkomsel&#146;s
    BTSs;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">gas, electricity and water charges increased by
    40.0% reflecting primarily higher electricity and gas charges as
    a result of higher rates charged by the Government for these
    services in 2002;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">total insurance expense increased by
    Rp.75.1&nbsp;billion, or 110.9% reflecting higher insurance
    coverage due to the consolidation of Pramindo and an increase in
    the number of insurable fixed assets; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cost of phone cards increased by
    Rp.24.3&nbsp;billion to Rp.197.7&nbsp;billion
    (US$22.1&nbsp;million), an increase of 14.0%, reflecting higher
    procurement of phone cards to supply increased sales of SIM
    cards and refill vouchers for Telkomsel&#146;s prepaid mobile
    cellular services.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Distributors and telephone kiosk&#146;
commissions decreased by Rp.520.9&nbsp;billion due to the change
in the Company&#146;s policy for sales through distributors and
telephone kiosks. Previously, the Company compensated through
the payment of commissions which were proportional to the
revenues earned through the kiosk phones. In 2002, the Company
changed its policy and implemented the MOC decree No. KM46 year
2002 that provides a maximum of 70% of the phone kiosk basic
tariff for domestic calls and up to 92% for international calls.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of operation, maintenance and
telecommunications service expense did not contribute
significantly to operating expenses in 2002.
</FONT>

<P align="center"><FONT size="2">88
</FONT>

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<P align="left">
<FONT size="2">General and Administrative Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">General and administrative expense declined by
Rp.197.2&nbsp;billion, or 14.7%, from Rp.1,343.5&nbsp;billion in
2001 to Rp.1,146.3&nbsp;billion (US$128.1&nbsp;million) in 2002.
In particular, the following events took place in 2002:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">allowance for doubtful accounts and inventory
    obsolesce decreased by Rp.311.8&nbsp;billion to
    Rp.31.1&nbsp;billion (US$3.5&nbsp;million), a decrease of 90.9%,
    as TELKOM reversed a provision applicable to doubtful accounts
    in the name of KSO III following the execution of a closing
    agreement with AriaWest on July&nbsp;31, 2003.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">amortization of intangible assets from investment
    in Pramindo, Dayamitra and GSD amounted to Rp.188.0&nbsp;billion
    in 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">professional fees declined by
    Rp.106.3&nbsp;billion, or 32.7%, from Rp.325.3&nbsp;billion in
    2001 to Rp.219.0&nbsp;billion in 2002, principally due to higher
    professional consultant fees in 2001 in relation to the
    cross-ownership transaction involving the sale of our interest
    in Satelindo and the acquisition of additional equity in
    Telkomsel.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">collection costs increased by
    Rp.42.9&nbsp;billion to Rp.224.8&nbsp;billion
    (US$25.2&nbsp;million), an increase of 23.6%, generally in line
    with the growth in TELKOM&#146;s fixed line subscriber base and
    Telkomsel&#146;s mobile cellular subscriber base, but also
    reflecting higher fees charged by third party collection agents
    used in some regional divisions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">general and social contribution (which is
    included in &#147;others&#148;) increased by
    Rp.32.7&nbsp;billion to Rp.69.4&nbsp;billion
    (US$7.7&nbsp;million), an increase of 88.8%, reflecting
    TELKOM&#146;s implementation of the good corporate citizenship
    program in 2002; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">security and screening increased by
    Rp.28.3&nbsp;billion to Rp.77.1&nbsp;billion
    (US$8.6&nbsp;million), an increase of 58.0%, reflecting the
    consolidation of KSO I Unit in 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of general and administrative
expenses did not contribute significantly to operating expenses
in 2002.
</FONT>

<P align="left">
<FONT size="2">Marketing Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Marketing expense grew by Rp.155.1&nbsp;billion,
or 70.5%, from Rp.220.0&nbsp;billion in 2001 to
Rp.375.1&nbsp;billion (US$41.9 million) in 2002. The main
contributors to the increase were the TELKOM Group marketing
campaign which also included Telkomsel and Infomedia, the
consolidation of Pramindo marketing expense that amounted to
Rp.6.1&nbsp;billion and the increase of marketing expense in
several subsidiaries such as Telkomsel, which increased by
Rp.59.1&nbsp;billion, or 70.0%, and in Infomedia from zero in
2001 to Rp.87.4&nbsp;billion in 2002.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Operating Income and Operating
    Margin</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, operating income
grew by Rp.1,710.8&nbsp;billion, or 23.1%, from
Rp.7,419.4&nbsp;billion in 2001 to Rp.9,130.2&nbsp;billion
(US$1,020.1 million) in 2002. TELKOM&#146;s operating margin
decreased from 45.6% in 2001 to 43.9% in 2002 due to the higher
growth of operating expense (31.7%) compared to the growth of
operating revenue (27.8%).
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Other Income and Charges</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other income (net)&nbsp;grew by
Rp.3,488.2&nbsp;billion from a net charge of
Rp.869.5&nbsp;billion in 2001 to a net income of
Rp.2,618.7&nbsp;billion (US$292.6 million) in 2002. The main
components of other income and charges are gain on sale of
long-term investment in Telkomsel and interest expense.
TELKOM&#146;s interest expense increased in 2002 from
Rp.1,329.6&nbsp;billion to Rp.1,582.7&nbsp;billion, an increase
of Rp.253.1&nbsp;billion, or 19.0%, but this increase was offset
by a gain on sales of long-term investment in Telkomsel of
Rp.3,196.4&nbsp;billion in 2002 compared to nil in 2001 and a
gain on foreign exchange-net of Rp.556.6&nbsp;billion
</FONT>

<P align="center"><FONT size="2">89
</FONT>

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<DIV align="left">
<FONT size="2">in 2002 compared to a loss on foreign
exchange-net of Rp.378.7&nbsp;billion in 2001 primarily due to
the impact of Rupiah appreciation to TELKOM&#146;s net liability
position in foreign currency. There is no assurance that future
interest expense will be similarly offset by these gains.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Gain on Sale of Long Term Investment in Telkomsel.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Gain on sale of long term investment represents
the gain by TELKOM on the sale of a 12.72% shareholding in
Telkomsel, which amounted to Rp.3,196.4 billion
(US$357.1&nbsp;million), for which there was no comparable
amount in 2001.
</FONT>

<P align="left">
<FONT size="2">Interest Income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest income declined by Rp.91.8&nbsp;billion,
or 16.1%, from Rp.571.6 billion in 2001 to Rp.479.8&nbsp;billion
(US$53.6&nbsp;million) in 2002, reflecting primarily lower
average interest rates offered in 2002 compared to 2001.
</FONT>

<P align="left">
<FONT size="2">Interest Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest expenses grew by Rp.253.1&nbsp;billion,
or 19.0%, from Rp.1,329.6 billion in 2001 to
Rp.1,582.7&nbsp;billion (US$176.8&nbsp;million) in 2002,
reflecting primarily: (i)&nbsp;additional interest payable on
promissory notes issued to the selling stockholders of Pramindo;
(ii)&nbsp;additional interest expense from issuance of IDR
bonds, guaranteed notes and other credit facilities obtained, in
each case by TELKOM and Telkomsel in 2002; and
(iii)&nbsp;interest expense related to the outstanding purchase
price owed to Indosat in connection with the cross-ownership
transaction.
</FONT>

<P align="left">
<FONT size="2">Gain (Loss) on Foreign Exchange-net.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Gain (loss)&nbsp;on foreign exchange-net
increased by Rp.935.3&nbsp;billion from a net loss of
Rp.378.7&nbsp;billion in 2001 to a net gain of
Rp.556.6&nbsp;billion (US$62.2 million) in 2002, reflecting
primarily Rupiah appreciation during 2002 compared to 2001.
</FONT>

<P align="left">
<FONT size="2">Equity in Net Income (Loss) of Associated
Companies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s equity in net income (loss)&nbsp;of
associated companies increased by Rp.90.3&nbsp;billion from a
net loss of Rp.85.7&nbsp;billion in 2001 to a net gain of
Rp.4.6&nbsp;billion (US$0.5&nbsp;million) in 2002. In 2001,
TELKOM recognized a loss reflecting the reduction in the value
of TELKOM&#146;s investment in Komselindo.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of equity in net income
(loss)&nbsp;of associated companies did not contribute
significantly to Other Income and Charges in 2002.
</FONT>

<P align="left">
<FONT size="2">Others (Net).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Others (net)&nbsp;decreased by
Rp.388.9&nbsp;billion, or 110.2%, from other income
(net)&nbsp;of Rp.352.9&nbsp;billion in 2001 to other expense
(net)&nbsp;of Rp.36.0&nbsp;billion (US$4.0&nbsp;million) in
2002. In 2002, Others (net)&nbsp;included the following
significant income and expense items:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.171.2&nbsp;billion (US$19.1&nbsp;million) in
    income from fines from subscribers;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">gain on sale of fixed assets net amounting to
    Rp.130.4&nbsp;billion (US$14.6&nbsp;million); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.101.5&nbsp;billion (US$11.3&nbsp;million)
    impairment loss from investment in Telesera.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.179&nbsp;billion (US$20&nbsp;million)
    provision for settlement of AriaWest.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of Others (Net) did not
contribute significantly to Other Income (Charges) in 2002.
</FONT>

<P align="center"><FONT size="2">90
</FONT>

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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Before
Tax and Pre-Tax Margin</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, income before tax
grew by Rp.5,199.0 billion, or 79.4%, from
Rp.6,549.9&nbsp;billion in 2001 to Rp.11,748.9&nbsp;billion
(US$1,312.7&nbsp;million) in 2002. Pre-tax margin increased from
40.2% in 2001 to 56.5% in 2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Tax
Expense</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Income tax expense grew by Rp.892.1&nbsp;billion,
or 44.5%, from Rp.2,006.9 billion in 2001 to
Rp.2,899.0&nbsp;billion (US$323.9&nbsp;million) in 2002. The
effective tax rate declined from 30.6% of income before tax in
2001 to 24.7% of income before tax in 2002. The decrease in
effective tax rate was mainly attributable to a low pre-tax gain
on the sale of a 12.72% sharing in Telkomsel compared to a
substantially higher accounting gain.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority
Interest in Net Income of Subsidiaries</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Minority interest in the net income of
subsidiaries increased by Rp.335.6 billion, or 70.7%, from
Rp.474.6&nbsp;billion in 2001 to Rp.810.2&nbsp;billion (US$90.5
million) in 2002. The increase was primarily due to the decrease
in ownership of Telkomsel as a result of the sale by TELKOM of a
12.72% shareholding in Telkomsel, increasing the minority
interest in Telkomsel.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
Income</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, net income grew by
Rp.3,971.3&nbsp;billion, or 97.6%, from Rp.4,068.4&nbsp;billion
in 2001 to Rp.8,039.7&nbsp;billion (US$898.3&nbsp;million) in
2002 principally due to the gain of Rp.3,196.4&nbsp;billion
through the sale of a 12.72% shareholding in Telkomsel.
TELKOM&#146;s margin increased from 25.0% in 2001 to 38.7% in
2002. The higher net income resulted in an increase in basic
earnings per share from Rp.403.6 in 2001 to Rp.797.6 in 2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total shareholders&#146; equity increased by
Rp.5,532.6&nbsp;billion, or 60.9%, from Rp.9,081.0&nbsp;billion
in 2001 to Rp.14,613.6&nbsp;billion (US$1,632.8&nbsp;million) in
2002. The increase in total shareholders&#146; equity was
attributable primarily to net income for the year 2002 of
Rp.8,039.7&nbsp;billion (US$898.3&nbsp;million) and decrease in
the difference in value of restructuring transactions between
entities under common control of Rp.296.0&nbsp;billion related
to the agreement by TELKOM to acquire 100% of Pramindo. In June
2002, TELKOM declared a cash dividend of Rp.2,125.1&nbsp;billion
(US$237.4&nbsp;million).
</FONT>

<P align="left">
<FONT size="2">Retained Earnings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Appropriated and unappropriated retained earnings
grew by Rp.5,944.6 billion, or 64.5%, from
Rp.9,214.2&nbsp;billion in 2001 to Rp.15,128.9&nbsp;billion
(US$1,690.4&nbsp;million) in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year ended
December&nbsp;31, 2001 compared to year ended December&nbsp;31,
2000</FONT></I></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
Revenues.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total operating revenues grew by
Rp.4,093.6&nbsp;billion, or 33.6%, from Rp.12,190.2&nbsp;billion
in 2000 to Rp.16,283.8&nbsp;billion in 2001. Operating revenues
increased for all revenue items, except revenue from KSO and
revenue sharing arrangement and other telecommunications
services, which showed a slight decline in operating revenues.
The decline in KSO revenue was primarily due to the elimination
of MTR and DTR revenue recognized by TELKOM for the KSO VI Unit
as a result of TELKOM&#146;s acquisition of a 90.32% equity
interest in Dayamitra in 2001.
</FONT>

<P align="center"><FONT size="2">91
</FONT>

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<P align="left">
<FONT size="2">Fixed Line Telephone Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed line revenues grew by
Rp.1,237.3&nbsp;billion, or 23.9%, from Rp.5,177.9 billion in
2000 to Rp.6,415.1&nbsp;billion in 2001. Local and domestic
long-distance usage charges for 2001 increased by
Rp.1,128.6&nbsp;billion to Rp.5,225.7&nbsp;billion, an increase
of 27.5% compared to 2000. Monthly subscription charges
increased by Rp.110.3&nbsp;billion to Rp.997.7&nbsp;billion, an
increase of 12.4%. Installation charges increased by
Rp.22.6&nbsp;billion to Rp.98.0&nbsp;billion, an increase of
30.0%. The increases were primarily attributable to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the consolidation of KSO VI Unit revenues, as a
    result of TELKOM&#146;s acquisition of a 90.32% interest in
    Dayamitra in 2001;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">9.4% growth in fixed lines in service in the
    non-KSO regions, including kiosk phones, from 3,610,363 lines at
    December&nbsp;31, 2000 to 3,949,905 lines at December&nbsp;31,
    2001, if KSO VI Unit is excluded, or 9.1% growth, from 3,913,311
    lines to 4,270,243 lines at the same dates, respectively, if KSO
    VI Unit is included; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">5.0% growth in average monthly revenue per fixed
    line in service in the non-KSO regions, from Rp.121,000 per
    month in 2000 to Rp.127,000 per month in 2001, reflecting higher
    average usage per line.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from phone cards for 2001 decreased by
Rp.8.9&nbsp;billion to Rp.25.4 billion, a decrease of 26.1%
compared to 2000. The decrease in 2001 primarily reflected a
termination payment to a vendor that previously issued phone
cards on behalf of TELKOM on a revenue sharing basis. Revenue
from others decreased by Rp.15.3&nbsp;billion to
Rp.68.3&nbsp;billion, a decrease of 18.3%.
</FONT>

<P align="left">
<FONT size="2">Cellular Telephone Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cellular telephone revenues grew by
Rp.1,818.0&nbsp;billion, or 62.9%, from Rp.2,890.0&nbsp;billion
in 2000 to Rp.4,708.0&nbsp;billion in 2001. Air time charges for
2001 increased by Rp.1,503.3&nbsp;billion to
Rp.3,987.8&nbsp;billion, an increase of 60.5% compared to 2000.
Monthly subscription charges increased by Rp.225.5 billion to
Rp.581.6&nbsp;billion, an increase of 63.4%. Connection fee
charges increased by Rp.85.9&nbsp;billion to
Rp.128.5&nbsp;billion, an increase of 201.4%. The increases were
attributable to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">31.6% growth in postpaid subscribers to 865,211
    subscribers at December&nbsp;31, 2001, and 131.8% growth in
    prepaid subscribers to 2,386,821 subscribers; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">2.1% growth in postpaid monthly ARPU to
    Rp.287,000 (US$27.6) in 2001, and 7.8% growth in prepaid monthly
    ARPU to Rp.111,000 (US$10.7).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the higher rate of growth in the
number of prepaid subscribers, the proportion of prepaid
subscribers increased from 61% in 2000 to 73.4% in 2001. As a
result of the change in the subscriber mix, and despite the
higher growth rate for prepaid than postpaid monthly ARPU,
blended monthly ARPU decreased from approximately Rp.179,000 in
2000 to approximately Rp.171,000 in 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from Features for 2001 increased by
Rp.3.3&nbsp;billion to Rp.10.1 billion, an increase of 48.5%.
Previously revenues from Features also included SMS revenues,
which were then classified as part of Data and Internet revenues
starting in 2002.
</FONT>

<P align="left">
<FONT size="2">KSO Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">KSO revenues declined by Rp.47.6&nbsp;billion, or
2.1%, from Rp.2,267.2&nbsp;billion in 2000 to
Rp.2,219.5&nbsp;billion in 2001. MTR for 2001 decreased by
Rp.82.5 billion to Rp.1,474.2&nbsp;billion, a decrease of 5.3%
compared to 2000. DTR increased by Rp.37.9&nbsp;billion to
Rp.732.9&nbsp;billion, an increase of 5.5%. Amortization of
unearned initial payments decreased by Rp.2.9&nbsp;billion to
Rp.12.4&nbsp;billion, a decrease of 19.0%. The decrease in MTR
payments partly reflected, as did all of the decrease in
amortization of unearned initial payments, TELKOM&#146;s
acquisition of a 90.32% equity interest in Dayamitra in 2001, and
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">the resulting accounting elimination in 2001 of
revenues that would otherwise have been treated as KSO revenues.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed lines in service in the KSO regions
increased 7.1%, from 3,052,242 lines at December&nbsp;31, 2000
to 3,269,033 lines at December&nbsp;31, 2001, if KSO VI Unit is
included, or 7.3%, from 2,749,294 lines to 2,948,695 lines, if
KSO VI Unit is excluded.
</FONT>

<P align="left">
<FONT size="2">Interconnection Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection revenues grew by
Rp.442.7&nbsp;billion, or 45.1%, from Rp.981.0&nbsp;billion in
2000 to Rp.1,423.7&nbsp;billion in 2001. In 2001:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">net interconnection revenues for interconnections
    to and from TELKOM&#146;s fixed line network (after eliminating
    net interconnection revenues for interconnections with
    Telkomsel&#146;s mobile cellular network) for 2001 increased by
    Rp.401.7&nbsp;billion to Rp.1,212.3&nbsp;billion, an increase of
    49.6% compared to 2000; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">net interconnection revenue from interconnections
    to and from Telkomsel&#146;s mobile cellular network (after
    eliminating net interconnection revenue from interconnections
    with TELKOM&#146;s fixed line network) increased by
    Rp.41.0&nbsp;billion to Rp.211.4&nbsp;billion, an increase of
    24.1%.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The increase in both TELKOM&#146;s net
interconnection revenues and Telkomsel&#146;s net negative
interconnection revenues primarily reflected increased traffic.
The increase in TELKOM&#146;s net interconnection revenues was
also partly attributable to the consolidation of KSO VI Unit
interconnection revenues in 2001, as a result of TELKOM&#146;s
acquisition of a 90.32% interest in Dayamitra.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001 as compared to 2000, interconnection
revenues involving international direct dialing IDD calls
declined 50.5%, from Rp.235.9&nbsp;billion to
Rp.116.8&nbsp;billion, which TELKOM believes is partly due to
the increased popularity of VoIP technology in the market for
international long-distance services.
</FONT>

<P align="left">
<FONT size="2">Data and Internet Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Data and Internet revenues grew by
Rp.565.3&nbsp;billion, or 523.7%, from Rp.107.9&nbsp;billion in
2000 to Rp.673.2&nbsp;billion in 2001, mainly attributed to the
significant growth in the number of cellular customers for our
SMS and multimedia businesses, as well as the introduction of
our VoIP services. SMS revenues for 2001 increased by
Rp.320.1&nbsp;billion to Rp.344.6&nbsp;billion, an increase of
1,306.5%. Multimedia revenues increased by Rp.153.8&nbsp;billion
to Rp.218.3&nbsp;billion, an increase of 238.3%, reflecting
primarily increased numbers of subscribers for various of
TELKOM&#146;s multimedia services. VoIP revenues for 2001 were
Rp.25.6&nbsp;billion. We introduced our VoIP service in 2001.
</FONT>

<P align="left">
<FONT size="2">Network Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Network revenues increased by
Rp.74.9&nbsp;billion, or 22.0%, from Rp.340.0 billion in 2000 to
Rp.415.0&nbsp;billion in 2001. Satellite transponder revenues
increased by Rp.20.3&nbsp;billion to Rp.203.6&nbsp;billion, an
increase of 11.1%, reflecting primarily a 19.8% increase in
leased transponder capacity, offset by a reduction in the number
of customers due to competitive pricing. Leased line revenues
increased by Rp.54.6&nbsp;billion to Rp.211.4&nbsp;billion, an
increase of 34.9%, reflecting primarily increase in circuits
leased.
</FONT>

<P align="left">
<FONT size="2">Revenues under Revenue Sharing Arrangement
(&#147;PBH&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues under Revenue Sharing Arrangement
decreased by Rp.23.4&nbsp;billion, or 8.1%, to
Rp.264.3&nbsp;billion in 2001, mainly due to the expiration of
revenue sharing arrangements with certain operators. Net share
for revenue earned under revenue sharing arrangement for 2001
increased by Rp.21.3&nbsp;billion to Rp.191.5&nbsp;billion, an
increase of 12.6% compared to 2000, due to the higher use of
services provided under these arrangements by fixed line
subscribers. Amortization of unearned income under revenue
sharing arrangement for 2001 declined by Rp.44.8&nbsp;billion to
Rp.72.8&nbsp;billion, a
</FONT>

<P align="center"><FONT size="2">93
</FONT>

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<DIV align="left">
<FONT size="2">decrease of 38.1% compared to 2000, principally
due to the expiry and termination of some of our revenue sharing
arrangements in 2001.
</FONT>
</DIV>

<P align="left">
<FONT size="2">Other Telecommunications-related Service Revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other telecommunications-related service revenues
increased by Rp.26.5&nbsp;billion, or 19.1%, from
Rp.138.5&nbsp;billion in 2000 to Rp.165.0&nbsp;billion in 2001
mainly due to an increase in revenues from telephone directory
services of Rp.40.1&nbsp;billion and a reduction in the usage of
telex and telegram.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of other telecommunications
service revenues did not contribute significantly to operating
revenues in 2001.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Operating Expenses</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total operating expenses grew by
Rp.2,270.3&nbsp;billion, or 34.4%, from Rp.6,594.1&nbsp;billion
in 2000 to Rp.8,864.4&nbsp;billion in 2001, generally in line
with the increase in operating revenues. Operating expenses as a
proportion of operating revenues increased to 54.1% in 2001,
compared to 54.4% in 2000.
</FONT>

<P align="left">
<FONT size="2">Depreciation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depreciation expenses grew by
Rp.450.7&nbsp;billion, or 18.6%, from Rp.2,419.1 billion in 2000
to Rp.2,869.8&nbsp;billion in 2001. The increase in depreciation
was principally attributable to the consolidation, following
TELKOM&#146;s acquisition of a 90.32% equity interest in
Dayamitra in 2001, of depreciation relating to cable network,
switching equipment and other fixed assets used by KSO VI Unit,
as well as higher gross fixed assets. Property, plant and
equipment (net) increased 14.3% at December&nbsp;31, 2001
compared to 2000, primarily as a result of the continuing
development of Telkomsel&#146;s mobile cellular
telecommunications network, as well as the consolidation of
property, plant and equipment (net)&nbsp;of Dayamitra.
</FONT>

<P align="left">
<FONT size="2">Operation, Maintenance and Telecommunications
Services Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operation, maintenance and telecommunications
services expenses grew by Rp.764.2&nbsp;billion, or 55.1%, from
Rp.1,385.7&nbsp;billion in 2000 to Rp.2,149.9 billion in 2001.
The increase was partly attributable to the consolidation of
relevant KSO VI Unit expenses in the various components of
operation, maintenance and telecommunications services expense
in 2001, as a result of TELKOM&#146;s acquisition of a 90.32%
interest in Dayamitra. In addition, in 2001:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">operation and maintenance expenses increased by
    Rp.315.8&nbsp;billion to Rp.891.4&nbsp;billion in 2001, an
    increase of 54.9% compared to 2000, reflecting primarily upward
    movement in the price of fuel used for power generation, higher
    wages for contract labor resulting from an increase in the
    Indonesian minimum wage and the cost of leasing additional
    cellsites for Telkomsel&#146;s continuing network development;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">telephone kiosks&#146; commissions increased by
    Rp.148.7 billion to Rp.520.9&nbsp;billion, an increase of 40.0%,
    reflecting primarily an increase in the number of telephone
    kiosks in service in 2001;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">cost of phone cards increased by
    Rp.126.3&nbsp;billion to Rp.173.4 billion, an increase of
    268.4%, reflecting higher procurement of phone cards to supply
    increased sales of SIM cards and refill vouchers for
    Telkomsel&#146;s prepaid mobile cellular services;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">electricity, gas and water charges increased by
    Rp.40.6&nbsp;billion to Rp.157.1&nbsp;billion, an increase of
    34.8%, reflecting primarily higher electricity and gas charges
    as a result of higher rates charged by the Government for these
    services in 2001; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">radio frequency usage charges increased by
    Rp.84.6&nbsp;billion to Rp.101.3&nbsp;billion, reflecting an
    increase in the number of base stations for Telkomsel&#146;s
    continuing network development and a Government-directed change
    in the basis for calculating the frequency charges, which
    resulted in higher average frequency charges per base station.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">94
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of operation, maintenance and
telecommunications service expenses did not contribute
significantly to operating expenses in 2001.
</FONT>

<P align="left">
<FONT size="2">Personnel Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Personnel expense grew by Rp.510.8&nbsp;billion,
or 28.9%, from Rp.1,770.4 billion in 2000 to
Rp.2,281.2&nbsp;billion in 2001. In 2001:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">salaries and related allowances increased by
    Rp.179.8&nbsp;billion to Rp.883.4&nbsp;billion in 2001, an
    increase of 25.6% compared to 2000, reflecting primarily, a
    50.0% increase in base salaries implemented in August 2000,
    which affected 2001 personnel expenses for the entire year,
    compared to only five months in 2000, and the consolidation of
    KSO VI Unit employee salaries and related allowances in 2001 as
    a result of TELKOM&#146;s acquisition of a 90.32% interest in
    Dayamitra;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">vacation pay, incentives and other allowances
    increased by Rp.67.1 billion to Rp.364.7&nbsp;billion, an
    increase of 22.5%, reflecting primarily the consolidation of KSO
    VI Unit vacation pay, incentives and other allowances;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">net periodic post-retirement benefit cost
    increased by Rp.13.6 billion to Rp.86.2&nbsp;billion, an
    increase of 18.7%, reflecting primarily higher imputed interest
    cost resulting from the benefits being underfunded (see Note 47
    to the consolidated financial statements); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">employee income tax decreased by
    Rp.63.7&nbsp;billion to Rp.132.9&nbsp;billion, a decrease of
    32.4%, reflecting primarily lower applicable rates of individual
    income taxation, which offset the year-over-year impact of an
    increase in base salaries effected in August 2000.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of personnel expenses did not
contribute significantly to operating expenses in 2001.
</FONT>

<P align="left">
<FONT size="2">General and Administrative Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">General and administrative expenses grew by
Rp.471.8&nbsp;billion, or 54.1%, from Rp.871.7&nbsp;billion in
2000 to Rp.1,343.5&nbsp;billion in 2001. In 2001:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">professional fees increased by
    Rp.281.9&nbsp;billion to Rp.325.3&nbsp;billion, an increase of
    649.3%, reflecting primarily higher fees for financial,
    accounting and legal advisors in connection with the
    cross-ownership transactions involving Indosat, TELKOM&#146;s
    purchase of a 90.32% equity interest in Dayamitra and the
    arbitration proceedings with AriaWest;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">collection costs increased by
    Rp.50.4&nbsp;billion to Rp.181.9&nbsp;billion, an increase of
    38.3%, generally in line with the growth in TELKOM&#146;s fixed
    line subscriber base and Telkomsel&#146;s mobile cellular
    subscriber base, but also reflecting higher fees charged by
    third party collection agents used in some regional divisions;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">training, education and recruitment increased by
    Rp.32.6&nbsp;billion to Rp.147.3&nbsp;billion, an increase of
    28.4%, reflecting primarily the costs of financial information
    systems software training undertaken in 2001 and programs
    undertaken by Telkomsel; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">TELKOM incurred Rp.55.7&nbsp;billion through
    amortization of intangible assets from acquisition of Dayamitra.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of general and administrative
expenses did not contribute significantly to operating expenses
in 2001.
</FONT>

<P align="center"><FONT size="2">95
</FONT>

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<P align="left">
<FONT size="2">Marketing Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Marketing expense grew by Rp.72.8&nbsp;billion,
or 49.5%, from Rp.147.2&nbsp;billion in 2000 to
Rp.220.0&nbsp;billion in 2001. This is principally due to an
increase in advertising expense for fixed and wireless
businesses which increased from Rp.116.0&nbsp;billion in 2000 to
Rp.169.8&nbsp;billion in 2001.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Operating Income and Operating
    Margin</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, operating income
grew by Rp.1,823.3&nbsp;billion, or 32.6%, from
Rp.5,596.1&nbsp;billion in 2000 to Rp.7,419.4&nbsp;billion in
2001. TELKOM&#146;s operating margin decreased from 45.9% in
2000 to 45.6% in 2001.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Other Income and Charges</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other charges (net)&nbsp;declined by
Rp.118.3&nbsp;billion, or 12.0%, from a net charge of
Rp.987.8&nbsp;billion in 2000 to a net charge of
Rp.869.5&nbsp;billion in 2001. TELKOM&#146;s interest expenses
increased significantly in 2001, but this increase was
substantially offset by a decrease in the net loss on foreign
exchange, due in part to a strengthening rupiah. There is no
assurance that future interest expenses will be similarly offset.
</FONT>

<P align="left">
<FONT size="2">Interest Income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest income declined by
Rp.120.4&nbsp;billion, or 17.4%, from Rp.692.0 billion in 2000
to Rp.571.6&nbsp;billion in 2001, reflecting primarily smaller
balances on average of cash and cash equivalents and in
temporary investments during 2001 compared to 2000. The lower
average balance of these current assets in 2001 offset the
positive impact on income of higher interest rates generally
paid on cash equivalents and on temporary investments as a
result of higher interest rates paid on Bank Indonesia
Certificates (SBI).
</FONT>

<P align="left">
<FONT size="2">Interest Expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest expense grew by Rp.512.9&nbsp;billion,
or 62.8%, from Rp.816.7&nbsp;billion in 2000 to
Rp.1,329.6&nbsp;billion in 2001, reflecting primarily:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">higher interest expenses on long-term liabilities
    (principally two-step loans) denominated in Rupiah and U.S.
    Dollar, due to higher interest rates generally prevailing on
    loans denominated in Rupiah and U.S. Dollar in 2001 compared to
    2000; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">additional interest payable on new indebtedness
    to Indosat and to former shareholders of Dayamitra in 2001
    incurred as a result of the cross-ownership transactions and
    TELKOM&#146;s purchase of a 90.32% equity interest in Dayamitra,
    respectively.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Gain or Loss on Foreign Exchange (Net).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net realized and unrealized loss on foreign
exchange declined by Rp.565.4 billion, or 59.9%, from a net loss
of Rp.944.1&nbsp;billion in 2000 to a net loss of
Rp.378.7&nbsp;billion in 2001. In both years, the net foreign
exchange losses arose principally as a result of the impact of
the continued depreciation of the Rupiah on the amount,
expressed in Rupiah, of long-term liabilities (principally
two-step loans) denominated in foreign currencies (principally
the U.S. Dollar). The reduced net foreign exchange loss in 2001
principally reflected the relatively lower depreciation of the
Rupiah in 2001 as compared to 2000. See &#147;Exchange Rates
Information&#148;.
</FONT>

<P align="center"><FONT size="2">96
</FONT>

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<P align="left">
<FONT size="2">Equity in Net Income(Loss) of Associated
Companies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s equity in the net loss of
associated companies declined by Rp.146.3&nbsp;billion, or
63.1%, from a net loss of Rp.232.0&nbsp;billion in 2000 to a net
loss of Rp.85.7&nbsp;billion in 2001. In 2001, TELKOM:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">recognized an additional share in the net loss of
    Komselindo of Rp.92.8&nbsp;billion, reflecting TELKOM&#146;s
    share of Komselindo&#146;s net loss for 2001, which TELKOM
    recognized as a result of conversion of TELKOM&#146;s
    interconnection receivables into equity (leaving unchanged
    Komselindo&#146;s nil carrying value);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">did not recognize any further share in the net
    loss of PSN (TELKOM recognized in 2000 a Rp.60.3&nbsp;billion
    share in PSN&#146;s net loss that year), but instead expensed in
    2001 the decline in value of TELKOM&#146;s investment in PSN
    under Others (Net) (see &#147;&#151;&nbsp;Others (Net)&#148;
    below); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">did not recognize any further share in the net
    loss of Satelindo (TELKOM recognized in 2000 a
    Rp.184.4&nbsp;billion share in Satelindo&#146;s net loss that
    year), as a result of TELKOM&#146;s nil carrying value in
    Satelindo as at December&nbsp;31, 2000.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of equity in net income
(loss)&nbsp;of associated companies did not contribute
significantly to Other Income and Charges in 2001.
</FONT>

<P align="left">
<FONT size="2">Others (Net).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Others (net)&nbsp;increased by
Rp.39.9&nbsp;billion, or 12.7%, from Rp.313.1&nbsp;billion in
2000 to Rp.352.9&nbsp;billion in 2001. In 2001, Others
(net)&nbsp;included the following significant income and expense
items:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.131.8&nbsp;billion in income from Infomedia, a
    subsidiary of TELKOM, an increase of Rp.97.0&nbsp;billion, or
    278.7%, from 2000;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.132.9&nbsp;billion in income from fines from
    subscribers, a decrease of Rp.42.3&nbsp;billion, or 31.8%;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.101.8&nbsp;billion in income from gain on the
    share swap transactions, for which there was no equivalent
    amount in 2000;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.136.0&nbsp;billion in income from an
    accounting adjustment reversing excess accrual of interest
    expense in 1999;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.77.6&nbsp;billion in expense for the decline
    in value of TELKOM&#146;s investment in PSN, resulting in a nil
    carrying value in PSN, and for which there was no equivalent
    amount in 2000; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.55.7&nbsp;billion in accrued expense for fines
    potentially payable to the Government because of late payment of
    cash dividends declared in 2000.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other components of Others (Net) did not
contribute significantly to Other Income (Charges) in 2001.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Before
Tax and Pre-Tax Margin</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, income before tax
grew by Rp.1,941.7&nbsp;billion, or 42.1%, from
Rp.4,608.2&nbsp;billion in 2000 to Rp.6,549.9&nbsp;billion in
2001. Pre-tax margin increased from 37.8% in 2000 to 40.2% in
2001.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Tax
Expense</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Income tax expense grew by Rp.486.6&nbsp;billion,
or 32.0%, from Rp.1,520.3&nbsp;billion in 2000 to
Rp.2,006.9&nbsp;billion in 2001. The increase in income tax
expense was partially attributable to capital gains tax of
Rp.747.3&nbsp;billion payable in relation to gains realized on
the disposition of TELKOM&#146;s equity interests in Satelindo
and Lintasarta.
</FONT>

<P align="center"><FONT size="2">97
</FONT>

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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority
Interest in Net Income of Subsidiaries</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Minority interest in the net income of
subsidiaries increased by Rp.161.7&nbsp;billion, or 51.7%, from
Rp.312.9&nbsp;billion in 2000 to Rp.474.6&nbsp;billion in 2001.
The increase was primarily attributable to an increase of 51.9%
in minority interest in the net income of Telkomsel from
Rp.299.8&nbsp;billion in 2000 to Rp.455.3&nbsp;billion in 2001.
</FONT>

<P align="left">
<FONT size="2">Net Income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the foregoing, net income grew by
Rp.1,293.3&nbsp;billion, or 46.6%, from Rp.2,775.0&nbsp;billion
in 2000 to Rp.4,068.4&nbsp;billion in 2001. TELKOM&#146;s margin
increased from 22.8% in 2000 to Rp.25.0% in 2001. The higher net
income resulted in an increase in basic earnings per share from
Rp.275.30 in 2000 to Rp.403.61 in 2001.
</FONT>

<P align="left">
<FONT size="2">Equity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total equity declined by Rp.5,392.1&nbsp;billion,
or 37.3%, from Rp.14,473.1&nbsp;billion in 2000 to
Rp.9,081.0&nbsp;billion in 2001. The decline in equity was
attributable primarily to a reduction in equity arising from the
accounting treatment for the cross-ownership transactions of
minus Rp.8,745.9&nbsp;billion, which offset increases in equity
from net income for year 2001 of Rp.4,068.4&nbsp;billion. TELKOM
declared a cash dividend of Rp.888.7&nbsp;billion in 2001.
</FONT>

<P align="left">
<FONT size="2">Cross-Ownership Transactions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Both TELKOM and Indosat are controlled by the
Government. As a result, TELKOM&#146;s acquisition of
Indosat&#146;s 35% equity interest in Telkomsel, and its
divestment to Indosat of its 22.5% equity interest in Satelindo
and 37.66% equity interest in Lintasarta, were accounted for as
a reorganization of entities under common control. Under this
accounting treatment, the aggregate difference of
Rp.6,992.2&nbsp;billion (net of tax) between the net
consideration paid by TELKOM to Indosat and the net book value
of assets acquired or carrying value of assets transferred by
TELKOM was recorded on TELKOM&#146;s Consolidated Balance Sheets
for 2001 as a difference in value of restructuring transactions
between entities under common control. This amount was
subtracted directly from equity, and did not result in the
creation of any goodwill or other amortizing asset. During 2002,
TELKOM paid to Indosat the balance of the purchase price
relating to the cross-ownership transactions amounting to
Rp.2,406.3&nbsp;billion. See &#147;&#151; Summary of Significant
Accounting Policies&nbsp;&#151; Acquisition and Business
Divestitures&#148;.
</FONT>

<P align="left">
<FONT size="2">Change of Equity in Associated Companies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, as a result of TELKOM&#146;s divestment
of its equity interest in Satelindo in the cross-ownership
transactions, TELKOM reversed increased equity of
Rp.290.4&nbsp;billion recognized in prior years from changes of
equity in Satelindo.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, TELKOM&#146;s share of change of equity
in Telkomsel was Rp.170.5&nbsp;billion.
</FONT>

<P align="left">
<FONT size="2">Retained Earnings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Appropriated and unappropriated retained earnings
grew by Rp.2,938.0 billion, or 46.8%, from
Rp.6,276.2&nbsp;billion in 2000 to Rp.9,214.2&nbsp;billion in
2001.
</FONT>

<P align="left">
<B><FONT size="2">Reconciliation to U.S. GAAP</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM prepares its financial statements in
accordance with Indonesian GAAP, and prepares a reconciliation
of net income and equity in accordance with the requirements of
the U.S. Securities and
</FONT>

<P align="center"><FONT size="2">98
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Exchange Commission. The following table sets out
net income for the years ended, and equity as of,
December&nbsp;31, 2000, 2001 and 2002 in accordance with
Indonesian GAAP and U.S. GAAP:
</FONT>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Year Ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net income in accordance with</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Indonesian GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">898.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S. GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">959.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Year Ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Equity in accordance with</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Indonesian GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,081.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,632.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S. GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,927.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,554.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Summary of Material Differences Between
Indonesian GAAP and U.S. GAAP</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s consolidated financial
statements have been prepared in accordance with Indonesian GAAP
which differs in certain respects from U.S. GAAP. The material
differences are described in Note 57 to the Company&#146;s
consolidated financial statements.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination
Benefits</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, termination benefits are
recognized as liabilities when certain criteria are met (e.g.
the enterprise is demonstratively committed to provide
termination benefits as a result of an offer made in order to
encourage voluntary redundancy).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, termination benefits were
recognized as liabilities when the employees accept the offer
and the amount can be reasonably estimated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result, on a U.S. GAAP basis, the
Company&#146;s consolidated income before tax would have been
Rp.140.0&nbsp;billion and Rp.531.0&nbsp;billion higher for 2001
and 2002, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign
Exchange Differences on Property under
Construction</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, the foreign exchange
differences resulting from loans used to finance property under
construction are capitalized. Capitalization of foreign exchange
differences cease when the construction of the qualifying assets
is substantially completed and the constructed property is ready
for its intended use.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, foreign exchange differences are
charged to current operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently, on a U.S. GAAP basis, the
Company&#146;s consolidated income before tax would have been
Rp.111.0&nbsp;billion lower in 2000, Rp.75.0&nbsp;billion higher
in 2001 and Rp.107.4&nbsp;billion higher in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
Capitalized on Property under Construction</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, one of the criteria for
capitalizing interest cost into a qualifying asset is that the
interest should be attributable to the qualifying asset (an
asset that necessarily takes a substantial period of time to get
ready for its intended use or sale, i.e. minimum
12&nbsp;months). The interest income arising from any unused
borrowings should be offset against any capitalised interest
expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, there is no limit on the length
of construction period in which the interest expense could be
capitalised and interest cost need not arise from borrowings
specifically made to
</FONT>

<P align="center"><FONT size="2">99
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">acquire the qualifying assets. The interest
income arising from any unused borrowings was recognized
directly to current operations.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result, on a U.S. GAAP basis, the
Company&#146;s consolidated income before tax would have been
Rp.19.7&nbsp;billion higher in 2001 and Rp.43.0&nbsp;billion
higher in 2002, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue-Sharing
Arrangements</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, property, plant and
equipment built by an investor under revenue-sharing
arrangements are recognized as property, plant and equipment
under revenue-sharing arrangements in the books of the party to
whom ownership in such properties will be transferred at the end
of the revenue-sharing period, with a corresponding initial
credit to unearned income. The property, plant and equipment are
depreciated over their useful lives, while the unearned income
is amortized over the revenue-sharing period. The Company
records its share of the revenues earned on a net basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, the accounting for
revenue-sharing arrangements depends on whether or not the
investor will receive a guaranteed minimum return. When there is
no guaranteed investment return to the investor, the accounting
treatment is not materially different from that under Indonesian
GAAP. When there is a guaranteed investment return, the assets
under revenue-sharing arrangements are recorded and,
correspondingly, an obligation under revenue-sharing
arrangements is recorded. A portion of the investor&#146;s share
in revenue is recorded as interest expense based on the implicit
rate of return and the balance is treated as a reduction of the
obligation. Revenues are recorded on a gross basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the different treatment of
revenue sharing arrangements under U.S. GAAP and Indonesian
GAAP, the Company&#146;s consolidated income before tax would
have been Rp.29.7&nbsp;billion lower in 2000,
Rp.44.0&nbsp;billion higher in 2001, and Rp.68.0&nbsp;billion
higher in 2002, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revaluation
of Property, Plant and Equipment</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While Indonesian GAAP does not generally allow
companies to recognize increases in the value of property, plant
and equipment that occur subsequent to acquisition, an exception
is provided for revaluations made in accordance with Government
regulations. The Company revalued its property, plant and
equipment that were used in operations as of January&nbsp;1,
1979 and January&nbsp;1, 1987.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, assets revaluations are not
permitted. The effects of the previous revaluations have been
fully reversed in 2002, such that there is no difference in
equity as of December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the different treatment of
revaluation of property, plant and equipment under U.S. GAAP and
Indonesian GAAP, the Company&#146;s consolidated income before
tax would have been Rp.4.1&nbsp;billion higher in 2000 and 2001
and Rp.3.9&nbsp;billion higher in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1994 and 1998, the Company provided for
increases in pension benefits for pensioners. Under Indonesian
GAAP, the prior service costs attributable to the increases in
pension benefits for pensioners were directly charged to expense
in those years. Under SFAS&nbsp;87, because the majority of plan
participants are still active, such prior service costs are
deferred and amortized systematically over the remaining service
period for active employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, the Company would be required to
recognize an additional minimum liability when the accumulated
benefit obligation exceeds the fair value of the plan assets,
and an equal amount would be recognized as an intangible asset,
provided that the asset recognized does not exceed the amount of
unrecognized prior service cost.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s consolidated income before tax
would have been Rp.95.2 billion higher in 2000,
Rp.19.6&nbsp;billion lower in 2001, and Rp.111.4&nbsp;billion
higher in 2002 under U.S. GAAP reporting.
</FONT>

<P align="center"><FONT size="2">100
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in Net
Income/(Loss) of Associated Companies</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company records its equity in net income of
associated companies based on the associates&#146; financial
statements that have been prepared under Indonesian GAAP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For U.S. GAAP reporting purposes, the Company
recognized the effect of the differences of U.S. GAAP and
Indonesian GAAP in the investment accounts and its share of
earnings or losses of those associates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result, on a U.S. GAAP basis, the
Company&#146;s consolidated income before tax would have been
Rp.2.4&nbsp;billion higher in 2000, Rp.3.8&nbsp;billion lower in
2001 and Rp.0.2&nbsp;billion lower in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land
rights</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In Indonesia, the title of land rests with the
State under the Basic Agrarian Law No.&nbsp;5 of 1960. Land use
is accomplished through land rights whereby the holder of the
right enjoys the full use of the land for a stated period of
time, subject to extensions. The land rights generally are
freely tradable and may be pledged as security under borrowing
agreements. Under Indonesian GAAP, land ownership is not
depreciated unless it can be foreseen that the possibility for
the holder to obtain extension or renewal of rights is remote.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, the cost of acquired land rights
is amortized over the period the holder is expected to retain
the land rights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s consolidated income before tax
would have been Rp.6.1&nbsp;billion lower in 2000,
Rp.6.4&nbsp;billion lower in 2001, and Rp.11.8&nbsp;billion
lower in 2002 under U.S. GAAP reporting.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
Issuance Costs</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, stock issuance costs are
deferred and amortized. The Company amortized deferred stock
issuance costs over five years using the straight-line method.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective 2000, the Capital Market Supervisory
Agency (&#147;BAPEPAM&#148;) requires that stock issuance costs
should be recorded as part of additional paid-in capital.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, stock issuance costs are offset
against the proceeds. The deferred stock issuance cost was fully
amortized in 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of this difference, the
Company&#146;s consolidated income before tax under U.S. GAAP
would have been Rp.22.4&nbsp;billion higher in 2000.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee
Bonuses</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2000, a subsidiary (Telkomsel) charged
employee bonuses amounting to Rp.26.7&nbsp;billion to retained
earnings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, personnel and related costs,
including bonuses are charged to current operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently the Company&#146;s consolidated
income before tax under U.S. GAAP would have been
Rp.26.7&nbsp;billion lower in 2000.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment to
be Installed</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, equipment is depreciated
starting when the asset is ready for its intended use.
Temporarily idle equipment or equipment that is awaiting
installation is not depreciated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP equipment is depreciated when it
is ready for its intended use. Temporarily idle equipment
continues to be depreciated. In 2002, prior year equipment to be
installed was fully installed and their carrying values have
been reclassified to property, plant and equipment.
</FONT>

<P align="center"><FONT size="2">101
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently the Company&#146;s consolidated
income before tax under U.S. GAAP would have been
Rp.5.6&nbsp;billion lower in 2000 and Rp.9.7&nbsp;billion higher
in 2002, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue
Recognition</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, revenue from cellular
service connection fees are recognized as income when the
connection takes place (for postpaid service) or at the time of
delivery of starter packs to distributors, dealers or customers
(for prepaid service). Installation fees for wire line services
are recognized at the time of installation. The revenue from
calling cards (&#147;Kartu Telepon&#148;) is also recognized
when the Company sells the card.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, revenue from front-end fees are
deferred and recognized over the expected term of the customer
relationship or the contractual term. Directly incremental costs
up are deferred up to the extent of deferred revenues. Revenues
from calling cards are recognized upon usage or expiration.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently, the Company&#146;s consolidated
income before tax under U.S. GAAP would have been
Rp.707.5&nbsp;billion lower in 2000<I>, </I>Rp.81.4&nbsp;billion
higher in 2001 and Rp.89.3&nbsp;billion lower in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, goodwill is amortized over
a period, not exceeding 20&nbsp;years, that it is expected to
benefit the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, effective January&nbsp;1, 2002,
goodwill is no longer amortized but rather subjected to a test
for impairment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently, the Company&#146;s consolidated
income before tax under U.S. GAAP would have been
Rp.21.3&nbsp;billion higher in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
Leases</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, a lease is capitalized if
(a)&nbsp;the lessee has the option to purchase the leased asset
at the end of the lease period at a price agreed upon at the
inception of the lease agreement, and (b)&nbsp;the sum of
periodic lease payments made by the lessee, plus the residual
value, will cover the acquisition price of the leased assets and
related interest and (c)&nbsp;there is a minimum lease period of
2&nbsp;years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S. GAAP, a leased asset is capitalized if
(a)&nbsp;there is an automatic transfer of ownership at the end
of the lease term or (b), a bargain purchase option or (c), the
lease terms is for 75% or more of the economic life of the
asset, or (d)&nbsp;the lease payments are at least 90% of the
fair value of the asset.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently the Company&#146;s consolidated
income before tax under U.S. GAAP would have been
Rp.14.2&nbsp;billion higher in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition
of Dayamitra</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM acquired 90.32% interest in Dayamitra and
contemporaneously acquired a call option to buy the other 9.68%
at a fixed price at a stated future date, and provided to the
minority interest holder a put option to sell the other 9.68%
percent to TELKOM under those same terms meaning that the fixed
price of the call is equal to the fixed price of the put option.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, the Company should account
for the option contracts on a combined basis with the minority
interest and account for it as a financing of the purchase of
the remaining 9.68% minority interest. As such, under U.S. GAAP,
the Company has consolidated 100% of Dayamitra and attributed
the stated yield earned under the combined derivative and
minority interest position to interest expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is no such requirement under Indonesian
GAAP.
</FONT>

<P align="center"><FONT size="2">102
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consequently the Company&#146;s consolidated
income before tax under U.S. GAAP would have been
Rp.4.2&nbsp;billion lower in 2001 and Rp.9.3&nbsp;billion lower
in 2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reversal of
Difference Due to Change of Equity in Associated
Companies</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, differences previously
charged directly to equity as a result of equity transactions in
associated companies are released to the income statement upon
the sale of an interest in the associate in proportion to the
percentage of the interest sold. Under U.S.&nbsp;GAAP, such
amounts cannot be released to the income statement and
consequently remain in equity indefinitely. Consequently,
TELKOM&#146;s consolidated income before tax under
U.S.&nbsp;GAAP would have been Rp.65.2&nbsp;billion lower in
2002.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
income taxes</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There are no differences between Indonesian GAAP
and U.S. GAAP with respect to deferred income taxes that affect
the Company. The amounts included in the reconciliation below
show the income tax effects of the differences between
Indonesian GAAP and U.S. GAAP as described above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the significant adjustments to
consolidated net income for the years ended December&nbsp;31,
2000, 2001 and 2002 and to consolidated stockholders&#146;
equity as of December&nbsp;31, 2001 and 2002 which would be
required if U.S.&nbsp;GAAP had been applied, instead of
Indonesian GAAP, in the consolidated financial statements are
set forth below:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="55%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income according to the consolidated
    statements of income prepared under Indonesian GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S. GAAP adjustments&nbsp;&#151; increase
    (decrease)&nbsp;due to:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">530,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalization of foreign exchange differences,
    net of related depreciation of Rp.47,188&nbsp;million,
    Rp.76,732&nbsp;million and Rp.79,797&nbsp;million, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(111,022</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest capitalized on property under
    construction, net of related depreciation of nil, nil and
    Rp.3,061&nbsp;million, respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(29,692</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revaluation of property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pension
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,172</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,640</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,415</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in net income/(loss) of associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,786</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(182</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,119</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,409</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,781</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred stock issuance costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Employee bonuses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,713</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation of equipment to be installed
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,561</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue recognition:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cummulative effect of accounting change
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(814,799</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current year amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(89,274</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,269</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustment for Dayamitra accounted at 100%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,191</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,270</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">103
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reversal of difference due to a change of equity
    in associated companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,158</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income tax effect on U.S.&nbsp;GAAP
    adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,247</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(100,942</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(220,724</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(563,279</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229,232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">513,521</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,599</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">577</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(558,680</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">547,550</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income in accordance with U.S. GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share&nbsp;&#151; in full Rupiah
    amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">851.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per ADS (20 Series&nbsp;B shares per
    ADS)&nbsp;&#151; in full Rupiah amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,397.47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,528.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,038.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The changes in consolidated stockholders&#146;
equity in accordance with U.S. GAAP for the years ended
December&nbsp;31, 2001 and 2002 are shown below:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. million</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity according to the consolidated balance
    sheets prepared under Indonesian GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;GAAP adjustments&nbsp;&#151; increase
    (decrease)&nbsp;due to:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalization of foreign exchange
    differences&nbsp;&#151; net of related depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(734,594</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(627,229</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest capitalized on property under
    construction&nbsp;&#151; net of related depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(538,814</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(470,855</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revaluation of property, plant and equipment:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(664,974</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(664,974</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">661,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">664,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pension
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">231,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in net loss of associated companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,900</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,082</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(43,218</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54,999</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation of equipment to be installed
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,706</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferral of revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(626,048</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(715,322</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,269</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital lease
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustment for Dayamitra accounted at 100%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,972</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,242</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income tax effect on U.S. GAAP
    adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,345,956</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(767,277</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,524</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,315,461</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(702,753</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in accordance with U.S. GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">104
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity and
Capital Resources</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM expects to have substantial liquidity and
capital resources requirements in 2003 and 2004 as it continues
to develop and expand its existing businesses, including
entering into new businesses and acquiring certain of its KSOs.
TELKOM expects that these expenditures will be important factors
in preparing to face tight competition as the Indonesian
telecommunications market has been deregulated and may engage
during the next few years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003 and 2004, TELKOM expects its principal
liquidity and capital resources requirements, aside from its
requirements for working capital and to make payments of
dividends and taxes, will at least consist of the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">capital expenditures for existing and new network
    and backbone infrastructure, including a satellite, a fiber
    optic transmission backbone from Jakarta to Medan, fiber optic
    transmission networks in Jakarta and Surabaya, installation and
    upgrading of fixed lines, and increased capacity in its mobile
    cellular service conducted through Telkomsel (see
    &#147;&#151;&nbsp;Capital Expenditures&#148;);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">debt service requirements relating to existing
    indebtedness, including two-step loans and indebtedness of
    subsidiaries;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">instalment payments of the purchase price for
    shares in Pramindo, that were acquired in 2002 and for the
    purchase of AriaWest in 2003.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While still uncertain, liquidity and capital
resources may be required in 2003 and 2004 to finance the
acquisition of all or some of the equity interests held by
shareholders of KSO Investors other than those that TELKOM has
previously purchased or is in the process of purchasing (see
&#147;Business Overview&nbsp;&#151; Joint Operation Schemes
(KSO)&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Primary sources of financing available to TELKOM
consist of: (i)&nbsp;cash flow from operating activities;
(ii)&nbsp;financing from the bond issuance; (iii)&nbsp;financing
from banks or export credit agencies (including financing
procured by vendors); and (iv)&nbsp;deferred vendor payment
terms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM believes that these sources of financing
will be sufficient to fund planned capital expenditures,
anticipated working capital needs and likely contractual
obligations and commitments in 2003 and 2004. Nonetheless, if
global or Indonesian economic conditions worsen or do not
improve and/or competition or product substitution accelerate
beyond current expectations, TELKOM&#146;s net cash flow from
operating activities may decrease and negatively impact its
liquidity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM manages the liquidity for all of its
businesses, including KSOs controlled by TELKOM, on a total
group basis. Telkomsel manages its own liquidity and accesses
capital resources independently of TELKOM. TELKOM is not
responsible for managing the liquidity and capital resources of
the KSO units, other than the KSO I and KSO VI Unit. See
&#147;Business Overview&nbsp;&#151; Joint Operation Scheme
(KSO)&#148;.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defaults and
Waivers of Defaults under our Debt Facilities</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of our failure to file a fully
compliant Annual Report on Form 20-F for 2002 with the SEC by
the June&nbsp;30, 2003 filing deadline and our May 2003 press
release relating thereto, we may have been in breach of certain
covenants in our Citibank and Bank Central Asia (BCA)&nbsp;debt
facilities that require us, among other things, to comply with
all laws and regulations applicable to us and deliver financial
statements to the lenders. We have obtained written waivers from
both Citibank, acting as agent for the lenders under the
relevant facility agreements, and BCA with respect to such
breaches.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed under the heading &#147;Explanatory
Note&#148; at the beginning of this amended annual report and in
Item&nbsp;3.D.&nbsp;&#151; Risk Factors, our failure to file a
fully compliant Annual Report on Form&nbsp;20-F for 2002 with
the SEC by the June 30, 2003 filing deadline, could give rise to
an SEC enforcement action or other legal liability and other
adverse consequences such as a related de-listing of
TELKOM&#146;s ADSs
</FONT>

<P align="center"><FONT size="2">105
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">from the New York Stock Exchange. Any of the
foregoing could give rise to defaults under one or more of our
debt facilities and cross defaults under other debt facilities
with respect to such defaults. If we were unable to obtain
waivers of any such defaults, indebtedness outstanding under
such debt facilities could become immediately due and payable,
which could have a material adverse effect on our financial
condition and results of operations.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Net Cash Flows</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth information
concerning TELKOM&#146;s consolidated cash flows, as set out in
(and prepared on the same basis as) the consolidated financial
statements, except for foreign exchange convenience translations
(see &#147;&#151;&nbsp;Basis of Presentation&nbsp;&#151; Foreign
Exchange Translations&#148;):
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="32%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Year Ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002 as restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. (billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (million)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">from operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,875.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,012.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,864.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,213.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">from investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,922.6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,115.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,050.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(676.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">from financing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,110.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,662.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,670.2</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(298.3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Change in cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156.8</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(766.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,144.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">239.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of foreign exchange changes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">121.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(89.5</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10.0</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents, beginning of period
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,369.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,333.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">407.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents, end of
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Period
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,333.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,699.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">636.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash
Flows from Operating Activities</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s primary source of liquidity in
recent years was cash flows from operating activities and from
financing activities. Net cash flows from operating activities
totalled Rp.6,875.8&nbsp;billion in 2000,
Rp.7,012.6&nbsp;billion in 2001, and Rp.10,864.5&nbsp;billion
(US$1,213.9&nbsp;million) in 2002. The growth in operating cash
flows principally resulted from higher cash receipts from
operating revenues as a result of the expansion of TELKOM&#146;s
various telecommunications businesses, in particular its mobile
cellular business conducted through Telkomsel, as well as the
acquisitions of Dayamitra in 2001 and Pramindo in 2002. These
higher cash receipts were partially offset by rising cash
payments for operating expenses.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year ended
December&nbsp;31, 2002 compared to year ended December&nbsp;31,
2001.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002 compared to 2001, net cash flows from
operating activities increased by Rp.3,929.1&nbsp;billion, or
56.0%, primarily due to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase of Rp.2,781.8&nbsp;billion, or 24.1%,
    in cash receipts from telephone services primarily cellular
    services resulting from an increased number of subscribers as
    well as an increase in cash receipts from fixed line due to the
    consolidation of Pramindo in 2002, which enhanced cash inflows
    from operating activities;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase of Rp.569.5&nbsp;billion or 50.5% in
    cash receipts from interconnection primarily resulting from the
    acquisition of Pramindo;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a decrease of Rp.139.2&nbsp;billion or 8.1%, in
    cash receipts from Joint Operation Schemes, primarily due to a
    reclassification of cash receipts from KSO I from Joint
    Operation Schemes to Fixed Lines following the acquisition of
    Pramindo;
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">106
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase of Rp.478.6&nbsp;billion, or 9.0%, in
    cash payments for operating expenses, which had the effect of
    increasing cash outflows from operating activities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On balance, the foregoing movements in cash flows
were partially attributable to the consolidation of
Dayamitra&#146;s cash flows into TELKOM&#146;s consolidated
financial statements in 2001 and Pramindo&#146;s in 2002. Cash
inflows in 2002 were also partly offset by a reduction in
interest received of Rp.110.7 billion, or 18.7%.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Year ended December&nbsp;31, 2001 compared to
    year ended December&nbsp;31, 2000.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001 compared to 2000, net cash flows from
operating activities slightly increased by
Rp.136.8&nbsp;billion, or 2.0%, primarily due to the increase of
Rp.3,831.3&nbsp;billion, or 49.7%, in cash receipts from
telephone services, which enhanced cash inflows from operating
activities; offset with an increase of Rp.2,172.0&nbsp;billion,
or 69.0%, in cash payments for operating expenses, which had the
effect of increasing cash outflows from operating activities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The movements in cash flows were partially
attributable to the consolidation of Dayamitra&#146;s cash flows
into TELKOM&#146;s consolidated financial statements in 2001 as
well as increase in income tax paid of Rp.455.4&nbsp;billion, or
27.7% and interest paid of Rp.399.4&nbsp;billion, or 46.6%.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Net Cash Flows from Investing
    Activities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash flows used in investing activities
totalled Rp.4,922.6&nbsp;billion, Rp.6,115.8&nbsp;billion and
Rp.6,050.0&nbsp;billion (US$676.0&nbsp;million) in 2000, 2001
and 2002, respectively. In 2000, the rising trend also reflected
increasing investments in marketable securities and time
deposits. In 2001, sizeable net cash flows were used for capital
expenditures and acquisition of subsidiaries for cross-ownership
transaction with Indosat, which were partly financed by reduced
investments in marketable securities and time deposits. In 2002,
the increase reflected cashflow for capital expenditure and
amounts due on the cross-ownership transactions closed in 2001
netted against sizeable cash receipts from the sale of a 12.72%
shareholding in Telkomsel.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Apart from cash on hand and cash in banks, TELKOM
invests substantially all of its excess cash from time to time
in time deposits. At December&nbsp;31, 2002, 9.6% of time
deposits having a maturity greater than three months and
denominated in Rupiah.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Year ended December&nbsp;31, 2002 compared to
    year ended December&nbsp;31, 2001.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the year ended December&nbsp;31, 2002 compared
to the year ended December&nbsp;31, 2001, net cash flows used in
investment activities slightly decreased by
Rp.65.8&nbsp;billion, or 1.1%, primarily due to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase of Rp.3,033.8 (US$339.0&nbsp;million)
    of cash out for capital expenditure;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a cash receipt of Rp.3,948.9&nbsp;billion
    (US$441.2&nbsp;million) from the sale of a 12.72% shareholding
    in Telkomsel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase in net cash out of
    Rp.4,246.4&nbsp;billion (US$474.5&nbsp;million) from a net cash
    in of Rp.3,522.1&nbsp;billion in 2001 to a net cash out of
    Rp.724.3&nbsp;billion in 2002 for the investment in time
    deposits and medium term notes; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">a decrease in cash out for cross-ownership
    transactions of Rp.3,561.1 billion (US$397.9&nbsp;million) as
    the liability for cross-ownership transactions have been fully
    paid in 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, payment of advance for investment in
shares of stock of Rp.230.2 billion (US$25.7&nbsp;million)
reflects the payment for option of Tomen&#146;s share in
Dayamitra (Rp.33.7&nbsp;billion) and payment to AriaWest&#146;s
shareholders related to the CSPA (Rp.196.5&nbsp;billion) for the
acquisition of AriaWest.
</FONT>

<P align="center"><FONT size="2">107
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Year ended December&nbsp;31, 2001 compared to
    year ended December&nbsp;31, 2000.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the year ended December&nbsp;31, 2001 compared
to the year ended December&nbsp;31, 2000, net cash flows used in
investment activities increased by Rp.1,193.2 billion, or 24.2%,
primarily due to a sizeable amount of net cash inflow from
termination of time deposits and reduced amount of new
placements in such investments resulting in an increase of cash
receipts of Rp.6,086.8&nbsp;billion. Cash inflows in 2002 were
also partly offset by an increase of Rp.1,225.0 billion, or
51.8% in cash expenditures for the acquisition of property,
plant and equipment and payment for cross-ownership transactions
of Rp.5,967.4 billion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, advances and others represented a net
cash inflow of Rp.187.3 billion, reflecting an increase in
advances received from customers and suppliers and a decrease in
advances to suppliers.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Net Cash Flows from Financing
    Activities</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash flows used in financing activities
totalled Rp.2,110.0&nbsp;billion, Rp.1,662.8&nbsp;billion and
Rp.2,670.2&nbsp;billion (US$298.3&nbsp;million) in 2000, 2001
and 2002, respectively. In all three years, net cash flows from
financing activities were driven primarily by repayment of
current indebtedness and by cash dividends. In 2002, cash flow
used in financing activities increased by
Rp.1,007.4&nbsp;billion, or 60.0% primarily resulting from
proceeds from issuance of TELKOM and Telkomsel&#146;s bonds for
Rp.2,365.3&nbsp;billion netted against increase in payment for
long-term liabilities of Rp.2,031.8&nbsp;billion and increase in
cash payment for cash dividend of Rp.1,304.1&nbsp;billion.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Repayment of Current Indebtedness.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2000, 2001 and 2002,
approximately 45.8%, 63.2% and 68.5%, respectively, of
TELKOM&#146;s current indebtedness for borrowed money
(consisting of current maturities of long-term liabilities and
short-term bank loan) were denominated in foreign currencies,
principally the US Dollar, such that the Rupiah amount of
TELKOM&#146;s cash flows used for the repayment of long-term
liabilities was significantly affected by the depreciation in
the value of the Rupiah in 2001 compared to 2000 and the
appreciation of the Rupiah in 2002 compared to 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2000, 2001 and 2002, TELKOM made net
repayments of current indebtedness for borrowed money of
Rp.895.0&nbsp;billion, Rp.1,233.0&nbsp;billion and Rp.3,342.0
billion (US$373.4&nbsp;million), respectively. Cash outflows in
2002 were reflecting payments for two-step loans of
Rp.818.8&nbsp;billion, liability for acquisition of Dayamitra
and Pramindo of Rp.848.3&nbsp;billion, Pramindo&#146;s loan to
the IFC of Rp.704.8&nbsp;billion, long term bank loan of
Rp.166.0&nbsp;billion, Telkomsel&#146;s short-term bank loan
from Deutsche Bank and others of Rp.508.3&nbsp;billion,
repayment of suppliers credit loan and others owed by Dayamitra
of Rp.66.9 billion, and project cost payable of
Rp.227.3&nbsp;billion.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Payment of Cash Dividends and General
    Reserve.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM paid cash dividends and set up general
reserve, as determined by the company&#146;s annual shareholder
meeting, as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dividend</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total Cash</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dividend</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">General</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Date of AGM</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dividend</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">per Share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reserve</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp. Billion)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp.)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp. Billion)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">April&nbsp;7, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,086.161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107.76</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">May&nbsp;10, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">888.654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88.16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126.950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,125.055</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210.82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425.011</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2000, 2001 and 2002, the amount of cash
dividends paid was effectively determined by the Government,
which holds a majority of TELKOM&#146;s issued and outstanding
common shares. TELKOM believes that the Government considers
various factors, including the views of TELKOM&#146;s board of
directors and the Government&#146;s own funding needs, in
determining the portion of each year&#146;s net income to be
paid out as cash dividends.
</FONT>

<P align="center"><FONT size="2">108
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Escrow Account.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, TELKOM recorded a net increase in escrow
account of Rp.126.8 billion, which represented the funding of a
contractually-required escrow accounts established on
May&nbsp;17, 2001 and August&nbsp;14, 2002 for the repayment of
indebtedness related to the acquisition of Dayamitra and
Pramindo, respectively.
</FONT>

<P align="left">
<B><FONT size="2">Working Capital</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net working capital, calculated as the difference
between current assets and current liabilities, was negative
Rp.2,242.2&nbsp;billion at December&nbsp;31, 2001 and positive
Rp.838.9&nbsp;billion (US$93.7&nbsp;million) at
December&nbsp;31, 2002. The increase in net working capital was
principally due to the receipt of proceeds from prior issuance
of bonds, selling of a 12.72% shareholding in Telkomsel and the
settlement of outstanding accounts receivable from KSO III,
offset by TELKOM&#146;s payment to Indosat for cross ownership
transactions in 2002.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Current Assets</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Current assets were Rp.7,300.3&nbsp;billion at
December&nbsp;31, 2001 and Rp.10,547.0&nbsp;billion
(US$1,178.4&nbsp;million) at December&nbsp;31, 2002, reflecting
an increase of Rp.3,246.7&nbsp;billion, or 44.5%. The increase
in current assets was primarily due to:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase in cash and cash equivalents of
    Rp.2,054.9&nbsp;billion, or 56.4%, from Rp.3,644.2&nbsp;billion
    at December&nbsp;31, 2001 to Rp.5,699.1 billion
    (US$636.8&nbsp;million) at December&nbsp;31, 2002;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase in temporary investments of
    Rp.224.1&nbsp;billion, or 64.2%, from Rp.348.9&nbsp;billion at
    December&nbsp;31, 2001 to Rp.573.0&nbsp;billion (US$64.0
    million) at December&nbsp;31, 2002; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increase in other current assets, which
    primarily consisted of restricted time deposits, of
    Rp.552.7&nbsp;billion, or 397.4% from Rp.139.1 billion at
    December&nbsp;31, 2001 to Rp.691.8&nbsp;billion
    (US$77.3&nbsp;million) at December&nbsp;31, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The increase in cash and cash equivalents,
temporary investments and other current assets primarily
reflected the proceeds from the sale by TELKOM of a 12.72%
shareholding in Telkomsel, the settlement of outstanding
accounts receivable from KSO Unit III, the issuance by TELKOM of
IDR bonds and Telkomsel of guaranteed notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2000, 2001 and 2002,
approximately 10.8%, 13.3% and 34.0%, respectively, of
TELKOM&#146;s current assets were denominated in foreign
currencies, principally the U.S. Dollar, such that the movements
of Rupiah exchange rate against U.S.&nbsp;dollar across these
years would affect TELKOM&#146;s current assets.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Trade Accounts Receivable.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Trade accounts receivable from related parties
(net of allowance for doubtful accounts) decreased by
Rp.168.6&nbsp;billion, or 16.0%, from Rp.1,055.4 billion at
December&nbsp;31, 2001 to Rp.886.8&nbsp;billion
(US$99.1&nbsp;million) at December 31, 2002. Trade accounts
receivable from third parties (net of allowance for doubtful
accounts) increased by Rp.530.7&nbsp;billion, or 38.2%, from
Rp.1,389.2 billion to Rp.1,919.9&nbsp;billion
(US$214.5&nbsp;million), at the same dates. In the case of trade
accounts receivable from related parties, the decrease was
primarily due to payment received from KSO Unit III from the
amount due for MTR and DTR which had been outstanding since May
2000. In the case of trade accounts receivable from third
parties, the increase was primarily due to increased accounts
receivable from fixed line resulting from our acquisition of
Pramindo.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The allowance for doubtful accounts for trade
accounts receivable from related parties decreased
Rp.230.2&nbsp;billion, or 70.6%, higher at December&nbsp;31,
2002 compared to 2001, from Rp.325.9&nbsp;billion at to
Rp.95.7&nbsp;billion (US$10.7 million), primarily as a result of
reversed provision for amount due on MTR and unpaid DTR from KSO
Unit III. At December&nbsp;31, 2002 compared to
December&nbsp;31, 2001, the
</FONT>

<P align="center"><FONT size="2">109
</FONT>

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<DIV align="left">
<FONT size="2">allowance for doubtful accounts for trade
receivables from third parties increased Rp.154.4&nbsp;billion,
or 61.1%, higher, from Rp.252.9&nbsp;billion to
Rp.407.3&nbsp;billion (US$45.5&nbsp;million), in line with the
increase in trade receivables.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Other Current Assets and Escrow
    Accounts.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, Rp.707.9&nbsp;billion
(US$79.1&nbsp;million), of TELKOM&#146;s deposits were
restricted for security interests in favor of other parties, of
which US$1.8&nbsp;million was used to secure Napsindo&#146;s
borrowings, an associated company, and recorded as other
non-current assets. TELKOM also had a credit balance of Rp.129.2
billion (US$14.4&nbsp;million) in escrow account to be funded
from time to time for payments of the purchase price for the
90.32% equity interest in Dayamitra acquired in 2001 and for the
repayment of indebtedness owed by Dayamitra to former
shareholders, and a credit balance of Rp.168.7&nbsp;billion
(US$18.8&nbsp;million) for payments of the purchase price for a
100% equity interest in Pramindo acquired in 2002. See
&#147;&#151;&nbsp;Long-Term Indebtedness&nbsp;&#151; Acquisition
Indebtedness and Option Purchase Price Dayamitra&#148;.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Liabilities</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Current liabilities were
Rp.9,542.5.1&nbsp;billion at December&nbsp;31, 2001 and
Rp.9,708.2&nbsp;billion (US$1,084.7&nbsp;million) at
December&nbsp;31, 2002, reflecting a slight increase of
Rp.165.6&nbsp;billion, or 1.7%. The increase in current
liabilities primarily arose from increase in payable to
suppliers partly due to the consolidation of KSO I, increase of
current maturities of long term liabilities of
Rp.1,047.6&nbsp;billion and accrued expenses for employees&#146;
early termination benefits and for settlement of dispute with
AriaWest of a total amount of Rp.1,030.0&nbsp;billion offset
against decrease in payable for cross ownership transaction of
Rp.2,406.3&nbsp;billion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2000, 2001 and 2002,
approximately 21.2%, 19.5% and 17.2%, respectively, of
TELKOM&#146;s current liabilities were denominated in foreign
currencies, principally the U.S. Dollar, such that the movement
of Rupiah exchange rate against U.S. dollar across these years
significantly affected TELKOM&#146;s current liabilities.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Maturities of Long-term Liabilities.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Current maturities of long-term liabilities
increased by Rp.1,047.6 billion, or 67.9%, from
Rp.1,542.6&nbsp;billion at December&nbsp;31, 2001 to Rp.2,590.2
(US$289.4&nbsp;million) at December&nbsp;31, 2002. This increase
was primarily due to current maturity of amounts due on
acquisition of Pramindo in 2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued
Expenses.</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accrued expenses increased by
Rp.1,030.0&nbsp;billion, or 112.0%, from Rp.919.9 billion at
December&nbsp;31, 2001 to Rp.1,949.9&nbsp;billion
(US$217.9&nbsp;million) at December&nbsp;31, 2002. This increase
was primarily due to an increase of Rp.531.0 billion in accrued
expenses for early retirement benefits and accrued litigation
settlement fee for dispute with AriaWest of
Rp.179.0&nbsp;billion. The increase also reflected an increase
of Rp.275.3&nbsp;billion in accrued expenses for salaries and
employee bonuses. The increase of salaries and bonuses primarily
due to the accrual of bonuses amounted to Rp.171.2&nbsp;billion
(US$19.1&nbsp;million) which was no equivalent compared to 2001.
</FONT>

<P align="center"><FONT size="2">110
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">Indebtedness</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consolidated total long-term indebtedness
(consisting of long-term liabilities, current maturities of
long-term liabilities, and liability for cross-ownership
transactions and short-term bank loan) at December&nbsp;31,
2000, 2001 and 2002, was as follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">At December 31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000 as</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001<SUP>(1)</SUP>as</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>(1)</SUP>as</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>(1)</SUP>as</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(Rp. in billion)<SUP>(2)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Indonesian Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,328.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,805.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,294.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S. Dollar<SUP>(2),(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,187.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,660.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,766.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">979.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,502.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,452.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,358.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc<SUP>(5)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NLG<SUP>(6)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">EURO<SUP>(7)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,364.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,179.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,635.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,635.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Including imputed interest on liabilities for the
    acquisition of a 90.32% equity interest in Dayamitra and 100%
    equity interest in Pramindo.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts at December&nbsp;31, 2000, 2001 and 2002
    translated into Rupiah at Rp.9,675, Rp.10,450 and Rp.8,950 =
    US$1, respectively, being the prevailing exchange rates for
    buying U.S. Dollars at each of those dates.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amount at December&nbsp;31, 2002 includes imputed
    interest on liability for acquisition of subsidiary (which
    relates to Dayamitra and Pramindo) of US$1.1&nbsp;million
    (Rp.10.0&nbsp;billion) and US$31.1&nbsp;million
    (Rp.278.1&nbsp;billion), being imputed interest for installment
    payments of the liability.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts at December&nbsp;31, 2000, 2001 and 2002
    translated into Rupiah at Rp.84.3, Rp.79.6 and Rp.75.5 = Yen 1,
    respectively, being the prevailing exchange rates for buying yen
    at each of those dates.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts at December&nbsp;31, 2000 and 2001
    translated into Rupiah at Rp.1,374.2 and Rp.1,409.3 = FRF 1,
    respectively, being the prevailing exchange rates to buy French
    francs at each of those dates.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Comprises amounts expressed in Netherland
    Guilders.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts at December&nbsp;31, 2002 translated into
    Rupiah at Rp.9,377.5 = EUR&nbsp;1, being the prevailing exchange
    rate at the date.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Of total long-term indebtedness and short term
borrowings at December&nbsp;31, 2002, Rp.2,629.4&nbsp;billion,
Rp.2,780.9&nbsp;billion and Rp.9,224.8&nbsp;billion was
scheduled for repayment in 2003, 2004, 2005-2025, respectively.
Of these amounts, Rp.40.1&nbsp;billion of the indebtedness were
scheduled to be repaid in 2003, Rp.0.1&nbsp;billion to be repaid
in 2004 and Rp.1,337.5&nbsp;billion to be repaid in 2007 by
Telkomsel, while Rp.267.9&nbsp;billion, Rp.227.8&nbsp;billion
and Rp.1.3&nbsp;billion was to be repaid by Dayamitra in 2003,
2004 and 2005, respectively. TELKOM expects scheduled repayments
of indebtedness, including that of Telkomsel and Dayamitra, to
be financed primarily from net cash flows from operating
activities of, and re-financing by, TELKOM, Telkomsel and
Dayamitra, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, approximately 31.7% of
TELKOM&#146;s Rupiah denominated indebtedness, and approximately
68.3% of its U.S. Dollar denominated indebtedness bore interest
at variable rates. TELKOM&#146;s Rupiah denominated floating
rate indebtedness bore interest rates between 17.2% and 19.0%,
with rates generally based on interest rates on three-month
Certificates of Bank Indonesia (SBI)&nbsp;plus a margin of
between 0.8% and 2.0%. The weighted average interest rate on
Rupiah denominated floating rate indebtedness at
December&nbsp;31, 2002 was 17.2%. TELKOM&#146;s U.S. Dollar
denominated floating rate indebtedness was subject to interest
rates between 3.5% and 8.8%, with rates generally based on LIBOR
plus a margin of between 0.8% and 4.5%. The weighted average
interest rate on U.S. Dollar denominated floating rate
indebtedness at December&nbsp;31, 2002 was 8.1%. TELKOM&#146;s
Rupiah denominated fixed rate indebtedness at that date bore a
weighted average interest rate of 15.0%, while its U.S. Dollar
denominated fixed rate indebtedness bore a weighted average
interest rate of 7.6%. All of TELKOM&#146;s Japanese yen
denominated indebtedness was fixed rate and bore a weighted
average interest rate at December&nbsp;31, 2002 of 3.1%.
</FONT>

<P align="center"><FONT size="2">111
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, TELKOM had the
following outstanding significant indebtedness:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.8,570.1&nbsp;billion (US$957.6&nbsp;million)
    (including current maturities) in two-step loans through the
    Government;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.1,337.5&nbsp;billion (US$150.0&nbsp;million)
    in guaranteed notes which is owed by Telkomsel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.976.0&nbsp;billion (US$109.0&nbsp;million) IDR
    bonds issued by TELKOM; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$335.4&nbsp;million (Rp.3,004.9&nbsp;billion)
    in acquisition indebtedness relating to TELKOM&#146;s
    acquisition of 90.32% equity interest in Dayamitra and
    acquisition of 100% equity interest in Pramindo.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, TELKOM, on its own and through
Telkomsel and Dayamitra, has entered into several new bank
facilities in 2002, and owes amounts under various other
facilities through Indonesian Rupiah (IDR)&nbsp;Bond Issuance
and other bank facilities. In particular, TELKOM entered into a
credit facility with Bank Mandiri on February&nbsp;11, 2002 for
an amount of Rp.500&nbsp;billion. This loan has never been
utilized and have since been cancelled.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two-Step
Loans</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since 1982, TELKOM has entered into a series of
two-step loans in which the Government borrows money from
supranational lenders and foreign export credit agencies, such
as the World Bank and the U.S. Export-Import Bank, for
on-lending to TELKOM to fund investment in property, plant and
equipment. TELKOM obtained its last two-step loan in 1994, and,
as a public company, is no longer eligible to obtain
Government-assisted financing of this type. For a table of
scheduled repayments of two-step loans, see
&#147;&#151;&nbsp;Liquidity and Capital Resources&nbsp;&#151;
Contractual Obligations and Commitments&#148; in Item&nbsp;5.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, TELKOM&#146;s
outstanding principal indebtedness under the two-step loans
totaled Rp.8,570.1&nbsp;billion (US$957.6&nbsp;million), of
which US$390.7&nbsp;million (Rp.3,500.7&nbsp;billion) was
denominated in U.S. Dollars, Euro 23,007&nbsp;million
(Rp.215.8&nbsp;billion) was denominated in Euro and Japanese Yen
17.8 billion (Rp.1,344.1&nbsp;billion) was denominated in
Japanese Yen. As of December 31, 2002, TELKOM has used all
facilities of two-step loans and the draw period for the
two-step loan has expired.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Two-step loans bear fixed or floating rates.
Floating rates are determined by reference to interest rates on
the average of 3&nbsp;month Certificates of Bank Indonesia
(SBI)&nbsp;during the six months preceding the installment due
date plus 1.0% per annum for two-step loan which are payable in
Rupiah and the interest rate offered by offshore lenders plus
0.5% for two-step loan which are payable on foreign currencies.
Repayments of principal are due on the loans at various dates
through 2025. For the years 2003 through 2006, aggregate
scheduled repayments of principal range from
Rp.652.1&nbsp;billion to Rp.865.4&nbsp;billion per year, and
average Rp.785.2&nbsp;billion per year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company must maintain financial ratios as
follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Projected net revenue to projected debt service
    ratio should exceed 1.5:1 and 1.2:1 for two-step loans
    originating from World Bank and Asian Development Bank
    (&#147;ADB&#148;), respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Internal financing (earnings before depreciation
    and interest expenses) should exceed 50% and 20% compared to
    capital expenditures for loans originally from the World Bank
    and ADB, respectively.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company was in
compliance with the above covenants. Also see
&#147;&#151;&nbsp;Guaranteed Notes&#148;.
</FONT>

<P align="center"><FONT size="2">112
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guaranteed
Notes</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April 2002, Telekomunikasi Selular Finance
Limited (&#147;TSFL&#148;), Telkomsel&#146;s wholly-owned
subsidiary, issued US$150&nbsp;million in guaranteed notes
(&#147;Notes&#148;). The notes bear interest at 9.75%, payable
semi-annually on April&nbsp;30 and October&nbsp;30 of each year,
and will be due on April&nbsp;30, 2007.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;23, 2002, TSFL entered into
subscription agreements with UBS AG (&#147;UBS&#148;) whereby
UBS agreed to subscribe and pay for the notes at an issue price
equal to 99.709% of the principal amount of the notes, less any
fees. TSFL has further authorized UBS to have the notes listed
in the Singapore Exchange Securities Trading Limited (the
&#147;Singapore Exchange&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the &#147;On-Loan Agreement&#148; dated
April&nbsp;30, 2002, between the Telkomsel and TSFL, the
proceeds from the subscription of the notes were lent to
Telkomsel at an interest rate of 9.765% per annum, payable in
the same terms as above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TSFL may, on the interest payment date falling on
or about the third anniversary of the issue date redeem the
notes, in whole or in part, at 102.50% of the principal amount
of such notes, together with interest accrued to the date fixed
for redemption. If only part of the notes are redeemed, the
principal amount of the notes outstanding after such redemption
must be at least US$100&nbsp;million.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IDR Bond
Issuance</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;16, 2002, TELKOM issued bonds
denominated in Rupiah amounted to Rp.1,000&nbsp;billion
(US$111.7&nbsp;million). The bonds were issued at par value and
have a term of five years. The bonds bear interest at a fixed
rate of 17% per annum, payable quarterly beginning
October&nbsp;16, 2002. The bonds are traded in the Surabaya
Stock Exchange. The bonds mature on July&nbsp;15, 2007. Net
proceeds after expenses from the bond issued amounted to
Rp.980.8&nbsp;billion (US$109.6 million) while the total bond
issuance cost were Rp.26.4&nbsp;billion (US$3.0 million).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December 2002, the usage of bond proceeds
was Rp.137.3&nbsp;billion (US$15.3&nbsp;million) or 14% of bond
proceeds. The planned usage of the bond proceeds were
approximately 84% for the CDMA project and approximately 16% for
the access network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company must maintain the following
consolidated financial ratios:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Debt service coverage ratio must exceed 1.5:1
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Debt to equity ratio must not exceed (i)&nbsp;3:1
    for the period January&nbsp;1, 2002 to December&nbsp;31, 2002;
    (ii)&nbsp;2.5:1 for the period January&nbsp;1, 2003 to
    December&nbsp;31, 2003; and (iii)&nbsp;2:1 for the period
    January&nbsp;1, 2004 to the date the bonds are redeemed; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Debt to EBITDA ratio must not exceed 3:1
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company was in
compliance with these covenants.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition
Indebtedness and Option Purchase Price</FONT></I></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dayamitra</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, TELKOM owed the
following amounts to the former shareholders of Dayamitra:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$24.9&nbsp;million (Rp.222.1&nbsp;billion),
    representing the unpaid portion of the purchase price for a
    90.32% equity interest in Dayamitra acquired on May&nbsp;17,
    2001, is payable in eight quarterly instalments of
    US$13.0&nbsp;million each started on August&nbsp;17, 2001
    through May&nbsp;17, 2003. This amount includes imputed interest
    at 14.0% per annum; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$1.8&nbsp;million (Rp.16.1&nbsp;billion),
    representing the unpaid portion of the option purchase price
    payable to TM Communications (HK)&nbsp;Ltd, which TELKOM
    believes to be a unit of Tomen Corporation, for the right to
    purchase the remaining 9.68% equity interest in Dayamitra held by
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">113
</FONT>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">TM Communications, is payable in eight quarterly
    installments of US$0.9&nbsp;million each starting on
    August&nbsp;17, 2001 through May&nbsp;17, 2003. Installments of
    the option purchase price are recorded as they are paid in
    TELKOM&#146;s Consolidated Balance Sheets as Advance Payment for
    Investment in Shares of Stock. Future installments of the
    purchase price are not recorded as liabilities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is required to make monthly deposits of
US$6.3&nbsp;million into an escrow account for the purpose of
funding the foregoing amounts and certain indebtedness of
Dayamitra. See &#147;&#151;&nbsp;Overview&nbsp;&#151; Changes in
TELKOM&#146;s Business&nbsp;&#151; Acquisition of 90.32%
Interest in Dayamitra and Tomen Option&#148; and Note 6 to the
consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has also unconditionally guaranteed
Dayamitra&#146;s outstanding indebtedness to its former
shareholders and the J-Exim Bank in proportion to TELKOM&#146;s
shareholding in Dayamitra. See &#147;&#151;&nbsp;Recently
Incurred Indebtedness&nbsp;&#151; Dayamitra&#146;s
Indebtedness&#148;.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pramindo</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, TELKOM owed the
following amounts to the former shareholders of Pramindo.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$136.6&nbsp;million (Rp.1,224.3&nbsp;billion),
    representing the unpaid portion of the purchase price for France
    Cable et Radio;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$119.6&nbsp;million (Rp.1,071.3&nbsp;billion),
    representing the unpaid portion of the purchase price for
    Astratel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$44.4&nbsp;million (Rp.397.9&nbsp;billion),
    representing the unpaid portion of the purchase price for
    Indosat;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$27.3&nbsp;million (Rp.244.9&nbsp;billion),
    representing the unpaid portion of the purchase price for
    Marubeni;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$10.2&nbsp;million (Rp.91.8&nbsp;billion),
    representing the unpaid portion of the purchase price for IFC
    USA; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$3.4&nbsp;million (Rp.30.6&nbsp;billion),
    representing the unpaid portion of the purchase price for NMP
    Singapore.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AriaWest</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequent to December&nbsp;31, 2002, TELKOM
acquired all the shares of AriaWest. As a result of the
acquisition, TELKOM owes the former shareholders of AriaWest
US$109.1&nbsp;million, which will be repaid in ten semi-annual
instalments from July&nbsp;31, 2004 through January&nbsp;31,
2009. In addition, TELKOM owes AriaWest&#146;s former lenders
US$196.97&nbsp;million, which is being repaid in installments
starting December&nbsp;31, 2003 through June&nbsp;30, 2007, with
interest payable at six month LIBOR plus 3.5%.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sumatera
backbone network</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;10, 2002, TELKOM entered into four
term loan facilities to finance the construction of the Sumatera
high performance backbone network. These four facilities are
entered into with (i)&nbsp;Bank Central Asia, for
Rp.173&nbsp;billion; (ii)&nbsp;Citibank, N.A., for US$6,950,000;
(iii)&nbsp;Citibank International plc as agent for certain
lenders to a syndicated loan, for US$23,400,000 (supported by an
export credit guarantee of Hermes Kreditversicherungs AG); and
(iv)&nbsp;Citibank International plc as agent for certain
lenders to a syndicated loan, for US$21,000,000 (supported by an
export credit guarantee of Instituto per I&nbsp;Servizi
Assicurativi del Commercio Estero). As of December&nbsp;31,
2002, all of these facilities (with the exception of the
US$21,000,000 Citibank facility) have been fully or partially
utilized.
</FONT>

<P align="center"><FONT size="2">114
</FONT>

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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Junction
Regional Division V Project</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;21, 2002, TELKOM entered into a loan
agreement with a consortium of banks providing up to
Rp.400&nbsp;billion in financing for the junction project in
Regional Division V. The original loan was to be repaid in
14&nbsp;quarterly installments starting from April 2004. The
loan agreement was amended on April&nbsp;4, 2003 to reduce the
facility amount to Rp.150&nbsp;billion and provide for
repayments to be made in 14&nbsp;quarterly installments starting
on May&nbsp;21, 2004. As of December&nbsp;31, 2002, the facility
has not been drawn down.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telkomsel&#146;s
Indebtedness</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April 2002, Telekomunikasi Selular Finance
Limited (&#147;TSFL&#148;), Telkomsel&#146;s wholly-owned
subsidiary, issued US$150&nbsp;million in guaranteed notes
(&#147;Notes&#148;). The notes are guaranteed by Telkomsel and
bear interest at 9.75%&nbsp;per annum, payable semi-annually on
April&nbsp;30 and October&nbsp;30 of each year, and will be due
on April&nbsp;30, 2007.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;12, 2002, Telkomsel entered into a
Letter of Credit and Trust Receipt Loan Agreement with Citibank
NA providing a total facility of US$40&nbsp;million to issue
letters of credit in connection with the procurement contracts
with three strategic partners and a strategic supplier. The
outstanding amounts (once the letters of credit are drawn upon
the bank) bear interest at a rate equal to the bank&#146;s cost
of funds plus 2.5%&nbsp;per annum. The facility matured on
July&nbsp;12, 2003. As of December&nbsp;31, 2002, Telkomsel has
utilized US$31.1&nbsp;million from the letter of credit
facility. Up to December&nbsp;31, 2002, total loans drawn from
the facility amounted to US$5.3&nbsp;million. The balance of the
loan as of December&nbsp;31, 2002 was US$4.4&nbsp;million
(Rp.39.2&nbsp;billion).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;19, 2002, Telkomsel entered into a
Letter of Credit Agreement with Standard Chartered Bank,
Jakarta. The agreement required Telkomsel to deposit an amount
equal to the LC amount prior to the issuance of the&nbsp;LC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On October&nbsp;29, 2002, Telkomsel entered into
a Banking Facilities Credit Agreement with Standard Chartered
Bank which includes import facilities (US$25&nbsp;million),
local LC facility (Rp.100&nbsp;billion), Bank Guarantee
(US$25&nbsp;million), and other foreign exchange facilities.
Outstanding amounts (once the letters of credit are drawn upon
the bank) bear interest at a rate equal to SIBOR plus
2.5%&nbsp;per annum for US&nbsp;Dollar amounts and of the
indicative three-month SBI plus 2.0%&nbsp;per annum for
Indonesia Rupiah amounts. As of December&nbsp;31, 2002,
Telkomsel has utilized US$3.6&nbsp;million from the letter of
credit facility.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hermes Export
Facility</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;2, 2002, pursuant to the
Partnership Agreement with Siemens Aktiengesellschaft (AG),
Telkomsel entered into a Hermes Export Facility Agreement with
Citibank International plc (as Arranger and Agent) providing a
total facility of Euro76.2&nbsp;million divided into several
tranches. The interest rate on the facility is the aggregate of
3&nbsp;months EURIBOR plus 0.75%. Interest is paid semi-annually
starting on the date amounts are drawn. As of December&nbsp;31,
2002, the facility has not been drawn down.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EKN-Backed
Facility</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;2, 2002, pursuant to the
partnership agreement with PT&nbsp;Ericsson Indonesia, Telkomsel
entered into an EKN-Backed Facility Agreement with Citibank
International plc (as Arranger and Agent) providing a total
facility of US$70.5&nbsp;million divided into several tranches.
The interest rate on the facility is fixed at 4.27% per annum.
Interest is paid semi-annually starting on the date amounts is
drawn. As of December&nbsp;31, 2002, the facility has not been
drawn down.
</FONT>

<P align="center"><FONT size="2">115
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Dayamitra&#146;s Indebtedness</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, Dayamitra had the
following significant indebtedness outstanding:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$10.7&nbsp;million (Rp.95.5&nbsp;billion),
    representing a bridging loan payable by Dayamitra to Cable and
    Wireless Plc. The bridging facility is repayable in ten
    semi-annual instalments from 2000 through 2005. Aggregate
    scheduled annual repayments of principal under the loans in
    2003, 2004 and 2005 are US$4.7&nbsp;million,
    US$5.9&nbsp;million, and US$0.06 million, respectively. This
    loan is secured by an assignment of KSO revenues and bank
    accounts, fiduciary transfer of Dayamitra&#146;s movable assets,
    assignment of Tomen construction contract, assignment of
    proceeds of early termination of the KSO license by TELKOM and
    assignment of insurance proceeds. The loan bears interest at
    LIBOR plus 4% per annum.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$37.8&nbsp;million (Rp.338.7&nbsp;billion),
    representing supplier&#146;s loan payable by Dayamitra to Cable
    and Wireless Plc. and Tomen. The supplier&#146;s credit loans
    are repayable in ten semi-annual installments commencing
    December&nbsp;15, 2000. Aggregate scheduled annual repayments of
    principal under the loans in 2003, 2004 and 2005 are
    US$18.2&nbsp;million, US$19.5&nbsp;million and
    US$0.08&nbsp;million, respectively. This loan is secured
    proportionally with collateral for bridging loan facility Cable
    &#38; Wireless Plc. The loan bears interest at LIBOR plus 4.5%
    per annum.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$7.0&nbsp;million (Rp.62.7&nbsp;billion),
    representing a long-term bank loan payable by Dayamitra to the
    Export-Import Bank of Japan. The J-Exim loan is repayable in
    five semi-annual instalments from March&nbsp;25, 2001. TELKOM
    has unconditionally guaranteed this loan in proportion to
    TELKOM&#146;s shareholding in Dayamitra. The loan bears interest
    at LIBOR plus 1% per annum.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Capital Expenditures</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, TELKOM
(unconsolidated)&nbsp;incurred capital expenditures of
Rp.2,078.3&nbsp;billion (US$232.2&nbsp;million), which was
slightly less than the Rp.2,190.6&nbsp;billion originally
budgeted in its capital expenditure plan. In addition, Telkomsel
incurred capital expenditures of Rp.4,531.0 billion
(US$506.3&nbsp;million) for network infrastructure and other
investments and TELKOM&#146;s other subsidiaries incurred
capital expenditures of Rp.179.3&nbsp;billion
(US$20.0&nbsp;million).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM groups its capital expenditures into the
following categories for planning purposes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Infrastructure, which consists of the
    transmission network, access network (including fixed wireless
    networks), data backbone and fixed line network backbone
    infrastructure;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Phone, which is essentially fixed line;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mobile, which consists of GSM and analog mobile
    wireless telephone services, and is presently conducted
    principally through Telkomsel;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Multimedia, which consists of cable and satellite
    direct to home (DTH)&nbsp;television, Internet access, VoIP
    services, data services and B2B commerce; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Service-Net, which consists of various commercial
    services intended to increase traffic on TELKOM&#146;s network,
    including interconnection, internet network and third party call
    centers.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">116
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets out TELKOM&#146;s
historical and planned capital expenditure requirements for the
periods indicated, including historical and planned capital
expenditures for Telkomsel, Dayamitra and TELKOM&#146;s other
consolidated subsidiaries:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Year ended December 31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003<SUP>(2)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004<SUP>(2)</SUP></FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">(Rp. in billion)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">TELKOM:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Infrastructure:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission Network and Backbone<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">161.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,360.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,653.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Access Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,004.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">661.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">862.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,044.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,517.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal Infrastructure
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,165.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">739.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,200.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,404.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,170.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commercial Services:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Phone<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">528.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">285.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">523.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">305.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mobile Cellular<SUP>(5)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">263.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Multimedia<SUP>(6)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">113.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">154.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Services-Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal Commercial Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">734.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">938.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">738.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">535.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Supporting Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">203.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">313.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal TELKOM
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,103.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,874.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,078.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,079.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,019.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long Term Investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,614.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,752.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,175.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,906.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal for TELKOM (unconsolidated)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,103.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,488.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,830.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,254.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,925.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">TELKOM&#146;s Subsidiaries:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Telkomsel<SUP>(7)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,964.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,531.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,860.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,000.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Dayamitra<SUP>(8)(9)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Infomedia Nusantara</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Pramindo Ikat Nusantara</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Indonusa Telemedia</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Graha Sarana Duta</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">PT Pro Infokom Indonesia</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">PT Metra (Holding)</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subtotal for subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,103.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,994.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,710.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,973.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,178.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total for Telkom (consolidated)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,103.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,483.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,540.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,228.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,103.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts for 2000, 2001 and 2002 are actual
    capital expenditures.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts for 2003 and 2004 are planned capital
    expenditures included in TELKOM&#146;s budgets for the years
    2003 and 2004, respectively. Amounts for 2003 exclude an amount
    of Rp.313.7&nbsp;billion required for TELKOM-2 Satellite.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of data backbone and fixed-line network
    backbone
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of capital expenditures by TELKOM and
    subsidiaries other than Dayamitra and Pramindo.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of capital expenditures by TELKOM and
    subsidiaries other than Telkomsel. TELKOM&#146;s investment in
    its GSM mobile cellular business has been entirely through
    Telkomsel since April&nbsp;3, 2002.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of VoIP and internet services.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of capital expenditures by Telkomsel.
    Amounts not shown for years prior to Telkomsel becoming a
    consolidated subsidiary of TELKOM in 2001.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(8)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Consists of capital expenditures by Dayamitra.
    Amounts not shown for years prior to Dayamitra becoming a
    consolidated subsidiary of TELKOM in 2001.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(9)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amount for 2003 and 2004 is subject to upward or
    downward adjustment.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">117
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Actual future capital expenditures may differ
from the amounts indicated above due to various factors,
including but not limited to the Indonesian economy, the
availability of vendor or other financing on terms acceptable to
TELKOM, technical or other problems in obtaining or installing
equipment and whether TELKOM enters any new lines of business.
In particular, TELKOM&#146;s ability to make substantial future
capital expenditures will depend on whether it is successful in
implementing one or more forms of an innovative approach to
revenue sharing, which TELKOM refers to as &#147;pay as you
grow&#148;. See &#147;Item&nbsp;3D. Risk Factors&nbsp;&#151;
Capital Expenditure Risk, &#147;Capital Expenditures&nbsp;&#151;
Financing&#148; and Business Overview&nbsp;&#151; Business
Strategy&nbsp;&#151; Efficient Use of Capital and Liquidity
through New Term of Payment Alternatives with Lower Risk&#148;.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned
Investments in 2003</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003, TELKOM plans to make capital investments
in infrastructure, commercial services and supporting services.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned
Investments in Infrastructure</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s planned capital investments in
infrastructure in 2003 total Rp.3,404.1&nbsp;billion, allocated
as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.1,360.1&nbsp;billion for capital investments
    in transmission infrastructure, which are expected to include
    investments in a fiber optic transmission network in the cities
    of Jakarta and Surabaya, a backbone/long haul transmission
    network on the island of Sumatera and an additional ground
    satellite segment in Jakarta; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.2,044.0&nbsp;billion for capital investments
    in access infrastructure, which are expected to include
    investments in fiber optic cable fixed line, copper wire fixed
    line and CDMA wireless access networks.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For a more complete discussion of TELKOM&#146;s
planned infrastructure investments, see &#147;Item&nbsp;4D.
Business Overview&nbsp;&#151; Network Development&#148;.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned
Investments in Commercial Services</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003, TELKOM also plans to spend
Rp.479.6&nbsp;billion for capital investments in commercial
services, allocated as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.222.1&nbsp;billion for capital investments in
    Phone-Net, which include additional capacity, service
    enhancements and upgrades, including to its value added services
    and software and mechanical and electrical systems;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.8.4&nbsp;billion for capital investments in
    View-Net, or cable television, which include a hybrid fiber/
    coax (HFC) system and cable television (CATV) system;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.95.2&nbsp;billion for capital investments in
    Internet, which include increases in the number of VoIP access
    points, Internet multiplexing (IMUX) systems for Internet and
    data access and Internet value added services such as B2B
    e-commerce; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rp.153.9&nbsp;billion for capital investments in
    Services-net and customer care, including the establishment of
    call center facilities, billing systems, and TELKOM&#146;s
    business enterprise project, which are catered for TELKOM&#146;s
    largest corporate clients, as well as better network management
    and management information systems.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Planned
Investments in Supporting Services</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM plans to spend Rp.195.9&nbsp;billion in
2003 for capital investments in supporting services, including
research and development, building facilities and office
facilities.
</FONT>

<P align="center"><FONT size="2">118
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In common with many Indonesian state-owned
enterprises, TELKOM has historically relied on two-step loans
financed by the Government and revenue sharing with co-investors
to fund investment in property, plant and equipment. In recent
years, however, TELKOM has funded its capital investments
largely through internally generated cash flows from operating
activities and direct borrowing from commercial banks. On
July&nbsp;16, 2002, TELKOM issued a fixed rate IDR Bond in the
amount of Rp.1,000&nbsp;billion with tenor of five years with
fixed interest rate of 17%&nbsp;per annum. TELKOM is presently
in the process of exploring alternative sources of financing for
capital investment, including vendor-procured and other bank
financing, as well as other potential sources of borrowed funds.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two-Step
Loans</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since 1982, TELKOM has entered into a series of
two-step loans in which the Government borrows money from
supranational lenders and foreign export credit agencies for
on-lending to TELKOM to fund investment in property, plant and
equipment. TELKOM obtained its last two-step loan in 1994, and,
as a public company, is no longer eligible to obtain
Government-assisted financing of this type. See
&#147;&#151;&nbsp;Liquidity and Capital Resources&nbsp;&#151;
Long-Term Indebtedness&nbsp;&#151; Two-Step Loans&#148;.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue
Sharing</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Until recently, TELKOM made use of revenue
sharing arrangements to develop fixed line networks in heavily
populated urban areas of Indonesia, public card-phone booths and
its analog mobile cellular networks. Under revenue sharing
arrangements, investors finance the costs incurred in procuring
and installing equipment, while TELKOM manages and operates the
equipment after installation. Investors legally retain rights to
the equipment during the revenue-sharing period but transfer
ownership to TELKOM at the end of the revenue-sharing period.
See &#147;Item&nbsp;4B. Business Overview&nbsp;&#151; Revenue
Sharing Arrangements and Joint Ventures&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM did not fund any capital investments
(other than capital investments in fixed line telephone
services) through revenue sharing arrangements in 1999, 2000 or
2001, and does not intend to do so in the future, except in the
context of its efforts to promote the &#147;pay as you
grow&#148; program to fund capital investments. See &#147;Pay as
You Grow&#148; below. TELKOM intends to replace the revenue
sharing arrangements with new partnership schemes on more
favorable terms.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct
Borrowing</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning in 2002, TELKOM intends to fund a
significant portion of its capital expenditures through
vendor-procured and other direct borrowing from banks and other
lenders, including the capital markets. On February&nbsp;25,
2002, TELKOM borrowed US$4.0&nbsp;million and
Rp.90.0&nbsp;billion from a consortium of Indonesian banks to
finance the development of an Internet protocol backbone. TELKOM
had never previously borrowed directly from a commercial bank to
finance capital expenditures. As of December&nbsp;31, 2002, the
outstanding amount under these facilities are
US$3.3&nbsp;million and Rp.60.4&nbsp;billion. On April&nbsp;10,
2002, TELKOM borrowed US$30.4&nbsp;million and
Rp.173.0&nbsp;billion from Citibank N.A. and PT&nbsp;Bank
Central Asia to finance the development of a high performance
backbone in Sumatera. As of December&nbsp;31, 2002, the
outstanding amount under these facilities are
US$7.7&nbsp;million and Rp.25.9&nbsp;billion. On June&nbsp;21,
2002, TELKOM entered into a loan agreement with several
Indonesian banks in which Bank Bukopin acting as facility agent
with loan facility amounting to Rp.150&nbsp;billion to fund the
development of regional junction Regional Division&nbsp;V
project. A substantial portion of these loans were supported by
export credit agency guarantees procured by the equipment
vendors for the project. Prior to this transaction, TELKOM had
not previously borrowed with the support of export credit agency
guarantees, except in the two-step loans extended through the
Government.
</FONT>

<P align="center"><FONT size="2">119
</FONT>

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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pay as You
Grow</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Pay as You Grow program involves arrangements
in which TELKOM and its equipment suppliers agree that a
percentage of the contract cost will be paid upfront (typically
25%) and the balance will be paid once the lines are put into
service. TELKOM and its suppliers also agree to work together to
plan and design networks, assess capacity requirements and
determine timetable for procurement. TELKOM expects that only a
relatively small number of equipment suppliers will be invited
to participate in pay as you grow programs and supply a
substantial portion of TELKOM&#146;s infrastructure and other
equipment needs. See: &#147;Item&nbsp;4B. Business
Overview&nbsp;&#151; Business Strategy&nbsp;&#151; Efficient Use
of Capital Liquidity through New Term of Payment Alternatives
with Lower Risk&#148;.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IDR Bond
Issuance</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See: &#147;Item&nbsp;5&nbsp;B Liquidity and
Capital Resources&nbsp;&#151; Long-term Indebtedness&#145;
</FONT>

<P align="left">
<B><FONT size="2">Critical Accounting Policies, Estimates and
Judgments</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The preparation of TELKOM&#146;s consolidated
financial statements in conformity with Indonesian GAAP, as well
as the reconciliation to U.S.&nbsp;GAAP, requires TELKOM to make
estimates and assumptions that affect the reported amounts of
assets and liabilities, and disclosure of contingent assets and
liabilities at the date of the financial statements and revenue
and expenses for the years reported. Management continually
evaluates its estimates and judgments including those related to
useful lives of plant and equipment, pension and other
post-retirement benefits, income taxes and legal contingencies.
Management bases its estimates and judgments on historical
experience and other factors that are believed to be reasonable
under the circumstances. For a complete discussion of the
application of these and other significant accounting policies,
see Note&nbsp;2 to the consolidated financial statements. Actual
results could differ from those estimates under different
assumptions and conditions. TELKOM believes that of our
significant accounting policies, the following may involve a
higher degree of judgement or complexity or are areas where
assumptions and estimates are particularly critical to the
financial statements:
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidation/
Equity method</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements include the
financial statements of the Company and its controlled
subsidiaries. Subsidiaries acquired are consolidated from the
time the Company obtains control of such subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the case of Pramindo, we have evaluated the
scope and terms of this investment and have concluded that we
have the ability to exercise control over Pramindo and the right
to obtain all of the future economic benefits of ownership as
though we owned 100% of the shares. The factors that we
considered include, among others, the fact that the purchase
price is fixed, our ability to vote 100% of the shares at
general stockholders meetings, subject to certain protective
rights retained by the selling stockholders, our ability to
appoint all of the board members and management and our
consequent ability to exclusively determine the financial and
operating policies of Pramindo subject to certain protective
rights, our issuance of irrevocable and unconditional promissory
notes in settlement of the purchase consideration to the selling
stockholders, the placement of the remaining 70&nbsp;percent of
shares not yet transferred to the Company&#146;s escrow account
by the selling stockholders and the protective provisions in the
various agreements for the Company to take over all shares
(including powers of attorney issued by the selling
stockholders) or collapse the KSO arrangement once the full
amount payable for the shares has been paid.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to its operating subsidiaries, TELKOM
has a number of investments in other associated companies. Such
investments were intended to give TELKOM the ability to
influence the business activities, such as the choices of
technologies, of these associated companies. TELKOM&#146;s
general policy is to invest in companies that are associated
with the following business sectors: fixed line
telecommunications, cellular, television, internet and shared
services. In the majority of cases, our investments are
</FONT>

<P align="center"><FONT size="2">120
</FONT>

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<DIV align="left">
<FONT size="2">in the range between&nbsp;20 and
50&nbsp;per&nbsp;cent of the equity interest of the investees
such that they provide us with the ability to significantly
influence the operating and financial policies of such investees.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We reflect our influence with these investee
affiliates by accounting for our interests in them using the
equity method of accounting which prescribes that TELKOM record
its share of the earnings and losses of such investees. The
carrying amount of the investments is written down to recognize
any permanent decline in the value of individual investments.
Any such write down is charged directly to current operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments in shares of stock with ownership
interest of less than 20% that do not have readily determinable
fair values and are not intended for long-term investments are
stated at cost. The carrying amount of the investments is
written down to recognize any more than temporary declines in
the value of the individual investments. Any such write down is
charged directly to current operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM periodically reviews each of its affiliate
investee relationships to determine its amount of share
ownership in its associated companies. TELKOM&#146;s policy is
to make its investment decision based on the performance and
business prospects of the relevant associated company.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue
Recognition</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues arising from fixed line voice
transmission services, data communications facility services,
leased circuit services, and other transmission services are
recognized at the time we provide these services to customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We recognize revenue from fixed line installation
services at the time the installations are placed in service.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from cellular service connections
(connection fee) are recognized as income at the time the
connection takes place, while those from airtime and monthly
subscription charges are recognized when earned. Revenues from
prepaid card customers, which consist of the sale of starter
packs, which include a Subscriber Identification Module
(&#147;SIM&#148;) card and pulse reload voucher, are recognized
as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Sales of starter packs are recognized as revenue
    upon delivery of the starter packs to distributors, dealers or
    directly to customers, and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Sales of pulse reload vouchers are recognized
    initially as unearned income and recognized proportionately as
    revenue based on successful calls made by the subscribers or
    whenever the unused stored value of the voucher has expired.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other operating revenues such as revenue from
network interconnection with other domestic and international
telecommunication carriers are recognized as incurred and are
presented on a net basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are required to interconnect our networks with
other telecommunications operators. In certain instances we rely
on other operators to measure the traffic flows interconnecting
with our networks. We use estimates in these cases to determine
the amount of income receivable from, or payments we need to
make to, these other operators. The prices at which these
services are charged are regulated and may be subject to
retrospective adjustment. We use estimates in assessing the
likely effect of these adjustments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenue earned under revenue-sharing arrangements
is recognized on the basis of TELKOM&#146;s share as provided in
the agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s share of distributable KSO revenue
(revenue earned under Joint Operation Schemes) includes
amortization of the investor&#146;s initial payments, Minimum
Telkom Revenues (&#147;MTR&#148;) and the Company&#146;s share
of Distributable KSO Revenues (&#147;DKSOR&#148;). The unearned
initial investor payments received as compensation from the KSO
Investors are presented net of all direct costs incurred in
connection with the KSO agreement and are amortized using the
straight-line method over the KSO period. MTR are recognized on
a monthly basis based upon the contracted MTR amount for the
current
</FONT>

<P align="center"><FONT size="2">121
</FONT>

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<DIV align="left">
<FONT size="2">year, in accordance with the KSO agreement. The
Company&#146;s share of distributable KSO revenues is recognized
on the basis of the Company&#146;s percentage share of the KSO
revenues, net of MTR and operational expenses of the KSO Units,
as provided in the KSO agreements.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowances
for Doubtful Accounts</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM provides services to certain of its
customers on credit terms. We maintain allowances for doubtful
accounts for estimated losses based on our expected level of
recoverability of accounts receivable, the aging of the accounts
receivable balances and a review of status of individual
receivables account.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Estimated
Useful Lives of Property, Plant and Equipment&nbsp;&#151; Direct
Acquisitions</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM estimates the useful lives of property,
plant and equipment in order to determine the amount of
depreciation and amortization expense to be recorded during any
reporting period. The useful lives are estimated at the time the
asset is acquired and are based on historical experience with
similar assets as well as taking into account anticipated
technological or other changes. When the book value of
long-lived assets exceeds the recoverable value of the asset due
to technological changes, industry changes or physical damage,
the useful lives assigned to these assets may either need to be
shortened, resulting in the recognition of increased
depreciation and amortization expense in future periods or these
changes could result in the recognition of an impairment charge
to reflect the write-down in value of the asset. TELKOM reviews
these types of assets for impairment periodically, when events
or circumstances indicate that the carrying amount may not be
recoverable over the remaining lives of the assets. Assessment
of the timing and/or the amount of such impairment is a matter
of significant judgement. In assessing impairments, TELKOM uses
discounted cash flows that take into account management&#146;s
estimates of future operations. The most important estimates
that we use in projecting our future cash flows involve our
expectations of the future prices at which our services will be
charged, the number of access lines that we will have in service
and the discount rate that is used to arrive at the discounted
present value of the projected future cash flows. The prices at
which our services are charged are subject to government
regulation and may be subject to retrospective adjustment. The
number of access lines that we will have in service will depend
upon our ability to source sufficient, affordable financing to
build new access lines.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisitions
and Business Divestitures</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cross-ownership transactions with Indosat,
and a portion of the Pramindo acquisition representing
Indosat&#146;s interest in Pramindo, have been accounted for as
a reorganization of entities under common control because TELKOM
and Indosat (at the dates of the relevant transactions) were
both controlled by the Government. These transactions have been
recorded at historical cost in a manner similar to that in
pooling of interests accounting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The difference between the consideration paid or
received and the related historical carrying amount, after
considering income tax effects, has been charged to equity as
&#147;Difference in value of restructuring transactions between
entities under common control&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The acquisition of a subsidiary from a third
party is accounted for using the purchase method. The excess of
the acquisition cost over TELKOM&#146;s interest in the fair
value of identifiable assets and liabilities acquired is
recorded as goodwill and amortized using the straight-line
method over a period generally not expected to be more than
five&nbsp;years.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension and
Post-retirement Benefits</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have a commitment, mainly through
TELKOM&#146;s pension fund, to pay pension and other
post-retirement benefits to our employees and former employees
who are generally more than 55&nbsp;years of age. The cost of
these benefits and the present value of our pension and other
post-retirement liabilities depend on a number of factors which
we determine on an actuarial basis utilizing a number of
</FONT>

<P align="center"><FONT size="2">122
</FONT>

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<DIV align="left">
<FONT size="2">assumptions. The assumptions used in determining
the net periodic cost (income)&nbsp;for pension and
post-retirement benefits include the expected long-term rate of
return on the relevant plans assets and the discount rate. In
the case of the post-retirement healthcare plan, the expected
rate of increase in medical costs is also used. Any changes in
these assumptions will impact the net periodic cost
(income)&nbsp;recorded for pension and post-retirement benefits.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM uses long-term historical actual return
information and estimated future long-term investment return
information by reference to external sources to develop its
expected rate of return on plan assets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the end of each year, TELKOM determines the
appropriate discount rate, which represents the interest rate
that should be used to determine the present value of future
cash flows currently expected to be required to settle the
pension and post-retirement benefit obligations. In determining
the appropriate discount rate we considered the current yields
on high quality corporate fixed-income investments. We were not
able to identify suitable investments in Indonesia with a
corresponding maturity to the expected duration of the benefit
obligations so we have used a number of sources to extrapolate
to match the timing of maturity. These sources include current
and historical relationships between government bond yields and
inflation and the current yields available on high quality
Indonesian debt securities. At December&nbsp;31, 2002,
TELKOM&#146;s discount rate was 13.0&nbsp;percent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The expected rate of medical cost has been
determined by comparing the historical relationship of our
actual medical cost increases with the rate of general inflation
in the Indonesian economy. Past experience has shown that our
actual medical costs have on average increased by a factor of
1.5 times the general rate of inflation. We have decreased our
projected medical cost inflation from 16&nbsp;percent at
December&nbsp;31, 2001 to 14&nbsp;percent at December&nbsp;31,
2002 to reflect the decrease in our medical cost trend
experience which is in line with reducing general inflationary
trends in Indonesia.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other assumptions include life expectancy of the
members, the rate of increase in compensation levels and the
average remaining years of service.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Early retirement benefits are recognized at the
time TELKOM makes a commitment to provide early retirement
benefits as a result of an offer made in order to encourage
voluntary redundancy. TELKOM is demonstrably committed to a
termination when, and only when, TELKOM has a detailed formal
plan for the early retirement and such plan is without realistic
possibility of withdrawal.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
Taxes</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The actual tax we pay on our profits is
determined according to complex tax laws and regulations. Where
the effect of these laws and regulations is unclear, we use
estimates in determining the liability for the tax to be paid on
our past profits which we recognise in our financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred tax assets and liabilities are
recognized for the future tax consequences attributable to
differences between the amounts of assets and liabilities
recognized for financial reporting purposes and the amounts
recognized for income tax purposes. Deferred tax liabilities are
recognized for all taxable temporary differences and deferred
tax assets are recognized for deductible temporary differences
to the extent that it is probable that taxable income will be
available in future periods against which the deductible
temporary differences can be utilized or the tax asset will
crystallize in future periods.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian tax regulations, a dividend
distributed by a company to a corporate shareholder is currently
subject to a zero percent tax rate whereas a capital gain on the
sale of shares is subject to tax at the normal corporate tax
rate. As long as we continue to hold our investments in our
affiliated companies and the tax rate applicable to dividend
distributions continues to be zero per cent, we do not need to
record a deferred tax liability in respect of the undistributed
earnings of these affiliated companies.
</FONT>

<P align="center"><FONT size="2">123
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A change in our intention to hold an investment
or other facts and circumstances may lead TELKOM to determine
that we no longer expect to realise our interest in the
undistributed earnings of the particular affiliated company in a
manner which enables us to take advantage of the zero percent
tax rate applicable to dividend distributions. Such a change in
the future would require us to recognise a deferred tax
liability with a commensurate charge to our income statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred tax is calculated at the tax rates that
have been enacted or substantively enacted at the balance sheet
date. If enacted tax rates changed, TELKOM would adjust its
deferred tax assets and liabilities, through the income tax
expense in the period of change, to reflect the enacted (or
substantively enacted) tax rate expected to be in effect when
the deferred tax items reverse.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal
Contingencies</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are currently involved in certain legal
proceedings and have accrued amounts that represent our estimate
of the probable outcome of these matters. Such estimates of
outcome are derived from consultation with outside counsel, as
well as an assessment of litigation and settlement strategies.
Whilst we believe that our current accruals are adequate, a
future event or change in the facts and circumstances may
require us to make additional accruals which would be charged to
our income statement in the future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, we may face SEC enforcement action
and other legal liability in connection with our failure to
timely file a compliant Annual Report on Form 20-F for 2002 by
the June&nbsp;30, 2003 filing deadline. See
&#147;Item&nbsp;3-Risk Factors&nbsp;&#151; TELKOM is filing this
amended annual report late and may face an SEC enforcement
action, or other legal liability or adverse consequences.&#148;
</FONT>

<P align="left">
<B><FONT size="2">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and
Development and Intellectual Property</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM makes investments to improve its product
and service offerings. Such expenditure amounted to
approximately Rp.17.9&nbsp;billion in 2000, Rp.3.1 billion in
2001 and Rp.11.2&nbsp;billion (US$1.3&nbsp;million) in 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is in the process of registering a number
of patents for technologies relating to, among others, cellular
phones and network, PSTN, switching systems and related
administration systems. It has also registered or is in the
process of registering its trade and service marks in Indonesia.
</FONT>

<P align="left">
<B><FONT size="2">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trend
information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A number of developments have had and may have in
the future a material impact on TELKOM&#146;s results of
operations, financial condition and capital expenditures. These
developments include:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ongoing consequences related to TELKOM&#146;s
    failure to file a compliant Form&nbsp;20-F for 2002 by
    June&nbsp;30, 2003, as described under &#147;Explanatory
    Note&#148; and Item&nbsp;3-Risk Factors;&#148;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">upgrading of the network with soft switching
    technology;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">increasing relative contribution of Telkomsel to
    our consolidated revenues;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">higher domestic fixed line tariffs beginning in
    2002 and ability of Government to implement additional planned
    tariff increases;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">implementation of TELKOM&#146;s early retirement
    program;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">ongoing issues with KSO Investors;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">acquisition of control in Pramindo; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">acquisition of AriaWest and settlement of
    AriaWest arbitration; and
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See &#147;Item&nbsp;5A. Operating Results&#148;.
</FONT>

<P align="center"><FONT size="2">124
</FONT>

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<P align="left">
<B><FONT size="2">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-Balance
Sheet Arrangements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During 2002, TELKOM entered into two derivative
facility agreements with the intention to hedge its foreign
currency liabilities. These agreements were made with Bank
Mandiri and HSBC to cover TELKOM&#146;s foreign exchange
liabilities for US$120&nbsp;million and US$1&nbsp;million,
respectively. The Bank Mandiri agreement will expire on
April&nbsp;4, 2004 while the HSBC agreement will expire on
August&nbsp;31, 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is party to a number of operating leases,
all of which are cancelable on less than one month&#146;s notice
at the option of TELKOM. These operating leases relate
principally to vehicles and computers. TELKOM does not believe
these operating leases are material to its business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has entered into a partnership agreement
with Motorola, Inc., Ericsson Radio A.B., Siemens
Aktiengesellschaft (AG) and Nokia Oyj whereby TELKOM is
obligated to purchase certain cellular equipment and services.
In addition, TELKOM has entered into agreements pursuant to
which TELKOM is committed to pay for services relating to the
launch of the TELKOM-2 Satellite and the construction of a PSTN
network for each of Regional Division II and V. For more details
relating to these agreements, please see Item&nbsp;10.
Additional Information&nbsp;&#151; C. Material Contracts&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as disclosed above, TELKOM does not have
off-balance sheet arrangements that are material.
</FONT>

<P align="left">
<B><FONT size="2">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tabular
Disclosure of On-balance Sheet Obligations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following summarizes TELKOM&#146;s on-balance
sheet obligations at December&nbsp;31, 2002, and the effect such
obligations are expected to have on liquidity and cash flow in
future periods:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Payment Due by Period (Rp. in billion)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Less than</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">After</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">On-balance Sheet Obligation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1&nbsp;Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">1-3&nbsp;years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">3-5&nbsp;years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">5&nbsp;years</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Two-step loan<SUP>(1)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,570.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">836.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,727.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,413.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,593.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guaranteed notes<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bonds<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liability for acquisition of a
    subsidiary<SUP>(3)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,004.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,385.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,619.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suppliers&#146; credit loans<SUP>(4)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">338.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">174.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term bank loan<SUP>(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">247.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bridging loans<SUP>(5)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Short-term bank loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Project cost payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,635.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,629.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,646.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,741.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,617.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Relates to a series of two-step loans from the
    Government. See &#147;&#151;&nbsp;Liquidity and Capital
    Resources&nbsp;&#151; Long-Term Indebtedness&nbsp;&#151;
    Two-Step Loans&#148; and Note&nbsp;24 to the Consolidated
    Financial Statements included elsewhere in this Annual Report.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">See Note&nbsp;28 to the Consolidated Financial
    Statements included elsewhere in this Annual Report.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(3)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Includes capitalized interest of liabilities
    incurred in the acquisition of 90.32% equity interest in
    Dayamitra and 30% equity interest in Pramindo. See
    &#147;&#151;&nbsp;Overview&nbsp;&#151; Changes in TELKOM&#146;s
    Business&nbsp;&#151; Acquisition Indebtedness and Option
    Purchase Price&nbsp;&#151; Dayamitra &#147; and Notes&nbsp;6
    and&nbsp;27 to the consolidated financial statements included
    elsewhere in this Annual Report.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(4)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Relates to supplier and credit loans of Dayamitra
    guaranteed by TELKOM. See &#147;&#151;&nbsp;Liquidity and
    Capital Resources&nbsp;&#151; Long-Term Indebtedness&nbsp;&#151;
    Dayamitra&#146;s Indebtedness&#148; and Note&nbsp;25 to the
    Consolidated Financial Statements included elsewhere in this
    Annual Report.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(5)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Relates to a bridging facility of Dayamitra
    guaranteed by TELKOM. See &#147;&#151;&nbsp;Liquidity and
    Capital Resources&nbsp;&#151; Long-Term Indebtedness&nbsp;&#151;
    Dayamitra&#146;s Indebtedness&#148; and Note&nbsp;26 to the
    Consolidated Financial Statements included elsewhere in this
    Annual Report.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">125
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link2 "ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;6.</FONT></B></TD>
    <TD>
    <B><FONT size="2">DIRECTORS, SENIOR MANAGEMENT AND
    EMPLOYEES</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Directors and Senior Management</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with Indonesian law, the Company
has a two-tier board structure, consisting of a Board of
Commissioners and a Board of Directors. The executive management
functions are carried out by the Board of Directors, whose
members are comprised of the top executives of the Company,
comparable to the chief executive officer, chief financial
officer and other such officers of corporations incorporated
under the laws of the States of the United States.
</FONT>

<P align="left">
<B><FONT size="2">Board of Commissioners</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s Articles of Association (the
&#147;Articles&#148;), referring to the Indonesian Company Law,
states that the principal statutory duties of the Board of
Commissioners are to supervise the policies of the Board of
Directors in the operation and management of the Company and to
give advice to the Board of Directors. In carrying out its
supervisory activities, the Board of Commissioners is
accountable to the stockholders of the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Commissioners, which supervises the
management of TELKOM and the implementation of TELKOM business
plan by the Board of Directors, does not have day-to-day
management functions or authority, except in limited
circumstances where all members of the Board of Directors have
been suspended for any reason.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current Board of Commissioners of TELKOM
consists of five members, two of whom are independent
commissioners.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Articles, each Commissioner is
appointed for a term commencing from the date of the appointment
by the general meeting of stockholders until the closing of the
third annual general meeting of stockholders following the date
of appointment, without prejudice to the right of the general
meeting of stockholders to discharge a Commissioner at any time
before his or her term of office expires. If the position of a
Commissioner becomes vacant for any reason, the Articles further
provide that within 60&nbsp;days of the occurrence of such
vacancy, an announcement that there will be notice for a general
meeting of stockholders must be made to nominate a successor.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Articles, meetings of the Board
of Commissioners are presided over by the President
Commissioner. If the President Commissioner is absent, another
member of the Board of Commissioners chosen from the
Commissioners present presides over the meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Meetings of the Board of Commissioners must be
held at least once every three months and at any other time
(i)&nbsp;upon request of the President Commissioner,
(ii)&nbsp;upon request of one-third of the members of the Board
of Commissioners, (iii)&nbsp;upon written request of the Board
of Directors, or (iv)&nbsp;upon request of a shareholder or a
group of stockholders holding at least one-tenth of the
outstanding shares of TELKOM with valid voting rights. The
quorum for all Board of Commissioners meetings is more than
one-half of the total number of the Commissioners then
represented in person or by proxy granted to one of the other
Commissioners of TELKOM at such meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Resolutions of a meeting of the Board of
Commissioners shall be by consensus. If consensus cannot be
reached, it shall be by the affirmative vote of a majority of
the members of the Board of Commissioners present or represented
at the meeting. In the event of a tie, the proposed resolution
shall be deemed to have been rejected.
</FONT>

<P align="center"><FONT size="2">126
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current members of the Board of Commissioners
of the Company are as follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Age as of</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1, 2004</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Since</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bacelius Ruru
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">President Commissioner
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">April&nbsp;7, 2000
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">P. Sartono
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Independent Commissioner
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Arif Arryman
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Independent Commissioner
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Agus Haryanto
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Commissioner
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Djamhari Sirat
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">58</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Commissioner
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bacelius
Ruru</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Ruru has been President Commissioner of
TELKOM since April&nbsp;7, 2000. In addition, he has served as
Chairman of the Jakarta Initiative Task Force since 2000. Prior
to that time, Mr.&nbsp;Ruru served in various positions with the
Ministry of Finance from 1973 to 2000. Mr.&nbsp;Ruru graduated
with a degree in law from the University of Indonesia and with
an LLM degree from Harvard Law School. Mr.&nbsp;Ruru is the
Secretary to the Minister for State Owned Enterprise and was
previously, the President Commissioner of the Jakarta Stock
Exchange and the Head of the Jakarta Initiative Task Force.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P.
Sartono</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;P. Sartono has been an Independent
Commissioner of TELKOM since June&nbsp;21, 2002. In addition, he
currently serves as the Senior Adviser of the Board of
Commissioners of PT&nbsp;Telekomindo Primabhakti and as a
Commissioner of PT&nbsp;Excelcomindo. Mr.&nbsp;P. Sartono became
an employee of TELKOM in 1972 and has served in various
management positions, including as Corporate Secretary from 1991
to 1995, until his retirement in 2000. During his tenure at
TELKOM, he also held various positions at Directorate General of
Post and Communications from 1972 to 1985 and served as
President Director of PT&nbsp;Telekomindo Primabhakti.
Mr.&nbsp;P. Sartono holds a degree in law from the University of
Indonesia and a Master of Management (Marketing) from IPWI
Jakarta, and Master of Law from the Institute Business Law and
Management (Sekolah Tinggi Ilmu Hukum IBLAM) in Jakarta.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arif
Arryman</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Arryman has been an Independent
Commissioner of TELKOM since June&nbsp;21, 2002. In addition he
served as Independent Commissioner of PT&nbsp;Bank BNI since
2001. Previously, he served as an advisor to the Coordinating
Minister for Economy and a member of the assistance team to the
Ministry of Finance. Mr.&nbsp;Arryman graduated with a degree in
Industrial Engineering from Bandung Institute of Technology, a
Master degree in Engineering from Asia Institute of Technology,
Bangkok, Diploma d&#146;Etude Approfondie from University
Paris-IX Dauphine France, and a Ph.D degree in Economics from
University of Paris-IX Dauphine France.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agus
Haryanto</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Haryanto has been a Commissioner of
TELKOM since June&nbsp;21, 2002. In addition, he has served as
the Secretary General of the Ministry of Finance since 2002.
Previously, Mr.&nbsp;Haryanto served in various positions in the
Department of Finance. Mr.&nbsp;Haryanto graduated with a degree
in Law from University of Indonesia, an MA and Phd degree in
Economics from University of Colorado, USA.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Djamhari
Sirat</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Sirat has been a Commissioner of TELKOM
since June&nbsp;21, 2002. In addition, he currently serves as
the Director General of Post and Telecommunications. Previously,
Mr.&nbsp;Sirat served in various positions in the Department of
Tourism, Post and Telecommunications. Mr.&nbsp;Sirat graduated
with a
</FONT>

<P align="center"><FONT size="2">127
</FONT>

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<DIV align="left">
<FONT size="2">degree in Electrical Engineering from University
of Indonesia, an MSc and Phd degree from University of
Manchester, England.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Board of Commissioners&#146;
Committees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Commissioners has currently four
standing committees: the Audit Committee; the Nomination and
Remuneration Committee; the Review and Planning Committee; and
the Oversight Committee. An Independent Commissioner chairs all
of the committees, while the committees&#146; other members
consist entirely of external and persons not affiliated with
TELKOM and its Board of Commissioners and Board of Directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Audit Committee of the Board of Commissioners
is currently composed of four members, Mr.&nbsp;Arif Arryman, an
Independent Commissioner and the Chairman; Mr.&nbsp;Mohammad
Ghazali Latief; Mr.&nbsp;Salam and Mr.&nbsp;Dodi Syaripudin. All
of the members of the Audit Committee (except for Mr.&nbsp;Arif
Arryman) are independent external members. Mr.&nbsp;Latief is an
accounting and finance expert. An Audit Committee Charter (the
&#147;Charter&#148;) that has been adopted by the Board of
Commissioners and Board of Directors governs the committee. The
Charter outlines the committee&#146;s purpose, function and
responsibilities and specify that the committee is responsible
for:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">overseeing the Company&#146;s financial reporting
    process on behalf of the Board of Commissioners. As part of its
    responsibilities, the committee will recommend to the Board of
    Commissioners, subject to shareholder approval, the selection of
    the TELKOM&#146;s external auditor;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">discussing with the internal auditors and the
    external auditor the overall scope and specific plans for their
    respective audits. The committee will also discuss TELKOM&#146;s
    consolidated financial statements and the adequacy of
    TELKOM&#146;s internal controls;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">meeting regularly with TELKOM&#146;s internal
    auditors and external auditor, without management present, to
    discuss the results of their examinations, their evaluation of
    TELKOM&#146;s internal controls, and the overall quality of
    TELKOM&#146;s financial reporting; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">carrying out additional tasks that are assigned
    by the Board of Commissioners, especially on financial and
    accounting related matters.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Nomination and Compensation Committee of the
Board of Commissioners was established on September&nbsp;19,
2002. Currently the committee is composed of four&nbsp;(4)
members. Mr&nbsp;P.&nbsp;Sartono, an Independent Commissioner is
the chairman; Mr.&nbsp;Budi&nbsp;W. Soetjipto,
Mr.&nbsp;Ferdinand&nbsp;T Siagian and Mrs.&nbsp;Wustari
H.&nbsp;Mangunwidjaja are the other independent members. The
independent members are human resource and compensation system
experts contracted for a limited period. Based on the Board of
Commissioner decree, the Nomination and Compensation
Committee&#146;s main task and responsibility include the
following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">formulating selection criteria and nomination
    procedure for Commissioners and Directors; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">formulating a compensation system for
    Commissioners and Directors.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Commissioners&#146; business address is 5th
Floor, Grha Citra Caraka Building, Jalan Gatot Subroto
Kav.&nbsp;52, Jakarta 12710, Indonesia.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Oversight Committee was established on
July&nbsp;25, 2003. Currently, the committee is composed of four
members, who are Mr.&nbsp;Bacelius Ruru; Mr.&nbsp;P. Sartono;
Mr.&nbsp;Salam and Mr.&nbsp;Dodi Syaripudin. Mr.&nbsp;Ruru is
the Chairman of this committee and the Board of Commissioners.
Mr.&nbsp;P. Sartono is an independent Commissioner, while
Mr.&nbsp;Salam and Mr.&nbsp;Syaripudin are both independent
external members. The Oversight Committee was formed at the
request of TELKOM&#146;s independent auditor, PwC, to monitor
and oversee the audit of TELKOM&#146;s consolidated financial
statements for 2002 following PwC&#146;s appointment. The
Oversight Committee&#146;s responsibilities are additional to,
and not in substitution for, those of the Audit Committee. The
Oversight Committee is expected to be dissolved when the 2002
consolidated financial statements are finalized.
</FONT>

<P align="center"><FONT size="2">128
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Review and Planning Committee was established
on August&nbsp;1, 2003. There are six members on this committee,
consisting of Mr.&nbsp;Arif Arryman (the Chairman), Mr.&nbsp;P.
Sartono, Mr.&nbsp;Wisnu Marantika, Mr.&nbsp;Kindy Syahrir,
Mr.&nbsp;Adam Wirahadi and Mr.&nbsp;Arman Soeriasoemantri. The
objective of this committee is to review the company&#146;s
long-term plans, as well as business budget plans, following
which recommendations would be made by this committee to the
Board of Directors. The committee is also responsible for
supervising the implementation of the business plans of the
company.
</FONT>

<P align="left">
<B><FONT size="2">Board of Directors</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors consists of one President
Director and four Directors. Directors are elected and dismissed
by stockholders&#146; resolutions at a general meeting of
stockholders, which meeting must be attended by the holder of
the Dwiwarna Share and which resolution must be approved by the
holder of the Dwiwarna Share. Each Director is appointed for a
term commencing from the date of appointment by the general
meeting of stockholders from candidates nominated by the holder
of the Series&nbsp;A Dwiwarna Share until the closing of the
fifth annual general meeting of stockholders after the date of
appointment, without prejudice to the right of the general
meeting of stockholders to discharge a Director at any time
before his/her term of office expires.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The principal functions of the Board of Directors
are to lead and manage TELKOM and to control and manage
TELKOM&#146;s assets. The Board of Directors is responsible for
the day-to-day management of TELKOM under the supervision of the
Board of Commissioners. The Articles provide that the Board of
Directors shall consist of at least two Directors, one of whom
shall be the President Director.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The President Director, or in case of his
absence, another Director as provided for in the Articles shall
have authority to represent TELKOM and execute documents on
behalf of TELKOM, subject to the provisions of the Articles. The
President Director shall preside over meetings of the Board of
Directors or in his absence, any other member of the Board of
Directors appointed from among and by those present may preside
over such meetings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Articles provide that meetings of the Board
of Directors may be held whenever considered necessary upon the
request of (i)&nbsp;the President Director, (ii)&nbsp;at least
one-third of the members of the Board of Directors,
(iii)&nbsp;the Board of Commissioners, or (iv)&nbsp;any
shareholder or a group of stockholders holding at least
one-tenth of the outstanding shares of TELKOM with valid voting
rights. The Articles further provide that the quorum for all
Directors&#146; meetings is more than one-half of the members of
the Board of Directors present or represented in person or by
proxy granted to another Director of TELKOM in such meeting. At
Directors&#146; meetings, each Director shall have one vote and
one additional vote for each other Director he represents as
proxy.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Resolutions of a meeting of the Board of
Directors shall be by consensus. If consensus cannot be reached,
it shall be by the affirmative vote of a majority of the members
of the Board of Directors present or represented at the meeting.
In the event of a tie, the matter shall be determined by the
Chairman of the meeting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current members of the Board of Directors are
as follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Age as of</FONT></B></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1, 2004</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Title</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Since</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kristiono
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">President Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Agus Utoyo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director of Human Resources and Support Business
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guntur Siregar
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director of Finance
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Garuda Sugardo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director of Telecommunications Service Business
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suryatin Setiawan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Director of Telecommunications Network Business
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">June&nbsp;21, 2002
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">129
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kristiono</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Kristiono has been the President
Director of TELKOM since June&nbsp;21, 2002. He joined TELKOM in
1978 and has held several positions in various departments. He
previously served as Director of Technology and Planning of
TELKOM and Head of Regional Division V Surabaya.
Mr.&nbsp;Kristiono graduated with a degree in Electrical
Engineering from Surabaya Institute of Technology.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agus
Utoyo</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Utoyo has been the Director of Human
Resources and Support Business of TELKOM since June&nbsp;21,
2002. Since 1975 he has held various positions in TELKOM.
Mr.&nbsp;Utoyo holds a degree in Electrical Engineering from the
University of Indonesia. Mr.&nbsp;Utoyo was previously the
General Manager of Regional Division&nbsp;I (Sumatera) and the
Head of TELKOM&#146;s organizational restructuring project.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guntur
Siregar</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Siregar has been the Director of Finance
of TELKOM since June&nbsp;21, 2002. From 2000-2002, he served in
as Director of Commerce of PT&nbsp;Indosat and from 1996-2000 as
TELKOM&#146;s General Manager of Regional Division&nbsp;II
(Jakarta). Mr.&nbsp;Siregar holds a degree in Electrical
Engineering from Bandung Institute of Technology.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Garuda
Sugardo</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Sugardo has been the Director of
Telecommunications Service Business of TELKOM since
June&nbsp;21, 2002. Previously, he served in as Director of
Operation and Technical of PT&nbsp;Indosat as well as a number
of positions at TELKOM from 1977 to 2000. Mr.&nbsp;Sugardo holds
a degree in Electrical Engineering from University of Indonesia.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suryatin
Setiawan</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Setiawan has been the Director of
Telecommunications Network Business of TELKOM since
June&nbsp;21, 2002. Previously, he served as head of
TELKOM&#146;s Research and Technology Division from 1995 to
2000. In addition, Mr.&nbsp;Setiawan previously served as the
President Commissioner for Telkomsel. Mr.&nbsp;Setiawan
graduated with a degree in Electrical Engineering from Bandung
Institute of Technology.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">None of the Directors has a service contract with
the Company nor are any such contracts proposed. The
Directors&#146; business address is Jalan Japati, 1, Bandung
40133, Indonesia. None of the Directors or Commissioners is
related to one another.
</FONT>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Commissioner is granted a monthly honorarium
and certain other allowances and is paid an annual bonus if
TELKOM surpasses certain financial and operating targets, the
amounts of which are determined by the stockholders at the
general meeting of stockholders. Each Commissioner also receives
a lump-sum bonus paid at the end of the Commissioner&#146;s term
pursuant to an MoF letter which applies to all state-owned
companies. Each Director is granted a monthly salary and certain
other allowances (including a pension if such Director is
otherwise eligible). Each Director also receives an annual bonus
(tantiem) if TELKOM surpasses certain financial and operating
targets, the amounts of which are determined by the stockholders
at the general meeting of the stockholders. Bonuses and
incentives are budgeted annually and are based on the
recommendation of the Board of Directors which recommendation
must be approved by the Board of Commissioners before submission
to the stockholders. No fees are paid to the Commissioners or
Directors for their attendance at their respective board
meetings. In addition, Directors receive certain other in-kind
benefits, such as housing, car and driver. For the year ended
December&nbsp;31, 2002, the aggregate compensation paid by TELKOM
</FONT>

<P align="center"><FONT size="2">130
</FONT>

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<DIV align="left">
<FONT size="2">and its consolidated subsidiaries to all of their
Commissioners and Directors was Rp.43.8&nbsp;billion
(US$4.9&nbsp;million), while the amount paid by TELKOM
(unconsolidated) to all its Commissioners and Directors was
approximately Rp.16.4&nbsp;billion (US$1.8&nbsp;million), in
each case including bonuses and the cost of benefits provided to
Directors, such as housing facilities.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Board
practices</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Individual Directors are charged with specific
responsibilities. In the event that a vacancy occurs in the
Board of Directors, so long as the position remains vacant, one
of the other directors will be nominated by the Board of
Commissioners to perform the work of the absent director. If,
for any reason, the Company ceases to have any Directors, the
Board of Commissioners is to assume the ongoing obligations of
the Board of Directors and must convene a general meeting of
stockholders to elect a new Board of Directors within at least
60&nbsp;days.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors is required to obtain the
written approval of the Board of Commissioners for the following
actions: buying or selling the shares of listed companies in
excess of the amount stipulated by the Board of Commissioners;
participating in or disposing of other capital investments;
establishing subsidiaries; entering into licensing agreements,
management contracts or similar agreements with other entities
for a period of more than one year; selling or otherwise
disposing of fixed assets; ceasing to collect or writing off bad
debts from the Company&#146;s books or inventory in excess of
the amount stipulated by the Board of Commissioners; binding the
Company as surety in excess of the amount stipulated by the
Board of Commissioners; and assuming or granting intermediate or
long-term loans and assuming short-term loans not in the
ordinary course of business in excess of the amount stipulated
in the Company&#146;s work plan and budget, as approved by the
Board of Commissioners. In addition, any of the above
transactions which involves 5% or more of the Company&#146;s
revenues or 10% or more of stockholders&#146; equity or such
other amount as specified in Indonesian capital market
regulations must be authorized by the stockholders at the
general meeting of stockholders. In the performance of its
duties, the Board of Directors must act in the interests of the
Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Articles provide that members of the Board of
Directors are prohibited from assuming the following: (i)&nbsp;a
position as director of another state-owned corporation or
private companies, (ii)&nbsp;any position within the structural
or functional department of the central or district government,
or (iii)&nbsp;other positions outside TELKOM which may directly
or indirectly raise conflicts of interest with TELKOM and/or
which violate the provisions of applicable laws and regulations.
The Articles further provide that if members of the Board of
Directors wish to assume any other position not prohibited above
or wish to obtain an exemption from the foregoing prohibitions,
such Director would require permission from the Board of
Commissioners. In addition, such appointment shall be reported
to the general meeting of stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the Articles prohibit a Director
with conflicting interests representing TELKOM in the issues
causing such conflict of interest. In such cases, TELKOM shall
be represented by another member of the Board of Directors with
the consent of the Commissioners. In the event that TELKOM faces
a conflict of interest with all members of its Board of
Directors, TELKOM shall be represented by the Board of
Commissioners or a member of the Board of Commissioners chosen
by the Commissioners in the issues causing such conflict.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">None of the Directors or Commissioners has any
substantial interest, direct or indirect, in any company
carrying on a similar trade as TELKOM.
</FONT>

<P align="left">
<B><FONT size="2">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company had
34,678 employees, of which 24,543 and 10,135&nbsp;personnel were
employed in TELKOM and KSO Regions respectively. As of
December&nbsp;31, 2001, the Company had 37,422&nbsp;employees,
of which 18,926 and 18,496 personnel were employed in TELKOM and
KSO Regions respectively. As of December&nbsp;31, 2000 the
Company had 37,705&nbsp;employees, of which 18,917 and 18,788
were employed in TELKOM and KSO regions respectively.
</FONT>

<P align="center"><FONT size="2">131
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The table below sets forth a breakdown of
TELKOM&#146;s employees by position as at December&nbsp;31, 2002:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="56%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">TELKOM regions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">KSO regions</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as at</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>(1)</SUP></FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Senior management
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Middle management
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,808</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">305</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Supervisors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,910</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,128</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,647</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,700</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Note:
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">This includes employees in KSO III (AriaWest),
    which was acquired by TELKOM in July&nbsp;31, 2003.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s KSO Employees remain employees of
TELKOM and are subject to all employment rules and policies of
TELKOM in force at that time, except to the extent that rules
and policies are supplemented, in favor of the employee, by the
rules and policies of the KSO Unit. Additional KSO Employees are
the employees of the KSO partner, and TELKOM has no obligation
to continue their employment at the end of the KSO period.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In general, TELKOM employees receive a base
salary and salary-related allowances, a bonus and various
benefits, including a pension plan and a post-retirement health
care plan, medical benefits for themselves and certain members
of their immediate family, housing allowance, other allowances
and certain other benefits, including those related to
performance of the employee&#146;s working unit.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Bonuses are budgeted in advance by the Board of
Directors and the Board of Commissioners and are paid out in the
year following the year in which they are earned. Over the past
five years, the size of the annual bonus pool has ranged from
Rp.134&nbsp;billion to Rp.197&nbsp;billion. In 2002, bonuses
were paid by TELKOM to all employees including TELKOM&#146;s
employees in KSO and Non-KSO divisions. After the size of the
bonus pool is determined, management allocates the pool among
the Divisions depending upon their respective performances, and
uniform bonuses for employees at each staff level for each
Division are then determined.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to TELKOM&#146;s Initial Public Offering
in 1995, 116,667,000 shares of Common Stock were reserved for
mandatory sale to employees of the Company. The Company paid for
such shares (which were sold at the same per share price as the
public offering price of shares of Common Stock sold in
Indonesia pursuant to the Initial Public Offering (<I>i.e.</I>,
Rp.2,050&nbsp;per share)) on behalf of its employees as follows:
90% of the purchase price was deducted from employee cash
bonuses that had been previously allocated but not paid; the
Company paid the balance of the purchase price plus taxes
payable by its employees on the purchase of such shares
(amounting to approximately 15% of the purchase price) and
reported those payments as additional vacation pay, employee
incentives and other allowances. TELKOM does not otherwise
maintain an employee share scheme for any of its employees or
senior management.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;S mandatory retirement age for all
employees is&nbsp;55. Upon reaching&nbsp;55, employees and their
dependents are entitled to a pension under a defined benefit
plan depending on their length of service to TELKOM. The amount
of the pension entitlement is based on the employee&#146;s years
of service and salary level upon retirement and is transferable
to dependents upon the employee&#146;s death. The main sources
of pension fund are the contributions from the employees and
TELKOM. Employees contribute 8.4% of basic salary and TELKOM
contributes the remaining amount required to fund the plan.
TELKOM&#146;s contributions to the pension fund were
Rp.228.5&nbsp;billion, Rp.129.3&nbsp;billion and
Rp.297.4&nbsp;billion (US$33.2&nbsp;million), respectively, for
the years ended 2000, 2001 and 2002. See Note&nbsp;45 to the
consolidated financial statements.
</FONT>

<P align="center"><FONT size="2">132
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;1, 2002, TELKOM increased the
minimum pension benefit for retired employee to approximately
Rp.425,000 per month effective as of January&nbsp;1, 2003.
Current employees who effectively retired after July 2002
receive an increase of monthly pension benefit amounting to
twice the amount of its basic monthly salary. This policy
applied to employees who retired at the normal pension age
of&nbsp;55.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s employees are entitled to
receive certain cash awards based on length of services and
after completing certain years of services which are either paid
at the time the employee reaches a certain anniversary date or
upon retirement or at the time of termination if the employee
has met the required number of years of service.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM also provides post-retirement healthcare
benefits for all of its retired employees, including their
immediate family. There are two types of funding for
post-retirement healthcare benefits: (i)&nbsp;for employees
hired before November&nbsp;1, 1995 who retired prior to
June&nbsp;3, 1995 or who have 20&nbsp;years of service for those
retired after June&nbsp;3, 1995, such benefits are funded by the
TELKOM Healthcare Foundation; (ii)&nbsp;for employees hired
after November&nbsp;1, 1995, such benefits will be granted in
the form of an insurance allowance by TELKOM. TELKOM&#146;s
contributions (including contributions paid by all KSO units) to
the plan for employees hired before November&nbsp;1, 1995 and
who have had 20&nbsp;years of service were Rp.82.9&nbsp;billion,
Rp.56.4&nbsp;billion and Rp.75.4&nbsp;billion
(US$8.4&nbsp;million), respectively, for 2000, 2001, and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The post-retirement health care plan for
employees hired after November&nbsp;1, 1995 is accounted for in
accordance with U.S.&nbsp;GAAP (SAS 106). TELKOM&#146;s actuary,
in consultation with management, re-evaluated the key
assumptions used in previous calculations, principally the
medical cost trend projections, and has determined that it is
necessary to make adjustments to original reports because the
previous calculations contained certain errors and the
assumptions used did not provide for all of the assumptions
required to calculate TELKOM&#146;s obligation. TELKOM has,
therefore, determined that adjustments are required to be made
to its 2000, 2001 and 2002 and prior years consolidated
financial statements. See &#147;Item&nbsp;5. Operating and
Financial Review and Prospects&nbsp;&#151; Restatement of
Information Previously Reported&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2000, TELKOM employees formed a union
named &#147;Serikat Karyawan TELKOM&#148; or &#147;SEKAR&#148;.
The formation of SEKAR is in accordance with the Presidential
Decree No.&nbsp;83 of 1998 regarding ratification of ILO
Convention No.&nbsp;87 of 1948 concerning the freedom to form a
union and the protection of the right to form an organization.
Membership with SEKAR is not compulsory. TELKOM believes that
its relations with SEKAR are good. However, there can be no
assurance that the activities of employee unions will not
materially and adversely affect TELKOM&#146;s business,
financial condition and prospects.
</FONT>

<P align="left">
<B><FONT size="2">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commissioners
and Directors Remuneration</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries provide
honorarium and facilities to support the operational duties of
the Board of Commissioners. Total of such benefits amounted to
Rp4.8&nbsp;billion, Rp7.2&nbsp;billion, and Rp8.7&nbsp;billion
in 2000, 2001 and 2002, respectively, which reflected 0.1%,
0.1%, and 0.1% of total operating expenses in 2000, 2001, and
2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries provide salaries
and facilities to support the operational duties of the Board of
Directors. Total of such benefits amounted to
Rp.22.6&nbsp;billion, Rp30.3&nbsp;billion, and
Rp35.1&nbsp;billion in 2000, 2001 and 2002, respectively, which
reflected 0.3%, 0.3%, and 0.3% of total operating expenses in
2000, 2001, and 2002, respectively.
</FONT>

<P align="left">
<B><FONT size="2">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share
ownership</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All the directors and commissioners individually
beneficially own less than one percent of the shares of the
Company and their respective beneficial share ownership in the
Company has not been disclosed to stockholders or otherwise made
public.
</FONT>

<P align="center"><FONT size="2">133
</FONT>

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<!-- link2 "ITEM 7. MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;7.</FONT></B></TD>
    <TD>
    <B><FONT size="2">MAJOR STOCKHOLDERS AND RELATED PARTY
    TRANSACTIONS</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Major stockholders</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At January&nbsp;1, 2004, to the Company&#146;s
knowledge, apart from the Government, there were no stockholders
beneficially owning more than 5% of the Company&#146;s Common
Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth certain
information as of December&nbsp;31, 2002 with respect to
(1)&nbsp;persons known to the Company to be the owner of more
than 5% of the Company&#146;s Common Stock (whether directly or
beneficially through ADSs); and (2)&nbsp;the total amount of any
class of the Company&#146;s Common Stock owned by the
Commissioners and Directors of the Company as a group.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="24%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Identity of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Title of Class</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Person or Group</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount Owned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percent of Class</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;A
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Government
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Government
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,160,235,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51.19</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">JPMCB US Resident
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">879,723,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.73</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">(Norbax Inc.)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">The Bank of New
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">610,489,548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.06</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">York (BoNY)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Board of Directors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.0006</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">and Commissioners
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, a total of
39,717,017 American Depositary Shares (&#147;ADSs&#148;) and
10,079,999,639 series&nbsp;B shares (including the series&nbsp;B
shares represented by these ADSs) and 1 Series&nbsp;A share were
outstanding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government holds a majority of the
outstanding series&nbsp;B shares of TELKOM. In addition, the
Government is the holder of the series&nbsp;A Dwiwarna share,
which has special voting rights. See &#147;Item&nbsp;7. Major
Stockholders and Related Party Transactions&nbsp;&#151;
Relationship with the Government&nbsp;&#151; Government as
Shareholder&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government holds a majority of the
outstanding Common Stock of the Company and so retains control
of the Company and has the power to elect all of its Board of
Commissioners and all of its Board of Directors and to determine
the outcome of substantially all actions requiring the approval
of the stockholders. In addition, the Company&#146;s Common
Stock is also owned by Pension Funds, Insurance Funds and other
institutions, owned or controlled, directly or indirectly, by
the Government.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government is also the holder of the
Series&nbsp;A Dwiwarna Share, which has special voting rights.
The material rights and restrictions which are applicable to the
Common Stock are also applicable to the Dwiwarna Share, except
that the Government may not transfer the Dwiwarna Share and it
has a veto with respect to (i)&nbsp;election and removal of
Directors; (ii)&nbsp;election and removal of Commissioners; and
(iii)&nbsp;amendments to the Articles of Association, including
amendments to merge or dissolve the Company prior to the
expiration of its term of existence, increase or decrease its
authorized capital, and reduce its subscribed capital.
Accordingly, the Government will have effective control of these
matters even if it were to beneficially own less than a majority
of the outstanding shares of Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s total number of shares immediately
prior to its Initial Public Offering was 8,400,000,000, which
consisted of 8,399,999,999 series&nbsp;B shares and
1&nbsp;series&nbsp;A Dwiwarna share, all of which were owned by
the Government. On November&nbsp;14, 1995, the Government sold
some of its TELKOM shares through an initial public offering on
the Jakarta Stock Exchange and Surabaya Stock Exchange. The
shares offered consisted of 933,333,000 new series&nbsp;B shares
and 233,334,000 series&nbsp;B shares owned by the Government.
The Government also conducted a global share offering listed on
the New York Stock Exchange and the London Stock Exchange for
700&nbsp;million series&nbsp;B shares owned by
</FONT>

<P align="center"><FONT size="2">134
</FONT>

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<DIV align="left">
<FONT size="2">the State of the Republic of Indonesia, which
were converted into 35&nbsp;million ADSs. Each ADS represents
20&nbsp;series&nbsp;B shares.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 1996, the Government of the Republic
of Indonesia completed a block sale of 388&nbsp;million
series&nbsp;B shares. In 1997, the Government distributed
2,670,300 series&nbsp;B shares as an incentive to stockholders
who did not sell their shares within one&nbsp;year from the date
of the initial public offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 1999, the Government completed another
block sale of 898&nbsp;million series&nbsp;B shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Law No.1/1995 on Limited Liability
Companies, the minimum total par value of TELKOM&#146;s issued
share capital has to be at least 25% of the total par value of
TELKOM&#146;s authorized share capital, or in TELKOM&#146;s
case, Rp.5&nbsp;trillion. To comply with the law, it was
resolved at the annual general meeting of stockholders on
April&nbsp;16, 1999 to increase the issued share capital by way
of capitalization of certain additional paid in capital. The
bonus shares were distributed to the then existing stockholders
in August 1999.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2001, the Government conducted
another block-sale of 1,200&nbsp;million shares (or 11.90% of
the total outstanding series&nbsp;B shares).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In July&nbsp;16, 2002, the Government sold
312&nbsp;million series&nbsp;B shares (3.1% of the Series&nbsp;B
shares) through an accelerated placement of TELKOM&#146;s shares
to institutional investors in Indonesia and globally at Rp.3,635
per share.
</FONT>

<P align="left">
<B><FONT size="2">Relationship with the Government</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government as
Shareholder</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Government held
approximately 51.19% of TELKOM&#146;s Common Stock and the
Series&nbsp;A share (the &#147;Dwiwarna Share&#148;), which
carries special voting rights. As its largest shareholder, the
Government is interested in TELKOM&#146;s performance both in
terms of the benefits it provides to the nation as well as its
ability to operate on a commercial basis. The material rights
and restrictions that are applicable to the Common Stock are
also applicable to the Dwiwarna Share, except that the
Government may not transfer the Dwiwarna Share and as the holder
of the Dwiwarna Share has a veto with respect to (i)&nbsp;the
nomination, election and removal of Directors; (ii)&nbsp;the
nomination, election and removal of Commissioners;
(iii)&nbsp;the issuance of new shares; and (iv)&nbsp;amendments
to the Articles, including actions to merge or dissolve TELKOM,
increase or decrease its authorized capital, or reduce its
subscribed capital. Accordingly, the Government will have
effective control of these matters even if it were to
beneficially own less than a majority of the outstanding shares
of Common Stock. The Government&#146;s rights with respect to
the Dwiwarna Share will not terminate unless the Articles of
Association of the Company are amended, which would require the
consent of the Government as holder of such Dwiwarna Share.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">It is the policy of the Company not to enter into
transactions with affiliates unless the terms thereof are no
less favorable to the Company than those which could be obtained
by the Company on an arm&#146;s-length basis from an
unaffiliated third party. The State Minister of State-owned
Enterprise (&#147;SMSOE&#148;) has advised the Company that the
MoF, in its capacity as controlling shareholder of the Company,
will not cause the Company to enter into transactions with other
entities under its control unless the terms thereof are
consistent with the Company&#146;s policy set forth in the
preceding sentence. The Company anticipates that the SMSOE will
adopt a similar policy.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under regulations of Badan Pengawas Pasar Modal
(&#147;BAPEPAM&#148;), Indonesia&#146;s capital markets
supervisory agency, because the Company is listed on
Indonesia&#146;s stock exchanges, any transaction in which there
is a conflict of interest (as defined below) must be approved by
a majority of the holders of shares of Common Stock who do not
have a conflict of interest in the proposed transaction, unless
the conflict existed before the Company was listed and was fully
disclosed in the offering documents. A conflict of interest is
defined in BAPEPAM regulations to mean the difference between
the economic
</FONT>

<P align="center"><FONT size="2">135
</FONT>

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<DIV align="left">
<FONT size="2">interests of the Company and its stockholders, on
the one hand, and the personal economic interests of the members
of the board of commissioners, board of directors or principal
stockholders (a holder of 20% or more of the issued shares), and
their respective affiliates jointly or separately on the other.
A conflict of interest also exists when members of the board of
commissioners, board of directors or a principal shareholder of
the Company or their respective affiliates is involved in a
transaction in which their personal interests may be in conflict
with the interest of the Company. BAPEPAM has powers to enforce
this rule; stockholders of the Company may also be entitled to
seek enforcement or bring enforcement action based on this rule.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Transactions between TELKOM and other state-owned
or controlled enterprises could constitute &#147;conflict of
interest&#148; transactions under the BAPEPAM regulations, and
the approval of disinterested stockholders would have to be
obtained if a conflict of interest were to exist. TELKOM
believes that many transactions conducted with state-owned or
controlled enterprises in the ordinary course of their
businesses and TELKOM&#146;s business are on an arms-length,
commercial basis and do not constitute &#147;conflict of
interest&#148; transactions for which a disinterested
stockholder vote would be required. Such transactions might
include the sale by TELKOM of telephone services to state-owned
or controlled enterprises or the purchase by TELKOM of
electricity from a state-owned enterprise. Moreover, the BAPEPAM
regulations do not require TELKOM to obtain disinterested
shareholder approval of any transaction, the principal terms of
which were disclosed in the Indonesian prospectus for the
Initial Public Offering. TELKOM expects, however, in light of
the substantial presence enterprises owned or controlled by the
Government, through the MoF, SMSOE, or one of its or their
affiliates have in Indonesia, it may be desirable, in connection
with the development and growth of TELKOM&#146;s business, for
TELKOM to enter into joint ventures, arrangements or
transactions with such enterprises from time to time. Under such
circumstances, TELKOM may seek to consult BAPEPAM in determining
whether the proposed joint venture, arrangement or transaction
would require a vote of disinterested stockholders under the
terms of the BAPEPAM regulations. If BAPEPAM were of the view
that the proposed joint venture, arrangement or transaction
would not require a vote of disinterested stockholders under its
regulations, TELKOM would proceed without seeking disinterested
stockholders approval. If, however, BAPEPAM were to take the
position that the proposal would require a vote of disinterested
stockholders under its rule, TELKOM would either seek to obtain
the requisite disinterested stockholder approval or abandon the
proposal.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government as
Regulator</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government regulates the telecommunications
sector through the MoC. In particular, the MoC has authority to
issue decrees implementing laws, which are typically broad in
scope, thereby giving the Ministry considerable latitude in
implementing and enforcing regulatory policy. Pursuant to such
decrees, the MoC defines the industry structure, determines the
tariff formula, determines TELKOM&#146;s USO obligations and
otherwise controls many factors that may affect TELKOM&#146;s
competitive position, operations and financial condition.
Through the DGPT, the Government regulates frequency and
bandwidth allocation, and TELKOM must obtain a license from the
DGPT for each of its services as well as the utilization of
frequency and bandwidths. The Company and other operators are
also required to pay radio frequency usage fees. Telkomsel also
holds several licenses issued by the MoC for the provision of
its cellular services and from BKPM relating to investment by
Telkomsel for the development of cellular phone line services
with national coverage, including the expansion of its network
coverage. The Government through the MoC, as regulator has the
power to grant new licences for the establishment of new joint
ventures and other arrangements, particularly in the
telecommunications sector.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government as
Lender</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Government has
sub-loaned borrowings from foreign lenders to TELKOM amounting
to Rp.8,570.1&nbsp;billion (US$957.6&nbsp;million). TELKOM is
obligated to pay to the Government interest and principal
repayment that is subsequently remitted by the Government to the
</FONT>

<P align="center"><FONT size="2">136
</FONT>

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<DIV align="left">
<FONT size="2">respective lenders. At the end of December 2002,
foreign currency loans represented 59.1% of the outstanding
total of such loans. The remaining 40.9% of such outstanding
loans is denominated in Rupiah. In 2002, the annual interest
rates charged on loans repayable in Rupiah range from 12.0% to
18.4%, on those repayable in U.S.&nbsp;Dollar range from 3.8% to
8.7% and on those repayable in Japanese Yen range from 2.9% to
3.2%.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government as
Customer</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Government purchases services from the
Company on a commercial basis. Government entities, in the
aggregate, constitute the largest user of the Company&#146;s
services. The Company, however, deals with the various
departments and agencies of the Government as separate
customers, and the provision of services to any single
department or agency does not constitute a material part of
TELKOM&#146;s revenues. The Government and government agencies
are treated for tariff purposes as &#147;residential&#148;.
which rates are lower than the business service rates.
</FONT>

<P align="left">
<B><FONT size="2">Other</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proportion of
securities of TELKOM held in Indonesia and outside
Indonesia</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, 15,678 people,
including the Government, were registered as holders of
10,079,999,640&nbsp;shares of TELKOM&#146;s Common Stock in
Indonesia. There were a total of 36,054,553&nbsp;ADSs held by
175 registered holders as of December&nbsp;31, 2002<B>.</B> Such
ADSs are traded on the NYSE and the&nbsp;LSE.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in
Control</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There are no arrangements which are known to the
Company which may result in a change in control to the Company.
</FONT>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party
transactions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM is a party to certain agreements and
engages in transactions with a number of entities that are
related to the Company, such as joint venture companies,
cooperatives and foundations, as well as the Government and
entities that are related to or owned or controlled by the
Government, such as state-owned entities. See Note&nbsp;48 to
the Company&#146;s consolidated financial statements. The most
significant of these transactions include:
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government of
the Republic of Indonesia</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company obtained &#147;two-step loans&#148;
from the Government of the Republic of Indonesia, the
Company&#146;s majority stockholder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries pay concession
fees for telecommunication services provided and radio frequency
usage charges to the Ministry of Communication (formerly,
Ministry of Tourism, Post and Telecommunication) of the Republic
of Indonesia. Concession fees amounted to Rp.78.5&nbsp;billion,
Rp.63.6&nbsp;billion and Rp.163.9&nbsp;billion in 2000, 2001 and
2002, respectively. Concession fees reflected 1.2%, 0.7% and
1.4% of total operating expenses in 2000, 2001, and 2002,
respectively. Radio frequency usage charges amounted to Rp
16.7&nbsp;billion, Rp 101.3&nbsp;billion and Rp
292.7&nbsp;billion in 2000, 2001 and 2002, respectively. Radio
frequency usage charges reflected 0.3%, 1.1%, and 2.5% of total
operating expenses in 2000, 2001, and 2002, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indosat</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the time TELKOM acquired Pramindo in August
2002, 13% of the issued and paid up share capital of Pramindo
was owned by Indosat, a company that, at that time, was majority
owned and controlled by our major shareholder, the Government of
Indonesia. As such, Indosat is considered as a related party.
</FONT>

<P align="center"><FONT size="2">137
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has an agreement with Indosat for the
provision of international telecommunication services to the
public. The principal matters covered by the agreement are as
follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company provides a local network for
    customers to make or receive international calls. Indosat
    provides the international network for the customers, except for
    certain border towns, as determined by the Director General of
    Post and Telecommunication of the Republic of Indonesia. The
    international telecommunication services include telephone,
    telex, telegram, package switched data network, television,
    teleprinter, Alternate Voice/ Data Telecommunication (AVD),
    hotline and teleconferencing. The Company receives compensation
    for the services, based on the interconnection tariff determined
    by the Minister of Tourism, Post and Telecommunication of the
    Republic of Indonesia.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company has also entered into an
    interconnection agreement between the Company&#146;s PSTN
    network and Indosat&#146;s STBS network in connection with the
    implementation of Indosat Multimedia Mobile services and the
    settlement of the related interconnection rights and obligation.
    Pursuant to the Minister of Communication Decree regarding the
    transfer of license of Indosat&#146;s mobile cellular network
    operation from Indosat to PT&nbsp;Indosat Multimedia Mobile
    (&#147;IM3&#148;), the Company agreed to transfer all
    interconnection rights and obligations to IM3 based on
    Interconnection Cooperation Agreement, as regulated in the
    Amendment of Agreement in the side letter No.&nbsp;656 dated
    March&nbsp;18, 2002.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company&#146;s compensation relating to
    leased lines/ channel services, such as IBS, AVD and bill
    printing is calculated at 15% of Indosat&#146;s revenues from
    such services. Indosat also leases circuits from the Company to
    link Jakarta, Medan and Surabaya.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company has been handling customer billing
    and collection for Indosat. Indosat is gradually taking over the
    activities and performing its own direct billing and collection.
    The Company receives compensation from Indosat computed at 1% of
    the collections made by the Company beginning January&nbsp;1,
    1995, plus the billing process expenses which are fixed at a
    certain amount per record.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel also entered into an agreement with
Indosat for the provision of international telecommunication
services to GSM mobile cellular customers. The principal matters
covered by the agreement are as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Telkomsel&#146;s GSM mobile cellular
    telecommunication network is connected with Indosat&#146;s
    international gateway exchanges to make outgoing or receive
    incoming international calls through Indosat&#146;s
    international gateway exchanges.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Telkomsel receives as compensation for the
    interconnection, a specific percentage of Indosat&#146;s
    revenues from the related services made through Indosat&#146;s
    international gateway exchanges.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Billings for international calls made by
    customers of GSM mobile cellular telecommunication are handled
    by Telkomsel. Telkomsel is obliged to pay Indosat&#146;s share
    of revenue although billings to customers have not been
    collected.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The agreement dated March&nbsp;29, 1996, was
    initially valid for one year, but extendable for one-year
    periods as agreed by both parties. The latest extension expired
    on February&nbsp;28, 2003. Telkomsel is still negotiating a new
    agreement. In the interim, interconnection revenue was charged
    based upon the previous agreement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries earned net
interconnection revenues from Indosat of Rp.93.2&nbsp;billion,
Rp.54.0&nbsp;billion and Rp.274.7&nbsp;billion in 2000, 2001 and
2002, respectively, reflecting 0.8%, 0.3%, and 1.3% of total
operating revenues in 2000, 2001, 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel also has an agreement for the usage of
Indosat&#146;s telecommunication facilities. The agreement,
which was made in 1997, is valid for eleven years, and subject
to change based on an annual review and agreement by both
parties. The charges for the usage of the facilities amounted to
</FONT>

<P align="center"><FONT size="2">138
</FONT>

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<DIV align="left">
<FONT size="2">Rp.11.8&nbsp;billion, Rp.13.4&nbsp;billion and
Rp.12.7&nbsp;billion in 2000, 2001 and 2002, respectively,
reflecting 0.2%, 0.2%, and 0.1% of total operating expenses in
2000, 2001, and 2002, respectively.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other agreement between Telkomsel and Indosat are
as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Agreement on Construction and Maintenance for the
    Jakarta-Surabaya Cable System (&#147;J-S Cable System&#148;)
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel, Lintasarta, Satelindo and Indosat
entered into the Construction and Maintenance for J-S&nbsp;Cable
System Agreement. The parties formed a management committee
consisting of a chief and a representative of the respective
parties, to direct the development and operation of the cable
system that was completed in 1998. Based on the agreement,
Telkomsel shared 19.325% of total construction cost. Telkomsel
shares the total cost of operation and maintenance based on the
agreed formula.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel&#146;s share of the cost of operation
and maintenance amounted to Rp.0.9&nbsp;billion,
Rp.1.4&nbsp;billion and Rp.0.9&nbsp;billion in 2000, 2001 and
2002, respectively.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indefeasible
Right of Use Agreement</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;21, 2000, Telkomsel entered
into an agreement with Indosat for the use of SEA&nbsp;&#151;
ME&nbsp;&#151; WE 3 and tail link in Jakarta and Medan. Based on
the agreement, Telkomsel was granted an irrevocable right to use
a certain capacity of the network commencing from
September&nbsp;21, 2000 to 2015 by prepaying compensation
amounting to US$2,727,273. Beside the aforementioned prepayment,
Telkomsel is also charged annual operation and maintenance costs
amounting to US$136,364.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><FONT size="2">Interconnection Agreement</FONT></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;1, 2001, Telkomsel entered into
an interconnection agreement with Indosat (on behalf of IM3, a
subsidiary of Indosat). Based on this agreement,
Telkomsel&#146;s GSM cellular mobile network is connected to
IM3&#146;s network, and through this arrangement,
Telkomsel&#146;s customers can make or receive calls from or to
IM3&#146;s customers.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Supply and installation of interconnection tools
    needed is Telkomsel&#146;s responsibility.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The agreement is effective upon the signing date
    and extendable for a period agreed by both parties.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the amendment upon the above agreement,
since December&nbsp;14, 2001, Telkomsel&#146;s customers are
able to send and receive short message services from IM3&#146;s
customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries earned net
interconnection revenue from IM3 of Rp.50.9&nbsp;billion in 2002
and Rp.156.9&nbsp;million in 2001.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Satelindo</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has an agreement with Satelindo, a
subsidiary of Indosat, whereby both parties agreed, among other
matters, on the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Interconnection of the Company&#146;s PSTN with
    Satelindo&#146;s international gateway exchange, enabling the
    Company&#146;s customers to make outgoing or receive incoming
    international calls through Satelindo&#146;s international
    gateway exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Billings for the international telecommunication
    services used by domestic customers through Satelindo&#146;s
    international gateway exchange will be handled by the Company.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also has an agreement with Satelindo
for the interconnection of Satelindo&#146;s GSM mobile cellular
telecommunication network with the Company&#146;s PSTN, enabling
the Company&#146;s customers to make outgoing calls to or
receive incoming calls from Satelindo&#146;s customers.
</FONT>

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</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel also has an agreement with Satelindo
for interconnection on substantially the same terms as TELKOM.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection revenues earned from Satelindo
were Rp.227.2&nbsp;billion, Rp.293.7&nbsp;billion and
Rp.625.1&nbsp;billion in 2000, 2001 and 2002, respectively,
reflecting 1.9%, 1.8%, and 3.0% of total operating revenue for
2000, 2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company leases international circuits from
Satelindo. Payments made in relation to the lease amounted to
Rp.19.6&nbsp;billion, Rp.28.1&nbsp;billion and
Rp.32.9&nbsp;billion in 2000, 2001 and 2002, respectively, which
was 0.3%, 0.3%, and 0.3% of total operating expenses for 2000,
2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on an agreement entered into among the
Company, PT&nbsp;Bimagraha Telekomindo and Indosat in 1993, at
the time of Satelindo&#146;s establishment, the Company agreed
to transfer to Satelindo, its so-called B2P, B2R and B4 Palapa
satellites and other assets relating to the Company&#146;s
satellite control station located in Jakarta. These transfers
are to be covered in a separate agreement between Satelindo and
the Company. The separate agreement regarding the transfers of
these satellites and other assets has not been made. However,
the useful life of the B2P and B2R Palapa satellite had expired.
In November 2000, the Company entered into an agreement with a
third party, in which the Company agreed to sell the expired B2R
Satellite, or to lease the satellite to such third party if the
sale is not consummated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1994, the Company transferred to Satelindo the
right to use a parcel of Company-owned land located in Jakarta
that had been previously leased to Telekomindo, an associated
company. Based on the transfer agreement, Satelindo is given the
right to use the land for 30&nbsp;years and can apply for the
right to build properties thereon. The ownership of the land is
retained by the Company. Satelindo agreed to pay
Rp.43.0&nbsp;billion to the Company for the thirty-year right.
Satelindo paid Rp.17.2&nbsp;billion in 1995 and the remaining
Rp.25.8&nbsp;billion has not been paid because the Utilization
Right (&#147;Hak Pengelolaan Lahan&#148;) on the land could not
be delivered as provided in the transfer agreement. In 2000, the
Company and Satelindo agreed on an alternative solution by
accounting for the above payment as lease expense up to 2006. In
2001, Satelindo paid the remaining amount as lease expense up to
2024.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agreement
with Government agencies and associated companies</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has entered into agreements with
Government agencies and associated companies, Lintasarta, CSM
and Patrakom, for utilization of the Company&#146;s Palapa B4
and Telkom 1 satellite transponders or frequency channels.
Revenues earned from these transactions amounted to
Rp.86.3&nbsp;billion, Rp.89.5&nbsp;billion and
Rp.44.1&nbsp;billion in 2000, 2001 and 2002, respectively, which
was 0.7%, 0.5%, and 0.2% of total operating revenues in 2000,
2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides leased lines to CSM,
Lintasarta, Satelindo, Komselindo, Mobisel, Metrosel and PSN.
The leased lines can be used by these companies for telephone,
telegraph, data, telex, facsimile or other telecommunication
services. Revenue earned from these transactions amounted to
Rp.17.5&nbsp;billion, Rp.19.8&nbsp;billion and
Rp.75.7&nbsp;billion in 2000, 2001 and 2002, respectively, which
was 0.1%, 0.1%, and 0.4% of total operating revenues in 2000,
2001, and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides a data communication network
system for Lintasarta, an Indosat subsidiary, and operates a
telemetry tracking and command station for PSN. Revenues earned
by the Company from these transactions amounted to
Rp.16.4&nbsp;billion and Rp.28.0&nbsp;billion in 2000 and 2001,
respectively which was, 0.1% and 0.2% of total operating
revenues in 2000 and 2001. There was no revenue earned from
these transactions in 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company purchases property and equipment
including construction and installation services from a number
of related parties. These related parties include
PT&nbsp;Industri Telekomunikasi Indonesia
(&#147;PT&nbsp;Inti&#148;), Lembaga Elektronika Nasional,
PT&nbsp;Adhi Karya, PT&nbsp;Pembangunan Perumahan,
PT&nbsp;Nindya Karya, PT&nbsp;Boma Bisma Indra, PT&nbsp;Wijaya
Karya, PT&nbsp;Waskita Karya which are all state-owned
companies, PT&nbsp;Gratika, Telekomindo, Bangtelindo, Telesera
which are associated companies and Koperasi Pegawai
Telekomunikasi, a related party cooperative. Purchases made from
these related
</FONT>

<P align="center"><FONT size="2">140
</FONT>

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<DIV align="left">
<FONT size="2">parties amounted to Rp.104.7&nbsp;billion,
Rp.100.5&nbsp;billion and Rp.154.8&nbsp;billion in 2000, 2001
and 2002, respectively, reflecting 3.3%, 2.4% and 2.1% of total
fixed assets purchases in 2000, 2001, and 2002, respectively.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PT&nbsp;Inti was a major contractor and supplier
providing equipment, including construction and installation
services for Telkomsel. Total purchases from PT&nbsp;Inti in
2000, 2001 and 2002 amounted to Rp.405.3&nbsp;billion,
Rp.663.6&nbsp;billion and Rp.34.7&nbsp;billion, respectively,
reflecting 12.8%, 15.7%, and 0.5% of total fixed assets
purchases in 2000, 2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries carry insurance
(on their property, plant and equipment against property losses,
inventory and on employees&#146; social security) obtained from
PT&nbsp;Asuransi Jasa Indonesia, PT&nbsp;Asuransi Tenaga Kerja
and PT&nbsp;Persero Asuransi Jiwasraya, which are state-owned
insurance companies. Insurance premiums amounted to
Rp.109.8&nbsp;billion, Rp.83.9&nbsp;billion and
Rp.131.4&nbsp;billion in 2000, 2001 and 2002, respectively,
reflecting 1.7%, 0.9%, and 1.1% of total operating expenses in
2000, 2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries maintain current
accounts and time deposits in several state-owned banks. In
addition, some of those banks are appointed as collecting agents
for the Company. As of December&nbsp;31, 2001, the Company also
had an investment in mutual funds managed by Danareksa, a
state-owned company. Total placements in the form of current
accounts and time deposits in state-owned banks and mutual funds
amounted to Rp.3,779.9&nbsp;billion and Rp.6,161.2&nbsp;billion
as of December&nbsp;31, 2001 and 2002, respectively, which was
11.4% and 13.9% of total assets as of December&nbsp;31, 2001 and
2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company leases buildings, purchases materials
and construction services, and utilizes maintenance and cleaning
services from Dana Pensiun Telkom and PT&nbsp;Sandhy Putra
Makmur, a subsidiary of Yayasan Sandikara Putra Telkom (a
foundation managed by Dharma Wanita Telkom). Total charges from
these transactions amounted to Rp.35.1&nbsp;billion,
Rp18.7&nbsp;billion and Rp.14.6&nbsp;billion in 2000, 2001 and
2002, respectively, which was 0.5%, 0.2%, and 0.1% of total
operating expenses in 2000, 2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company purchased encoded phone cards from
Perusahaan Umum Percetakan Uang Republik Indonesia, a
state-owned company. Expenses arising from this transaction
amounted to Rp.2.2&nbsp;billion, Rp.1.8&nbsp;billion and
Rp.1.4&nbsp;billion in 2000, 2001 and 2002, respectively, which
was 0.03%, 0.02%, and 0.01% of total operating expenses for
2000, 2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1991, the Company granted loans to Koperasi
Telekomunikasi (&#147;Koptel&#148;) amounting to
Rp.1&nbsp;billion to support Koptel&#146;s activities in
providing housing loans to the Company&#146;s employees. The
balance of the loans amounted to Rp.0.3&nbsp;billion, as of
December&nbsp;31, 2000, Rp.0.2&nbsp;billion as of
December&nbsp;31, 2001 and Rp.0.1&nbsp;billion as of December
2002, which is immaterial to the Company&#146;s total assets as
of December&nbsp;31, 2001 and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries earned
interconnection revenues from Komselindo, Metrosel, Mobisel,
BBT, PSN and Patrakom, which are associated companies, totaling
Rp.671.6&nbsp;billion, Rp.345.3&nbsp;billion and
Rp.78.0&nbsp;billion in 2000, 2001 and 2002, respectively, which
was 5.5%, 2.1%, and 0.4% of total operating revenues in 2000,
2001, and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to revenues earned under the KSO
Agreement, the Company also earned income from building rental,
repairs and maintenance services, and training services provided
to the KSO Units, amounting to Rp.95.2&nbsp;billion,
Rp.114.2&nbsp;billion and Rp.73.7&nbsp;billion in 2000, 2001 and
2002, respectively, which was 0.8%, 0.7%, and 0.4% of total
operating revenues in 2000, 2001, and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides a defined benefit pension
plan and a postretirement health care plan for its pensioners
through Dana Pensiun Telkom and Yayasan Kesehatan Pegawai
Telkom. See Notes&nbsp;45 and 47 to the consolidated financial
statements in item&nbsp;18.
</FONT>

<P align="center"><FONT size="2">141
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has also seconded a number of its
employees to related parties to assist them in operating their
business. In addition, the Company provides certain of its
related parties with the right to use its buildings free of
charge.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">C.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Interest of experts and counsel</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 8. FINANCIAL INFORMATION" -->
<DIV align="left"><A NAME="012"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;8.</FONT></B></TD>
    <TD>
    <B><FONT size="2">FINANCIAL INFORMATION</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Consolidated statements and other financial
    information</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See Consolidated to &#147;Item&nbsp;18.
Consolidated Financial Statements&#148; incorporated herein by
reference.
</FONT>

<P align="left">
<B><FONT size="2">Material Litigation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;31, 2003, TELKOM entered into a
settlement agreement with AriaWest pursuant to which Telkom and
AriaWest irrevocably settled, discharged and released claims and
counterclaims in their ICC arbitration proceeding for an
aggregate consideration of the payment by TELKOM of
US$58.67&nbsp;million in cash (US$20&nbsp;million of which was
paid when the purchase agreement was signed on May&nbsp;8, 2002
and the remaining US$38.67&nbsp;million was paid at the closing
date on July&nbsp;31, 2003) and US$109.1&nbsp;million in
promissory notes. The promissory notes, which are interest-free,
are payable in 10 equal semi-annual installments. At the same
time, in consideration of the release of AriaWest&#146;s
outstanding obligations to its lenders, TELKOM also repaid
approximately US$99.07&nbsp;million of AriaWest&#146;s debt (on
behalf of AriaWest) and entered into a new loan agreement for
approximately US$196.97&nbsp;million with AriaWest&#146;s
lenders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The ICC arbitration proceeding which was settled
as of July&nbsp;31, 2003 involved claims by AriaWest that TELKOM
was in material breach of provisions of the KSO Agreement.
AriaWest sought at least US$&nbsp;1.3 billion in damages in the
arbitration, although it did not specify the amount of damages
associated with most of its claims. TELKOM objected to the
ICC&#146;s jurisdiction over AriaWest&#146;s claims relating to
the alleged loss of AriaWest&#146;s exclusive rights and tariff
adjustment and, wholly apart from its jurisdictional objections,
TELKOM denied all of AriaWest&#146;s claims. TELKOM also
asserted claims against AriaWest for material breaches of the
KSO Agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Apart from the above, TELKOM is not a party to
any other litigation or legal proceedings which it believes
would, individually or taken as a whole, have a material adverse
effect on its business, financial condition and results of
operations.
</FONT>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant
changes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See the important disclosures made at the
beginning of this amended annual report under the heading
&#147;Explanatory Note&#148; and at the beginning of
Item&nbsp;3.D.&nbsp;&#151; Risk Factors for information
regarding TELKOM&#146;s failure to file this Annual Report on
Form&nbsp;20-F with the SEC by the June&nbsp;30, 2003 deadline
and the possible consequences of such failure to file and
TELKOM&#146;s public statements regarding such failure.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At TELKOM&#146;s May&nbsp;9, 2003 annual general
meeting of stockholders, a dividend of approximately
Rp.3,338,110&nbsp;million, or Rp.331.16 per share, was declared
for 2002 and was paid on June&nbsp;12, 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Also, see Note&nbsp;56 to the Company&#146;s
consolidated financial statements in Item&nbsp;18 for
information relating to material subsequent events occurring
after December&nbsp;31, 2002.
</FONT>

<P align="center"><FONT size="2">142
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link2 "ITEM 9. THE OFFER AND LISTING" -->
<DIV align="left"><A NAME="013"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;9.</FONT></B></TD>
    <TD>
    <B><FONT size="2">THE OFFER AND LISTING</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Offer and listing details</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The table below sets forth, for the periods
indicated, the reported high and low quoted prices for the
currently outstanding Common Stock on the JSX.
</FONT>

<P align="center">
<B><FONT size="2">SHARE PRICE INFORMATION</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="79%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Price per Share</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Calendar Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">High</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Low</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(in Rupiah)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">1998</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,629</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">1999</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,629</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,407</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2000</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,025</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,025</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2001</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,825</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,175</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2002</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,825</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,700</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2003</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,225</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">July
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,375</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">September
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">October
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">November
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,850</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;27, 2002 (at last trading in
JSX), the closing price for a share of Common Stock was
Rp.3,850. On December&nbsp;30, 2003, (at last trading in JSX),
the closing price for a share of Common Stock was Rp.6,750.
</FONT>

<P align="center"><FONT size="2">143
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The table below sets forth, for the periods
indicated, the reported high and low quoted prices of the ADSs
on the NYSE and LSE.
</FONT>

<P align="center">
<B><FONT size="2">ADS PRICE INFORMATION</FONT></B>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="61%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Price per ADS</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Price per ADS</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(NYSE)</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(LSE)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Calendar Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">High</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Low</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">High</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Low</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(in US Dollar)</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">(in US Dollar)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">1998</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.78</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.77</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">1999</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2000</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2001</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2002</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.77</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.56</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.82</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">October
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">November
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2003</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">First Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.53</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Second Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.09</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.78</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fourth Quarter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">July
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.65</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">August
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.85</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.95</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">September
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.37</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">October
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">November
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.40</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">December
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;31, 2002, the closing price for
an ADS was US$8.49 on the NYSE and US$&nbsp;8.6 on the LSE. On
December&nbsp;31, 2003, the closing price for an ADS was
US$&nbsp;16.14 on the NYSE and US$&nbsp;16.05 on the LSE.
</FONT>

<P align="left">
<B><FONT size="2">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan of
distribution</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<P align="center"><FONT size="2">144
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B><FONT size="2">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Markets</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM&#146;s Common Stock is listed on the
Jakarta Stock Exchange (&#147;JSX&#148;) and the Surabaya Stock
Exchange (&#147;SSX&#148;). The JSX is the principal
non-U.S.&nbsp;trading market for the Company&#146;s Common
Stock. In addition, American Depositary Shares
(&#147;ADSs&#148;), each representing twenty shares of Common
Stock, are listed on the New York Stock Exchange
(&#147;NYSE&#148;) and the London Stock Exchange
(&#147;LSE&#148;). TELKOM&#146;s Common Stock has also been
publicly offered without listing in Japan.
</FONT>

<P align="left">
<B><FONT size="2">The Indonesian Securities Market</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Currently there are two stock exchanges in
Indonesia. The primary market is the JSX located in Jakarta and
the other is the SSX located in Surabaya, East Java. The JSX is
the larger and more prominent of the two exchanges, with an
aggregate equity market capitalization of Rp.268.4&nbsp;trillion
at year end 2002 as compared to Rp.229.2&nbsp;million for the
SSX. Total trading value on the JSX during 2002 was Rp.120.7
trillion, compared with Rp.11.1&nbsp;trillion on the SSX.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Overview of the JSX</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There are currently two daily trading sessions
from Monday to Thursday, 9:30&nbsp;a.m. to 12:00 noon, and
1:30&nbsp;p.m. to 4:00&nbsp;p.m. There are two trading sessions
on Friday, from 9:30&nbsp;a.m. to 11:30&nbsp;a.m. and from
2:00&nbsp;p.m. to 4:00&nbsp;p.m.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Trading is divided into three market segments:
regular market, negotiation market, and cash market. The regular
market is the mechanism for trading stock in standard lots on a
continuous auction market during exchange hours. With respect to
the trading of stock, the round lots consist of 500&nbsp;shares
for non banking and of 5000&nbsp;shares for banking sectors. The
price movements and the limits for such movements in one trading
session are determined in accordance with the market price of
the respective traded shares. For shares with the market price
of less than Rp.500 the movement is in the multiple of Rp.5 and
each price movement is limited to Rp.50. For shares with market
prices ranging from Rp.500 to Rp.5,000 movements are in
multiples of Rp.25 and each price movement is limited to Rp.250.
For shares with a market price of Rp.5,000 or more movements are
in multiples of Rp.50 with a maximum of Rp.500 for each price
movement. Auctioning takes place according to price priority and
time priority. Price priority gives priority to buying orders at
a higher price or selling orders at a lower price. If buying or
selling orders are placed at the same price, priority is given
to the buying or selling order placed first (time priority).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The negotiation market trading consists of
(i)&nbsp;block trading, i.e. lots of 200,000 shares or more;
(ii)&nbsp;odd lot trading with round lots of less than 500
shares or less than 5000 shares for banking companies;
(iii)&nbsp;crossing by an exchange member receiving buying and
selling orders for the same number of shares at the same price;
and (iv)&nbsp;foreign board trading in stocks where foreign
ownership has reached 49% of listed shares. Odd lots may not be
traded more than 5% above or below the latest price on the
regular market. Odd lot dealers may set prices within a range of
not more than 7% above or below the regular market price, and
must buy or sell stock directly to and from customers in
crossing without charging commission. In the case of newly
listed or newly traded shares which have yet to establish a
market price, the price referred to is the initial public
offering price.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Transactions on the JSX regular market and
negotiation market are required to be settled no later than the
fourth trading day after the transactions. In case of a default
by an exchange member on settlement upon the due date, the
Indonesian Clearing and Guarantee Corporation, PT&nbsp;Kliring
Penjaminan Efek Indonesia (&#147;KPEI&#148;) may perform the
obligations or rights of such a defaulting exchange member, by,
for example, buying and/or selling shares in the cash market in
order to settle the defaulted transaction. Any such action by
KPEI does not eliminate the liabilities of the defaulting party
which effected the transaction. All cash market transactions
must be reported to the JSX. An exchange member defaulting in
settlement is liable to a fine of 0.25% for the first day and
thereafter a fine of 0.5% of the transaction value payable to
his counterpart in the transaction, and shall also be
</FONT>

<P align="center"><FONT size="2">145
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">issued with a warning. Delay in payment of the
fine is also liable to a penalty equal to 1% of the fine for
each calendar day of delay.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The JSX board of directors may cancel a
transaction if proof exists of fraud, manipulation or the use of
insider information. The JSX board of directors may also suspend
trading if there are indications of bogus transactions or
jacking up of share prices, misleading information, use of
insider information, counterfeit securities or securities
blocked from trading, upon the occurrence of other important
events that may affect investment decisions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Exchange members may charge a fee for their
services based on an agreement with the clients up to a maximum
of 1% of the transaction value. When conducting stock
transactions on the JSX, exchange members are required to pay a
transaction fee equal to the cumulative transaction value for
each month based on 0.04% (subject to a minimum fee of
Rp.250,000) of transaction for stocks and other registered
securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Stockholders or their appointees may request the
issuer or a Securities Administration Bureau appointed by the
issuer at any time during working hours to register their shares
in the issuer&#146;s Registry of Stockholders.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Trading on the NYSE and LSE</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Bank of New York serves as depositary (the
&#147;Depositary&#148;) with respect to the ADSs traded on the
NYSE and the LSE. Each ADS represents twenty shares of Common
Stock. As of December&nbsp;31, 2002, 36,054,553 ADSs were
outstanding in the United States and there were 175 registered
voters of ADSs.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">D.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Selling Stockholders</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">E.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Dilution</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">F.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Expenses of the issue</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 10. ADDITIONAL INFORMATION" -->
<DIV align="left"><A NAME="014"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;10.</FONT></B></TD>
    <TD>
    <B><FONT size="2">ADDITIONAL INFORMATION</FONT></B></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Share capital</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">B.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Memorandum and Articles of
    Association</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s articles of association
(&#147;Articles&#148;) have been registered with the Ministry of
Justice in accordance with the Limited Liability Company Law
No.&nbsp;1 Year 1995 (&#147;Indonesian Company Law&#148;) and
was announced by Ministerial Decree number
C2-7468.HT.01.04.TH.97 year 1997. According to article&nbsp;3,
the objectives and purposes of the Company are to operate
telecommunications networks and provide telecommunications and
information services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with Indonesian company law, TELKOM
has a Board of Commissioners and a Board of Directors. The two
Boards are separate and no individual may be a member of both
Boards. See &#147;Item&nbsp;6A. Directors, Senior Management and
Employees&nbsp;&#151; Directors and Senior Management&#148;. The
Articles states that any transaction involving a conflict of
interest between the Company and its directors, commissioners
and stockholders should be approved by a stockholders meeting,
in which approval is required from a majority of independent
stockholders.
</FONT>

<P align="center"><FONT size="2">146
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each director also receives an annual bonus and
other incentives if TELKOM surpasses certain financial and
operating targets, the amounts of which are determined by the
stockholders at the general meeting of stockholders. Bonuses and
incentives are budgeted annually and are based on the
recommendation of the Board of Directors which recommendation
must be approved by the Board of Commissioners before submission
to the stockholders. Each commissioner is granted a monthly
honorarium and certain other allowances and is paid an annual
bonus if TELKOM surpasses certain financial operating targets,
the amounts of which are determined by the stockholders at the
general meeting of stockholders. Each commissioner also receives
a lump sum bonus paid at the end of the commissioner&#146;s term
pursuant to a letter of the Ministry of Finance which applies to
all state-owned companies. No fees are paid to the Commissioners
or Directors for attendance at their respective board meetings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Board of Directors are tasked with the
responsibility of leading and managing the Company in accordance
with its objectives and purposes and to control, preserve and
manage the assets of the Company. Within such broad scope of
responsibility, the Board of Directors are authorized to cause
the Company to borrow such sums as it may require from time to
time subject to the limitations set forth in the Articles. The
borrowing powers of the Board of Directors may only be varied
through an amendment to the Articles.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Articles do not contain any requirement for
(i)&nbsp;the directors to retire by a specified age, or
(ii)&nbsp;the directors to own any or a specified number of
shares of the Company. The rights, preferences and restrictions
attaching to each class of the shares of the Company in respect
of specified matters are set forth below:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">dividend rights.
    </FONT></I><FONT size="2">Dividends are to be paid based upon
    the financial condition of TELKOM and in accordance with the
    resolution of the stockholders in general meeting, which will
    also determine the form of and time for payment of the dividend;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">voting rights. </FONT></I><FONT size="2">The
    holder of each voting share is entitled to one vote at a general
    meeting of stockholders;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">rights to share in the Company&#146;s
    profits.</FONT></I><FONT size="2"> See dividend rights;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">rights to share in any surplus in the event of
    liquidation.</FONT></I><FONT size="2"> Stockholders are entitled
    to surplus in the event of liquidation in accordance with their
    proportion of shareholding, provided the nominal value of the
    Common Stock that they hold is fully paid-up;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">redemption
    provisions.</FONT></I><FONT size="2"> There are no stock
    redemption provisions in the Articles. However, based on
    Article&nbsp;30 of Indonesian Company Law, TELKOM may buy back
    at the maximum 10% of its issued shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">reserved fund
    provisions.</FONT></I><FONT size="2"> Retained earnings up to a
    minimum of 20% of the issued capital of the Company is to be set
    aside to cover potential losses suffered by the Company. If the
    amount in the reserved fund exceeds 20% of the issued capital of
    the Company, general meeting of stockholders may authorize the
    Company to utilize such excess funds as dividends.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">liability to further capital
    calls.</FONT></I><FONT size="2"> Stockholders of the Company may
    be asked to subscribe for new shares in the Company from time to
    time. Such right is to be offered to stockholders prior to being
    offered to third parties and may be transferred at the option of
    the shareholder. The Board of Directors of the Company is
    authorized to offer the new shares to third parties in the event
    that the existing shareholder is unable or unwilling to
    subscribe for such new shares.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <I><FONT size="2">provisions discriminating against any existing
    or prospective holder of such securities as a result of such
    shareholder owning a substantial number of
    shares.</FONT></I><FONT size="2"> The Articles do not contain
    any such provision.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to change the rights of holders of
stock, an amendment to the relevant provisions of the Articles
would be required. Any amendment to the Articles requires the
approval of the holder of the
</FONT>

<P align="center"><FONT size="2">147
</FONT>

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<DIV align="left">
<FONT size="2">Series&nbsp;A Dwiwarna share and two thirds of
the holders of the Series&nbsp;B shares present at a general
meeting. Such meeting must also be attended by the holder of the
Series&nbsp;A Dwiwarna share.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">General meetings of stockholders may only be
convened upon the issue of the requisite notice by the Company.
The notice is to be published in at least 2 newspapers having
general circulation within Indonesia, one of which must be in
Indonesian and the other in English. The notice period for
convening annual general meetings and extraordinary general
meetings is 21&nbsp;days (not including the date the meeting was
called and the date of the meeting) and 14&nbsp;days (not
including the date the meeting was called and the date of the
meeting) respectively. The quorum for general meetings is
stockholders representing at least 50% of the outstanding share
capital of the Company. In the event that quorum is not
achieved, another meeting is to be held, which meeting does not
require the issue of a notice. At the second meeting, the quorum
for the meeting is stockholders representing one third of the
outstanding share capital of the Company. In the event that
quorum is not achieved at the second meeting, a third meeting
may be held, the quorum for which shall be determined by the
Head of the District Court that has a judicial jurisdiction over
TELKOM. Stockholders may vote by proxy. All resolutions are to
be passed by consensus. If consensus cannot be reached,
resolutions are passed by simple majority, unless a larger
majority is required by the Articles.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Articles do not contain any limitations on
the right of any person, to own shares of the Company.
Indonesian capital market regulations do not contain any
limitation on the right of any person, whether local or foreign,
to own shares in a company listed on an Indonesian stock
exchange.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any takeover of the Company is required to be
approved by the holder of the Series&nbsp;A Dwiwarna share and a
majority constituting 75% of the holders of the Series&nbsp;B
shares at a general meeting of stockholders that must be
attended by the holder of the Series&nbsp;A Dwiwarna share.
There are no other provisions in the Articles that would have
the effect of delaying, deferring or preventing a change in
control of the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each director and commissioner has an obligation
to report to BAPEPAM with regard to their ownership and the
changes of their ownership in the Company and this obligation
also applies to the stockholders which have an ownership of 5%
or more in the paid up capital of the Company. TELKOM believes
that the Articles are not significantly different from those
generally prevailing in Indonesia in respect of public companies
listed on an Indonesian stock exchange. TELKOM also believes
that the provisions in the Articles relating to changes in the
capital of TELKOM are not more stringent than that required by
Indonesian law.
</FONT>

<P align="left">
<B><FONT size="2">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material
contracts</FONT></B>

<P align="left">
<B><FONT size="2">Transfer of DCS 1800 License to
Telkomsel</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to 2002, TELKOM had been working on the
construction of a DCS 1800 network and the setting up of a DCS
1800 mobile cellular business through its TELKOMMobile Unit and
had been granted 15 MHz of radio frequency bandwidth in the 1800
MHz band. On April&nbsp;3, 2002, TELKOM and Telkomsel entered
into an agreement for the sale and purchase of TELKOM&#146;s
assets relating to the TELKOMMobile Unit. Under the agreement,
TELKOM, for a consideration of approximately
Rp.135.5&nbsp;billion (i)&nbsp;transfer to Telkomsel specified
assets of TELKOM relating to the business of the TELKOMMobile
Unit; (ii)&nbsp;transfers its TELKOMMobile Unit employees to
Telkomsel; and (iii)&nbsp;transfers or novates to Telkomsel
TELKOM&#146;s rights and obligations under certain TELKOMMobile
Assets and Contracts. In connection with such transaction the
MoC has approved the reissuance and transfer of DCS 1800 license
from TELKOM to Telkomsel on July&nbsp;12, 2002.
</FONT>

<P align="left">
<B><FONT size="2">Acquisition of AriaWest</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;31, 2003, TELKOM acquired 100% of
the shares of its KSO partner for Regional Division III,
PT&nbsp;AriaWest International (&#147;AriaWest&#148;) and
entered into a settlement agreement pursuant to which Telkom and
AriaWest irrevocably settled, discharged and released claims and
counterclaims in their
</FONT>

<P align="center"><FONT size="2">148
</FONT>

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<DIV align="left">
<FONT size="2">ICC arbitration proceeding for an aggregate
consideration of US$58.67&nbsp;million in cash
(US$20&nbsp;million of which was paid when the purchase
agreement was signed on May&nbsp;8, 2002 and the remaining
US$38.67&nbsp;million was paid at the closing date on
July&nbsp;31, 2003) and US$109.1&nbsp;million in promissory
notes. The promissory notes, which are interest-free, are
payable in 10 equal semi-annual installments. At the same time,
in consideration of the release of AriaWest&#146;s outstanding
obligations to its lenders, TELKOM also repaid approximately
US$99.07&nbsp;million of AriaWest&#146;s debt (on behalf of
AriaWest) and entered into a new loan agreement for
approximately US$196.97&nbsp;million with AriaWest&#146;s
lenders.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Sale of Shares in Telkomsel</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;30, 2002, TELKOM sold a 12.72%
shareholding in Telkomsel to Singapore Telecom Mobile Pte, Ltd
(&#147;SingTel Mobile&#148;), a wholly-owned subsidiary of
SingTel, for US$429&nbsp;million in cash pursuant to a Sale and
Purchase Agreement dated April&nbsp;3, 2002. As a result of this
transaction, TELKOM reduced its ownership in Telkomsel to 65%,
while SingTel Mobile increased its ownership to 35%.
</FONT>

<P align="left">
<B><FONT size="2">Acquisition of Pramindo</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to a Conditional Sale and Purchase
Agreement dated August&nbsp;15, 2002, TELKOM acquired 100% of
its KSO partner in Regional Division&nbsp;I, PT&nbsp;Pramindo
Ikat Nusantara (&#147;Pramindo&#148;), and obtained management
control over Pramindo. Concurrently with the execution of the
agreement, TELKOM acquired a 30% interest in Pramindo. In
September 2003, TELKOM acquired a further 15% of the shares of
Pramindo. TELKOM is expected to acquire the remaining 55% of the
shares of Pramindo by December 2004. The total purchase price
for 100% of Pramindo was US$384.4&nbsp;million. Of this amount,
US$95.4&nbsp;million was paid in August and September 2002,
while the remaining is payable in ten unequal quarterly
instalments from September 2002 through December 2004. Under the
agreement, TELKOM also agreed to repay loans to the
International Finance Corporation amounting to
US$86.176&nbsp;million. Under Indonesian GAAP, TELKOM is
required to consolidate Pramindo as TELKOM has full control over
Pramindo.
</FONT>

<P align="left">
<B><FONT size="2">Interconnection Agreement with
Indosat</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;3, 2002, TELKOM signed an
Interconnection Agreement with Indosat. This agreement provides
for the interconnection of TELKOM&#146;s fixed-line network with
the local fixed-line network to be established by Indosat. The
Interconnection Agreement only regulates local fixed wireline in
Jakarta and Surabaya area.
</FONT>

<P align="left">
<B><FONT size="2">Contract with Orbital Sciences
Corporation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On October&nbsp;24, 2002, TELKOM signed a
contract with Orbital Sciences Corporation, a U.S.&nbsp;company
which develops and manufactures affordable space systems for
commercial, civil government and military customers, to develop
the TELKOM-2 satellite at a fixed cost of US$73&nbsp;million
which is expected to be fully paid by TELKOM in January 2005.
The TELKOM-2 satellite is a geosynchronous communication
satellite which will be manufactured based on Orbital&#146;s
state-of-the-art STAR-2 platform. TELKOM-2 will replace
TELKOM&#146;s existing Palapa&nbsp;B-4 satellite, the
operational life of which expires in late 2004. The TELKOM-2
satellite will have a capacity of 24&nbsp;standard C-band
transponders with transponder specifications similar to those of
the TELKOM-1 satellite. The TELKOM-2 satellite will be designed
for 15&nbsp;years of in-orbit life. TELKOM expects that the
satellite will support its national as well as regional
communications network for voice, video and data communications.
The satellite will be launched into geo-synchronous orbit 22,300
miles above the earth, and it will be operated in geostationary
orbit position located at 118&nbsp;degrees east longitude.
</FONT>

<P align="center"><FONT size="2">149
</FONT>

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<P align="left">
<B><FONT size="2">Contract with Arianespace</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;8, 2002 TELKOM signed a
US$62.9&nbsp;million fixed price contract with Arianespace S.A.
for the launch of the TELKOM-2 satellite using an Ariane-5
launch vehicle with double launch. The schedule of payments is
as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$&nbsp;27.5 million will be paid on
    January&nbsp;13, 2004;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$&nbsp;9 million will be paid on March&nbsp;1,
    2004;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$&nbsp;20 million will be paid on April&nbsp;1,
    2004; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">US$&nbsp;6.38 million will be paid on
    September&nbsp;1, 2004.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Master of Procurement Partnership Agreement
(MPPA) with Consortium led by Samsung</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;23, 2002, TELKOM signed a Master
of Procurement Partnership Agreement (&#147;MPPA&#148;) with a
consortium led by Samsung Corporation. PT&nbsp;Samsung
Telecommunication Indonesia became a member of the consortium
pursuant to an amendment dated December&nbsp;31, 2002 to this
agreement. The MPPA provides planning, manufacturing, delivery,
and construction of 1.6&nbsp;million lines, as well as service
level agreement. Under the MPPA, work related to network
deployment shall be carried out and completed within
42&nbsp;months (six months after end of fiscal year 2005). The
MPPA between TELKOM and Samsung consists of construction of
1,652,300 lines of NSS for nationwide and 802,000 lines of BSS
for Regional Division&nbsp;IV, V, VI and VII for US$&nbsp;116
per line for BSS and US$&nbsp;34 per line for NSS. This project
has been financed in part by The Export-Import Bank of Korea
pursuant to a Loan Agreement dated August&nbsp;27, 2003 for
approximately US$124&nbsp;million. This loan is repayable in ten
semi-annual instalments.
</FONT>

<P align="left">
<B><FONT size="2">Master of Procurement Partnership Agreement
(MPPA) with Ericsson CDMA Consortium</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM and Ericsson CDMA Consortium have entered
into a Master of Procurement Partnership Agreement
(&#147;MPPA&#148;) on December&nbsp;23, 2002. This MPPA is also
intended to provide planning, manufacturing, delivery, and
construction of 1.6&nbsp;million lines as well as service level
agreement. Under the MPPA, the work related to network
deployment should be carried out and completed within
42&nbsp;months (six&nbsp;months after end of fiscal year 2005).
MPPA between TELKOM and Ericsson consists of construction of
631,800 lines of BSS for US$116 per line.
</FONT>

<P align="left">
<B><FONT size="2">Master of Procurement Partnership Agreement
(MPPA) with PT&nbsp;INTI</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM and PT&nbsp;INTI signed a Master of
Procurement Partnership Agreement on August&nbsp;26, 2003
whereby PT&nbsp;INTI is appointed to construct a CDMA fixed
wireless access network and integrate such network with
TELKOM&#146;s existing network and all ancillary services
relating thereto in West Java and Banten. Under the terms of
this Agreement, PT&nbsp;INTI must deliver the CDMA 2000 IX
system within thirty-four months of August&nbsp;26, 2003 and
will be paid a total of US$22.9&nbsp;million and
Rp.61.5&nbsp;billion. PT&nbsp;INTI will service and maintain the
CDMA 2000 IX&nbsp;system pursuant to a Service Level Agreement
dated the same date in return for an annual consideration
of&nbsp;US$2,305,866.
</FONT>

<P align="left">
<B><FONT size="2">Partnership Agreement with Siemens
Consortium</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM entered into a Partnership Agreement with
a consortium led by Siemens AG on September&nbsp;24, 2003 for
the development, procurement and construction of a backbone
transmission network in Kalimantan and Sulawesi, a related
network management system and the provision of maintenance
services in connection with this network. Other members of the
consortium include PT&nbsp;Siemens Indonesia, PT&nbsp;LEN
Industri and Corning Cable System Gmbh &#38; Co. The
consideration payable by TELKOM for the fiber optic networks are
US$3,776,269 plus Rp.74,020,633,646 (for the network located
within Kalimantan) and US$3,815,295 plus Rp.70,732,644,265 (for
the network located within Sulawesi).
</FONT>

<P align="center"><FONT size="2">150
</FONT>

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<P align="left">
<B><FONT size="2">PSTN Regional Junction in Jakarta
Area</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;8, 2002, TELKOM signed an
agreement with Olex-Lucent-Brimbun, a contract value of
US$28.8&nbsp;million and Rp.102.8&nbsp;billion, for the award of
the PSTN Regional Junction Regional Division&nbsp;II Work, which
encompasses of SDH Transmission System, Optical Fibre, NMS and
other services. Subsequently, the agreement was amended several
times. The latest amendment was on June&nbsp;26, 2003 with the
total cost of services and equipment becoming
US$26.0&nbsp;million and Rp.11.0&nbsp;billion, respectively.
</FONT>

<P align="left">
<B><FONT size="2">Master of Procurement Partnership Agreement
(MPPA) with Motorola</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;24, 2003, TELKOM has signed a
Master of Procurement Partnership Agreement (&#147;MPPA&#148;)
with Motorola, Inc. Under the MPPA, Motorola shall be obligated
to undertake and be jointly responsible for the demand forecast
and solely responsible for the survey, design, development,
manufacture, delivery, supply, installation, integration and
commissioning of the network, including all project management,
training and other related services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MPPA between TELKOM and Motorola consists of
225,500 lines of BSS (radio system) for Regional Division&nbsp;I
Sumatera for US$116 per line (conversion rate US$1: Rp.10,173)
for a total of approximately US$3.6&nbsp;million. The agreed
unit price does not include service level agreement, training
for technical staff and documentation. The NSS system will use
nationwide Samsung&#146;s NSS as already contracted on
December&nbsp;23, 2002. The period of agreement is
42&nbsp;months until approximately mid of 2006, as well as
Samsung and Ericsson period.
</FONT>

<P align="left">
<B><FONT size="2">Metro Junction and Optical Network Access
Agreement for Regional Division III with PT&nbsp;INTI</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;12, 2003, TELKOM entered into an
agreement with PT&nbsp;INTI for the construction and procurement
of an optical network, as well as a network management system
and other related services and equipment, with respect to
Regional Division&nbsp;III (West Java). Under this agreement,
TELKOM is obligated to pay PT&nbsp;INTI a total consideration of
US$6.48&nbsp;million and Rp.112.4&nbsp;billion.
</FONT>

<P align="left">
<B><FONT size="2">Agreement for the Procurement of Softswitch
System Class&nbsp;4 with a consortium led by
Santera-Olex</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;18, 2003, TELKOM entered into an
agreement with a consortium led by Santera-Olex for the
construction and procurement of a softswitch system
(class&nbsp;4) and the improvement of switching capacity in the
existing switching system in Jakarta, Bandung and Surabaya.
Pursuant to the terms of this agreement, TELKOM will pay
US$4,050,500 and Rp.2,457.2&nbsp;billion.
</FONT>

<P align="left">
<B><FONT size="2">Partnership Agreement for the Construction and
Provision of High Performance Backbone in Sumatera</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;30, 2001, TELKOM signed a
partnership agreement with a consortium consisting of
PT&nbsp;Pirelli Cables Indonesia and PT&nbsp;Siemens Indonesia
for the construction and provision of a high performance
backbone network in Sumatera. The agreement became effective as
of June&nbsp;10, 2002. The scope of work includes the provision
of an optical fiber cable, together with transmission equipment
and network management systems. TELKOM is obligated to pay
US$46.3&nbsp;million and Rp.172.7&nbsp;billion (together with
value-added tax thereon) as consideration. On June&nbsp;12,
2003, the parties agreed to amend this agreement to reflect
additional work being carried out by the consortium in
consideration for an additional US$2.8&nbsp;million and
Rp.1,699.1&nbsp;million payable by TELKOM to the consortium.
</FONT>

<P align="left">
<B><FONT size="2">Partnership Agreement for the Development of a
PSTN Regional Junction for Regional Division V (East
Java)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;5, 2001, TELKOM entered into a
partnership agreement with a consortium consisting of NEC
Corporation and PT&nbsp;Nasio Karya Pratama for the development
of a high quality PSTN
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">Regional Junction for Regional Division V (East
Java). The scope of work includes the development of a SDH
transmission system, as well as the provision of ancillary fiber
optic and other related equipment. TELKOM is obligated to pay
Japanese Yen 3,670.9&nbsp;million and Rp.125.5&nbsp;billion
(which is inclusive of value-added tax). The parties agreed to
add another partner to the consortium, PT&nbsp;Communication
Cable System Indonesia, on September&nbsp;22, 2002. In addition,
the parties agreed to increase the consideration payable by
TELKOM by an additional Japanese Yen 1,384.7&nbsp;billion and
Rp.207.9&nbsp;billion (inclusive of value-added tax) pursuant to
an amendment in December 2002.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Supply Contract for
Thailand-Indonesia-Singapore (TIS) Cable Network</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;11, 2002, TELKOM entered into a
supply contract with NEC Corporation, the Communication
Authority of Thailand (the &#147;CAT&#148;) and Singapore
Telecommunications Limited (&#147;SingTel&#148;) whereby NEC
Corporation has agreed to construct a submarine fiber optic
network linking Thailand, Indonesia and Singapore. Under the
terms of this agreement, TELKOM, SingTel and the CAT will
contribute equally to a payment of US$32.68&nbsp;million
(inclusive of value-added tax).
</FONT>

<P align="left">
<B><FONT size="2">Cross-ownership Transactions with
Indosat</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;3, 2001, TELKOM and Indosat signed
Conditional Sale and Purchase Agreements providing for
TELKOM&#146;s acquisition of Indosat&#146;s 35% interest in
Telkomsel for US$945&nbsp;million (&#147;Telkomsel
Transaction&#148;) and Indosat&#146;s acquisition of
(i)&nbsp;TELKOM&#146;s 22.5% interest in Satelindo for
US$186&nbsp;million (&#147;Satelindo Transaction&#148;),
(ii)&nbsp;TELKOM&#146;s 37.66% interest in Lintasarta for
US$38&nbsp;million (&#147;Lintasarta Transaction&#148;),
convertible bonds of Rp.4,051&nbsp;million issued by Lintasarta,
and (iii)&nbsp;the KSO IV Assets for US$375&nbsp;million
(&#147;KSO IV Transaction&#148;). The Telkomsel and Lintasarta
Transactions were consummated on May&nbsp;16, 2001 while the
Satelindo Transaction was consummated on July&nbsp;23, 2001. On
February&nbsp;1, 2002, TELKOM and Indosat announced the
cancellation of the KSO IV Transaction as certain conditions
precedent to the transaction&#146;s closing were not satisfied.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As at December&nbsp;31, 2002, TELKOM&#146;s
obligations to Indosat for the Telkomsel, Satelindo and
Lintasarta Transactions amounted to Rp.2,406&nbsp;billion has
been settled.
</FONT>

<P align="left">
<B><FONT size="2">Acquisition of Dayamitra</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On May&nbsp;17, 2001, TELKOM acquired 90.32% of
the issued and fully paid shares of Dayamitra, the KSO VI
Investor, for US$134.2&nbsp;million (including consultant&#146;s
fee of US$3.3&nbsp;million), and also purchased a call option
and granted a put option with respect to the remaining 9.68%
partner shares of Dayamitra. An initial payment of
US$18.3&nbsp;million was paid on the closing date of the
transaction on May&nbsp;17, 2001, US$8.9&nbsp;million was paid
on August&nbsp;10, 2001 as an adjustment to the purchase price
based on Dayamitra&#146;s adjusted working capital, and the
balance of US$103.6&nbsp;million was and is to be paid through
an escrow account in eight quarterly installments of
US$13.0&nbsp;million each between August&nbsp;17, 2001 to
May&nbsp;17, 2003.
</FONT>

<P align="left">
<B><FONT size="2">PT&nbsp;Mitra Global Telekomunikasi
Indonesia</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;20, 2004, TELKOM and
PT&nbsp;Mitra Global Telekomunikasi Indonesia (&#147;MGTI&#148;)
entered into an agreement to amend and restate the KSO Agreement
with respect to Regional Division&nbsp;IV. Under this amendment
agreement, for the remaining KSO period, TELKOM will be entitled
at its sole discretion and expense to construct new
telecommunication facilities in Regional Division&nbsp;IV and
MGTI will receive fixed monthly payments derived from revenues
generated by the Regional Division&nbsp;IV operations.
</FONT>

<P align="left">
<B><FONT size="2">Indemnity given to KAP Hans Tuanakotta &#38;
Mustofa</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM has entered into an indemnity agreement
with KAP Hans Tuanakotta &#38; Mustofa, the member firm of
Deloitte Touche Tohmatsu in Indonesia (&#147;Deloitte&#148;),
whereby TELKOM has agreed to indemnify Deloitte against
reasonable legal costs incurred in successfully defending any
legal proceed-
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">ings brought against Deloitte on the basis of the
inclusion of the audited 2000 and 2001 financial statements in
this restated Form&nbsp;20-F, provided however that the
indemnity will be void and inoperative if a court, after
adjudication, determines that Deloitte is liable for
professional malpractice. If this situation were to arise,
Deloitte has agreed to immediately reimburse TELKOM for all
amounts paid by TELKOM under this indemnity.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange
controls</FONT></B>

<P align="left">
<B><FONT size="2">Foreign Equity Ownership
Restrictions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to September 1997, foreign investors were
only permitted to purchase up to 49% of shares offered in a
public offering and up to 49% of the publicly listed shares of
any Indonesian listed company regardless of the nature of their
activities. On September&nbsp;4, 1997, such restrictions were
removed for most Indonesian companies, including TELKOM.
</FONT>

<P align="left">
<B><FONT size="2">Foreign Exchange</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Foreign exchange controls were abolished in 1971
and Indonesia now maintains a liberal foreign exchange system
that permits the free flow of foreign exchange. Capital
transactions, including remittances of capital, profits,
dividends and interest, are free of exchange controls. A number
of regulations, however, have an impact on the exchange system.
Only banks are authorized to deal in foreign exchange, for
example, can execute exchange transactions related to the import
and export of goods. In addition, Indonesian banks (including
branches of foreign banks in Indonesia) are required to report
to Bank Indonesia (the Indonesian Central Bank) any fund
transfers exceeding US$&nbsp;10,000. As a state-owned company,
TELKOM, based on the decree of the Head of Foreign Commercial
Loan Coordinating Team (&#147;PKLN&#148;), is required to obtain
an approval from PKLN prior to acquiring foreign commercial
loans and must submit periodical reports to PKLN during the term
of the loans.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Bank Indonesia holds the authority to issue
Rupiah currency and has responsibility for maintaining the
stability of the Rupiah. Prior to August&nbsp;14, 1997, Bank
Indonesia maintained stability of the Rupiah through a trading
band policy, pursuant to which Bank Indonesia would enter the
foreign currency market and buy or sell Rupiah, as required,
when trading in the Rupiah exceeded bid and offer prices
announced by Bank Indonesia on a daily basis. On August&nbsp;14,
1997 Bank Indonesia terminated the trading band policy,
effectively free floating the Rupiah against other currencies.
Since that date, the Rupiah has depreciated significantly
against world currencies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the past 25&nbsp;years, the value of the
Rupiah has been devalued three times against the
U.S.&nbsp;Dollar. These downward adjustments occurred in
November 1978, when the exchange rate was realigned from Rp.415
to Rp.623 to the U.S.&nbsp;Dollar; in March 1983, when the rate
went from Rp.703 to Rp.970 to the U.S.&nbsp;Dollar; and in
September 1986, when the rate fell from Rp.1,134 to Rp.1,644 to
the U.S.&nbsp;Dollar. Between the time of the 1986 devaluation
and August&nbsp;14, 1997 the value of the Rupiah has gradually
adjusted downward in value against the U.S.&nbsp;Dollar by about
4% annually. Since the free floating regime was implemented in
August 1997, the Rupiah fluctuation has been significant. During
2002, the average rate of Rupiah to the U.S.&nbsp;Dollar was
Rp.9,316 the highest and lowest rates being Rp.10,473 and
Rp.8,460 respectively.
</FONT>

<P align="left">
<B><FONT size="2">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">THE FOLLOWING SUMMARY OF INDONESIAN, AND UNITED
STATES FEDERAL INCOME TAX MATTERS CONTAINS A DESCRIPTION OF THE
PRINCIPAL INDONESIAN AND U.S.&nbsp;FEDERAL TAX CONSEQUENCES OF
THE PURCHASE, OWNERSHIP AND DISPOSITION OF ADSS OR SHARES OF
COMMON STOCK. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS ABOUT
THE INDONESIAN AND UNITED STATES FEDERAL, STATE AND LOCAL TAX
CONSEQUENCES TO THEM OF THE PURCHASE, OWNERSHIP AND DISPOSITION
OF ADSs OR SHARES OF COMMON STOCK.
</FONT>

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</FONT>

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<P align="left">
<B><FONT size="2">Indonesian Taxation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a summary of the principal
Indonesian tax consequences of the ownership and disposition of
Common Stock or ADSs to a non-resident individual or
non-resident entity that holds Common Stock or ADSs
(a&nbsp;&#147;Non-Indonesian Holder&#148;). As used in the
preceding sentence, a &#147;non-resident individual&#148; is a
foreign national individual who is not physically present in
Indonesia for 183&nbsp;days or more during any twelve month
period or present for any period with the intent to reside in
Indonesia, during which period such non-resident individual
receives income in respect of the ownership or disposition of
Common Stock or ADSs, and a &#147;non-resident entity&#148; is a
corporation or a non-corporate body that is established,
domiciled or organized under the laws of a jurisdiction other
than Indonesia and does not have a fixed place of business or
otherwise conducts business or carries out activities through a
permanent establishment in Indonesia during an Indonesian tax
year in which such non-Indonesian entity receives income in
respect of the ownership or disposition of Common Stock or ADSs.
In determining the residency of an individual or entity,
consideration will be given to the provisions of any applicable
double taxation treaty to which Indonesia is a party.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Dividends</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dividends declared by the Company out of retained
earnings and distributed to a Non-Indonesian Holder in respect
of Common Stock or ADSs are subject to Indonesian withholding
tax, currently at the rate of 20%, on the amount of the
distribution (in the case of cash dividends) or on the
stockholders&#146; proportional share of the value of the
distribution. A lower rate provided under double taxation
treaties may be applicable provided the recipient is the
beneficial owner of the dividend and has provided to the Company
(with a copy to the Indonesian Office of Tax Services where the
Company is registered) a Certificate of Tax Residence issued by
the competent authority, or its designee, of the jurisdiction
where the Non-Indonesian Holder is domiciled (the
&#147;Certificate of Residence&#148;). Indonesia has concluded
double taxation treaties with a number of countries, including
Australia, Belgium, Canada, France, Germany, Japan, Malaysia,
Mauritius, The Netherlands, Singapore, Sweden, Switzerland, the
United Kingdom and the United States of America. Under the
U.S.-Indonesia double taxation treaty, the withholding tax on
dividends is generally, in the absence of a 25% voting interest,
reduced to 15%.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Capital Gains</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sale or transfer of Common Stock through an
Indonesian stock exchange is subject to a final withholding tax
at the rate of 0.1% of the value of the transaction. The broker
executing the transaction is obligated to withhold such tax. The
holding of founder shares or the sale or transfer of founder
shares through an Indonesian stock exchange may, under current
Indonesian tax regulations, be subject to additional 0.5% final
income tax.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the promulgation of implementing
regulations (which have not yet been issued to date), the
estimated net income received or accrued from the sale of
movable assets in Indonesia, which may include Common Stock not
listed on an Indonesian stock exchange or ADSs, by a
Non-Indonesian holder (with the exception of the sale of assets
under Article&nbsp;4 paragraph&nbsp;(2) of the Indonesian income
tax law) may be subject to Indonesian withholding tax at the
rate of 20%. In 1999, the Ministry of Finance issued a Decision
that stipulates the estimated net income for the sale of shares
in a non-public company to be 25% of the sale price, resulting
in an effective withholding tax rate of 5% of the sales price.
This is a final withholding tax and the obligation to pay lies
with the buyer (if it is an Indonesian taxpayer) or the Company
(if the buyer is a non-resident taxpayer). Exemption from
withholding tax on income from the sale of shares in a
non-public company may be available to non-resident sellers of
shares depending on the provisions of the relevant double
taxation treaties. In order to benefit from the exemption under
the relevant double taxation treaty, the non-resident seller
must provide the Certificate of Tax Residence to the buyer or
the Company and to the Indonesian Tax Office that has
jurisdiction over the buyer or the Company (if the buyer is a
non-resident taxpayer).
</FONT>

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</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In cases where a purchaser or Indonesian broker
will be required under Indonesian tax laws to withhold tax on
payment of the purchase price for Common Stock or ADSs, that
payment may be exempt from Indonesian withholding or other
Indonesian income tax under applicable double taxation treaties
to which Indonesia is a party (including the U.S.-Indonesia
double taxation treaty). However, except for the sale or
transfer of shares in a non-public company, the current
Indonesian tax regulations do not provide specific procedures
for removing the purchaser&#146;s or Indonesian broker&#146;s
obligation to withhold tax from the proceeds of such sale. To
take advantage of the double taxation treaty relief,
Non-Indonesian Holders may have to seek a refund from the
Indonesian Tax Office by making a specific application
accompanied by a Certificate of Residence issued by the
competent tax authority, or its designee; of the jurisdiction in
which the Non-Indonesian Holder is domiciled.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Stamp Duty</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any documents that are prepared in the
transactions in common stock in Indonesia, which documents will
be used as evidence in Indonesia, are subject to stamp duty of
Rp.6,000. Generally, the stamp duty is due at the time the
document is executed.
</FONT>

<P align="left">
<B><FONT size="2">United States Federal Income
Taxation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a general description of the
principal United States federal income tax consequences to a
U.S.&nbsp;Holder, as defined below, of the purchase, ownership
and disposition of the ADSs or shares of Common Stock. This
description is for general information purposes only and is
based on the United States Internal Revenue Code of 1986, as
amended (the &#147;Code&#148;), Treasury regulations promulgated
thereunder, and judicial and administrative interpretations
thereof, all as in effect on the date hereof and all of which
are subject to change, possibly retroactively. The tax treatment
of a holder of ADSs or shares of Common Stock may vary depending
upon his particular situation. Certain holders (including, but
not limited to, insurance companies, tax-exempt organizations,
financial institutions, persons subject to the alternative
minimum tax, broker-dealers, partnerships, persons that have a
&#147;functional currency&#148; other than the U.S.&nbsp;Dollar
and persons owning, directly or indirectly, 10% or more of the
voting shares of the Company) may be subject to special rules
not discussed below. Except as indicated, the following summary
is limited to U.S.&nbsp;Holders, as defined below, who will hold
the ADSs or shares of Common Stock as &#147;capital assets&#148;
within the meaning of Section&nbsp;1221 of the Code and not as
part of a &#147;hedge,&#148; &#147;straddle&#148; or
&#147;conversion transaction&#148; within the meaning of
Sections&nbsp;1221, 1092 and 1258 of the Code and the
regulations thereunder. The discussion below does not address
the effect of any state or local tax law on a holder of the ADSs
or shares of Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As used herein, the term
&#147;U.S.&nbsp;Holder&#148; means a holder of ADSs or shares of
Common Stock who is (i)&nbsp;a citizen or resident of the United
States for United States federal income tax purposes,
(ii)&nbsp;a corporation, a partnership or other entity created
or organized under the laws of the United States or any
Political Subdivision thereof, (iii)&nbsp;an estate the income
of which is subject to United States federal income tax without
regard to its source or (iv)&nbsp;a trust if a court within the
United States is able to exercise primary supervision over the
administration of the trust and one or more United States
persons have the authority to control all substantial decisions
of the trust.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a partnership (including any entity treated as
a partnership for United States federal income tax purposes)
holds ADSs or shares of Common Stock, the tax treatment of a
partner in such partnership will depend upon the status of the
partner and the activities of the partnership. Partners in such
a partnership should consult their tax advisors as to the
particular United States federal income tax consequences
applicable to them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of ADSs evidencing Common Stock will be
treated as the owners of the Common Stock represented by those
ADSs. Accordingly, no gain or loss will be recognized upon the
exchange of ADSs for the holder&#146;s proportionate interest in
the shares of Common Stock, a holder&#146;s tax basis in the
withdrawn shares of Common Stock will be the same as his tax
basis in the ADSs surrendered
</FONT>

<P align="center"><FONT size="2">155
</FONT>

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<DIV align="left">
<FONT size="2">therefore, and the holding period in the
withdrawn shares of Common Stock will include the period during
which the holder held the surrendered ADSs.
</FONT>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Taxation of Dividends</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The gross amount of a distribution with respect
to ADSs or shares of Common Stock, without reduction for
Indonesian taxes withheld, will be treated as a dividend subject
to tax as ordinary income on the date of receipt by the
Depositary or the holder of such shares, respectively, to the
extent of the Company&#146;s current and accumulated earnings
and profits as determined for U.S.&nbsp;federal income tax
purposes. Distributions, if any, in excess of such current and
accumulated earnings and profits will constitute a return of
capital and will be applied against and reduce such
holder&#146;s tax basis in such ADSs or shares of Common Stock.
To the extent that such distributions are in excess of such
basis, the distributions will constitute capital gain as
discussed below. U.S.&nbsp;corporate holders will generally not
be eligible for the dividends received deduction otherwise
allowed under Section&nbsp;243 of the Code for distributions to
domestic corporations in respect of distributions on ADSs or
shares of Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A pro rata stock dividend by the Company will not
be considered a taxable dividend.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a distribution is paid with respect to ADSs or
shares of Common Stock in Rupiah, the amount of the distribution
will generally equal the U.S.&nbsp;Dollar value of the Rupiah
distribution, including the amount of any Indonesian tax
withheld, calculated by reference to the exchange rate in effect
on the date the distribution is actually or constructively
received by the Depositary or the holder of such shares of
Common Stock, respectively, regardless of whether the payment is
in fact converted into U.S.&nbsp;Dollars on that date. Any
subsequent gain or loss in respect of such Rupiah arising from
exchange rate fluctuations will be ordinary income or loss. This
gain or loss will generally be treated as United States source
income for United States foreign tax credit limitation purposes.
If the Depositary converts the Rupiah to U.S.&nbsp;Dollar on the
date it receives such Rupiah, United States Holders will not
recognize any such gain or loss.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the limitations and conditions set
forth in the Code, U.S.&nbsp;Holders may elect to claim a credit
against their United States federal income tax liability for
Indonesian tax withheld from dividends received in respect of
the ADSs or shares of Common Stock. Under the Code, the
limitation on foreign taxes eligible for credit is calculated
separately with respect to specific classes of income. For this
purpose, dividends will generally constitute
non-U.S.&nbsp;source &#147;passive income&#148; or
&#147;financial services income.&#148; In certain circumstances,
a U.S.&nbsp;Holder may be denied foreign tax credits for foreign
taxes imposed on a dividend if the U.S.&nbsp;Holder (i)&nbsp;has
not held the ADSs or shares of Common Stock for at least
16&nbsp;days in the 30-day period beginning 15&nbsp;days before
the ex-dividend date, or (ii)&nbsp;is obligated to make related
payments with respect to positions in substantially similar or
related property. The rules relating to the determination of the
foreign tax credit are complex and prospective purchasers should
consult their personal tax advisors to determine whether and to
what extent they would be entitled to such credit.
U.S.&nbsp;Holders that do not elect or are not permitted to
claim foreign tax credits may instead claim a deduction for
Indonesian tax withheld.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Taxation of Capital Gains</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sale or other disposition of ADSs or shares
of Common Stock (or preemptive rights with respect to such ADSs
or shares) by a U.S.&nbsp;Holder will generally result in the
recognition of U.S.&nbsp;source gain or loss in an amount equal
to the difference between the amount realized on the sale or
other disposition and the holder&#146;s adjusted basis in such
ADSs or shares. This will result in a long-term or short-term
capital gain or loss, depending on whether the ADSs or shares of
Common Stock have been held for more than one year. Long-term
capital gain of a non-corporate holder is currently subject to a
maximum tax rate of 15% in respect of property with a holding
period of more than one year. The deductibility of a capital
loss is subject to limitations. Any gain will be
U.S.&nbsp;source for foreign tax credit purposes. Any loss will
generally be allocated against U.S.&nbsp;source income.
</FONT>

<P align="center"><FONT size="2">156
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Passive
Foreign Investment Company Status</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Special adverse United States federal income tax
rules apply to holders of equity interests in a corporation
classified as a passive foreign investment company
(&#147;PFIC&#148;) under the Code. A foreign corporation will
constitute a PFIC for United States federal income tax purposes
if 75% or more of its gross income for a taxable year consists
of passive income (generally, interest, dividends, rents,
royalties and net gain from the disposition of assets that give
rise to such income) or 50% or more of its average assets held
during a taxable year consists of passive assets. Passive assets
are defined as assets that give rise, or that reasonably could
give rise during the reasonably foreseeable future, to passive
income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the Company&#146;s existing and
anticipated future operations, the Company believes that it is
not, and anticipates that it will not become in the foreseeable
future, a PFIC. If the Company is not operated in the manner
currently anticipated, however, the Company may be considered a
PFIC for the current or for a subsequent year depending upon the
composition of the Company&#146;s income or assets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the Company is or becomes a PFIC, any gain
upon sale or other disposition or any &#147;excess
distribution&#148; realized by a U.S.&nbsp;Holder with respect
to its ADSs or shares of Common Stock would be allocated ratably
over the entire period during which the U.S.&nbsp;Holder held
such ADSs or shares of Common Stock and would be subject to the
highest ordinary income tax rate for each taxable year (other
than the current year of the U.S.&nbsp;Holder) in which the
items were treated as having been earned, regardless of the rate
otherwise applicable to the U.S.&nbsp;Holder. Such
U.S.&nbsp;Holder would also be liable for an additional tax
equal to an interest charge on the tax liability attributable to
income that is treated as allocated to prior years as if such
liability had actually been due in each such prior year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In general, an &#147;excess distribution&#148; is
any distribution with respect to the Company&#146;s ADSs or
shares of Common Stock to the extent it exceeds 125% of the
average annual distributions with respect to such ADSs or shares
of Common Stock received by the U.S.&nbsp;Holder over the prior
three years or, if shorter, the U.S.&nbsp;Holder&#146;s holding
period for the ADSs or shares of Common Stock.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the Company is classified as a PFIC, it may be
possible to avoid the adverse tax consequences associated
therewith but only if (i)&nbsp;the U.S.&nbsp;Holder elects to
annually mark-to-market the ADSs or shares of Common Stock and
recognize ordinary gain or loss therefrom, or (ii)&nbsp;assuming
certain conditions are met (which is not likely to be the case
with respect to the Company), the U.S.&nbsp;Holder elects to
include in income annually its share of the ordinary earnings
and capital gain of the Company. Should the Company ever be
classified as a PFIC, U.S.&nbsp;Holders are advised to consult
their tax advisors concerning the United States federal income
tax consequences of holding ADSs or shares of Common Stock and
of making the mark-to-market election. A U.S.&nbsp;Holder who
owns ADSs or shares of Common Stock during any year that the
Company is a PFIC must file with the IRS Form&nbsp;8621.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States
Federal Income Taxation of Non-U.S.&nbsp;Holders</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except for the possible imposition of United
States backup withholding tax (see &#147;United States Backup
Withholding and Information Reporting&#148; below), payments of
any dividend on an ADS or share of Common Stock to a holder who
is not a U.S.&nbsp;Holder (a &#147;non-U.S.&nbsp;Holder&#148;)
will not be subject to United States federal income tax, and
gain from the sale, redemption or other disposition of an ADS or
share of Common Stock will not be subject to United States
federal income tax, provided that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(a)</FONT></TD>
    <TD align="left">
    <FONT size="2">such income items are not effectively connected
    with the conduct by the non-U.S.&nbsp;Holder of a trade or
    business within the United States (or, if a treaty applies, such
    non-U.S.&nbsp;Holder has no permanent establishment in the
    United States to which such income items are attributable);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(b)</FONT></TD>
    <TD align="left">
    <FONT size="2">there is no present or former connection between
    such non-U.S.&nbsp;Holder and the United States, including,
    without limitation, such non-U.S.&nbsp;Holder&#146;s status as a
    citizen or former citizen thereof or resident or former resident
    thereof; and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">157
</FONT>

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<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(c)</FONT></TD>
    <TD align="left">
    <FONT size="2">in the case of a gain from the sale, redemption
    or other disposition of an ADS or share of Common Stock by an
    individual, the non-U.S.&nbsp;Holder is not present in the
    United States for 183&nbsp;days or more in the taxable year of
    the sale or certain other conditions are met.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a non-U.S.&nbsp;Holder is engaged in a trade
or business in the United States and dividend or gain with
respect to an ADS or share of Common Stock of such
non-U.S.&nbsp;Holder is effectively connected with the conduct
of such trade or business (and, where a treaty applies, the
non-U.S.&nbsp;Holder has a United States permanent establishment
to which such dividend, gain or income is attributable), the
non-U.S.&nbsp;Holder may be subject to United States income
taxes on such dividend, gain or income at the statutory rates
provided for United States Holders after deduction of deductible
expenses allocable to such effectively connected dividend, gain
or income. In addition, if such a non-U.S.&nbsp;Holder is a
foreign corporation, it may be subject to a branch profits tax
equal to 30% of its effectively connected earnings and profits
for the taxable year, as adjusted for certain items, unless a
lower rate applies under a United States income tax treaty with
the non-U.S.&nbsp;Holder&#146;s country of residence. For this
purpose, dividends, gain or income in respect of an ADS or share
of Common Stock will be included in earnings and profits subject
to the branch profits tax if the dividend, gain or income is
effectively connected with the conduct of the United States
trade or business of the non-U.S.&nbsp;Holder.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">United States Backup Withholding and
    Information Reporting</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Payments made by a United States paying agent or
other United States intermediary in respect of the ADSs or
shares of Common Stock may be subject to information reporting
to the IRS and a backup withholding tax. Backup withholding will
not apply, however, (i)&nbsp;to a holder who furnishes a correct
taxpayer identification number and makes any other required
certification, or (ii)&nbsp;to a holder who is otherwise exempt
from backup withholding. Generally, a U.S.&nbsp;Holder will
provide such certification on IRS Form&nbsp;W-9 (Request for
Taxpayer Identification Number and Certification) and a
non-U.S.&nbsp;Holder will provide such certification on IRS
Form&nbsp;W-8 BEN(Certificate of Foreign Status) or IRS
Form&nbsp;W-8ECI (if applicable).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any amounts withheld under the backup withholding
rules from a payment to a holder will be allowed as a refund or
a credit against such holder&#146;s United States federal income
tax, provided that the holder has complied with applicable
reporting obligations.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">F.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Dividends and paying agents</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">G.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Statement by experts</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">H.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Documents on display</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TELKOM files reports, including annual reports on
Form&nbsp;20-F, and other information with the SEC pursuant to
the rules and regulations of the SEC that apply to foreign
private issuers. You may read and copy any materials filed with
the SEC at the Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C.&nbsp;20459. You may obtain information on the
operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. Subject to some exceptions, TELKOM is required
to file its periodic reports electronically through the
SEC&#146;s EDGAR system. Any filings TELKOM makes electronically
will be available to the public over the Internet at the
SEC&#146;s Website at <I>http://www.sec.gov</I>.
</FONT>

<P align="center"><FONT size="2">158
</FONT>

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<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">I.</FONT></B></TD>
    <TD>
    <B><FONT size="2">Subsidiary Information</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK" -->
<DIV align="left"><A NAME="015"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;11.</FONT></B></TD>
    <TD>
    <B><FONT size="2">QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT
    MARKET RISK</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosure
About Market Risk</FONT></B>

<P align="left">
<B><FONT size="2">General</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is exposed to market risks primarily
from changes in foreign currency exchange rates, changes in
interest rates and equity price risk on the value of its
long-term investments. The Company does not generally hedge its
long-term foreign currency liabilities as it believes that the
expenses associated with fully hedging such liabilities are not
justified. Instead the Company hedged its obligations for the
current year. As of December&nbsp;31, 2002 foreign currency time
deposits provided approximately 88% coverage against foreign
currency denominated current liabilities. The Company&#146;s
exposure to interest rate risk is managed through maintaining a
mix of fixed and variable rate liabilities and assets, including
short term fixed rate assets, rates for which are reset
periodically. The Company&#146;s exposure to such market risks
fluctuated significantly during 2000, 2001 and 2002 as the
Indonesian economy has been affected by a significant
fluctuation of the Rupiah and interest rates. The Company is not
able to predict whether such conditions will continue during the
remainder of 2003 or thereafter.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest Rate
Risk</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s exposure to interest rate
fluctuations results primarily from floating rate long-term debt
pursuant to loans under the Government on-lending program which
have been used to finance the Company&#146;s capital
expenditures which bears interest at rates based on the average
for the preceding six&nbsp;months for three&nbsp;month
certificates issued by Bank Indonesia plus&nbsp;1%, and from
floating rate long-term debts of the Company&#146;s consolidated
subsidiary, Dayamitra, which bear interests at LIBOR plus a
certain margin of 4%&nbsp;per annum. See Notes&nbsp;24
and&nbsp;26 to the Company&#146;s consolidated financial
statements. To the extent interest rates in Indonesia fluctuate
significantly, as they did from 13.95% in early 2002 to
approximately 10.95% in early 2003, the Company&#146;s interest
obligations under its long-term debt could increase.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The table below provides information about the
Company&#146;s material financial instruments, some of which are
sensitive to changes in interest rates. For debt obligations and
time deposits, the table presents principal cash flows and
related weighted average interest rates by expected maturity
dates. The information is presented in Rupiah equivalents, which
is the Company&#146;s reporting currency. The instrument&#146;s
actual cash flows are denominated in Rupiah, U.S.&nbsp;Dollar,
Netherlands Guilder, French Franc, Deutsche Mark, and Japanese
Yen, as appropriate and as indicated in the table. The
information presented in the table has been determined based on
the following assumptions: (i)&nbsp;fixed interest rates on
Rupiah time deposits are based on average interest rates offered
in effect as of March&nbsp;14, 2003 by the banks where such
deposits were located; (ii)&nbsp;variable interest rates on
Rupiah denominated long-term liabilities are calculated as of
December&nbsp;31, 2002 and are based on contractual terms
setting interest rates based on average rates for the preceding
six months on three month certificates issued by Bank Indonesia;
(iii)&nbsp;variable interest rates on U.S.&nbsp;Dollar and
French Franc are based on interest rates offered by the various
lending institutions to the Republic of Indonesia as of
December&nbsp;31, 2002; and (iv)&nbsp;the value of marketable
securities is based on the value of such securities at
December&nbsp;31, 2002. However, no assurance can be given that
such assumptions will be correct for future periods. Such
assumptions and the information described in the table may be
influenced by a number of factors, including changes in interest
rates in Indonesia and other monetary and macro economic factors
affecting Indonesia. Such assumptions are different from the
rates used in the Company&#146;s consolidated
</FONT>

<P align="center"><FONT size="2">159
</FONT>

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<DIV align="left">
<FONT size="2">financial statements, and accordingly amounts
shown in the table may vary from amounts shown in the
Company&#146;s consolidated financial statements.
</FONT>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Outstanding Balance as at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Expected Maturity Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp.</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Currency</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equivalent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2007</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2008-2025</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(In thousand)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp. in million)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(%)</FONT></B></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">(Rp. in million)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">ASSETS</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Fixed Rate</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cash and Cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Time deposit
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,137,419</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,137,419</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11.875</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S.&nbsp;Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">345,806</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,091,510</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,091,510</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1.625</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Euro
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18,148</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">170,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">170,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2.25</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Temporary Investments
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Time deposits
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Rupiah
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">523,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">523,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11.0</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Available for Sale
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Securities
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
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    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Rupiah
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">50,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">50,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">LIABILITIES</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Short Term Bank</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Loan</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,385</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">39,205</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">39,205</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7.03</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,449</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Long-term debt<SUP>(1)</SUP></FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Variable Rate</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,234,391</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">248,357</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">275,488</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">218,762</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">153,489</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">137,640</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,200,655</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">17.23</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">422,011</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">373,835</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">323,816</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">281,055</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">248,473</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,240,431</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">659,311</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,907,428</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,082,843</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,282,341</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">226,417</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">174,043</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">126,865</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,014,920</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7.52</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">193,324</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">159,439</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">131,264</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">113,114</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">100,008</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">388,529</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Fixed Rate</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,347,780</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">169,930</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">145,391</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">126,519</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">124,748</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,100,740</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">680,452</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">14.96</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">281,258</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">269,197</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">259,359</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">251,175</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">200,677</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">346,819</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">314,705</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,819,756</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">155,578</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">166,466</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">184,350</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">184,351</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,478,678</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">650,334</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7.65</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">234,768</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">204,851</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">193,134</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">181,435</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">102,576</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">163,039</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18,001,129</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,358,920</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">28,306</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">28,306</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,275</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,275</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,275</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,043,483</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3.11</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">39,589</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,832</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">36,576</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">34,003</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">31,429</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">254,744</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">23,007</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">215,752</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">35,448</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">27,912</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7.49</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">11,505</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,532</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,561</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,564</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,583</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,894</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Note:
</FONT>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Long-term debt consists of loans which are
    subject to interest; namely two-step loans, suppliers&#146;
    credit loans, bridging loans, and long-term bank loans, in each
    case including their current maturities. Long-term debt, for the
    purpose of this table, includes liability for acquisition of a
    subsidiary and incorporated deferred interest.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exchange Rate
Risk</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s exposure to exchange rate
fluctuations results primarily from long-term debt obligations
and accounts receivable and payable, which are primarily paid
for through draw downs
</FONT>

<P align="center"><FONT size="2">160
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">under the Government on-lending program and are
expressed in U.S.&nbsp;Dollar, Japanese Yen, French Franc,
Deutsche Mark and Netherlands Guilder. For a description of the
Company&#146;s foreign currency assets and liabilities, see
Note&nbsp;55 to the Company&#146;s consolidated financial
statements. Part of these obligations might be offset by
increases in the value of foreign currency time deposits and by
increases in the value of foreign currency accounts receivable,
assuming that the counter-parties are able to meet their foreign
currency obligations to TELKOM at market rates.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The table below provides information about the
Company&#146;s financial instruments by functional currency and
presents such information in Rupiah equivalents, which is the
Company&#146;s reporting currency. The information on
instruments and transactions that are sensitive to foreign
exchange rates, including U.S.&nbsp;Dollar, Netherlands Guilder,
French Franc, Deutsche Mark, and Yen debt obligations and term
deposits and the Company&#146;s accounts payable and receivable.
The table presents principal cash flows by expected maturity
dates. The information presented in the table has been
determined based on the assumptions the exchange rates for
U.S.&nbsp;Dollar as well as other currencies are based on the
selling and buying rates quoted by Reuters on December&nbsp;31,
2002, applied respectively to monetary assets and liabilities.
The buying and selling rates as of December&nbsp;31, 2002 were
Rp.8,940 and Rp.8,960 to US$1, respectively. Telkomsel applied
the Bank Indonesia average buy and sell rate for its monetary
asset and liabilities which was Rp.8,940 to US$1.00 as of
December&nbsp;31, 2002. However, no assurance can be given that
such assumptions will be correct for future periods. Such
assumptions and the information described in the table may be
influenced by a number of factors, including a fluctuation
and/or depreciation of the Rupiah in future periods.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Outstanding Balance as at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Expected Maturity Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Currency</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Equivalent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2007</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2008-2025</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center"><B><FONT size="1">(in thousand)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center"><B><FONT size="1">(Rp. in million)</FONT></B></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">(Rp. in million)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">ASSETS</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">349,800</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,127,211</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,127,211</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">36</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18,148</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">170,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">170,040</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Trade accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,487</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">147,392</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">147,392</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">202</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,808</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,808</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">16,922</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">151,282</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">151,282</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Advances and other noncurrent assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,429</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">21,711</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">21,711</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Escrow account
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">33,325</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">297,928</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">297,928</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="34"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">LIABILITIES</FONT></B></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">92,775</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">831,258</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">831,258</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,039</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">229</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">229</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Great Britain Pound Sterling
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">319</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,598</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,598</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">28,255</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">264,959</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">264,959</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Singapore Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Other accounts payable
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    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">77</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">77</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">161
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Outstanding Balance as at</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">December&nbsp;31, 2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Expected Maturity Date</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Currency</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp. Equivalent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2003</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2007</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2008-2025</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center"><B><FONT size="1">(in thousand)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center"><B><FONT size="1">(Rp. in million)</FONT></B></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">(Rp. in million)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">17,981</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">161,116</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">161,116</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">252,604</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">19,069</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">19,069</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">9,633</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">90,336</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">90,336</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Advance from customers and suppliers
    U.S.&nbsp;Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,555</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,935</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">13,935</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Short term bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,385</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">39,205</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">39,205</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Long term debt<SUP>(1)(2)</SUP>
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">U.S. Dollar
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">974,016</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">8,727,185</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,238,421</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">2,448,807</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">410,766</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">358,394</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,605,543</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,665,254</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">18,001,129</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,358,920</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">28,306</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">28,306</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,275</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,275</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">86,275</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,043,483</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">23,007</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">215,752</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">38,098</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">35,448</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">27,912</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>

<P align="left">
<FONT size="2">Notes:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Long-term debt for the purpose of this table
    consists of loans denominated in foreign currencies namely,
    two-step loans, suppliers&#146; credit loan, bridging loan,
    liability for acquisition of a subsidiary, long-term bank loan
    and project cost payable, in each case including their current
    maturities.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Included in long-term debt are liabilities to
    third parties in 2002 amounting to US$696.9&nbsp;million,
    &#165;18,001.1&nbsp;million, FRF130.6&nbsp;million and
    NLG16.2&nbsp;million, of project cost payable, the expected
    maturity date of which depend on the withdrawal authorization to
    be issued pursuant to the two-step loan program with the
    Government. For the purpose of classifying into expected
    maturity date, the balance of project cost payable is included
    in 2003 maturity.
    </FONT></TD>
</TR>

</TABLE>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Equity Price Risk</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s long-term investments consist
primarily of minority investments in the equity of private
Indonesian companies. With respect to the Indonesian companies
in which the Company has investments, the financial performance
of such companies may be affected by the fluctuation of macro
economic and social conditions such as the level of economic
activity, Rupiah exchange rates against other currencies,
inflation, and interest rates.
</FONT>

<!-- link2 "ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES" -->
<DIV align="left"><A NAME="016"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;12.</FONT></B></TD>
    <TD>
    <B><FONT size="2">DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link1 "PART II" -->
<DIV align="left"><A NAME="017"></A></DIV>

<P align="center">
<B><FONT size="2">PART II</FONT></B>

<!-- link2 "ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES" -->
<DIV align="left"><A NAME="018"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;13.</FONT></B></TD>
    <TD>
    <B><FONT size="2">DEFAULTS, DIVIDEND ARREARAGES AND
    DELINQUENCIES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS" -->
<DIV align="left"><A NAME="019"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;14.</FONT></B></TD>
    <TD>
    <B><FONT size="2">MATERIAL MODIFICATIONS TO THE RIGHTS OF
    SECURITY HOLDERS AND USE OF PROCEEDS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable.
</FONT>

<!-- link2 "ITEM 15. CONTROL AND PROCEDURES" -->
<DIV align="left"><A NAME="020"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;15.</FONT></B></TD>
    <TD>
    <B><FONT size="2">CONTROL AND PROCEDURES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the course of the audit of TELKOM&#146;s
consolidated financial statements as of and for the year ended
December&nbsp;31, 2002 by KAP Drs.&nbsp;Hadi Sutanto&nbsp;&#38;
Rekan, the member firm of PricewaterhouseCoopers in Indonesia,
TELKOM identified certain errors in, and made certain
adjustments to, its consolidated financial statements as of and
for the year ended December&nbsp;31, 2002 that had been
previously filed with the SEC. Following discussions between
TELKOM and KAP Hans Tuanakotta&nbsp;&#38;
</FONT>

<P align="center"><FONT size="2">162
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">Mustofa, the member firm of Deloitte Touche
Tohmatsu (&#147;Deloitte&#148;) in Indonesia, the auditor of
TELKOM&#146;s consolidated financial statements as of and for
the years ended December&nbsp;31, 2000 and 2001, TELKOM also
identified certain errors in, and made certain adjustments to,
its previously issued consolidated financial statements as of
and for the years ended December&nbsp;31, 2000 and 2001. For a
description of the adjustments, see Note&nbsp;4 to the
consolidated financial statements in Item&nbsp;18 and
Item&nbsp;5 &#147;Operating and Financial Review and
Prospects&nbsp;&#151; Restatement of Information Previously
Reported&#148;.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our principal executive officer and principal
financial officer carried out an evaluation of the effectiveness
of our disclosure controls and procedures (as defined in
Rule&nbsp;13a-15(e) and 15d-15(e) of the Securities Exchange Act
of 1934, as amended (&#147;Exchange Act&#148;)) as of
December&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In making this evaluation, our principal
executive officer and principal financial officer considered
matters relating to the restatement of our previously issued
consolidated financial statements for the years ended
December&nbsp;31, 2000, 2001 and 2002, including the substantial
process that was undertaken during the period from July 2003
through the date hereof to ensure that all material adjustments
necessary to restate such previously issued consolidated
financial statements were recorded. TELKOM believes that certain
of the adjustments necessary to correct such previously issued
consolidated financial statements occurred because TELKOM&#146;s
control processes and procedures related to the matters
underlying such adjustments were not sufficiently effective.
TELKOM has also considered the reportable conditions (as defined
under standards established by the American Institute of
Certified Public Accountants) relating to our internal control
over financial reporting as identified and communicated to us
and our Audit Committee by PwC in connection with its audit of
the consolidated financial statements as of and for the year
ended December&nbsp;31, 2002. As part of this communication, PwC
informed the Audit Committee that they had identified
&#147;reportable conditions&#148; each of which constituted a
&#147;material weakness&#148; (as each such term is defined
under standards established by the American Institute of
Certified Public Accountants) in TELKOM&#146;s internal controls
with respect to (1)&nbsp;inadequate personnel resources with
sufficient knowledge and experience in the application of
Indonesian GAAP and US&nbsp;GAAP accounting principles;
(2)&nbsp;deficiencies in the organizational structure of the
accounting department, including the oversight function for
accounting and financial reporting; (3)&nbsp;inadequate internal
processes for the assessment of critical, significant and
judgmental accounting areas; and (4)&nbsp;insufficient written
policies and procedures for the accounting and financial
reporting function, insufficient knowledge of, and compliance
with, existing policies and procedures among relevant personnel,
and insufficient emphasis by the internal audit function on the
foregoing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the evaluation described above and
PwC&#146;s communication to our Audit Committee, our principal
executive officer and principal financial officer concluded that
these material weaknesses, if not addressed, could result in
accounting errors and inadequate disclosures such as those
underlying the restatements of TELKOM&#146;s consolidated
financial statements for the three years ended December&nbsp;31,
2002, which related to (1)&nbsp;our accounting for liabilities
for post-employment medical benefits, (2)&nbsp;our accounting
for liabilities for long service awards, (3)&nbsp;our
calculation of deferred income taxes, (4)&nbsp;our accounting
for business acquisitions, (5)&nbsp;our accounting for
installation revenues, (6)&nbsp;our accounting for revenue
sharing arrangements; and (7)&nbsp;a substantial number of other
individually less significant items.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In response to the matters identified by PwC,
under the supervision of the Audit Committee, our senior
management has directed that we dedicate resources and take
steps to strengthen control processes and procedures in order to
prevent a recurrence of the circumstances that resulted in the
need to restate such consolidated financial statements. These
steps include, among others, (1)&nbsp;an assessment of the
organizational structure of the finance department, including to
determine additional resources which need to be dedicated to it;
(2)&nbsp;the enhancement of all finance-related policies and
procedures covering accounting and financial reporting;
(3)&nbsp;the improvement of standard documentation requirements
for the assessment of critical, significant and judgmental
accounting areas; (4)&nbsp;the improvement of understanding of
relevant Indonesian GAAP and US&nbsp;GAAP accounting principles
and financial reporting responsibilities across all our business
units through intensive and continuing training and proactive
consultations with advisors on technical matters as they relate
to our business; and
</FONT>

<P align="center"><FONT size="2">163
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">(5)&nbsp;modification of the mandate of
TELKOM&#146;s internal audit function to place greater emphasis
on the adequacy of, and compliance with, procedures relating to
internal control over financial reporting.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other than as described above, there have been no
significant changes in our internal control over financial
reporting that occurred during the last fiscal quarter period
covered by this report, that have materially affected, or are
reasonably likely to materially affect, our internal control
over financial reporting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our disclosure controls and procedures, no matter
how well designed and operated, can provide only reasonable, not
absolute, assurance of achieving the objectives of the control
system. As such, disclosure controls and procedures or internal
control systems may not prevent all error and all fraud. In
addition, the design of a control system must reflect the fact
that there are resource constraints and the benefits of controls
must be considered relative to their costs and our management
necessarily was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures.
Because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within TELKOM
have been detected.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our principal executive officer and principal
financial officer concluded, based on their most recent
evaluation of internal control over financial reporting, that
the &#147;material weaknesses&#148; in TELKOM&#146;s internal
controls materially and adversely impacted the effectiveness of
TELKOM&#146;s disclosure controls and procedures relating to the
disclosure of financial information, financial performance and
management&#146;s analysis of such information and performance,
and that the remedial actions referred to in the prior paragraph
to address such &#147;material weaknesses&#148; are necessary to
ensure the effectiveness of TELKOM&#146;s disclosure controls
and procedures as they relate to such information. However, our
principal executive officer and principal financial officer
further concluded, based on such evaluation, that in all other
material respects the design and operation of TELKOM&#146;s
disclosure controls and procedures were effective to ensure that
information required to be disclosed in the reports TELKOM files
and submits under the Exchange Act is recorded, processed,
summarized and reported as and when required.
</FONT>

<!-- link2 "ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT" -->
<DIV align="left"><A NAME="021"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;16A.</FONT></B></TD>
    <TD>
    <B><FONT size="2">AUDIT COMMITTEE FINANCIAL EXPERT</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable
</FONT>

<!-- link2 "ITEM 16B. CODE OF ETHICS" -->
<DIV align="left"><A NAME="022"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;16B.</FONT></B></TD>
    <TD>
    <B><FONT size="2">CODE OF ETHICS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable
</FONT>

<!-- link2 "ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES" -->
<DIV align="left"><A NAME="023"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;16C.</FONT></B></TD>
    <TD>
    <B><FONT size="2">PRINCIPAL ACCOUNTANT FEES AND
    SERVICES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable
</FONT>

<!-- link2 "ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES" -->
<DIV align="left"><A NAME="024"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;16D.</FONT></B></TD>
    <TD>
    <B><FONT size="2">EXEMPTIONS FROM THE LISTING STANDARDS FOR
    AUDIT COMMITTEES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable
</FONT>

<P align="center"><FONT size="2">164
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "PART III" -->
<DIV align="left"><A NAME="025"></A></DIV>

<P align="center">
<B><FONT size="2">PART III</FONT></B>

<!-- link2 "ITEM 17. CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="026"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;17.</FONT></B></TD>
    <TD>
    <B><FONT size="2">CONSOLIDATED FINANCIAL STATEMENTS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Not applicable
</FONT>

<!-- link2 "ITEM 18. CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="027"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;18.</FONT></B></TD>
    <TD>
    <B><FONT size="2">CONSOLIDATED FINANCIAL STATEMENTS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See pages&nbsp;F-1 through F-120.
</FONT>

<!-- link2 "ITEM 19. EXHIBITS" -->
<DIV align="left"><A NAME="028"></A></DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">ITEM&nbsp;19.</FONT></B></TD>
    <TD>
    <B><FONT size="2">EXHIBITS</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Exhibit&nbsp;1&nbsp;&#151; The Articles of
incorporation of TELKOM, amended as of January&nbsp;10, 2002,
together with an English translation thereof, are filed with
TELKOM&#146;s 2001 Form&nbsp;20-F on May&nbsp;30, 2002 and
hereby incorporated by reference.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;2&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;3&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;4&nbsp;&#151; Material Contracts
Exhibits:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="89%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Agreement for the Sale and Purchase of the Assets
    Relating to TELKOM Mobile between TELKOM and Telkomsel, dated
    April&nbsp;3,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Settlement Agreement between TELKOM and the
    shareholders of AriaWest, dated July&nbsp;31,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Credit Agreement between TELKOM and the AriaWest
    lenders, dated July&nbsp;31,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">First Amendment to the Conditional Sale and
    Purchase Agreement between TELKOM and the shareholders of
    AriaWest, dated July&nbsp;31,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Conditional Sale and Purchase Agreement between
    TELKOM and the shareholders of AriaWest, dated
    May&nbsp;8,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Conditional Sale and Purchase Agreement between
    TELKOM and Singapore Telecom Mobile Pte. Ltd., dated
    April&nbsp;3,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Conditional Sale and Purchase Agreement between
    TELKOM and the shareholders of Pramindo, dated
    April&nbsp;19,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Cooperation Agreement on the Interconnection
    between TELKOM&#146;s Fixed Network and Indosat&#146;s Local
    Fixed Network and the Settlement of the Interconnection
    Financial Rights and Obligations between TELKOM and Indosat,
    dated September&nbsp;3, 2002, including an English translation
    thereof.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.9*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Kontrak Pengadaan Satelit Telkom-2 (Contract on
    Procurement of Telkom-2 Satellite) between TELKOM and Orbital
    Sciences Corporation, dated October&nbsp;24,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.10</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Kontrak Jasa Peluncur Satelit Telkom-2 (Agreement
    on Launch Services of Telkom-2 Satellite) between TELKOM and
    Arianespace S.A., dated November&nbsp;8,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Procurement Partnership Agreement between
    TELKOM and a consortium led by Samsung Electronics, dated
    December&nbsp;23,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.12</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to the Master Procurement
    Partnership Agreement between TELKOM and a consortium led by
    Samsung Electronics, dated December&nbsp;31,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Service Level Agreement between TELKOM and a
    consortium led by Samsung Electronics, dated
    December&nbsp;23,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.14</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Loan Agreement between TELKOM and The
    Export-Import Bank of Korea, dated August&nbsp;27,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Procurement Partnership Agreement between
    TELKOM and a consortium led by Ericsson, dated
    December&nbsp;23,&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">165
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="89%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.16</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Service Level Agreement between TELKOM and a
    consortium led by Ericsson, dated December&nbsp;23,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Procurement Partnership Agreement between
    TELKOM and PT&nbsp;Industri Telekomunikasi Indonesia (Persero),
    dated August&nbsp;26, 2003, including an English translation
    thereof.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Service Level Agreement between TELKOM and
    PT&nbsp;Industri Telekomunikasi Indonesia Tbk., dated
    August&nbsp;26,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Partnership Agreement for the Procurement and
    Construction of Backbone Transmission Network between TELKOM and
    a consortium led by Siemens AG, dated
    September&nbsp;24,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.20</FONT></TD>
    <TD align="left" valign="top" nowrap><FONT size="2">*</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Development Contract PSTN Excellence Regional
    Junction Divre-II between TELKOM and the Olex-Lucent-Brimbun
    consortium, dated February&nbsp;8,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to the Development Contract
    PSTN Excellence Regional Junction Divre-II between TELKOM and
    the Olex-Lucent-Brimbun consortium, dated
    August&nbsp;22,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;2 to the Development Contract
    PSTN Excellence Regional Junction Divre-II between TELKOM and
    the Olex-Lucent-Brimbun consortium, dated
    October&nbsp;25,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;3 to the Development Contract
    PSTN Excellence Regional Junction Divre-II between TELKOM and
    the Olex-Lucent-Brimbun consortium, dated
    December&nbsp;20,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;4 to the Development Contract
    PSTN Excellence Regional Junction Divre-II between TELKOM and
    the Olex-Lucent-Brimbun consortium, dated
    March&nbsp;20,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;5 to the Development Contract
    PSTN Excellence Regional Junction Divre-II between TELKOM and
    the Olex-Lucent-Brimbun consortium, dated
    June&nbsp;26,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Master Procurement Partnership Agreement between
    TELKOM and Motorola, Inc., dated March&nbsp;24,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Partnership Agreement for Procurement and
    Construction of Regional Metro Junction and Optic Access Network
    for Regional Division&nbsp;III between TELKOM and
    PT&nbsp;Industri Telekomunikasi Indonesia (Persero), dated
    November&nbsp;12, 2003, including an English translation thereof.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Contract Agreement in connection with the
    Softswitch System Class-4 Procurement Program Through Buy or
    Return Scheme between TELKOM and the Santera-Olex consortium,
    dated December&nbsp;18,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Side Letter to the Partnership Agreement for the
    Construction and Provision of the High Performance Backbone in
    Sumatera, dated June&nbsp;12,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;1 to the Partnership Agreement
    for the Development of a PSTN Regional Junction for Regional
    Division&nbsp;V (East&nbsp;Java), dated
    September&nbsp;27,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amendment No.&nbsp;2 to the Partnership Agreement
    for the Development of a PSTN Regional Junction for Regional
    Division&nbsp;V (East&nbsp;Java), dated
    December&nbsp;30,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Supply Contract among TELKOM,
    NEC&nbsp;Corporation, the Communication Authority of Thailand
    and Singapore Telecommunications Limited, dated
    November&nbsp;27,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Thailand-Indonesia-Singapore Cable Network
    Construction and Maintenance Agreement among TELKOM,
    NEC&nbsp;Corporation, the Communication Authority of Thailand
    and Singapore Telecommunications Limited, dated
    November&nbsp;27,&nbsp;2002.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Amended and Restated KSO Agreement between TELKOM
    and PT&nbsp;Mitra Global Telekomunikasi Indonesia, dated
    January&nbsp;20,&nbsp;2004.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Service Level Agreement between TELKOM and
    Motorola, Inc., dated March&nbsp;24,&nbsp;2003.
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indemnity Agreement between TELKOM and KAP Hans
    Tuanakotta Mustofa&nbsp;&#38; Halim dated
    February&nbsp;9,&nbsp;2004.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Filed with original Annual Report on
    Form&nbsp;20-F filed April&nbsp;17, 2003 and incorporated herein
    by reference.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">166
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<FONT size="2">Exhibit&nbsp;5&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;6&nbsp;&#151; Earnings per share is
computed by dividing net income by the average number of shares
outstanding during the year, totaling 10,079,999,640 shares in
2000, 2001 and 2002. TELKOM does not have potentially dilutive
ordinary shares.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;7&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;8&nbsp;&#151; List of subsidiaries
as of December&nbsp;31,&nbsp;2002:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="16%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Name Under Which</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Jurisdiction of</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Subsidiary Conducts</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Incorporation</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">its Business</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Infomedia Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Infomedia
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Indonusa Telemedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonusa
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomunikasi Selular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Telkomsel
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Dayamitra Telekomunikasi
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mitratel
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Graha Sarana Duta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">GSD
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pramindo Ikat Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">PIN
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">Exhibit&nbsp;9&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;10&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;11&nbsp;&#151; Not applicable.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;12&nbsp;&#151; See
Exhibits&nbsp;12.1 and 12.2 attached hereto.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;13&nbsp;&#151; See
Exhibits&nbsp;13.1 and 13.2 attached hereto.
</FONT>

<P align="left">
<FONT size="2">Exhibit&nbsp;14&nbsp;&#151; Not applicable.
</FONT>

<P align="center"><FONT size="2">167
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">SIGNATURES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the requirements of Section&nbsp;12
of the Securities Exchange Act of 1934, as amended, the
Registrant hereby certifies that it meets all of the
requirements for filing on Form&nbsp;20-F and that it has duly
caused this annual report to be signed on its behalf by the
undersigned, there unto duly authorized, in Jakarta, on the
9&nbsp;day of February, 2004.
</FONT>

<P align="left">
<FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)
</FONT>

<DIV align="left">
<FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk.
</FONT>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">By:</FONT></TD>
    <TD align="left">
    <FONT size="2">/s/ Kristiono
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<HR size="1" width="37%" align="left" noshade>
</DIV>

<DIV align="left">
<FONT size="2">KRISTIONO
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">President Director
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Date: February&nbsp;9, 2004
</FONT>
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)
P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk</FONT></B>

<DIV align="center">
<B><FONT size="2">AND SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">TABLE OF CONTENTS</FONT></B>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="87%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Page</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Auditors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Auditors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Report of Independent Auditors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Financial Statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1.&nbsp;Consolidated Balance Sheets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2.&nbsp;Consolidated Statements of Income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">3.&nbsp;Consolidated Statements of Changes in
    Stockholders&#146; Equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4.&nbsp;Consolidated Statements of Cash Flows
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">5.&nbsp;Notes to Consolidated Financial Statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">F-15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-1
</FONT>

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<DIV align="left">
<IMG src="u92256u9225602.gif" alt="(PRICEWATERHOUSECOOPERS LETTERHEAD)">
</DIV>

<P align="center">
<B><FONT size="2">INDEPENDENT AUDITOR&#146;S REPORT</FONT></B>

<P align="center">
<B><FONT size="2">TO THE STOCKHOLDERS, BOARD OF COMMISSIONERS
AND DIRECTORS OF</FONT></B>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)
PT&nbsp;TELEKOMUNIKASI INDONESIA TBK.</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have audited the accompanying consolidated
balance sheet of Perusahaan Perseroan (Persero)
PT&nbsp;Telekomunikasi Indonesia Tbk. and its subsidiaries (the
&#147;Company&#148;) as of December&nbsp;31, 2002, and the
related consolidated statements of income, changes in
stockholders&#146; equity and cash flows for the year then
ended. These consolidated financial statements are the
responsibility of the Company&#146;s management. Our
responsibility is to express an opinion on these consolidated
financial statements based on our audit. The consolidated
financial statements of the Company as of December&nbsp;31, 2000
and 2001, after the restatements referred to in Notes&nbsp;4
and&nbsp;57, were audited by other independent auditors whose
report dated February&nbsp;28, 2002, except for Notes&nbsp;4 and
57(3) of those consolidated financial statements, as to which
the date is January&nbsp;29, 2004, expressed an unqualified
opinion on those statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We conducted our audit in accordance with
auditing standards established by the Indonesian Institute of
Accountants and generally accepted auditing standards in the
United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our
opinion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our opinion, the consolidated financial
statements referred to above present fairly, in all material
respects, the consolidated financial position of the Company as
of December&nbsp;31, 2002, and the consolidated results of its
operations and its consolidated cash flows for the year then
ended in conformity with accounting principles generally
accepted in the Indonesia.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accounting principles generally accepted in
Indonesia vary in certain significant respects from accounting
principles generally accepted in the United States of America.
Information relating to the nature and effect of such
differences, after the restatements referred to in
Note&nbsp;57(3), is presented in Note&nbsp;57 to the
consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed in Notes&nbsp;4 and 57, the Company
has made adjustments to the previously reported consolidated
financial statements for the years ended December&nbsp;31, 2000,
2001, and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Also, as discussed in Notes&nbsp;4 and&nbsp;54,
the consolidated financial statements as at and for the year
ended December&nbsp;31, 2002 were previously audited by another
auditor whose report was dated March&nbsp;25, 2003.
</FONT>

<P align="left">
<FONT size="2">Jakarta, January&nbsp;29, 2004
</FONT>

<P align="left">
<IMG src="u92256u9225604.gif" alt="(-s- DRS. IRHOAN TANUDIREDJA BAP)">

<P align="left">
<FONT size="2">DRS.&nbsp;IRHOAN TANUDIREDJA BAP
</FONT>

<DIV align="left">
<FONT size="2">License of Public Accountant No.&nbsp;99.1.0683
</FONT>
</DIV>

<P align="center"><FONT size="2">F-2
</FONT>
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<DIV align="left">
<IMG src="u92256u9225608.gif" alt="(DELOITTE LETTERHEAD)">
</DIV>

<P align="center">
<B><FONT size="2">INDEPENDENT AUDITORS&#146; REPORT</FONT></B>

<P align="left">
<B><FONT size="2">No. 280202 TI LSW SAR3&nbsp;&#151;
20F</FONT></B>

<P align="left">
<B><FONT size="2">The Stockholders, Boards of Commissioners and
Directors</FONT></B>

<DIV align="left">
<B><FONT size="2">Perusahaan Perseroan (Persero) P.T.
Telekomunikasi Indonesia Tbk</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have audited the accompanying consolidated
balance sheet of Perusahaan Perseroan (Persero)
P.T.&nbsp;Telekomunikasi Indonesia Tbk and its subsidiaries as
of December&nbsp;31, 2001, and the related consolidated
statements of income, changes in equity, and cash flows for each
of the years in the two-year period ended December&nbsp;31,
2001. These financial statements are the responsibility of the
Company&#146;s management. Our responsibility is to express an
opinion on these financial statements based on our audits. The
consolidated financial statements give retroactive effect to the
Company&#146;s acquisition of a controlling interest in
PT&nbsp;Telekomunikasi Selular (Telkomsel), in a transaction
between entities under common control that has been accounted
for in a manner similar to a pooling of interests as described
in Note&nbsp;5 to the consolidated financial statements. We did
not audit the financial statements of Telkomsel as of
December&nbsp;31, 2000 and 2001, which statements reflect total
assets constituting 23% of consolidated total assets at
December&nbsp;31, 2001, and total revenues constituting 27% and
35%, respectively, of consolidated total revenues for each of
the years in the two-year period ended December&nbsp;31, 2001.
Those statements were audited by other auditors, who have ceased
operations, and whose report has been furnished to us, and our
opinion, insofar as it relates to the amounts included for
Telkomsel, is based solely on the report of such other auditors
who have ceased operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We conducted our audits in accordance with
auditing standards established by the Indonesian Institute of
Accountants and auditing standards generally accepted in the
United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audits and the report of the other auditors
provide a reasonable basis for our opinion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our opinion, based on our audits and the
report of the other auditors who have ceased operations, the
2000 and 2001 consolidated financial statements present fairly,
in all material respects, the financial position of Perusahaan
Perseroan (Persero) P.T.&nbsp;Telekomunikasi Indonesia Tbk and
its subsidiaries as of December&nbsp;31, 2001, and the results
of their operations, changes in their equity, and their cash
flows for each of the years in the two-year period ended
December&nbsp;31, 2001 in conformity with accounting principles
generally accepted in Indonesia
</FONT>

<P align="right">
<FONT size="2">(DELOITTE LETTERHEAD FOOTER)
</FONT>

<P align="center"><FONT size="2">F-3
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally accepted accounting principles in
Indonesia vary in certain respects from accounting principles
generally accepted in the United States of America (U.S. GAAP).
A description of the significant differences between those two
generally accepted accounting principles and approximate effects
of those differences on the net income for the years end
December&nbsp;31, 2000 and 2001 and equity as of
December&nbsp;31, 2001 are set forth in Note&nbsp;57 to the
consolidated financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed in Note&nbsp;4 to the consolidated
financial statements, the accompanying consolidated financial
statements as of December&nbsp;31, 2000 and 2001 have been
restated under Indonesian GAAP. As discussed in Note&nbsp;57(3),
the reconciliation to U.S.&nbsp;GAAP have also been restated.
</FONT>

<P align="left">
<FONT size="2">HANS TUANAKOTTA MUSTOFA &#38; HALIM
</FONT>

<P align="left">
<IMG src="u92256u9225609.gif" alt="-s- HANS TUANAKOTTA MUSTOFA AND HALIM">

<DIV align="left">
<FONT size="2">Ludovicus Sensi W, SE, MM, BAP
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">License No. 99.1.0705
</FONT>
</DIV>

<P align="left">
<FONT size="2">February&nbsp;28, 2002, except for Notes&nbsp;4
and 57(3) as to which the date is January&nbsp;29, 2004.
</FONT>

<P align="center"><FONT size="2">F-4
</FONT>
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<DIV align="center">
<IMG src="u92256u9225607.gif" alt="(PRASETIO UTOMO &#38; CO. LETTERHEAD)">
</DIV>

<P align="center">
<B><FONT size="2">Independent Auditors&#146; Report</FONT></B>

<P align="left">
<B><I><FONT size="2">THE FOLLOWING REPORT IS A COPY OF A REPORT
PREVIOUSLY ISSUED BY PRASETIO, UTOMO &#38; CO., A MEMBER FIRM OF
ARTHUR ANDERSEN, AND HAS NOT BEEN REISSUED BY PRASETIO, UTOMO
&#38; CO.</FONT></I></B>

<P align="left">
<B><FONT size="2">Report No. 36859S</FONT></B>

<P align="left">
<B><FONT size="2">The Board of Directors and
Stockholders</FONT></B>

<DIV align="left">
<B><FONT size="2">PT Telekomunikasi Selular</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have audited the balance sheets of
PT&nbsp;Telekomunikasi Selular as of December&nbsp;31, 1999,
2000 and 2001, and the related statements of income, changes in
stockholders&#146; equity and cash flows for the years ended
December&nbsp;31, 1999, 2000 and 2001 (not presented separately
herein). These financial statements are the responsibility of
the Company&#146;s management. Our responsibility is to express
an opinion on these financial statements based on our audits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We conducted our audits in accordance with
auditing standards generally accepted in Indonesia and the
United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our
opinion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our opinion, the financial statements referred
to above present fairly, in all material respects, the financial
position of PT&nbsp;Telekomunikasi Selular as of
December&nbsp;31, 1999, 2000 and 2001, and the results of its
operations, the changes in its stockholders&#146; equity and its
cash flows for the years then ended in conformity with generally
accepted accounting principles in Indonesia.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Note&nbsp;28 to the financial statements of
PT&nbsp;Telekomunikasi Selular includes a summary of the effects
the economic conditions in Indonesia have had on the Company, as
well as measures the Company has implemented or plans to
implement in response to the economic conditions. The
accompanying financial statements include the effects of the
economic conditions to the extent they can be determined and
estimated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally accepted accounting principles in
Indonesia vary in certain respects with those in the United
States of America. A description of the difference between those
two generally accepted accounting principles and the effects of
those differences on net income and stockholders&#146; equity
are set forth in Notes&nbsp;30 and 31, respectively, to the
financial statements of PT&nbsp;Telekomunikasi Selular.
</FONT>

<P align="left">
<FONT size="2">PRASETIO, UTOMO &#38; CO.
</FONT>

<DIV align="left">
<FONT size="2">License No. 98.2.0024
</FONT>
</DIV>

<DIV align="left">
<IMG src="u92256u9225605.gif" alt="-s- DRS. RUSDY DARYONO">
</DIV>

<DIV align="left">
<FONT size="2">Drs. Rusdy Daryono
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">License No. 98.1.0061
</FONT>
</DIV>

<P align="left">
<FONT size="2">February 28, 2002
</FONT>

<P align="center"><FONT size="2">F-5
</FONT>
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<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED BALANCE SHEETS" -->
<DIV align="left"><A NAME="029"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED BALANCE SHEETS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002&nbsp;&#151; AS
RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">ASSETS</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (Note&nbsp;3)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">CURRENT ASSETS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2f,7,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,699,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">636,768</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2g,8,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">573,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,022</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2h,9,10,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties&nbsp;&#151; net of allowance for
    doubtful accounts of Rp325,930&nbsp;million in 2001 and
    Rp95,676&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties&nbsp;&#151; net of allowance for
    doubtful accounts of Rp252,855&nbsp;million in 2001 and
    Rp407,313&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accounts receivable&nbsp;&#151; net of
    allowance for doubtful accounts of Rp26,964&nbsp;million in 2001
    and Rp24,253&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2h,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">198,493</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inventories&nbsp;&#151; net of allowance for
    obsolescence of Rp48,997&nbsp;million in 2001 and
    Rp53,795&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2i,11
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,682</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,607</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2j
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">335,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,515</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">42
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">12
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,295</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Current Assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,300,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,547,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,178,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NON-CURRENT ASSETS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term investments&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2g,13
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property, plant and equipment&nbsp;&#151; net of
    accumulated depreciation of Rp15,692,875&nbsp;million in 2001
    and Rp18,886,345&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2k,2l,14
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,891,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,448,606</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,178,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property, plant and equipment under
    revenue-sharing arrangements&nbsp;&#151; net of accumulated
    depreciation of Rp840,918&nbsp;million in 2001 and
    Rp842,964&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2m,16,51
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">452,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">377,622</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,192</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances and other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">677,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,474</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intangible assets&nbsp;&#151; net of accumulated
    amortisation of Rp55,709&nbsp;million in 2001 and
    Rp187,990&nbsp;million in 2002
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">1b,2d,17
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,898,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">435,622</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advance payment for investment in shares of stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">6c,56d
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">247,583</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Escrow account
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">6,18
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property not used in operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,777</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,889</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">770</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Non-current Assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,735,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,760,066</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,772,074</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">TOTAL ASSETS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,950,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the
</FONT>

<DIV align="center">
<FONT size="2">consolidated financial statements.
</FONT>
</DIV>

<P align="center"><FONT size="2">F-6
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">CONSOLIDATED BALANCE
SHEETS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002&nbsp;&#151; AS
RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">LIABILITIES AND STOCKHOLDERS&#146;
EQUITY</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$&nbsp;(Note&nbsp;3)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">CURRENT LIABILITIES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">19,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">719,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">790,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,039,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,272,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2s,42
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,877,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,109,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dividends payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,411</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,494</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">20
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,949,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">217,867</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2m
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">271,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances from customers and suppliers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">21
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">293,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Short-term bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">22
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,205</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities of long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">23
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,542,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,590,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">289,411</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liability for cross-ownership transactions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">5
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,406,309</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,542,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,708,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,084,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NON-CURRENT LIABILITIES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2s,42
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,818,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,083,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">344,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned income on revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2m,16,38,51
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,797</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,955</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned initial investor payments under joint
    operation scheme
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2n,35,50
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,117</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for long service award
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2r,46
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for post-retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2r,47
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,045,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,602,494</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term liabilities&nbsp;&#151; net of current
    maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Two-step loans&nbsp;&#151; related party
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">24,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,637,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,734,033</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">864,138</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guaranteed notes and bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">28
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,313,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">258,493</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suppliers&#146; credit loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">25
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">395,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,625</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,623</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">29
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bridging loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">26
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,401</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,967</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Project cost payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">242,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,512</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,275</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,036</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liabilities for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">6,27
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,618,979</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">180,892</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total non-current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,177,238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,389,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,942,962</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">MINORITY INTEREST IN NET ASSETS OF SUBSIDIARIES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">30
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,235,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,595,799</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">290,033</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the
</FONT>

<DIV align="center">
<FONT size="2">consolidated financial statements.
</FONT>
</DIV>

<P align="center"><FONT size="2">F-7
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">CONSOLIDATED BALANCE
SHEETS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002&nbsp;&#151; AS
RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">STOCKHOLDERS&#146; EQUITY</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$&nbsp;(Notes&nbsp;3)</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital stock&nbsp;&#151; Rp500 par value per
    Series&nbsp;A Dwiwarna share and Series&nbsp;B share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Authorized&nbsp;&#151; one Series&nbsp;A Dwiwarna
    share and 39,999,999,999 Series&nbsp;B shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Issued and fully paid&nbsp;&#151; one
    Series&nbsp;A Dwiwarna share and 10,079,999,639 Series&nbsp;B
    shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">31
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">563,129</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional paid-in capital
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">32
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">119,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference in value of restructuring transactions
    between entities under common control
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2d,5,6b
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,992,233</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,288,271</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(814,332</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2g
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Translation adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2g,3
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">235,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,331</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized loss on decline in value of securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2g,8
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(207</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Retained earnings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">44
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">745,404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83,285</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unappropriated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">44
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,893,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,383,466</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,607,091</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Stockholders&#146; Equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,632,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,950,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the
consolidated&nbsp;financial statements.
</FONT>

<P align="center"><FONT size="2">F-8
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B>PERUSAHAAN PERSEROAN (PERSERO)</B>

<DIV align="center">
<B>P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES</B>
</DIV>

<P align="center">
<B>CONSOLIDATED STATEMENTS OF INCOME</B>

<DIV align="center">
<B>FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</B>
</DIV>

<DIV align="center">
<B>(Figures in tables are presented in millions of Rupiah and
thousands of</B>
</DIV>

<DIV align="center">
<B>United States Dollars, except per share and per ADS data)</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$ (Notes&nbsp;3)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">OPERATING REVENUES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2p,33
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fixed lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,177,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,415,156</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,264,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">811,631</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,890,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,707,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,226,801</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">695,732</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interconnection
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2p,34,48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">980,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,423,686</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,831,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joint operation schemes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2n,35,50
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,267,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,219,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,128,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">237,782</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data and Internet
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">36
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,934</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">673,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,551,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173,366</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">37
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">340,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">414,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316,098</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,318</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2m,38,51
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287,670</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,253</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">263,754</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications related services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">138,535</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165,015</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">220,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,688</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Operating Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,324,337</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">OPERATING EXPENSES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Personnel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">39
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,770,472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,281,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,387,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">490,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2k,2l,2m,14,16
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,419,069</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,869,772</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,473,370</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">388,086</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operations, maintenance and telecommunication
    services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">40
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,385,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,149,921</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,290,219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">255,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General and administrative
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">41
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">871,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,343,456</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,146,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Marketing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">220,006</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">375,152</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,916</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Operating Expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,594,119</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,864,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,672,603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,304,201</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">OPERATING INCOME
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,596,059</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,419,407</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,130,215</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,020,136</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">OTHER INCOME (CHARGES)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain on sale of long-term investment in Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">1b
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,196,380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">357,137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,962</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">571,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479,802</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,609</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">48
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(816,749</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,329,642</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,582,750</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(176,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain (loss) on foreign exchange&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2e
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(944,077</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(378,720</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">556,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,191</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in net (loss) income of associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2g,13
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(232,044</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(85,686</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">313,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">352,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,956</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,016</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (charges)&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(987,830</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(869,516</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,618,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292,592</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">INCOME BEFORE TAX
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,608,229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,549,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,748,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,312,728</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">TAX EXPENSE
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2s,42
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,228,199</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,177,366</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,747,762</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(307,013</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2s,42
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(292,095</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,471</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(151,209</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,520,294</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,006,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,898,971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(323,908</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">INCOME BEFORE MINORITY INTEREST IN NET INCOME OF
    SUBSIDIARIES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,087,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,542,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,849,931</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">988,820</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">MINORITY INTEREST IN NET INCOME OF SUBSIDIARIES
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">30
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(312,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(810,222</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(90,527</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NET INCOME
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">898,293</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">BASIC EARNINGS PER SHARE
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2t,43
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per ADS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">(20 Series&nbsp;B shares per ADS)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,505.96</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,072.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,951.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.78</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">797.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.09</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the
</FONT>

<DIV align="center">
<FONT size="2">consolidated financial statements.
</FONT>
</DIV>

<P align="center"><FONT size="2">F-9
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY" -->
<DIV align="left"><A NAME="030"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS&#146; EQUITY</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000,
2001 AND 2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<TABLE width="90%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Difference due to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">change of equity</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additional</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in associated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Translation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">paid-in capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">companies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2000&nbsp;&#151;
    as previously presented</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">430,722</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162,299</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prior period adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">184,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,557</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2000&nbsp;&#151;
    as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">615,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">231,856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in subsidiary resulting from the recast of
    financial statements due to common control transaction
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in Telkomsel
    and PSN
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,178</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized loss on decline in value of securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM and PSN
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Resolved during the Annual General Meeting of the
    Stockholders on April&nbsp;7, 2000:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Declaration of cash dividend
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriation for general reserve
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year&nbsp;&#151; as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of December&nbsp;31,
    2000&nbsp;&#151; as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">609,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="18%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">subsidiary</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unrealized loss</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">resulting from</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">on decline in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the recast of</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Retained earnings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">value of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">financial</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">stockholders&#146;</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">statements</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Appropriated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unappropriated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equity</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2000&nbsp;&#151;
    as previously presented</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(159</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">791,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,719</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,346,395</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,015,611</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prior period adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(459,762</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(205,610</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2000&nbsp;&#151;
    as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(159</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">791,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,719</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,886,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,810,001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in subsidiary resulting from the recast of
    financial statements due to common control transaction
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">430,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(470,992</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40,761</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in Telkomsel
    and PSN
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,178</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized loss on decline in value of securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM and PSN
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Resolved during the Annual General Meeting of the
    Stockholders on April&nbsp;7, 2000:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Declaration of cash dividend
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,086,161</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,086,161</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriation for general reserve
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,723</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year&nbsp;&#151; as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of December&nbsp;31,
    2000&nbsp;&#151; as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(165</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,221,533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,442</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,082,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the consolidated
financial statements.
</FONT>

<P align="center"><FONT size="2">F-10
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY --(Continued)" -->
<DIV align="left"><A NAME="031"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS&#146; EQUITY&nbsp;&#151;&nbsp;(Continued)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000,
2001 AND 2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Difference in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">value of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restructuring</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transactions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Difference due to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">between</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">change of equity</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additional</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">entities under</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in associated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Translation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">paid-in capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">common control</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">companies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2001&nbsp;&#151;
    as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">609,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Restructuring transactions between entities under
    common control
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,992,233</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reversal of difference due to change of equity in
    Satelindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(290,442</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized loss on decline in value of securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Resolved during the Annual General Meeting of the
    Stockholders on May&nbsp;10, 2001:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Declaration of cash dividend
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriation for general reserve
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year&nbsp;&#151; as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of December&nbsp;31,
    2001&nbsp;&#151; as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,992,233</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">subsidiary</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unrealized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">resulting from</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">loss on decline</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the recast of</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Retained earnings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in value of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">financial</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">stockholders&#146;</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">statements</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Appropriated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unappropriated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equity</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2001&nbsp;&#151;
    as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(165</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,221,533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,442</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,082,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Restructuring transactions between entities under
    common control
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,221,533</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(241,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,455,491</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reversal of difference due to change of equity in
    Satelindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(290,442</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized loss on decline in value of securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Resolved during the Annual General Meeting of the
    Stockholders on May&nbsp;10, 2001:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Declaration of cash dividend
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(888,654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(888,654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriation for general reserve
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(126,950</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year&nbsp;&#151; as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of December&nbsp;31,
    2001&nbsp;&#151; as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(207</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,893,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the consolidated
financial statements.
</FONT>

<P align="center"><FONT size="2">F-11
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&#146; EQUITY --(Continued)" -->
<DIV align="left"><A NAME="032"></A></DIV>

<DIV align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS&#146; EQUITY&nbsp;&#151;&nbsp;(Continued)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000,
2001 AND 2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<TABLE width="100%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="20%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Difference in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">value of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restructuring</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Difference</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transactions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">due to change</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additional</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">between</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of equity in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">paid-in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">entities under</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">associated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Translation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">stock</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">capital</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">common control</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">companies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustment</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2002&nbsp;&#151;
    as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,992,233</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sale of investment in mutual fund Reksa Dana
    Seruni
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Pramindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6b</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(296,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Realized difference due to change of equity in
    associated companies as the result of sale of 12.72% of Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1b</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,158</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Resolved during the Annual General Meeting of the
    Stockholders on June&nbsp;21, 2002:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Declaration of cash dividend
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriation for general reserve
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year&nbsp;&#151; as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of December&nbsp;31,
    2002&nbsp;&#151; as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,288,271</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">235,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="right">[Additional columns below]

<P>[Continued from above table, first column(s) repeated]

<TABLE width="80%" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unrealized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">loss on</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">decline in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Retained earnings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">value of</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">stockholders&#146;</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">securities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Appropriated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unappropriated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equity</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of January&nbsp;1, 2002&nbsp;&#151;
    as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(207</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,893,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sale of investment in mutual fund Reksa Dana
    Seruni
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Pramindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(296,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Realized difference due to change of equity in
    associated companies as the result of sale of 12.72% of Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,158</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Resolved during the Annual General Meeting of the
    Stockholders on June&nbsp;21, 2002:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Declaration of cash dividend
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,125,055</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,125,055</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Appropriation for general reserve
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425,012</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(425,012</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income for the year&nbsp;&#151; as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Balance as of December&nbsp;31,
    2002&nbsp;&#151; as restated</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">745,404</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,383,466</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the consolidated
financial statements.
</FONT>

<P align="center"><FONT size="2">F-12
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CASH
FLOWS</FONT></B>

<DIV align="center">
<B><FONT size="2">FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000,
2001 AND 2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$&nbsp;(Note&nbsp;3)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">CASH FLOWS FROM OPERATING ACTIVITIES</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash receipts from operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone and interconnection&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fixed lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,883,551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,310,052</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,230,394</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">807,865</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,832,332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,237,087</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,098,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">793,138</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Joint operation scheme
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,950,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,717,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,577,976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">176,310</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interconnection&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,252,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,127,545</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,697,073</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">771,480</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">697,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,132,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126,489</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total cash receipts from operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,690,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,089,186</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,736,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,093,419</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash payments for operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,149,770</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,321,836</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,800,470</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(648,097</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash generated from operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,541,028</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,767,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,935,635</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,445,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest received
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">725,489</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">590,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">480,288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax payments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,642,818</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,098,272</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,914,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(213,955</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest paid
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(856,961</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,256,404</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(900,660</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(100,632</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash receipts from customers and advances
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109,021</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,949</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,509</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash provided from operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,875,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,012,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,864,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,213,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">CASH FLOWS FROM INVESTING ACTIVITIES</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from investments and maturity of time
    deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,118,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,892,554</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,497,883</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">167,361</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from sale of property, plant and
    equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,950</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,944</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">204,008</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase of marketable securities and placements
    in time deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,682,827</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,370,479</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,222,175</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(248,288</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sale of 12.72% of Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,948,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">441,223</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payment for cross ownership transactions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,967,430</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,406,309</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(268,861</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(275,849</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(243,561</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,214</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,366,450</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,591,449</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,625,292</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(740,256</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decrease in advances and others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,722</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,569</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payment of advance for investment in shares of
    stock
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(230,223</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,723</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of long-term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,400</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(37,607</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,202</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(806</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash used in investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,922,571</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,115,796</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,049,975</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(675,976</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">CASH FLOWS FROM FINANCING ACTIVITIES</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payment for debt issuance cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(53,915</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,024</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,365,314</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,281</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Repayment of long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(894,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(985,403</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,493,738</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(278,630</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Repayment of promissory notes issued for
    acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(247,640</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(771,066</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(86,153</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash dividends paid
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,218,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,023,355</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,327,458</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(260,051</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decrease (increase) in escrow account
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(171,077</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(126,848</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,173</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decrease in other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,664</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Receipts from loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">737,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash used in financing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109,973</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,662,811</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,670,216</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(298,348</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the
</FONT>

<DIV align="center">
<FONT size="2">consolidated financial statements.
</FONT>
</DIV>

<P align="center"><FONT size="2">F-13
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CASH
FLOWS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000,
2001 AND 2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">US$&nbsp;(Note&nbsp;3)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">NET INCREASE (DECREASE) IN CASH AND CASH
    EQUIVALENTS</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156,785</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(766,018</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,144,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">239,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">EXCHANGE RATE CHANGES</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(89,425</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,991</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">CASH AND CASH EQUIVALENTS AT BEGINNING OF
    YEAR</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,369,449</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,333,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">407,175</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">CASH AND CASH EQUIVALENTS AT END OF
    YEAR</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,333,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,699,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">636,768</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">SUPPLEMENTAL CASH FLOW INFORMATION</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non cash investing and financing activities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increase in property under construction through
    the incurrence of long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">580,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,341</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">480,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,716</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increase in property and equipment through lease
    liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalization of borrowing costs during
    construction:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Losses (gains) on foreign exchange&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,746</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,568</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,080</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,534</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,089</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,247</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Conversion of receivable to long-term investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Changes from equity transactions of associated
    companies affecting the following accounts:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,986</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">174,135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currency translation of CSM&#146;s and
    PSN&#146;s financial statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,178</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of subsidiary through the issuance of
    promissory notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,171,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,329,004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">371,956</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<FONT size="2">See accompanying notes to consolidated financial
statements which are an integral part of the
</FONT>

<DIV align="center">
<FONT size="2">consolidated&nbsp;financial statements.
</FONT>
</DIV>

<P align="center"><FONT size="2">F-14
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">CONSOLIDATED STATEMENTS OF CASH
FLOWS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">FOR THE YEARS ENDED DECEMBER&nbsp;31, 2000,
2001 AND 2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah and thousands of United States Dollars)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="033"></A></DIV>

<DIV align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">1.&nbsp;GENERAL</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Establishment
and General Information</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Perusahaan Perseroan (Persero)
P.T.&nbsp;Telekomunikasi Indonesia Tbk (the &#147;Company&#148;)
was originally a part of &#147;Post en Telegraafdienst&#148;,
which was established in 1884 under the framework of Decree
No.&nbsp;7 dated March&nbsp;27, 1884 of the Governor General of
the Dutch Indies and published in State Gazette No.&nbsp;52
dated April&nbsp;3, 1884.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1991, based on Government
Regulation&nbsp;No.&nbsp;25&nbsp;year 1991, the status of the
Company was changed into a state-owned limited liability
corporation (&#147;Persero&#148;). The Company was established
based on notarial deed No.&nbsp;128 dated September&nbsp;24,
1991 of Imas Fatimah, S.H. The deed of establishment was
approved by the Minister of Justice of the Republic of Indonesia
in his decision letter No.&nbsp;C2-6870.HT.01.01.Th.1991 dated
November&nbsp;19, 1991, and was published in State Gazette of
the Republic of Indonesia No.&nbsp;210 dated January&nbsp;17,
1992, Supplement No.&nbsp;5. The articles of association have
been amended several times, the most recent amendment was made
through deed No.&nbsp;4 dated January&nbsp;10, 2002, of Notary
A. Partomuan Pohan, S.H., LLM., concerning the change in the
Company&#146;s objective, scope of activities, directors&#146;
scope of authorities and the composition of the Company&#146;s
board of commissioners. The notarial deed was approved by the
Minister of Justice and Human Rights of the Republic of
Indonesia in his decision letter
No.&nbsp;C-00682HT.01.04.Th.2002 dated January&nbsp;15, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s principal business is the
provision of domestic telecommunications services, including
telephone, telex, telegram, satellite, leased lines, electronic
mail, mobile communication and cellular services. In order to
accelerate the construction of telecommunications facilities, to
make the Company a world-class operator, and to increase the
technology as well as the knowledge and skills of its employees,
the Company has entered into agreements with investors to
develop, manage and operate telecommunications facilities under
Joint Operation Schemes (known as &#147;Kerja Sama Operasi&#148;
or &#147;KSO&#148;) (Note&nbsp;50).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Law No.&nbsp;3/1989 on Telecommunications
which took effect on April&nbsp;1, 1989, Indonesian legal
entities are allowed to provide basic telecommunications
services in cooperation with the Company as the domestic
telecommunications organizing body (or &#147;badan
penyelenggara&#148;). Other Indonesian legal entities are also
allowed to individually provide non-basic telecommunications
services. In providing telecommunications services, these
entities are required to obtain licenses from the Minister of
Communications of the Republic of Indonesia (the Ministry of
Communications assumed responsibility for the telecommunications
sector from the previous Ministry of Tourism, Post and
Telecommunications in March 1998). Government
Regulation&nbsp;No.&nbsp;8/1993 concerning the provision of
telecommunications services, further regulates that cooperation
which provides basic telecommunications services can be in the
form of joint venture, joint operation or contract management
and that the entities cooperating with the domestic
telecommunications organizing body must use the organizing
body&#146;s telecommunications networks. If the
telecommunications networks are not available, the Government
Regulation requires that the cooperation be in the form of a
joint venture that is capable of constructing the necessary
networks.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Minister of Tourism, Post and
Telecommunications of the Republic of Indonesia
(&#147;MTPT&#148;), through his two decision letters both dated
August&nbsp;14, 1995, reaffirmed the status of the Company as
the organizing body for the provision of domestic
telecommunications services.
</FONT>

<P align="center"><FONT size="2">F-15
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Further, effective from January&nbsp;1, 1996, the
Company was granted the exclusive right to provide local
wireline and fixed wireless services for a minimum period of
15&nbsp;years and the exclusive right to provide domestic
long-distance telecommunications services for a minimum period
of 10&nbsp;years. The exclusive rights also apply to
telecommunications services provided for and on behalf of the
Company through a KSO. This grant of rights does not affect the
Company&#146;s right to provide other domestic
telecommunications services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;8, 1999, the Government issued
Law No.&nbsp;36/1999 on Telecommunications to replace Law
No.&nbsp;3/1989. Under the new Law, which took effect from
September 2000, telecommunications activities cover:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;Telecommunications networks
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;Telecommunications services
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iii.&nbsp;Special telecommunications
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">National state-owned companies, regional
state-owned companies, privately-owned companies and
cooperatives are allowed to provide telecommunications networks
and services. Special telecommunications can be provided by
individuals, government agencies and legal entities other than
telecommunications networks and service providers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Law No.&nbsp;36/1999, activities that
result in monopolistic practices and unhealthy competition are
prohibited. In connection with this law, Government
Regulation&nbsp;No.&nbsp;52/2000 was issued, which provides that
interconnection fees shall be charged to originating
telecommunications network operators where telecommunications
service is provided by two or more telecommunications network
operators.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on press release
No.&nbsp;05/HMS/JP/VIII/2000 dated August&nbsp;1, 2000 from the
Director General of Post and Telecommunications and the
correction thereto No.&nbsp;1718/UM/VIII/2000 dated
August&nbsp;2, 2000, the period of exclusive rights granted to
the Company to provide local wireline and fixed wireless
services was shortened to expire in August 2002 and August 2003
for domestic long-distance telecommunication services. In
return, the Government is required to pay compensation to the
Company, the amount of which is to be estimated by an
independent appraiser appointed by the Government. It is
expected that as part of the compensation arrangement with the
Company, the new operators will be granted a permit to provide
international telecommunications services effective from August
2003. On September&nbsp;30, 2003 the Company submitted an
application for international service provision license to the
Minister of Communications as regulator. In response, the
Minister through his letter dated December&nbsp;1, 2003, has not
granted such license to the Company awaiting determination of
compensation settlement. The Company expects such settlement
will be finalized in the first half 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on a press release from the Co-ordinating
Minister of Economics dated July&nbsp;31, 2002, the Government
decided to terminate the Company&#146;s exclusive rights as a
network provider for local and long-distance services with
effect from August&nbsp;1, 2002. On August&nbsp;1, 2002,
PT&nbsp;Indonesian Satellite Corporation Tbk
(&#147;Indosat&#148;) was granted a license to provide local and
long-distance telecommunications services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s head office is located in
Jalan Japati No.&nbsp;1, Bandung, West Java. In 1996, five of
the Company&#146;s seven regional divisions started to operate
as separate units (known as &#147;KSO Units&#148;) under Joint
Operation Schemes.
</FONT>

<P align="center"><FONT size="2">F-16
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">According to article&nbsp;3 of its articles of
association, the scope of the Company&#146;s activities is as
follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">1.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company&#146;s objective is to provide
    telecommunications and information facilities and services, in
    accordance with prevailing regulations.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">2.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">To achieve the above objective, the Company is
    involved in the following activities:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">i.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Planning, building, providing, developing,
    operating, marketing or selling, leasing and maintaining
    telecommunications and information networks in accordance with
    prevailing regulations.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">ii.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Planning, developing, providing, marketing or
    selling and improving telecommunications and information
    services in accordance with prevailing regulations.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">iii.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Performing activities and other undertakings in
    connection with the utilization and development of the
    Company&#146;s resources and optimizing the utilization of the
    Company&#146;s property, plant and equipment, information
    systems, education and training, and repairs and maintenance
    facilities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2001 and 2002, the
Company had 37,422 employees and 34,678 employees, respectively,
including those in the KSO Units, while the subsidiaries have an
additional 3,183 employees and 3,722 employees, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the resolution of Stockholders&#146;
Annual General Meeting, the minutes of which have been notarized
by deed No.&nbsp;17 dated May&nbsp;10, 2001 of A. Partomuan
Pohan, S.H., LLM., the composition of the Company&#146;s Board
of Commissioners from 2001 to 2004 is as follows:
</FONT>

<CENTER>
<TABLE width="40%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">President Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Bacelius Ruru
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Noor Fuad
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Purnomo Sidhi
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Andi Siswaka Faisal
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Rahardjo Tjakraningrat
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the resolution of the Stockholders&#146;
Extraordinary General Meeting, the minutes of which have been
notarized by deed No.&nbsp;6 dated April&nbsp;7, 2000 of the
same notary, the composition of the Board of Directors from 2000
to 2005 is as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">President Director
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Muhammad Nazif
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director of Finance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mursyid Amal
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director for Human Resources Development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Taufik Akbar
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director for Operational and Marketing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Komarudin Sastrakoesoemah
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director for Planning and Technology
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Kristiono
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-17
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the resolution of the Stockholders&#146;
Extraordinary General Meeting, the minutes of which have been
notarized by deed No.&nbsp;37 dated June&nbsp;21, 2002 of A.
Partomuan Pohan, S.H., LLM., the composition of the
Company&#146;s Board of Commissioners from 2002 to 2004 is as
follows:
</FONT>

<CENTER>
<TABLE width="50%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="55%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">President Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Bacelius Ruru
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Agus Haryanto
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Djamhari Sirat
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Independent Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Arif Arryman
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Independent Commissioner
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Petrus Sartono
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the resolution of the Stockholders&#146;
Extraordinary General Meeting, the minutes of which have been
notarized by deed No.&nbsp;37 dated June&nbsp;21, 2002 of the
same notary, the composition of the Board of Directors from 2002
to 2005 is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="23%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">President Director
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Kristiono
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director of Finance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Guntur Siregar
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director of Telecommunications Service Business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Garuda Sugardo
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director of Human Resources and Support Business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Agus Utoyo
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Director of Telecommunications Network Business
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">:
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Suryatin Setiawan
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;b.&nbsp;<U>Subsidiaries</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company consolidates the following
subsidiaries as a result of majority ownership or its right to
control operations.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="28%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="17%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total&nbsp;assets</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Start&nbsp;of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">before eliminations</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">commercial</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Subsidiaries</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Domicile</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Nature of business</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PT&nbsp;Infomedia Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="1">Jakarta
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Data and information service
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">51.00
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">51.00
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1995</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">215,867
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">265,830
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PT&nbsp;Indonusa Telemedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="1">Jakarta
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Multimedia
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">57.50
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">57.50
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1995</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">52,683
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">49,787
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PT&nbsp;Telekomunikasi Selular
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="1">Jakarta
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Telecommunications
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">77.72
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">65.00
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1995</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">7,363,322
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">11,255,500
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PT&nbsp;Dayamitra Telekomunikasi
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="1">Balikpapan
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Telecommunications
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">90.32
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">90.32
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1995</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">944,574
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">854,007
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PT&nbsp;Graha Sarana Duta
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="1">Jakarta
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Real estate, construction and services
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">99.99
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">99.99
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1982</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">37,286
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">44,998
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PT&nbsp;Pramindo Ikat Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="1">Medan
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="1">Telecommunications construction &#38; services
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">&#151;
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">100.00
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1995</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">&#151;
    </FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="1">1,911,183
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company owns an indirect investment through
its subsidiary in the following company:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="13%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage&nbsp;of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Start&nbsp;of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Nature of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Commercial</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Subsidiary</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Stockholder</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Domicile</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Business</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Operations</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telekomunikasi Selular Finance Limited
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomunikasi Selular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Mauritius
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">Financing
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">&#151;
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">100
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-18
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>PT&nbsp;Infomedia Nusantara
(&#147;Infomedia&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Infomedia is engaged in providing
telecommunications information services and other information
services in the form of print and electronic media. In 2002,
Infomedia established a new line of business to provide call
center services.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>PT&nbsp;Indonusa Telemedia
(&#147;Indonusa&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indonusa is engaged in providing multimedia
telecommunications services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company increased its investment in Indonusa
from 35% in 2000 to 57.5% in 2001, by acquiring 2,800,000 new
shares for Rp28,000&nbsp;million. This acquisition resulted in
goodwill of Rp654&nbsp;million (Note&nbsp;17).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;8, 2003, the Company increased its
investment in Indonusa to 88.08% through a share swap agreement
with PT&nbsp;Centralindo Pancasakti Cellular (&#147;CPSC&#148;)
in which the Company agreed to sell all of its shares in
PT&nbsp;Komunikasi Selular Indonesia, PT&nbsp;Metro Selular
Nusantara and PT&nbsp;Telekomunikasi Selular Raya, and in return
acquired additional shares in Indonusa and received a call
option to purchase additional shares in PT&nbsp;Pasifik Satelit
Nusantara (Note&nbsp;56b).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On October&nbsp;29, 2003, following a conversion
of Indonusa&#146;s debt to the Company into shares, the
Company&#146;s ownership increased to 90.39% (Note&nbsp;56b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>PT&nbsp;Telekomunikasi Selular
(&#147;Telkomsel&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel is engaged in providing
telecommunications facilities and mobile cellular services using
Global System for Mobile Communication (&#147;GSM&#148;)
technology on a nationwide basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s cross-ownership transaction
with Indosat in 2001 increased the Company&#146;s ownership
interest in Telkomsel to 77.72%. The accounting treatment of the
cross-ownership transaction is discussed further in Note&nbsp;5.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;3, 2002, the Company entered into a
Conditional Sale and Purchase Agreement (&#147;CSPA&#148;) with
Singapore Telkom Mobile Pte. Ltd. (&#147;Singtel&#148;).
Pursuant to the agreement, the Company sold 23,223 ordinary
registered shares of the capital of Telkomsel, representing
12.72% of the issued and paid up capital of Telkomsel for a
total consideration of US$429,000,000 (equivalent to
Rp3,948,945&nbsp;million). This transaction reduced the
Company&#146;s ownership in Telkomsel from 77.72% to 65%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sale of the shares closed on July&nbsp;30,
2002 and the Company recognized a gain of
Rp3,196,380&nbsp;million which was specifically identified in
the Statement of Income as &#147;Gain on sale of long-term
investment in Telkomsel&#148; and includes an amount of
Rp65,158&nbsp;million reflecting the realisation of a portion of
gains attributable to past equity transactions in Telkomsel. For
tax purposes, the gain was Rp30,294&nbsp;million reflecting the
higher tax base cost of the shares sold.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>PT&nbsp;Dayamitra
Telekomunikasi (&#147;Dayamitra&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dayamitra is the investor in KSO VI, the joint
operating scheme that provides telecommunications services in
Kalimantan. The Company&#146;s acquisition of a 90.32% ownership
interest in Dayamitra was effective on May&nbsp;17, 2001, the
date when the Deed of Share Transfer was signed. The Company also
</FONT>

<P align="center"><FONT size="2">F-19
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">entered into an Option Agreement to acquire the
remaining 9.68% interest from the selling stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Details of this acquisition are discussed further
in Note&nbsp;6a.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>PT&nbsp;Graha Sarana Duta
(&#147;GSD&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">GSD is engaged in construction, sales and lease
of offices, housing and hotels.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;6, 2001, the Company acquired a
100% ownership interest in GSD from Koperasi Mitra Duta and Dana
Pensiun Bank Duta, for a purchase consideration of
Rp119,000&nbsp;million. This acquisition resulted in goodwill of
Rp106,348&nbsp;million (Note&nbsp;17).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;28, 2001, the Company sold one
share to a related party for Rp9.5&nbsp;million thereby reducing
the Company&#146;s ownership interest to 99.99%.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>PT&nbsp;Pramindo Ikat Nusantara
(&#147;Pramindo&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pramindo is the investor in KSO I, the joint
operating scheme that provides telecommunications services in
Sumatra. On April&nbsp;19, 2002, the Company entered into a
Conditional Sale and Purchase Agreement (&#147;CSPA&#148;) (as
amended on August&nbsp;1, 2002) to acquire 100% of the issued
and paid up share capital of Pramindo.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Details of this acquisition are discussed further
in Note&nbsp;6b.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective with the closing of the first tranche,
the Company obtained control over the operations of Pramindo and
KSO Unit I. As a result, the Company has consolidated Pramindo
as of the date of the acquisition reflecting a 100% interest in
Pramindo (Notes&nbsp;2b and 4).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;<U>Telekomunikasi Selular Finance
Limited (&#147;TSFL&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel has 100% direct ownership interest in
TSFL, a company established in Mauritius on April&nbsp;22, 2002.
TSFL&#146;s objective is to raise funds for the development of
Telkomsel&#146;s business through the issuance of debenture
stock, bonds, mortgages or any other securities.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">c.&nbsp;<U>Public
offering of shares of the Company</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s total number of shares
immediately prior to its initial public offering was
8,400,000,000, comprising 8,399,999,999 series&nbsp;B shares and
1 series&nbsp;A Dwiwarna share, all of which were owned by the
Government of the Republic of Indonesia (the
&#147;Government&#148;). On November&nbsp;14, 1995, the
Government sold the Company&#146;s shares through an initial
public offering on the Jakarta Stock Exchange and Surabaya Stock
Exchange. The shares offered consisted of 933,333,000 new
series&nbsp;B shares and 233,334,000 series&nbsp;B shares owned
by the Government. A share offering was also conducted on the
New York Stock Exchange and London Stock Exchange for
700,000,000 series&nbsp;B shares owned by the Government of the
Republic of Indonesia, which were converted into 35,000,000
American Depositary Shares (ADS). Each ADS represents 20
series&nbsp;B shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 1996, the Government sold 388,000,000
series&nbsp;B shares, and later in 1997, the Government
distributed 2,670,300 series&nbsp;B shares as an incentive for
the stockholders not to sell their
</FONT>

<P align="center"><FONT size="2">F-20
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">shares within one year from the date of the
initial public offering. In May 1999, the Government sold
898,000,000 series&nbsp;B shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Law No.1/1995 on Limited Liability
Companies, the minimum total par value of the Company&#146;s
issued shares of capital stock must be 25% of the total par
value of the Company&#146;s authorized capital stock, or in the
Company&#146;s case Rp5,000,000&nbsp;million. To comply with the
Law, it was resolved at the Annual General Meeting of
Stockholders on April&nbsp;16, 1999 to increase the issued
shares of capital stock. The share dividend was distributed to
existing stockholders in August 1999.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In December 2001, the Government sold
1,200,000,000 shares or 11.9% of the series&nbsp;B shares. In
July 2002, the Government sold 312,000,000 shares or 3.1% of the
series&nbsp;B shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, all of the
Company&#146;s series&nbsp;B shares have been listed on the
Jakarta Stock Exchange and Surabaya Stock Exchange and
39,717,017 ADS shares have been listed on the New York Stock
Exchange and London Stock Exchange.
</FONT>

<P align="left">
<B><FONT size="2">2.&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Presented below are the significant accounting
policies adopted in preparing the consolidated financial
statements of the Company and subsidiaries, which are in
conformity with generally accepted accounting principles in
Indonesia.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">a.&nbsp;<U>Consolidated
financial statement presentation</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements, except for
statements of cash flows, are prepared under the accruals basis
of accounting. The measurement basis used is historical cost,
except for certain accounts recorded on the basis described in
the related accounting policies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated statements of cash flows are
prepared using the direct method by classifying cash flows on
the basis of operating, investing and financing activities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Figures in the consolidated financial statements
are rounded to and stated in millions of Indonesian Rupiah
(&#147;Rp&#148;) unless otherwise stated.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">b.&nbsp;<U>Principles
of consolidation</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements include the
financial statements of the Company and its subsidiaries in
which the Company directly or indirectly has ownership of more
than 50%, or the Company has the ability to control the entity,
even though the ownership is less than or equal to 50%.
Subsidiaries are consolidated from the date on which effective
control is obtained and are no longer consolidated from the date
of disposal. The Company does not consolidate a subsidiary if
control is expected to be temporary.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the case of PT&nbsp;Pramindo Ikat Nusantara
(&#147;Pramindo&#148;), the Company has evaluated the scope and
terms of this investment and concluded that it has the ability
to exercise control over Pramindo and the right to obtain all of
the future economic benefits of ownership as though the Company
owned 100% of the shares. The factors that the Company
considered include, among others, the fact that the purchase
price is fixed, its ability to vote 100% of the shares at
general stockholders meetings, subject to certain protective
rights retained by the selling stockholders, its ability to
appoint all of the board members and management and its
consequent ability to exclusively determine the financial and
</FONT>

<P align="center"><FONT size="2">F-21
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">operating policies of Pramindo subject to certain
protective rights, its issuance of irrevocable and unconditional
promissory notes in settlement of the purchase consideration to
the selling stockholders, the placement of the 70% of Pramindo
shares not yet transferred to the Company in an escrow account
by the selling stockholders and the protective provisions in the
various agreements for the Company to take over all shares
(including powers of attorney issued by the selling
stockholders) or collapse the KSO arrangement once the full
amount payable for the shares has been paid.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">c.&nbsp;<U>Transactions
with related parties</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and subsidiaries have transactions
with related parties. The definition of related parties used is
in accordance with Statement of Financial Accounting Standards
(&#147;PSAK&#148;) No.7 &#147;Related Party Disclosures&#148;.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">d.&nbsp;<U>Acquisitions
and business divestitures</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cross-ownership transactions with Indosat,
and a portion of the Pramindo acquisition, have been accounted
for as a reorganization of entities under common control because
the Company and Indosat (at the dates of the relevant
transactions) were both controlled by the Government. These
relevant transactions have been recorded at historical cost, in
a manner similar to that in pooling of interests accounting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The difference between the consideration paid or
received and the related historical carrying amount, after
considering income tax effects, has been charged to equity as
&#147;Difference in value of restructuring transactions between
entities under common control&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The acquisition of a subsidiary from a third
party is accounted for using the purchase method. The excess of
the acquisition cost over the Company&#146;s interest in the
fair value of identifiable assets and liabilities acquired is
recorded as goodwill and amortized using the straight-line
method over a period generally not expected to be more than five
years.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">e.&nbsp;<U>Foreign
currency transactions and translation</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The books of accounts of the Company and its
subsidiaries are maintained in Indonesian Rupiah. Transactions
during the year denominated in foreign currencies are recorded
at the rates of exchange prevailing at the time of the
transactions. At the balance sheet date, monetary assets and
liabilities denominated in foreign currencies are translated to
reflect the rates of exchange prevailing at that date. The
resulting gains or losses are credited or charged to current
operations, except for foreign exchange differences that can be
attributed to qualifying assets, which are capitalized.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The exchange rates used for translation of
monetary assets and liabilities denominated in foreign
currencies are the buy and sell rates published by Bridge
Telerate in 2001 and Reuters in 2002. The buy and sell rates
published by Bridge Telerate were Rp10,400 and Rp10,450 to US$1
as of December&nbsp;31, 2001. The Reuters buy and sell rates,
applied respectively to monetary assets and liabilities, were
Rp8,940 and Rp8,960 to US$1 as of December&nbsp;31, 2002.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">f.&nbsp;<U>Cash
and cash equivalents</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash and cash equivalents consist of cash on hand
and in banks and all unrestricted time deposits with maturities
of three months or less from the date of placement, net of
overdraft, if any.
</FONT>

<P align="center"><FONT size="2">F-22
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">g.&nbsp;<U>Investments</U></FONT></I>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">i.&nbsp;Time
deposits</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Time deposits with maturities of more than three
months are presented as temporary investments.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">ii.&nbsp;Investments
in securities</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments in available-for-sale securities are
stated at fair value. Unrealized gains or losses from the
increase or decrease in fair value are recorded as part of
equity. Realized gains and losses are included in operations
when securities are sold, and calculated based on the specific
identification method. Other than temporary declines in value
are charged to income when conditions giving rise to the
impairment occurs. Investments held to maturity are stated at
cost, less amortization of premium or discount.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">iii.&nbsp;Investments
in associated companies</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments in shares of stock in which the
Company has 20% to 50% of the voting rights, and over which the
Company exerts significant influence, but which it does not
control, are accounted for using the equity method. Based on
this method, the cost of investment is increased/(decreased) by
the Company&#146;s proportionate share in the income or loss of
the associated company from the date of acquisition and
dividends received. The carrying amount of the investments is
written down to recognize any other than temporary decline in
the value of individual investments. Any such write down is
charged directly to current operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Changes in the value of investments due to
changes in the equity of associated companies arising from
capital transactions of such associated companies with other
parties are recognized in equity as &#147;Difference Due to
Change of Equity in Associated Companies&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The functional currency of PT&nbsp;Pasifik
Satelit Nusantara and PT&nbsp;Citra Sari Makmur is the
U.S.&nbsp;Dollars. For the purpose of reporting these
investments using the equity method, the assets and liabilities
of these companies as of the balance sheet date are translated
into Rupiah using the rates of exchange prevailing at that date,
while revenues and expenses are translated at the average rates
of exchange for the year. The resulting translation adjustments
are shown as part of equity as &#147;Translation
Adjustment&#148; under the equity section in the consolidated
balance sheets.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">iv.&nbsp;Other
investments</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments in shares of stock with ownership of
less than 20% that do not have readily determinable fair values
and are intended for long-term investments are stated at cost.
The carrying amount of the investment is written down to
recognize any other than temporary decline in the value of the
individual investments. Any such write down is charged directly
to current operations.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">h.&nbsp;<U>Trade
and other accounts receivable</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Trade and other accounts receivable are recorded
net of an allowance for doubtful accounts, based upon a review
of the collectibility of the outstanding amounts at the end of
the year. Accounts are written off as bad debt during the period
in which they are determined to be not collectible.
</FONT>

<P align="center"><FONT size="2">F-23
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">i.&nbsp;<U>Inventories</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Inventories are stated at cost. For component
inventories, costs are determined using the weighted average
method, for module inventories costs are determined using the
specific identification method. Provisions are made to reduce
the carrying value of inventories to the lower of cost or net
realizable value.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A provision for obsolete inventory is determined
on the basis of the estimated future usage of individual items.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">j.&nbsp;<U>Prepaid
expenses</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prepaid expenses are amortized over their
beneficial periods using the straight-line method.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">k.&nbsp;<U>Property,
plant and equipment&nbsp;&#151; direct
acquisitions</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property, plant and equipment directly acquired
are stated at cost, except for certain revalued assets, less
accumulated depreciation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property, plant and equipment, except land, are
depreciated using the straight-line method, based on the
estimated useful lives of the assets as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="89%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Years</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5&#150;15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telegraph, telex and data communication equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5&#150;15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5&#150;20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3&#150;15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5&#150;15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3&#150;10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3&#150;10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3&#150;5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5&#150;8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Land is stated at cost and is not depreciated.
Property, plant and equipment not used in operations are stated
at the lower of its carrying value or net realizable value.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When the carrying amount of an asset exceeds its
estimated recoverable amount, the asset is written down to its
estimated recoverable amount, which is determined based upon the
greater of its net selling price or value in use.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cost of maintenance and repairs is charged to
operations as incurred. Expenditures, which extend the useful
life of the asset or result in increased future economic
benefits such as increases in capacity or improvement in the
quality of output or standard of performance, are capitalized
and depreciated based on the applicable depreciation rates.
</FONT>

<P align="center"><FONT size="2">F-24
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When assets are retired or otherwise disposed of,
their carrying values and the related accumulated depreciation
are eliminated from the consolidated financial statements, and
the resulting gains or losses on the disposal or sale of
property, plant and equipment are recognized in the statement of
income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Computer software used for data processing is
included with the value of the associated hardware.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property under construction is stated at cost,
which includes borrowing costs incurred to finance the
construction which is proportionally attributed either directly
or indirectly to the qualifying assets.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">l.&nbsp;<U>Property,
plant and equipment under capital leases</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property, plant and equipment acquired by means
of capital leases are presented at the present value of the
minimum lease payments plus any a purchase option. A
corresponding liability is also established and each lease
payment is allocated between the liability and finance charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Leased assets are depreciated using the same
method and estimated useful lives used for directly acquired
property and equipment.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">m.&nbsp;<U>Revenue-sharing
arrangements</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company records assets under revenue sharing
agreements as &#147;Property, Plant and Equipment under
Revenue-Sharing Arrangements&#148; (with a corresponding initial
credit to &#147;Unearned Income under Revenue-Sharing
Arrangements&#148; presented under Liabilities) based on the
costs incurred by the investors as agreed upon in the contracts
entered into by the Company and the investors. Property, plant
and equipment are depreciated over their estimated useful lives
using the straight-line method.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unearned income related to the acquisition of
the property, plant and equipment under revenue-sharing
arrangements is amortized over the revenue-sharing period using
the straight-line method. At the end of the revenue-sharing
period, the respective property, plant and equipment under
revenue-sharing arrangements are reclassified into the
&#147;Property, Plant and Equipment&#148; account.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenue earned under revenue-sharing arrangements
is recognized on the basis of the Company&#146;s share as
provided in the agreement.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">n.&nbsp;<U>Joint
operation schemes</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from the operations of telecommunication
facilities and the provision of telecommunication services which
have been transferred by the Company to KSO investors include
amortization of the investor&#146;s initial payments, Minimum
Telkom Revenues (&#147;MTR&#148;) and the Company&#146;s share
of Distributable KSO Revenues (&#147;DKSOR&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unearned initial investor payments received
as compensation from the KSO Investors are presented net of all
direct costs incurred in connection with the KSO agreement and
are amortized using the straight-line method over the KSO period
of 15&nbsp;years starting January&nbsp;1, 1996.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MTR are recognized on a monthly basis based upon
the contracted MTR amount for the current year, in accordance
with the KSO agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s share of DKSOR is recognized
on the basis of the Company&#146;s percentage share of the KSO
revenues, net of MTR and operational expenses of the KSO Units,
as provided in the KSO agreements.
</FONT>

<P align="center"><FONT size="2">F-25
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under PSAK No.&nbsp;39, &#147;Accounting for
Joint Operation Schemes&#148;, which supersedes
paragraph&nbsp;14 of PSAK No.&nbsp;35, &#147;Accounting for
Telecommunication Services Revenue&#148;, the assets built by
the KSO Investors under the Joint Operation Schemes are recorded
in the books of the KSO Investors which operate the assets and
are transferred to the Company at the end of the KSO period or
upon termination of the KSO scheme.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">o.&nbsp;<U>Deferred
charges for landrights</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Expenses related to the legal processing of
landrights are deferred and amortized using the straight-line
method over the legal term of the landright.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">p.&nbsp;<U>Revenue
and expenses recognition</U></FONT></I>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;Fixed
Line Telephone Revenues</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from fixed line installations are
recognized at the time the installations are placed in service.
Revenues from usage charges are recognized as customers incur
the charges.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;Cellular
Telephone Revenues</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from service connections (connection
fees) are recognized as income at the time the connections
occur. Revenues from airtime and monthly subscription charges
are recognized when earned. Revenues from prepaid card
customers, which consist of the sale of starter packs, also
known as Subscriber Identification Module (&#147;SIM&#148;)
cards and pulse reload vouchers, are recognized as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;Sale of starter packs is recognized as
    revenue upon delivery of the starter packs to distributors,
    dealers or directly to customers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;Sale of pulse reload vouchers is
    recognized initially as unearned income and recognized
    proportionately as revenue based on successful calls made by the
    subscribers or whenever the unused stored value of the voucher
    has expired.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.&nbsp;Interconnection
Revenues</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues from network interconnection with other
domestic and international telecommunications carriers are
recognized as incurred and are presented on a net basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Expenses are recognized on an accruals basis.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">q.&nbsp;<U>Pension
plan</U></FONT></I>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;Defined
Benefit Pension Plan</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and certain subsidiaries established
a defined benefit pension plan covering all their permanent
employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Current service cost is charged to operations in
the current period. Past service cost, actuarial adjustments and
the effect of changes in assumptions for active participants are
amortized using the straight-line method over the estimated
average residual employment period in accordance with the advice
of an independent qualified actuary.
</FONT>

<P align="center"><FONT size="2">F-26
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The method used by the actuary for actuarial
calculations is the Projected Unit Credit Method.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;Early
Retirement</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Early retirement benefits are accrued at the time
the Company makes a commitment to provide early retirement
benefits as a result of an offer made in order to encourage
voluntary redundancy. The Company is demonstrably committed to a
termination when, and only when, the Company has a detailed
formal plan for the early retirement and is without realistic
possibility of withdrawal.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">r.&nbsp;<U>Employee
benefits other than pension plan</U></FONT></I>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;Long
service awards (&#147;LSA&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s employees are entitled to
receive certain cash awards based on length of service and after
completing certain years of services which are either paid at
the time the employee reaches a certain anniversary date or upon
retirement or at the time of termination if the employee has met
the requisite number years of service.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company recognizes the cost of providing
these benefits based on actuarial computations applying
Statement of Financial Accounting Standards No.&nbsp;112,
&#147;Employer&#146;s accounting for Post Employment
Benefits&#148; (&#147;SFAS No.&nbsp;112&#148;) in U.S.&nbsp;GAAP
for post employment types of LSA and in accordance with the
standard on &#147;Other Long-Term Employee Benefits&#148; as
stated in the International Financial Reporting Standard
(&#147;IFRS&#148;) No.&nbsp;19 &#147;Employee Benefits&#148; for
the other types of LSA.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;Post-retirement
healthcare plan</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also provides a post-retirement
healthcare plan for all of its pensioners who had worked for
over 20&nbsp;years and their eligible dependants. The cost of
providing those benefits are recognised based on actuarial
computations applying Statement of Financial Accounting
Standards No.&nbsp;106 &#147;Employers&#146; Accounting for
Post-retirement Benefits Other than Pensions&#148;
(&#147;SFAS&nbsp;106&#148;), in U.S.&nbsp;GAAP.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">s.&nbsp;<U>Income
tax</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Current tax expense is determined based on the
taxable income for the year computed using prevailing tax rates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred tax is provided using the liability
method, for all temporary differences between tax bases of
assets and liabilities and their carrying values for financial
reporting purposes. Currently enacted tax rates are used to
determine deferred income tax.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred tax assets are recognized to the extent
that it is probable that the future taxable profits will be
available against which the temporary differences can be
utilised.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Deferred tax is charged or credited in the
statement of income, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is
also charged or credited directly to equity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amendments to taxation obligations are recorded
when an assessment is received, or if appealed against, when the
result of the appeal is determined.
</FONT>

<P align="center"><FONT size="2">F-27
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">t.&nbsp;<U>Earnings
per share and earnings per American Depositary Share
(&#147;ADS&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Basic earnings per share is computed by dividing
net income by the weighted average number of shares outstanding
during the year. Net income per ADS is computed by multiplying
basic earnings per share by 20, the number of shares represented
by each ADS.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">u.&nbsp;<U>Segment
information</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries&#146; segment
information is presented based upon identified business
segments. A business segment is a distinguishable unit that
provides different products and services and is managed
separately. Business segment information is consistent with
operating information routinely reported to the Company&#146;s
chief operating decision maker.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Segment information is prepared in conformity
with the accounting policies adopted for preparing and
presenting the consolidated financial statements.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">v.&nbsp;<U>Use
of estimates</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The preparation of the consolidated financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the consolidated financial statements and the reported amounts
of revenues and expenses during the year. Actual results could
differ from those estimates.
</FONT>

<P align="left">
<B><FONT size="2">3.&nbsp;TRANSLATION OF RUPIAH INTO UNITED
STATES DOLLARS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The financial statements are stated in Rupiah.
The translations of Rupiah amounts into United States Dollars
are included solely for the convenience of the readers and have
been made using the average of the market buy and sell rates of
Rp8,950 to US$1 published by Reuters on December&nbsp;31, 2002.
The convenience translations should not be construed as
representations that the Rupiah amounts have been, could have
been, or could in the future be, converted into United States
Dollars at this or any other rate of exchange.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">4.&nbsp;</FONT></B></TD>
    <TD>
    <B><FONT size="2">RESTATEMENT OF FINANCIAL STATEMENTS PREVIOUSLY
    REPORTED</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As further explained in Note&nbsp;54a, the
Company was informed by the United States Securities and
Exchange Commission (&#147;SEC&#148;) that its Annual Report on
Form&nbsp;20-F for 2002 submitted on April&nbsp;17, 2003 was not
in compliance with the SEC&#146;s rules and regulations. The
Company was required to amend that report, which it did on
June&nbsp;11, 2003, to identify the deficiencies in its
originally submitted Annual Report. The Company is also required
to make a further amendment to its Annual Report on
Form&nbsp;20-F to bring it into compliance with the relevant
rules and regulations. Furthermore, the Indonesian Capital
Markets Supervisory Agency (&#147;BAPEPAM&#148;) confirmed that
the Company should comply with the requirements of the SEC and
at the same time ensure that the same information is made
available to all shareholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequent to the issuance of the consolidated
financial statements in the Annual Report on Form&nbsp;20-F for
the year ended December&nbsp;31, 2002 and the amendment thereto
that was filed with the SEC on June&nbsp;11, 2003 referred to
above, the Company made certain adjustments to the Indonesian
GAAP amounts previously disclosed for 2000, 2001, 2002 and prior
years which the Company believes
</FONT>

<P align="center"><FONT size="2">F-28
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">are required to be made pursuant to Indonesian
GAAP. Adjustments affecting the U.S.&nbsp;GAAP amounts and
disclosures are set out in Note&nbsp;57.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Set forth below are the effects of the
restatements on the previously reported consolidated net income
and stockholders&#146; equity for the years ended
December&nbsp;31, 2000, 2001 and 2002, respectively. The
corrections of the Indonesian GAAP consolidated financial
statements primarily relate to the accounting for long service
awards, deferred income taxes and business acquisitions, as well
as the assumptions underlying the Company&#146;s post-retirement
healthcare plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effect of the restatements on net income for
the years ended December&nbsp;31, 2000, 2001 and 2002 is set
forth in the table below. Restatements of Rp205,610&nbsp;million
relating to periods prior to 2000 were recorded as a reduction
of the respective equity accounts as of January&nbsp;1, 2000.
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under Indonesian GAAP as previously
    reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,010,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,250,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,345,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(i</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,116</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,675</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(151,773</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Post-retirement healthcare benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(141,160</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(186,758</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(414,564</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54,027</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(286,213</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition accounting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(iv</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,008</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,763</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(v</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,695</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,359</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,975</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vi</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of loan balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(vii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(viii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel equity transactions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(ix</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,158</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other items
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(x</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,503</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Corporate tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(xi</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,965</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsequent event:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AriaWest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(xii</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">332,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(234,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(181,719</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(305,565</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under Indonesian GAAP as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">827.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">797.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per ADS (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,972.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,432.76</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,558.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,505.96</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,072.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,951.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-29
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The effect of the restatements on
stockholder&#146;s equity as of December&nbsp;31, 2000, 2001 and
2002 is set forth in the table below:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under Indonesian GAAP
    as&nbsp;previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,909,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,323,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,899,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(i)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(210,159</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(275,834</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(427,607</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Post-retirement healthcare benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(ii)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(341,106</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(527,864</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(942,428</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(iii)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83,588</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">525,528</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(136,875</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition accounting
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(iv)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,008</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(353,810</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(v)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,565</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(vi)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of loan balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(vii)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Correction of taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(viii)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel equity transactions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(ix)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other items
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(x)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,503</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Corporate tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(xi)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,965</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsequent event:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AriaWest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom">
    <FONT size="2">(xii)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">332,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(436,112</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(242,614</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,285,566</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under Indonesian GAAP
    as&nbsp;restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These adjustments have been reflected in the
accompanying restated consolidated financial statements and are
summarized as follows:
</FONT>

<P align="left">
<B><FONT size="2">Adjustments</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Long
service awards</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s employees are entitled to
receive certain cash awards, such as long service, housing,
transport and other allowances, based on length of service.
Depending on the type of award, they are either paid at the time
an employee reaches a certain anniversary date or upon
termination or retirement if the employee has met the requisite
number of years of service. The Company had not previously made
provision for these liabilities and was only accounting for the
awards at the time payments were made to employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has determined that these awards
should have been accounted for under the accrual method.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Post-retirement
healthcare benefits</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides a post-retirement healthcare
plan for pensioners who were employed by the Company for over
20&nbsp;years. As described in Notes&nbsp;2r and 47 of the
consolidated financial statements these costs are accounted for
in accordance with U.S.&nbsp;GAAP applying SFAS&nbsp;106. The
</FONT>

<P align="center"><FONT size="2">F-30
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">Company has been recognizing the benefit
obligations and the related benefit costs based on actuarial
calculations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has requested the Company&#146;s
actuary to review the actuarial calculations in respect of
disclosures for the post-retirement healthcare plan for the
years 2000 and 2001. As a consequence of this review, the
Company&#146;s actuary in consultation with the Company&#146;s
management has deemed it necessary to withdraw its original
reports and substitute revised reports.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has determined that the change in
actuarial calculations represents the correction of an error and
therefore requires retroactive restatement of its 2000 and 2001
financial statements. The Company did not previously engage an
actuary for 2002, however, has done so for the purpose of these
restated financial statements.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U>Deferred
income taxes</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has identified the need to make
adjustments to correct errors in prior calculations of deferred
income taxes to reflect certain temporary differences between
the tax bases of assets and liabilities and their reported
amounts in the consolidated financial statements. The Company
also has concluded it should remove the deferred tax liability
previously recorded in relation to the undistributed earnings of
its subsidiaries and associates, principally those relating to
Telkomsel (see &#147;Adjustments Related to Stockholders&#146;
Equity&#148; item (a)&nbsp;below), because the Company did not
correctly determine the amount of the temporary difference.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U>Acquisition
accounting</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In respect of the acquisition of Pramindo in
August 2002, the Company previously consolidated a 30% interest
in Pramindo in accordance with the 30% legal ownership interest
in the shares held by the Company. The Company did not, however,
consider other factors affecting its ability to exercise control
over Pramindo and its right to obtain all of the future economic
benefits of ownership as though the Company owned 100% of the
shares. The factors that the Company has now considered include,
among others, the fact that the selling price is fixed, its
ability to vote 100% of the shares at general stockholders
meetings, subject to certain protective rights retained by the
selling stockholders, its ability to appoint all of the board
members and management and its consequent ability to exclusively
determine the financial and operating policies of Pramindo
subject to certain protective rights, its issuance of
irrevocable and unconditional promissory notes in settlement of
the purchase consideration to the selling stockholders, the
placement of the 70% of Pramindo shares not yet transferred to
the Company in an escrow account by the selling stockholders,
the protective provisions in the various agreements for the
Company to take over all shares (including powers of attorney
issued by the selling stockholders) or collapse the KSO
arrangement once the full amount payable for the shares has been
paid (Note&nbsp;6b).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a consequence, the Company has determined that
consolidation of a 100% interest in Pramindo from the date of
acquisition is appropriate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, in connection with the acquisition
of Pramindo in August&nbsp;2002 and Dayamitra in May&nbsp;2001,
the Company did not properly allocate the purchase consideration
to certain acquired assets. The restated consolidated financial
statements for 2001 and 2002 reflect adjustments to record such
assets at their fair values as of the date of acquisition and
subsequent depreciation thereof.
</FONT>

<P align="center"><FONT size="2">F-31
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company previously presented the
consolidation of newly acquired subsidiaries from the beginning
of the year of acquisition, consistent with the principles of
U.S.&nbsp;GAAP set out in Accounting Research Bulletin 51:
Consolidated Financial Statements. In&nbsp;2002, the Company has
changed the manner in which it presents acquisitions to a
presentation starting from the date of acquisition in accordance
with PSAK&nbsp;4. This change does not affect the reported net
income in any of the years presented.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also should have reflected an element
of this transaction as a transaction between entities under
common control (see &#147;Adjustments Related to
Stockholders&#146; Equity&#148; below).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>Operating
revenues</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of a review of certain terms of the
revenue sharing agreements and other telecommunication services
agreements, the Company has determined that there were certain
errors in previous calculations relating to the amortization of
unearned revenue which resulted in a net overstatement of
revenues recorded in the consolidated financial statements for
2001 and an understatement of such revenues in&nbsp;2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;<U>Trade
accounts payable</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the reconciliation of balances
with other telephone operators in 2002, the Company determined
that there were some errors in trade accounts payable balances
that resulted in an overstatement of the payables recorded in
the consolidated financial statements for 2001 and&nbsp;2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;<U>Correction
of loan balance</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of reconciliation of outstanding
loans at the end of 2002, the Company determined that there was
a double recording of a loan balance which had a corresponding
effect of overstating the foreign exchange loss in the
consolidated financial statements for&nbsp;2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;<U>Correction
of taxes payable</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of reconciliation of taxes payable at
the end of 2002, the Company determined that there was an over
accrual of value added tax payable.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;<U>Telkomsel
equity transactions</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the sale of a 12.72% interest in
Telkomsel in 2002, an adjustment should have been made to
stockholders&#146; equity to reflect the realisation of a gain
in the 2002 statement of income attributable to past equity
transactions in Telkomsel (Note&nbsp;1b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;<U>Other
items</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other adjustments represent individually
insignificant adjustments to correct errors as a result of
understatement of depreciation expenses, understatement of
allowance for doubtful accounts and amortisation of deferred
interest and other issues.
</FONT>

<P align="center"><FONT size="2">F-32
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;<U>Corporate
tax</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of the above adjustment have also
impacted the corporate tax calculation for the 2001 and 2002 tax
years. As a result, the Company has reflected the related
adjustments to the corporate tax charge in the restated
consolidated financial statements for the respective years.
</FONT>

<P align="left">
<B><FONT size="2">Subsequent event</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;<U>AriaWest</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequent to the date on which the Company
issued the 2002 consolidated financial statements, the Company
settled its dispute with AriaWest. In the previously issued
consolidated financial statements for 2002, the Company had made
provisions against its trade receivables relating to the dispute
with AriaWest and recorded Rp830&nbsp;billion received from KSO
III as &#147;Advances from customers and suppliers&#148; in the
balance sheet pending settlement of the dispute. As a result of
the settlement, the Company has reversed these provisions
(Notes&nbsp;9 and&nbsp;56d), applied the advance received
against the outstanding trade receivable, and accrued the
settlement amount (Note&nbsp;56d).
</FONT>

<P align="left">
<B><FONT size="2">Adjustments Related to Stockholders&#146;
Equity</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">a.</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company incorrectly recorded an adjustment
    directly to stockholders&#146; equity in the previously issued
    2002 consolidated financial statements to reverse the deferred
    tax liability the Company had previously recorded in relation to
    the undistributed earnings of Telkomsel. This balance should
    have been reversed as part of the accounting for the cross
    ownership transactions in 2001 (Note&nbsp;5) and has been
    adjusted as part of the corrections to the Company&#146;s
    deferred tax accounting referred to in (iii)&nbsp;above.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">b.</FONT></TD>
    <TD align="left">
    <FONT size="2">At the time the Company acquired Pramindo in
    August 2002, 13% of the issued and paid up share capital of
    Pramindo was owned by Indosat, a company that, at that time, was
    majority owned and controlled by the Government, the
    Company&#146;s major stockholder. In the previously issued
    consolidated financial statements for 2002, the Company did not
    account for the acquisition of Pramindo recognising that a
    portion of the transaction was between entities under common
    control. As a result, the Company has made an adjustment as a
    result of accounting for the acquisition of 13% of Pramindo as a
    transaction between entities under common control by debiting
    the &#147;Difference in value from restructuring transactions of
    entities under common control&#148; in stockholders&#146; equity
    to reflect the excess of the purchase price over the
    proportional historical book value of the net assets of Pramindo
    that were acquired from Indosat.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Reclassifications</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain accounts were reclassified to conform
with Indonesian GAAP and U.S.&nbsp;GAAP presentation
requirements. These reclassifications did not affect the net
income in the years presented. The following items discuss the
significant reclassifications that have been made.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">a.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of completed construction in
    progress of Rp765,753&nbsp;million and advances and other non
    current assets of Rp83,608&nbsp;million to fixed assets
    in&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-33
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">b.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification in 2002 of intangible assets
    amortization of Rp166,721&nbsp;million (2001:
    Rp42,643&nbsp;million) and amortization of goodwill of
    Rp21,269&nbsp;million (2001: Rp13,066&nbsp;million) from other
    charges to operating expenses.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">c.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of other accounts receivable to
    trade accounts receivable of Rp82,174&nbsp;million in&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">d.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of related party trade accounts
    receivable to third party trade accounts receivable of total
    Rp27,677&nbsp;million in&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">e.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of restricted time deposits from
    other non current assets to other current assets of
    Rp46,027&nbsp;million in&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">f.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of billing processing fees
    revenue of Rp30,359&nbsp;million from other income to other
    operating revenue in&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">g.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of restricted time deposits from
    temporary investments to other current assets of
    Rp500,000&nbsp;million in&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">h.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification of provision for post-retirement
    benefits from accrued expenses of Rp1,602,494&nbsp;million in
    2002 (2001: Rp1,045,525&nbsp;million).
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">i.</FONT></TD>
    <TD align="left">
    <FONT size="2">Reclassification in 2002 of revenue of certain
    subsidiaries from other income (charges) to operating revenues
    amounting to Rp98,877&nbsp;million, Rp144,055&nbsp;million and
    Rp217,567&nbsp;million in 2000, 2001 and&nbsp;2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-34
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the significant effects of the
restatements and reclassifications on the Company&#146;s
consolidated balance sheet is set forth in the table below:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,870,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,870,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">573,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">694,074</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">694,074</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,037,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,308,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,569</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,569</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,415,686</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,890,679</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">145,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,299,704</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,299,704</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,308,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,300,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,980,544</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,547,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property, plant and equipment&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,019,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,019,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,288,766</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,891,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,645,780</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,448,606</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances and other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">867,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">867,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">694,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">677,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">528,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,474</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intangible assets&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,356,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,052,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,898,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,719,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,719,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,161,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,735,758</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,341,623</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,760,066</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,470,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,322,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">685,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">685,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">721,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">719,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,032,942</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">790,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">939,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">939,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,056,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,039,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,356,284</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,272,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,708</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Taxes payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">732,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">732,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,875,023</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,877,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,212,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,109,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">993,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">621,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,437,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,510,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,949,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances from customers and suppliers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,132,319</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">293,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities of long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">818,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">818,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,542,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,542,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,012,251</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,590,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,509,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,137,752</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,075,323</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,542,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,854,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,708,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,787,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,703,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,767,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,818,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,521,209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,083,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unearned income on revenue&nbsp;&#151; sharing
    arrangement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">267,843</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,797</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for long service award
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,159</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for post-retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">712,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,045,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,602,494</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liabilities for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,618,979</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total non-current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,786,375</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,594,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,836,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,177,238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,124,440</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,389,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference in value of restructuring transactions
    between entities under common control
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,402,343</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,992,233</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,032,455</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,288,271</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change of equity in associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426,397</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">609,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-35
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Translation adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">235,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unappropriated retained earnings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,777,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,082,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,770,303</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,893,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,565,511</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,383,466</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,909,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,473,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,323,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,899,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities and stockholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,470,280</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,322,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A summary of the significant effects of the
restatements and reclassifications on the Company&#146;s
consolidated statements of income is set forth in the table
below:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As previously</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">reported</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As restated</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,111,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,130,789</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,399,737</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,433,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,594,119</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,515,089</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,864,400</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,998,053</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,672,603</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (charges)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(888,953</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(987,830</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(928,411</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(869,516</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,940,890</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,618,687</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,789,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,608,229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,687,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,549,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,342,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,748,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,466,267</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,520,294</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,070,654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,006,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,745,857</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,898,971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pre-acquisition loss (income) of&nbsp;subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(142,817</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(312,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(312,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,108,626</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(810,222</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,010,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,250,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,345,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic and diluted earnings per&nbsp;share (full
    amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275.30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421.64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">827.90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">797.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Earnings per ADS (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,972.23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,505.96</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,432.76</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,072.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,558.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,951.80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">5.&nbsp;CROSS-OWNERSHIP TRANSACTIONS WITH
INDOSAT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;3, 2001, the Company signed a CSPA
with Indosat, for a series of transactions to consolidate their
cross-ownership in certain companies. The transactions under the
agreement are as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;Acquisition by the Company of
    Indosat&#146;s 35% equity interest in Telkomsel for
    US$945&nbsp;million (&#147;Telkomsel Transaction&#148;);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;Acquisition by Indosat of the
    Company&#146;s 22.5% equity interest in PT&nbsp;Satelit Palapa
    Indonesia (&#147;Satelindo&#148;) for US$186&nbsp;million
    (&#147;Satelindo Transaction&#148;);
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iii.&nbsp;Acquisition by Indosat of the
    Company&#146;s 37.66% equity interest in PT&nbsp;Aplikanusa
    Lintasarta (&#147;Lintasarta&#148;) for US$38&nbsp;million plus
    convertible bonds of Rp4,051&nbsp;million issued by Lintasarta
    (&#147;Lintasarta Transaction&#148;); and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iv.&nbsp;The acquisition by Indosat of all of the
    Company&#146;s rights and novation of all of the Company&#146;s
    obligations, under the KSO IV Agreement dated October&nbsp;20,
    1995, between the Company and PT&nbsp;Mitra Global
    Telekomunikasi Indonesia (&#147;MGTI&#148;), together with all
    of the Company&#146;s assets being used as KSO IV assets, for
    US$375&nbsp;million (&#147;KSO IV Transaction&#148;).
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-36
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Lintasarta&#146;s convertible bonds were
subsequently converted into shares, thereby reducing the
Company&#146;s 37.66% equity interest to 37.21% prior to the
consummation of the Lintasarta Transaction.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telkomsel and Lintasarta Transactions were
consummated on May&nbsp;16, 2001 based on Deed of Share Transfer
No.&nbsp;1/V/2001/triplo and No.&nbsp;2/V/2001/duplo,
respectively, of Notary Ny. Liliana Arif Gondoutomo, S.H.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Satelindo Transaction was consummated on
July&nbsp;23, 2001 after DeTeAsia Holding GmbH and
PT&nbsp;Bimagraha Telekomindo (the other Satelindo stockholders)
waived their pre-emptive rights on 7.26% and 13.06% of
Satelindo&#146;s shares, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;1, 2002, the Company and Indosat
announced the cancellation of the KSO IV Transaction. As a
result, the Company settled this portion of the cross ownership
transaction in cash.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Telkomsel, Satelindo and Lintasarta
Transactions have been accounted for as a restructuring of
entities under common control. The Company&#146;s acquisition of
a controlling interest in Telkomsel was accounted for in a
manner similar to that of pooling of interests accounting.
Accordingly, for reporting purposes, the financial statements of
the Company and those of Telkomsel have been combined, as if
they had been combined from the beginning of the earliest period
presented. The effects of the transactions between the Company
and Telkomsel before the combination were eliminated in
preparing the combined financial statements. The difference
between the consideration paid or received and the historical
amount of the net assets of the investee acquired or carrying
amount of the investment sold, is included within equity as
&#147;Difference in value of restructuring transactions between
entities under common control&#148;, as follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="21%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Consideration</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">amount of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">paid/</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">net assets/</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deferred</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Change</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(received)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">investment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">income tax</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in equity</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Tax</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Net</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,782,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,466,658</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337,324</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,978,468</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,978,468</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satelindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,122,260</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(290,442</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,412,702</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(627,678</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,785,024</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lintasarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(437,631</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(320,797</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(119,586</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(201,211</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,222,559</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,583,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337,324</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(290,442</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,244,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(747,264</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,992,233</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2001, the Company&#146;s
net obligation to Indosat for the cross-ownership transactions
was Rp2,406,309&nbsp;million. The Company settled this
obligation in 2002 in cash.
</FONT>

<P align="left">
<B><FONT size="2">6.&nbsp;ACQUISITION OF KSO INVESTORS</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Dayamitra</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On May&nbsp;17, 2001, the Company acquired 90.32%
of the shares of Dayamitra for an aggregate purchase price of
US$134,172,232 (including consultants fees of approximately
US$3,303,191). Pursuant to the terms of the agreement, the
Company paid the initial payment amount of US$18,289,800 on
May&nbsp;17, 2001, the closing date of the transaction, and
US$8,937,041 on August&nbsp;10, 2001 as a post closing working
capital adjustment to the purchase price. The remaining amount
of US$103,642,200 was paid through an escrow arrangement
discussed below, in eight quarterly installments of
US$12,955,275, from August&nbsp;17, 2001 to May&nbsp;17, 2003.
</FONT>

<P align="center"><FONT size="2">F-37
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This acquisition resulted in the identification
of an intangible asset amounting to Rp1,276,575&nbsp;million
representing the right to operate the business in the KSO Area.
The amount will be amortized over the remaining term of the KSO
agreement (Note&nbsp;17).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company acquired control of Dayamitra on
May&nbsp;17, 2001 and has consequently consolidated Dayamitra
from that date. Dayamitra&#146;s net loss for the year 2001 and
the net income portion that was consolidated amounted to
Rp40,525&nbsp;million and Rp64,473&nbsp;million, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Details of the net assets acquired and goodwill
on the acquisition of 90.32% are as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="83%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase consideration
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Initial payment (US$18,289,800)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Working capital reimbursement
    (US$8,937,041)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,989</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Promissory notes (US$103,642,200)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,171,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Consulting fees (US$3,303,191)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total purchase consideration
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,516,146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(164,847</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase consideration&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,351,299</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of net assets acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,652</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Distributable KSO revenue receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,398</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,401,479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,276,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(236,265</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Deferred tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(581,816</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Non-current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(693,684</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of net assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,351,299</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164,847</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total purchase consideration
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,516,146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Cash and cash equivalents in
    subsidiary acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(103,689</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Promissory notes issued
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,171,157</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash outflow on acquisition
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">241,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the Dayamitra transaction, the
Company also entered into the following agreements:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.&nbsp;Option Agreement
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company entered into an Option Agreement with
TM Communications (HK) Ltd (&#147;TMC&#148;), providing the
Company with an option to acquire the remaining 9.68% equity
interest in Dayamitra, referred to as the Option Share. Under
the agreement, TMC, the selling stockholder, granted the
</FONT>

<P align="center"><FONT size="2">F-38
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">Company an exclusive option to purchase full and
legal title to the Option Share (the &#147;Call Option&#148;),
and the Company granted the selling stockholder an exclusive
option to sell to the Company full legal title to those shares
(the &#147;Put Option&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In consideration for the grant of the options,
the Company will pay to the selling stockholder the option
purchase price of US$6,300,000, plus US$957,823 as payment for
Dayamitra&#146;s adjusted working capital, or a total of
US$7,257,823. The amount is payable in eight quarterly
instalments of US$907,228, beginning on August&nbsp;17, 2001 and
ending on May&nbsp;17, 2003. Payments will be made through an
escrow account established under the Escrow Agreement discussed
below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company may exercise the option any time
after Dayamitra has satisfied all of its obligations under the
J-Exim loan beginning on May&nbsp;17, 2003 and until five
business days prior to March&nbsp;26, 2006. The strike price
payable by the Company to the selling stockholder for the Option
Shares upon exercise of the option is US$16,200,000, less
certain amounts that are stipulated in the Option Agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the option purchase
price that has been paid by the Company amounted to US$5,443,367
or equivalent to Rp51,120&nbsp;million (2001: US$1,814,456 or
equivalent to Rp17,360 million), and is presented as part of
&#147;Advance payment for investment in shares of stock&#148;
(Note&nbsp;6c).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.&nbsp;Escrow Agreement
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An Escrow Agreement dated May&nbsp;17, 2001, was
entered into by and among the Company, Dayamitra,
PT&nbsp;Intidaya Sistelindomitra (&#147;Intidaya&#148;), Cable
and Wireless plc (&#147;C&#38;W plc&#148;), PT&nbsp;Mitracipta
Sarananusa (&#147;Mitracipta&#148;), TMC, Tomen Corporation
(&#147;Tomen&#148;), Citibank N.A. Singapore (the Singapore
Escrow Agent) and Citibank N.A. Jakarta (the Jakarta Escrow
Agent), to establish an Escrow Account and facilitate the
payment (Note&nbsp;18).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Pramindo</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;19, 2002 the Company and the
stockholders of Pramindo, namely France Cables et Radio SA,
PT&nbsp;Astratel Nusantara, Indosat, Marubeni Corporation,
International Finance Corporation (&#147;IFC&#148;) and NMP
Singapore Pte. Ltd. (&#147;NMP Singapore&#148;) (collectively
the &#147;Selling Stockholders&#148;) entered into a Conditional
Sale and Purchase Agreement (&#147;CSPA&#148;) pursuant to which
the Company acquired all of Pramindo&#146;s shares. The Selling
Stockholders shares were transferred to an escrow account
(hereafter referred as &#147;escrow shares&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Legal title to the escrow shares will be
transferred to Telkom in 3 (three) specific tranches on
15&nbsp;September 2002&nbsp;&#151; 30%, 30&nbsp;September
2003&nbsp;&#151; 15% and on 31&nbsp;December 2004&nbsp;&#151;
55% upon payment of the promissory notes issued to the selling
stockholders as payment for the acquisition of the shares. The
escrow shares can be accessed by the selling stockholders only
upon default on payment of the promissory notes by the Company
and no dividends can be paid out until the arrangements between
the parties are completed or terminated in accordance with the
terms of the relevant agreements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and the Selling Stockholders also
entered into a Stockholders Voting Agreement (&#147;SVA&#148;)
on August&nbsp;15, 2002, pursuant to which each stockholder of
Pramindo delivered to the Company a Power of Attorney
(&#147;PoA&#148;) whereby the Company obtained the right to vote
the escrow shares. The Company, thereby acquired the right to
nominate all of the members of the Board of Directors and Board
of Commissioners of Pramindo. The SVA is subject to certain
reserve matters which serve as protective rights to the Selling
Stockholders.
</FONT>

<P align="center"><FONT size="2">F-39
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The aggregate purchase price amounted to
US$390,308,972 plus Rp250,000&nbsp;million, represented by an
initial payment of approximately US$9,300,000, consultants fees
of approximately US$5,900,000, working capital reimbursement of
Rp250&nbsp;billion, and the issue by Telkom of Promissory Notes
(series&nbsp;I and series&nbsp;II) with an aggregate face value
of approximately US$375,000,000. The series&nbsp;I promissory
notes are non-interest bearing and the series&nbsp;II promissory
notes carry a market interest rate. The Promissory Notes are to
be paid in 10 unequal quarterly installments beginning
September&nbsp;15, 2002 and are irrevocable, unconditional and
transferable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The total purchase consideration was allocated
first to the net monetary assets and then the fixed assets
acquired. An intangible asset of Rp2,752,267&nbsp;million was
identified representing right to operate the business in the KSO
Area. The amount will be amortized over the remaining term of
the KSO agreement (Note&nbsp;17). There was no goodwill arising
from this acquisition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the portion that relates to
Indosat&#146;s 13% equity interest in Pramindo has been
accounted for as a restructuring of entities under common
control. The difference between the purchase consideration and
the historical amount of the net assets acquired amounting to
Rp296,038&nbsp;million, included as &#147;Difference in value of
restructuring transactions between entities under common
control&#148; under the equity section is calculated as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="85%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase consideration&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,338,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Historical amount of net assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,061,437</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference in value for 100% ownership
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,277,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference adjusted to equity for Indosat&#146;s
    13% ownership in Pramindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">296,038</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company acquired control of Pramindo on
August&nbsp;15, 2002 and has consequently consolidated Pramindo
from August&nbsp;1, 2002 being the nearest convenient balance
date. Pramindo&#146;s net income for the year 2002 and the
portion that was consolidated amounted to Rp292,471&nbsp;million
and Rp149,654&nbsp;million, respectively.
</FONT>

<P align="center"><FONT size="2">F-40
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Details of net assets acquired and goodwill on
acquisition are as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="83%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase consideration
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Initial payment (US$9,263,953)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Working capital reimbursement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">250,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Promissory notes (US$375,099,073)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,329,004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Consulting fees (US$5,945,946)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total purchase consideration
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,714,040</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less: deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(375,387</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase consideration&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,338,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of net assets acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,475</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Distributable KSO revenue receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,468</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,839</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,338</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,752,267</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">160,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(284,120</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Deferred tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,115,645</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Non-current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(620,146</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of net assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,042,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">375,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference adjusted to equity for 13%
    Indosat&#146;s ownership in Pramindo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">296,038</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total purchase consideration
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,714,040</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Cash and cash equivalents in
    subsidiary acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(141,475</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Promissory notes issued
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,329,004</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash outflow on acquisition
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">243,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The outstanding promissory notes issued for the
acquisition of Pramindo are presented as &#147;Liabilities for
acquisition of subsidiaries&#148; in the consolidated balance
sheets as of December&nbsp;31, 2002 (Note&nbsp;27). As of
December&nbsp;31, 2002, the outstanding promissory notes of
US$342&nbsp;million (Rp3,061&nbsp;billion&nbsp;&#151;
Note&nbsp;27) represent the unpaid portion (not yet due) of the
purchase price (before unearned interest) to the Selling
Stockholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequent to the year end, the Company obtained
a loan which it intends to use to finance the re-purchase of
these promissory notes (Note&nbsp;56k).
</FONT>

<P align="center"><FONT size="2">F-41
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Advance
payment for investment in shares of stock</U></FONT></I>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dayamitra (Note&nbsp;6a)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51,120</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AriaWest (Note&nbsp;56d)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196,463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">247,583</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">7.&nbsp;CASH AND CASH EQUIVALENTS</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash on hand
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,359</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,696</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash in banks
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Negara Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">152,774</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mandiri
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,172</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Rakyat Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,609</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,059</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Pos Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,008</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">228,018</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mandiri
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,019</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Negara Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,560</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Rakyat Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">361</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,058</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total&nbsp;&#151; related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">148,938</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">262,076</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-42
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Citibank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,426</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Bukopin
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Central Asia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,881</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,630</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Niaga
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">169</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mizuho Indonesia Bank (formerly Bank<BR>
    Dai-Ichi Kangyo Indonesia)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">ABN Amro Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Danamon
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lippo Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Chase Manhattan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Internasional Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">136</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Buana
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Standard Chartered Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">American Express Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Citibank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">384</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">456</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Standard Chartered Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">194</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">ABN Amro Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">American Express Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mizuho Indonesia Bank (formerly Bank<BR>
    Dai-Ichi Kangyo Indonesia)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Niaga
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,107</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,623</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total&nbsp;&#151; third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total cash in banks
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165,883</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-43
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Time deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mandiri
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,447,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">779,983</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Rakyat Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">504,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">607,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Negara Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">587,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298,565</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Tabungan Negara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">122,497</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,480</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,662,883</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,794,448</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mandiri
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">619,033</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,022,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Negara Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,447</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">619,158</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,025,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total&nbsp;&#151; related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,282,041</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,819,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Standard Chartered Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mega
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Bukopin
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,630</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Yudha Bhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Niaga
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Internasional Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Umum Tugu
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Citibank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">ABN Amro Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mizuho Indonesia Bank (formerly Bank<BR>
    Dai-Ichi Kangyo Indonesia)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">186,930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,971</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Bank
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">236,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total&nbsp;&#151; third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">186,930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">579,436</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total time deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,468,971</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,398,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,699,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Range of interest rates per annum for time
deposits is as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.00%-18.04%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.59%-18.45%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign currencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.75%-6.95%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.15%-5.03%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Refer to Note&nbsp;48 for details of related
party transactions.
</FONT>

<P align="center"><FONT size="2">F-44
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">8.&nbsp;TEMPORARY INVESTMENTS</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Time deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mandiri
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Rakyat Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">423,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Negara Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">167,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Mandiri
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total time deposits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">347,120</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">523,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Available for sale securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Medium Term Notes&nbsp;&#151; PSSI
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investment in mutual fund (Reksa Dana Seruni)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">At cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized loss on decline in value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(207</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total available for sale securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">573,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Range of interest rates per annum for time
deposits is as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.00%-18.04%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.14%-14.33%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.53%-6.13%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms of time deposits range from 3 (three)
months to 1 (one) year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Medium Term Notes&nbsp;&#151; PSSI represent
medium term notes issued by Persatuan Sepakbola Seluruh
Indonesia (PSSI) amounting to Rp50,000&nbsp;million maturing
February&nbsp;22, 2003. On the maturity date, the medium term
notes were settled in&nbsp;cash.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The mutual fund investment represents an
investment in a mutual fund certificate of Seruni, which is
issued by PT&nbsp;(Persero) Danareksa&nbsp;&#151; a related
party. The Company earns a dividend income on a monthly basis.
The Company sold this investment in April&nbsp;2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments placed with related parties have
similar interest rates, terms and conditions as those placed
with third parties. Refer to Note&nbsp;48 for details of related
party transactions.
</FONT>

<P align="center"><FONT size="2">F-45
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">9.&nbsp;TRADE ACCOUNTS RECEIVABLE&nbsp;&#151;
RELATED PARTIES</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">a.&nbsp;<U>By
Debtor</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">KSO Units
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,052,349</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">633,327</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Government agencies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146,787</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,845</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Mobile Selular Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,388</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,560</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Radio Telepon Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,233</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Citra Sari Makmur
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,442</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Komunikasi Selular Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,602</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Metro Selular Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,607</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Aplikanusa Lintasarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,578</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,311</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,527</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,381,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">982,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(325,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(95,676</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Trade accounts receivable from certain related
parties are presented net of the Company&#146;s liabilities to
such parties.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>By
Age</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Up to 6&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">703,949</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">763,820</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">7 to 12&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">274,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143,773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">13 to 24&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">291,415</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">More than 24&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,619</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,381,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">982,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(325,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(95,676</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>By
Currency</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,331,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">911,065</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,041</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,374</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,381,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">982,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(325,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(95,676</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-46
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Movements in the allowance for doubtful accounts
are as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Beginning balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">167,669</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">325,930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance additions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">207,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">318,328</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reversal of allowance for trade accounts
    receivable from AriaWest (Notes&nbsp;4 and&nbsp;56d)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(511,933</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bad debts write off
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(48,882</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(36,649</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ending balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">325,930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,676</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">An allowance for doubtful accounts is provided
for amounts that are overdue, and a full provision is made for
receivables from related parties with significant capital
deficiencies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management believes that the allowance for
doubtful receivables from related parties is adequate to cover
possible losses on uncollectible accounts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except for the amounts receivable from Government
and Government Agencies, Management believes that there are no
significant concentrations of credit risk on these receivables.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Refer to Note&nbsp;48 for details of related
party transactions.
</FONT>

<P align="left">
<B><FONT size="2">10.&nbsp;TRADE ACCOUNTS RECEIVABLE&nbsp;&#151;
THIRD PARTIES</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>By
Debtor</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Residential and business subscribers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,527,858</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,140,894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Overseas international carriers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">167,853</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,470</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,327,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(252,855</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(407,313</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>By
Age</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Up to 3&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,410,028</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">More than 3&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">232,073</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">407,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,327,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(252,855</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(407,313</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-47
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>By
Currency</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,517,052</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,251,199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125,049</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,018</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642,101</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,327,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(252,855</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(407,313</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,919,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Movements in the allowance for doubtful accounts
are as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Beginning balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">261,910</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">252,855</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance additions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59,290</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">204,696</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bad debts write off
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(68,345</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(50,238</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ending balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">252,855</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">407,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management believes that the allowance for
doubtful receivables from third parties is adequate to cover
possible losses on uncollectible accounts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management also believes that there are no
significant concentrations of credit risk from third party
receivables.
</FONT>

<P align="left">
<B><FONT size="2">11.&nbsp;INVENTORIES</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="75%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Component:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone terminals, cards and spare parts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">96,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable and transmission installation spare parts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other spare parts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,977</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">160,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(33,168</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(30,331</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">127,130</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,237</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Modules:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable and transmission installation spare parts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,975</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,912</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone terminals, cards and spare parts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,629</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,563</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other spare parts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">434</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79,791</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,829</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(23,464</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,962</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,445</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,682</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-48
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Changes in the allowance for obsolescence of
inventories are as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="75%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Beginning balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,997</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional allowance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,467</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,012</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inventory write off
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(59,193</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,214</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ending balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,997</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management believes that the established
allowance is sufficient to cover possible losses from decline in
inventory value due to obsolescence.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At December&nbsp;31, 2002, modules inventory were
insured against fire, theft and other specified risks for
US$750,000 and Rp23,690&nbsp;million. Management believes that
the insurance amount is adequate to cover such risks.
</FONT>

<P align="left">
<B><FONT size="2">12.&nbsp;OTHER CURRENT ASSETS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, this account
comprises time deposits and restricted funds as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">a.</FONT></TD>
    <TD align="left">
    <FONT size="2">Telkomsel&#146;s time deposits in Deutsche Bank
    and Citibank amounting to US$9,971,936 or equivalent to
    Rp89,149&nbsp;million (2001: US$13,372,642 or equivalent to
    Rp139,075&nbsp;million) which are used as collateral for letter
    of credit facilities related to procurement contracts
    (Note&nbsp;53c).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">b.</FONT></TD>
    <TD align="left">
    <FONT size="2">Telkomsel&#146;s time deposits in Bank Mandiri
    amounting to Rp40,520&nbsp;million (2001: RpNil) used as
    security covering the payment of customs duties for procurement.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">c.</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company&#146;s deposits of
    Rp500,000&nbsp;million pledged as collateral for the credit
    facility from Bank Mandiri (Note&nbsp;53c). The credit facility
    was closed on February&nbsp;18,&nbsp;2003. The time deposit
    matured on the same date.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">d.</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company&#146;s time deposit in Citibank of
    US$6,950,000 (Rp62,119&nbsp;million) was pledged as collateral
    for a loan facility for the High Performance Backbone Project
    from Citibank for the two year period ending April&nbsp;10,
    2004. In May 2003, the time deposit was settled for accelerated
    repayment of the Citibank loans (Note&nbsp;29).
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-49
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">13.&nbsp;LONG-TERM INVESTMENTS&nbsp;&#151;
NET</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Share in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Opening</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Addition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">profit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Translation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ending</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">balance</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(deduction)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(loss)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">balance</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Equity method</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Citra Sari Makmur
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,386</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,833</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Selular Raya
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69.77</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Metro Selular Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,777</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,120</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,657</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Patra Telekomunikasi Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(115</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,272</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Napsindo Primatel Internasional
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,390</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,200</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Multimedia Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(647</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pasifik Satelit Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,625</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(77,625</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Indonusa Telemedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57.50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,412</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,412</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Menara Jakarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Mobile Selular Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Komunikasi Selular Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(92,750</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Tangara Mitrakom
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(232</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Aplikanusa Lintasarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(112,783</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,966</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">330</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(85,686</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Cost method</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Batam Bintan Telekomunikasi
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">587</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">587</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pembangunan Telekomunikasi Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Medianusa Pte. Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Radio Telepon Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12.86</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Penyertaan obligasi konversi&nbsp;&#151;
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Aplikanusa Lintasarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,051</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,051</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">277,135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,721</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(85,686</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-50
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Share in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Opening</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Addition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">profit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Translation</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ending</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">balance</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(deduction)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(loss)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">balance</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Equity method</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Citra Sari Makmur
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,833</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,446</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,270</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Selular Raya
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(62,907</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,642</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,642</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Metro Selular Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,657</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,513</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,137</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Patra Telekomunikasi Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">710</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,843</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Napsindo Primatel Internasional
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,337</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Multimedia Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Mobile Selular Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pasifik Satelit Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22.57</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Menara Jakarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(49,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Cost method</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Batam Bintan Telekomunikasi
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">587</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">587</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Komunikasi Selular Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14.20</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,570</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,570</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Pembangunan Telekomunikasi Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Medianusa Pte. Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.44</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,570</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>PT&nbsp;Citra
Sari Makmur (&#147;CSM&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">CSM is engaged in providing Very Small Aperture
Terminal (&#147;VSAT&#148;), network application services and
consulting services on telecommunications technology and related
facilities.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>PT&nbsp;Telekomindo
Selular Raya (&#147;Telesera&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, the Minister of Justice and Human Rights
approved the corporate restructuring of PT&nbsp;Telekomindo
Primabhakti (&#147;Telekomindo&#148;), an associated company
engaged in the construction and development of
telecommunications facilities. Pursuant to the restructuring,
Telekomindo&#146;s authorized and paid-up capital was reduced
and the capital reduction became the paid-up capital of two new
companies: PT&nbsp;Telekomindo Media Informatika
(&#147;TMI&#148;) and PT&nbsp;Griya Insani Primabhakti
(&#147;GIP&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on a share-swap agreement dated
December&nbsp;5, 2001 among the Company, PT&nbsp;Rajawali
Corporation (&#147;RC&#148;), Telekomindo and TMI, the parties
agreed on the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Company sold its investments in Telekomindo,
    TMI and GIP to RC for Rp101,838&nbsp;million and recognized a
    gain of Rp101,838&nbsp;million.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">TMI sold its investments in PT&nbsp;Telekomindo
    Selular Raya (&#147;Telesera&#148;) and the fixed assets of
    PT&nbsp;Multisaka Mitra (&#147;MSM&#148;) to the Company for
    Rp87,907&nbsp;million and Rp17,442&nbsp;million, respectively.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-51
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This transaction resulted in the Company owning
69.77% shares of Telesera as of December&nbsp;31, 2001. In 2002,
the Company acquired the remaining 30.23% interest in Telesera
from Dana Pensiun Telkom for Rp38,093&nbsp;million. In 2002, the
Company also recognized a loss of Rp101,000&nbsp;million to
write down the carrying amount of this investment to net asset
value. As of December&nbsp;31, 2002, the carrying amount of this
investment was Rp26,642&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently on August&nbsp;8, 2003, the Company
delivered 100% (25,000) of its shares in Telesera to
PT&nbsp;Centralindo Pancasakti Cellular (&#147;CPSC&#148;)
(Note&nbsp;56b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>PT&nbsp;Metro
Selular Nusantara (&#147;Metrosel&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Metrosel is engaged in providing national mobile
cellular services and related facilities in Central Java,
Yogyakarta, East Java, Maluku and Irian Jaya. The Company&#146;s
initial capital contribution of Rp10,087&nbsp;million represents
a 20.17% ownership interest in Metrosel and was made in the form
of property, plant and equipment under a revenue-sharing
arrangement between the Company and CPSC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On May&nbsp;30, 2002 Metrosel made an equity
call. The Company made additional capital contributions
amounting to Rp13,513&nbsp;million to maintain its ownership in
Metrosel.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently on August&nbsp;8, 2003, the Company
sold its investment in Metrosel to CPSC (Note&nbsp;56b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>PT&nbsp;Patra
Telekomunikasi Indonesia (&#147;Patrakom&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Patrakom is engaged in providing satellite
communication system services and related services and
facilities to companies in the petroleum industry.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>PT&nbsp;Napsindo
Primatel Internasional (&#147;Napsindo&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Napsindo is engaged in providing &#147;Network
Access Point&#148; (NAP), &#147;Voice Over Data&#148; (VOD) and
other related services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with an increase in Napsindo&#146;s
paid-in capital, the Company has increased its investment in
Napsindo by Rp13,840&nbsp;million on October&nbsp;31, 2000. The
increase in investment was made to maintain the Company&#146;s
ownership interest at 32% and was effective on March&nbsp;29,
2001. Payment for the additional investment was made through
conversion into equity of the Company&#146;s receivable from
Napsindo. Subsequent to the year end, the Company increased its
investment in Napsindo (Note&nbsp;56b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>PT&nbsp;Multimedia
Nusantara (&#147;Metra&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Metra is engaged in providing pay television and
multimedia telecommunications services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently on April&nbsp;8, 2003, the Company
increased its ownership in Metra to 100% by acquiring the
remaining 69% share holding from PT&nbsp;Indocitra Grahabawana
(&#147;Indocitra&#148;) (Note&nbsp;56b).
</FONT>

<P align="center"><FONT size="2">F-52
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U>PT&nbsp;Pasifik
Satelit Nusantara (&#147;PSN&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PSN is engaged in providing satellite transponder
leasing and satellite-based communication services in the Asia
Pacific Region.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, Management decided to recognize the
decline in value of this investment due to the financial
condition of PSN.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently in 2003, the Company entered into a
share-swap agreement with CPSC in which the Company agreed to
receive a call option to buy 16.85% shares in PSN within the
period of one year starting from the signing of the share-swap
agreement (Note&nbsp;56b).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2003, PSN also entered into a negotiation with
its current creditors to restructure its debts. Up to the date
of this report, the process is still in progress.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<U>PT&nbsp;Menara
Jakarta (&#147;MJ&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">MJ was engaged in the construction and the
operation of towers and related facilities. The economic
difficulties faced by Indonesia have resulted in the termination
of MJ&#146;s construction projects at the end of 1997. The value
of this investment has been reduced to nil.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently on April&nbsp;8, 2003, the Company
sold all its shares in MJ to PT&nbsp;Indocitra Grahabawana
(Note&nbsp;56b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<U>PT&nbsp;Mobile
Selular Indonesia (&#147;Mobisel&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mobisel is engaged in providing mobile cellular
services and related facilities. These services were previously
provided by the Company under a revenue-sharing arrangement with
PT&nbsp;Rajasa Hazanah Perkasa (&#147;RHP&#148;). The capital
contribution of the Company amounting to Rp10,398&nbsp;million,
which represents a 25% equity ownership in Mobisel, was made in
the form of property, plant and equipment under a
revenue-sharing arrangement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently on July&nbsp;28, 2003,
Mobisel&#146;s stockholders agreed to a restructuring program
which include a debt to equity conversion of Mobisel&#146;s
interconnection payables to the Company; and an equity
investment by a new stockholder. The debt conversion was
completed on August 2003 which resulted in dilution of the
Company&#146;s interest to 7.44%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the value of
investment had been reduced to nil.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.&nbsp;<U>PT&nbsp;Komunikasi
Selular Indonesia (&#147;Komselindo&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Komselindo is a joint venture between the Company
and PT&nbsp;Elektrindo Nusantara (&#147;Elektrindo&#148;), and
is engaged in providing analog mobile cellular services. These
services were previously provided by the Company under a
revenue-sharing arrangement with Elektrindo.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the Deed of Komselindo&#146;s
Stockholders Extraordinary General Meeting No.&nbsp;110 dated
October&nbsp;10, 2000, which was notarized by Ny. R. Arie
Soetardjo, S.H., the Company agreed to the conversion of
Rp92,750&nbsp;million of receivables from Komselindo into equity
in order to maintain a 35% ownership interest.
</FONT>

<P align="center"><FONT size="2">F-53
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, the Company recorded the conversion of
the receivables into equity and recognized a loss upon the
write-down of the new carrying amount of the investment
amounting to Rp92,750&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;30, 2002 Komselindo&#146;s
stockholders through an Extraordinary Stockholders Meeting
approved the equity call for debt restructuring which was
included in the Settlement Agreement and the Settlement,
Termination and Release Agreement dated August&nbsp;30, 2002.
The Company released and waived its pre-emptive right to
subscribe newly issued shares resulting in the dilution of the
Company&#146;s ownership in Komselindo to 14.20%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This debt restructuring transaction resulted in a
net equity of Komselindo amounting to Rp405,421&nbsp;million. As
of December&nbsp;31, 2002, the Company recorded its 14.20%
interest in Komselindo at its net equity value of
Rp57,570&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subsequently on August&nbsp;8, 2003, the Company
sold its investment in Komselindo to CPSC (Note&nbsp;56b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.&nbsp;<U>PT&nbsp;Batam
Bintan Telekomunikasi (&#147;BBT&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">BBT is engaged in providing fixed line
telecommunication services at Batamindo Industrial Park in Muka
Kuning, Batam Island and at Bintan Beach International Resort
and Bintan Industrial Estate in Bintan Island.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June 1996, based on a cooperation agreement
between the Company and PT&nbsp;Batamindo Investment Corporation
(&#147;BIC&#148;), the Company&#146;s investment in BBT was
fully paid by BIC as a donation to the Company.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.&nbsp;<U>PT&nbsp;Pembangunan
Telekomunikasi Indonesia (&#147;Bangtelindo&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Bangtelindo is primarily engaged in providing
consultancy services on the installation and maintenance of
telecommunications facilities.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.&nbsp;<U>Medianusa
Pte. Ltd.</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Medianusa Pte. Ltd. is an associated company of
Infomedia, which is engaged as a sales agent, in search of
advertisers for telephone directories.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.&nbsp;<U>PT&nbsp;Radio
Telepon Indonesia (&#147;Ratelindo&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Ratelindo is engaged in providing facilities and
telecommunication services using a domestic fixed wireless
network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2001, the Company had
recognized a loss due to an other than temporary decline in
value of this investment because Ratelindo had a capital
deficiency.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company sold its equity interest in Ratelindo
on March&nbsp;28, 2002 for Rp14,000&nbsp;million and recognized
a gain for this amount because the carrying amount of the
investment in Ratelindo was nil.
</FONT>

<P align="center"><FONT size="2">F-54
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.&nbsp;<U>PT&nbsp;Aplikanusa
Lintasarta (&#147;Lintasarta&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Lintasarta provides Packet Switch Data Network
(&#147;PSDN&#148;), VSAT data, e-mail and Digital Data Network
(&#147;DDN&#148;) services. Lintasarta was sold to Indosat in
2001 as part of the cross-ownership transaction (Note&nbsp;5).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.&nbsp;<U>PT&nbsp;Tangara
Mitrakom (&#147;Mitrakom&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2001, the Company sold all of its ownership
interest in Mitrakom.
</FONT>

<P align="left">
<B><FONT size="2">14.&nbsp;PROPERTY, PLANT AND
EQUIPMENT</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dayamitra</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">acquisition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deduction</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">At cost or revalued amounts:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Direct ownership</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124,341</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,438</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(87</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474,238</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88,211</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,596,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,193,862</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(59,462</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,842,943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telegraph, telex and data communication equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,592</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,592</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,422,912</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,585</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">464,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,899,964</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,958,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,491</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,240</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,810,457</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,772,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,621,278</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,392,639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222,205</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,944</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">463,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,689,767</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">858,329</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(133</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">121,047</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">998,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,153,861</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">198,307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,299</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">449,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,863,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">496,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(378</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">507,652</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">481,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">122,349</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(296</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">615,046</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163,681</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,621</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,360</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(158</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,522</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(184</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">308</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property under construction:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,602</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(104,842</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">398,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">350,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(561,713</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">302,384</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">445,845</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(456,368</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">291,861</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">531,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,589,051</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,167</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,812,947</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,822</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,588</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">391,261</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(567,788</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,883</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,858</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100,321</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(126,921</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">192,169</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">438,151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(496,777</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-55
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dayamitra</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">acquisition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deduction</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,623</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,804</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,804</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,094,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,482,722</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,215,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(87,684</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(121,180</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,583,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Accumulated depreciation:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Direct ownership</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">566,436</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,171</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,451</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">654,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,399,503</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">586,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,562</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,396</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,985,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telegraph, telex and data communication equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,845</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,903</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201,748</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,725,696</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">350,114</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(92</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,075,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,507,377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">371,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(540</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,746</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,875,016</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,728,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">905,194</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(437</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(150,632</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,482,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">581,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(133</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,315</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">667,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">440,115</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">239,837</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(447</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(123</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">679,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">398,369</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,084</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">437,610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">363,576</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,964</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(110</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425,057</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131,842</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,708</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,922</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">158,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,744</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,815</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">669</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">669</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,075,046</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,769,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,230</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(141,497</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,692,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net Book Value</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,019,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,891,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pramindo</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">acquisition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deduction</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">At cost or revalued amounts:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Direct ownership</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,881</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,400</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">267,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,596,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,130</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,888</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,658,390</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,842,943</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">456,062</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,341</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,606</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292,463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,629,203</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telegraph, telex and data communication equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,592</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,141</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,001</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,065</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,899,964</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">776,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,349,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,942</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,323,071</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,340,314</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,772,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,892</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,798,011</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-56
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pramindo</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">acquisition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deduction</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,689,767</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">333,111</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">267,993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,602</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">839,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,122,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">998,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,037</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(538</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,032,534</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,863,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">442,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(79,550</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">408,696</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,739,837</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">507,652</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">97,316</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,511</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,704</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,588</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">681,363</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">615,046</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,589</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,304</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">639,682</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,874</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,968</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,717</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,772</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,353</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,951</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(365</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,370</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property under construction:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,309</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,913</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">519,066</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(357,905</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">291,861</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,248</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,157,089</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,325,699</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,336</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,883</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">806,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(881,360</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,638</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287,916</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(410,652</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,649</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,804</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(379</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,640</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,583,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,338</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,225,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(169,556</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(111,825</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,334,951</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Accumulated depreciation:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Direct ownership</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">654,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,210</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,471</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">736,997</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,985,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">650,215</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(568</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,850</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,569,287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telegraph, telex and data communication equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201,748</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,186</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,188</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202,043</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,075,653</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,120,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,653</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,443</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,183,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,875,016</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">126,658</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,001,671</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,482,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">829,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,102</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,049</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,286,209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">667,615</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,673</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,351</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">724,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">679,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">388,453</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(58,618</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,163</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">990,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">437,610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,036</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(326</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,227</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">499,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425,057</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,244</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">460,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">158,945</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,361</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,743</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">167,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,815</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,820</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(298</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-57
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pramindo</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">acquisition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deduction</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">669</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">837</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,692,875</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,398,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(95,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(109,517</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,886,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net Book Value</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,891,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,448,606</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="87%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from the sale of property, plant and
    equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">204,008</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net book value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gains
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">130,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest capitalized into property under
construction amounted to Rp62,534&nbsp;million,
Rp8,089&nbsp;million and Rp20,108&nbsp;million in 2000, 2001 and
2002, respectively. Capitalization rates are the borrowing rates
on debts incurred related to property under construction.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Foreign exchange losses (gains) capitalized as
part of property under construction amounted to
Rp179,207&nbsp;million, Rp1,746&nbsp;million and (Rp27,568)
million in 2000, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries own several
pieces of land located throughout Indonesia with Building Use
Rights (Hak Guna Bangunan or HGB) for a period of
20-30&nbsp;years, which will expire between 2003-2032.
Management believes that there will be no difficulty in the
extension of the landrights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Some of the Company&#146;s land measuring
1,801,424 m<SUP>2</SUP> is still under the name of other parties
including, among others, the Ministry of Tourism, Post and
Telecommunications and the Ministry of Communication of the
Republic of Indonesia. The transfer to the Company of the legal
title of ownership on those parcels of land is still in progress.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The estimated date of completion of assets under
construction is between January 2003 up to June 2004 and
management believes that there is no impediment to the
completion of the construction in progress.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of the Company&#146;s property, plant and
equipment, except land, were insured with various insurance
companies against fire, theft and other specified risks for
Rp17,877,571&nbsp;million at December&nbsp;31, 2001 and
Rp20,270,283&nbsp;million and US$1,367,601,558 at
December&nbsp;31, 2002. In addition, the Palapa B4 and Telkom-1
Satellite are insured for US$75,640,000 at December&nbsp;31,
2001 and US$70,662,326 at December&nbsp;31, 2002, respectively.
Management believes that the insurance coverage is adequate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of the subsidiaries&#146; property, plant and
equipment, except land, were insured against fire, theft and
other possible risks. Management believes that the insurance
coverage is adequate to cover possible losses on those assets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of the Company&#146;s property, plant and
equipment has been pledged as collateral under lending
agreements (Notes&nbsp;29b and 53e).
</FONT>

<P align="center"><FONT size="2">F-58
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">15.&nbsp;PROPERTY, PLANT AND EQUIPMENT UNDER
JOINT OPERATION SCHEME</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Set forth below are the Company&#146;s property,
plant and equipment (included in Note&nbsp;14 above) that are
being managed, operated and maintained by the KSOs:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">363,121</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">203,660</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,276,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,346,764</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telegraph, telex and data communication equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,625</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,501</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">908,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">513,601</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite, earth station and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51,878</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,432,999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,638,469</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Power supply
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">245,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Data processing equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,179</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,745</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">164,970</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Office equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,315</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Property under construction
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,689</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,809,316</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,272,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,498,465</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,073,555</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net book value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,310,851</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,199,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The fixed assets under joint operation schemes
decreased in 2002 due to the acquisition and consolidation of
Pramindo (Note&nbsp;6b).
</FONT>

<P align="left">
<B><FONT size="2">16.&nbsp;PROPERTY, PLANT AND EQUIPMENT UNDER
REVENUE-SHARING ARRANGEMENTS</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deductions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">At cost</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">626,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,722</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">624,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">334,792</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(447</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">334,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201,296</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,454</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,842</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,297,274</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,623</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,293,651</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-59
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deductions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Accumulated depreciation</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">158</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(62</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">284,485</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,692</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,722</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">322,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">192,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(447</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">221,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunication peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,454</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">763,765</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,685</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net Book Value</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">533,509</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">452,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="28%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">January&nbsp;1,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Additions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Deductions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Reclassifications</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">At cost</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(225</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,727</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">624,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,037</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">623,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">334,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,157</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">333,188</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,842</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69,267</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,379</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,196</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,293,651</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69,267</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,798</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,220,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Accumulated depreciation</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Land
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,146</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,278</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Buildings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(106</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,411</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Switching equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">322,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(594</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">360,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Transmission installation and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,143</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,055</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">221,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,203</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(993</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">246,244</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other telecommunications peripherals
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69,267</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,379</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,196</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">840,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69,267</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,072</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">842,964</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net Book Value</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">452,733</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">377,622</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Ownership rights to the property, plant and
equipment under revenue-sharing arrangements are legally
retained by the investors until the end of the revenue-sharing
period.
</FONT>

<P align="center"><FONT size="2">F-60
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unearned income on revenue-sharing
arrangements is as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gross amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,293,651</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,220,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated amortization:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Beginning balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,029,431</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,098,583</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Addition (Note&nbsp;38)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(72,775</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(52,271</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deduction
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,623</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,065</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ending balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,098,583</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,077,789</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,797</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">17.&nbsp;INTANGIBLE ASSETS</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,892,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">License&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,898,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Movement of intangible assets during 2001 and
2002 is as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Intangible assets</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Goodwill</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dayamitra</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pramindo</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">GSD</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Indonusa</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Beginning balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,276,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,383,577</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization (Note&nbsp;41)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,643</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,412</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,709</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ending balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,233,932</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Intangible assets</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Goodwill</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Dayamitra</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pramindo</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">GSD</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Indonusa</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Beginning balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,233,932</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,327,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,752,267</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,752,267</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization (Note&nbsp;41)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(72,504</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(94,217</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,269</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(187,990</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ending balance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,161,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,658,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,892,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The intangible asset resulted from the
acquisition of Dayamitra (Note&nbsp;6a) and Pramindo
(Note&nbsp;6b) and represents the right to operate the business
in the KSO area. Goodwill resulted from the acquisition of GSD
and Indonusa (Note&nbsp;1b).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The license represents the Nationwide DCS 1800
Operations and License for Nationwide DCS 1800 Radio Frequency
Spectrum Utilization held by Telkomsel.
</FONT>

<P align="center"><FONT size="2">F-61
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">18.&nbsp;ESCROW ACCOUNT</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Escrow accounts consist of the following:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="77%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dayamitra (Note&nbsp;6a)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,188</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pramindo (Note&nbsp;6b)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">168,740</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Dayamitra
Escrow</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This account with Citibank N.A., Singapore
(&#147;Dayamitra Escrow Agent&#148;) was established to
facilitate the payment of the Company&#146;s obligations under
the Conditional Sale and Purchase Agreement and Option Agreement
entered into with the selling stockholders of Dayamitra
(Note&nbsp;6a).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with the Escrow Agreement, the
Company made the first installment payment of US$14,343,750 on
May&nbsp;17, 2001. Further monthly installments of US$6,250,000
for twenty four months are required by the agreement. The
Company is also obliged to make additional installment payments
necessary to settle the obligation on the due dates and to
maintain a minimum balance of US$14,343,750.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The escrow account earns interest at LIBOR minus
0.75% per annum, which is computed daily. The interest income
earned is included as part of the escrow fund.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The remaining funds available will be transferred
to the Company after all of the obligations to the Dayamitra
transaction are satisfied.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Pramindo
Escrow</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This escrow account with JP Morgan Chase Bank
(&#147;Pramindo Escrow Agent&#148;) was established to
facilitate the settlement of the Company&#146;s obligations
under its Conditional Sale and Purchase Agreement for the
acquisition of Pramindo (Note&nbsp;6b).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with the Escrow Agreement, the
Company will make installment payments of US$12,800,000 for
eleven months and US$15,000,000 for sixteen months. The first
installment was due on October&nbsp;1, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The escrow account earns interest at LIBOR minus
0.4% per annum, which is computed daily. The interest income
earned will be included as part of the escrow fund.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The remaining funds available will be transferred
to the Company after all of the obligations to the Pramindo
transaction are satisfied.
</FONT>

<P align="center"><FONT size="2">F-62
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">19.&nbsp;TRADE ACCOUNTS PAYABLE</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payable to other telecommunications carriers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">334,219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">365,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Concession fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">359,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchases of equipment, materials and services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">234,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,776</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">719,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">790,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchases of equipment, materials and services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">913,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,015,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payable related to revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,047</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,710</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payable to other telecommunication providers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,898</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,769</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,039,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,272,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,759,563</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,062,851</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Trade accounts payable by currency are as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,166,373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,961,804</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">831,258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197,544</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Great Britain Pounds Sterling
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Singapore Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Mark
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,401</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Swedish Krona
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,759,563</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,062,851</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Refer to Note&nbsp;48 for details of related
party transactions.
</FONT>

<P align="center"><FONT size="2">F-63
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">20.&nbsp;ACCRUED EXPENSES</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="74%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Salaries and employee bonuses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">136,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">411,739</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest and bank charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">276,953</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General, administrative and marketing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">265,987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,625</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operation, maintenance and telecommunications
    services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">180,740</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">AriaWest settlement (Note&nbsp;56d)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">179,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,367</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,989</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">919,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,949,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the Board of Directors&#146; Resolution
No.&nbsp;KD.20/PS900/SDM-10/2001 dated June&nbsp;11, 2001
concerning Early Retirement, the Company offered an Early
Retirement Program for interested and eligible employees.
Employees&#146; rights under the early retirement program,
method of calculation and payments for compensation and other
benefits are provided in the Board of Directors&#146; Resolution
No.&nbsp;KD.35/PS900/SDM-10/01 dated November&nbsp;30, 2001
entitled Employees&#146; Rights under Early Retirement Program
Year 2002. Accrued early retirement benefits as of
December&nbsp;31, 2001 were fully paid in the first quarter of
2002. Accrued early retirement benefits as of December&nbsp;31,
2002 represents the continued early retirement program which was
implemented in 2003.
</FONT>

<P align="left">
<B><FONT size="2">21.&nbsp;ADVANCES FROM CUSTOMERS AND
SUPPLIERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Represent advances and deposits received from
customers for services.
</FONT>

<P align="left">
<B><FONT size="2">22.&nbsp;SHORT-TERM BANK LOANS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">a.&nbsp;On October&nbsp;5, 2001, Telkomsel
entered into a Transferable Term Loan Agreement with Deutsche
Bank AG, Jakarta Branch (as &#147;Arranger&#148; and
&#147;Facility Agent&#148;) covering a loan facility amounting
to Rp500,000&nbsp;million obtained from banks (collectively
&#147;Lenders&#148;), as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="74%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of Loan</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Name of bank</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">assigned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Bank Central Asia, Tbk
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Bank Lippo, Tbk
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Bank Niaga, Tbk
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Bank Bali, Tbk
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Bank AG, Jakarta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Bank Ekonomi Raharja
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">500,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The loan was obtained to finance Telkomsel&#146;s
working capital requirements. The loan bore interest at 3-months
Certificates of Bank Indonesia plus 2%. The loan was settled on
October&nbsp;22, 2002.
</FONT>

<P align="center"><FONT size="2">F-64
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">b.&nbsp;On July&nbsp;12, 2002, Telkomsel entered
into an Opening Letter of Credit and Trust Receipt Loan
Agreement with Citibank, N.A. providing for a total facility of
US$40,000,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The facility was obtained to finance
Telkomsel&#146;s capital expenditures in connection with
procurement contracts with three strategic partners and a
strategic supplier. Amounts drawn from the facility bear
interest at the bank&#146;s cost of funds plus 2.5%. The
facility is available until July&nbsp;31, 2004 and is not
collateralized.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total loans drawn from the facility amounted to
US$5,280,031. As of December&nbsp;31, 2002 the outstanding
balance of the loan amounted to US$4,385,295 (equivalent to
Rp39,205&nbsp;million).
</FONT>

<P align="left">
<B><FONT size="2">23.&nbsp;MATURITIES OF LONG-TERM
LIABILITIES</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Current
maturities</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="66%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Notes</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Two-step loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">845,366</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">836,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liabilities for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">466,508</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,385,956</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suppliers&#146; credit loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,880</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">162,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bridging loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,112</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">826</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,542,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,590,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Long-term
portion</U></FONT></I>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="43%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2004</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2005</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2006</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2007</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Later</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">(In billions of Rupiah)</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Two-step loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,734.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">862.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">865.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">761.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">652.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,593.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guaranteed notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">976.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liabilities for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,619.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,619.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suppliers&#146; credit loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">174.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bridging loan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Project cost payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,005.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,780.9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">880.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">761.0</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,965.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,617.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-65
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">24.&nbsp;TWO-STEP LOANS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Two-step loans are loans, which were obtained by
the Government from overseas banks and a consortium of
contractors, which are then re-loaned to the Company. The loans
entered into up to July 1994 were recorded and are payable in
Rupiah based on the exchange rate at the date of draw-down.
Loans entered into after July 1994 are payable in their original
currencies and any resulting foreign exchange gain or loss is
borne by the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The details of the two-step loans are as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Creditor</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Interest rate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(%)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Overseas banks
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.95-18.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,118,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,271,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consortium of contractors
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.20-18.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">363,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,046</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,482,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,570,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(845,366</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(836,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,637,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,734,033</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Details of two-step loans obtained from overseas
banks as of December&nbsp;31, 2002 are as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Currencies</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Interest rate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">(%)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">3.85-8.70
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,907,627</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,500,678</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">12.00-18.41
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,745,731</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,366,297</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">2.95
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,217,489</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,188,369</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">7.18-8.30
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">215,752</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">7.33-8.45
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Netherlands Guilder
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">7.65
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,118,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,271,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The acquired loans are intended for the
development of telecommunications infrastructure and supporting
equipment. The loans are payable in semi-annual installments and
they are due on various dates until 2025.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Details of two-step loans obtained from the
consortium of contractors as of December&nbsp;31, 2002 are as
follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Currencies</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Interest rate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">(%)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">3.20
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">193,639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">155,681</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">13.25-18.41
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,156</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">143,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">363,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,046</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consortium of contractors consists of:
Sumitomo Corporation, PT&nbsp;NEC Nusantara Communications and
PT&nbsp;Humpuss Elektronika (SNH Consortium). The loans were
obtained to finance the
</FONT>

<P align="center"><FONT size="2">F-66
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">second digital telephone exchange project. The
loans are payable in semi-annual installments and they are due
on various dates until March&nbsp;15, 2015.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Two-step loans which are payable in Rupiah bear
either a fixed interest rate or a floating rate based upon the
average interest rate on 3-month Certificates of Bank Indonesia
during the six-months preceding the installment due date, plus
1%. Two-step loans which are payable in foreign currencies bear
either a fixed rate interest or the floating interest rate
offered by the lenders, plus 0.5%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company has
used all facilities under the two-step loan program and the
draw-down period for the two-step loans has expired.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company should maintain financial ratios as
follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a.&nbsp;Projected net revenue to projected debt
    service ratio should exceed 1.5:1 and 1.2:1 for two-steps loans
    originating from World Bank and Asian Development Bank
    (&#147;ADB&#148;), respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b.&nbsp;Internal financing (earnings before
    depreciation and interest expenses) should exceed 50% and 20%
    compared to capital expenditure for loans originally from World
    Bank and ADB, respectively.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002 the Company complied
with the above mentioned ratios.
</FONT>

<P align="left">
<B><FONT size="2">25.&nbsp;SUPPLIERS&#146; CREDIT
LOANS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The detail of suppliers&#146; credit loans are as
follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="74%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tomen Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">397,326</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">290,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable &#38; Wireless plc (C&#38;W&nbsp;plc)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">461,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">338,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(66,880</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(163,072</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">395,020</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,625</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Tomen
Corporation (&#147;Tomen&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dayamitra has entered into a Design, Supply,
Construction and Installation Contract dated November&nbsp;18,
1998 with Tomen, the ultimate holding company of TMC, one of the
former stockholders of Dayamitra. Under the terms of the
contract, Tomen is responsible for the construction of the
minimum new installations required under the KSO VI Agreement in
which Dayamitra is the investor.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the above agreement, Dayamitra
entered into a Supplier&#146;s Credit Agreement
(&#147;SCA&#148;) with Tomen on November&nbsp;18, 1998. The
total commitment under the SCA was US$54,000,000 of which
US$50,444,701 had been drawn down before the expiration date of
the available credit on September&nbsp;30, 1999.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest accrues on the amounts drawn down at
LIBOR plus 4.5% per annum, and is payable semiannually in
arrears. Annual interest rates in 2002 ranged from 5.92% to
6.48%.
</FONT>

<P align="center"><FONT size="2">F-67
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SCA loan is repayable in ten semi-annual
installments commencing on December&nbsp;15, 2000. The SCA
contains a minimum fixed repayment schedule, however, additional
principal repayments are required on repayment dates in the
event that Dayamitra has excess cash, as defined in the SCA. The
SCA loan is secured on a pro rata basis by the security rights
provided under the C&#38;W plc bridging facility loan.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Cable
and Wireless plc (&#147;C&#38;W plc&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Dayamitra entered into a Supplier&#146;s Credit
Agreement (&#147;SCA&#148;) with C&#38;W plc on May&nbsp;19,
1999.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SCA loan is repayable in ten semi-annual
installments commencing on December&nbsp;15, 2000. The loan
contains a minimum fixed repayment schedule, however, additional
principal repayments are required on repayment dates in the
event that Dayamitra has excess cash, as defined in the SCA.
Interest on this loan is at the rate of LIBOR plus 4.5%. Annual
interest rates in 2002 ranged from 5.92% to 6.48%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SCA loan is secured on a pro rata basis by
the security rights provided under the C&#38;W plc bridging
facility loan. In addition, any distributions to stockholders in
the form of dividends or repayments of share capital require the
written consent of Tomen and C&#38;W plc.
</FONT>

<P align="left">
<B><FONT size="2">26.&nbsp;BRIDGING LOAN</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="75%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total outstanding amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128,121</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,720</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,112</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,401</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This loan is owed by Dayamitra to C&#38;W plc
under a bridging loan facility which was assigned from three
local Indonesian banks. The loan is repayable in ten semi-annual
installments commencing on December&nbsp;15, 2000. Interest is
payable on a monthly or quarterly basis, at the option of
Dayamitra, at the rate of LIBOR plus 4% per annum. Annual
interest rates in 2002 ranged from 5.42% to 5.98%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">C&#38;W plc has agreed to the repayment of the
bridging loan facility in proportion to the amounts made
available to Dayamitra under this bridging loan facility and the
C&#38;W plc and Tomen Supplier&#146;s Credit Loan. The security
provided against the bridging loan facility consists of an
assignment of KSO revenues; an assignment of bank accounts; a
security interest in Dayamitra&#146;s movable assets; an
assignment of the Tomen construction contract; an assignment of
proceeds from early termination of the KSO license by the
Company; and an assignment of insurance proceeds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Distributions to stockholders in the form of
dividends or repayment of share capital require the written
consent of C&#38;W plc.
</FONT>

<P align="left">
<B><FONT size="2">27.&nbsp;LIABILITIES FOR ACQUISITION OF
SUBSIDIARIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This amount represents the Company&#146;s
obligation under the Promissory Notes issued to the Selling
Stockholders of Dayamitra in respect of the Company&#146;s
acquisition of 90.32% of Dayamitra and to the Selling
Stockholders of Pramindo in respect of the Company&#146;s
acquisition of 100% of Pramindo.
</FONT>

<P align="center"><FONT size="2">F-68
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="71%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Dayamitra transaction
    </FONT></B><FONT size="2">(Note&nbsp;6a)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Intidaya Sistelindomitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,140</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Mitracipta Sarananusa
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">239,318</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,398</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cable and Wireless plc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">224,838</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,260</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unamortized deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(84,948</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,033</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">727,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222,125</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Pramindo transaction
    </FONT></B><FONT size="2">(Note&nbsp;6b and 56k)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">France Cables et Radio S.A.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,224,296</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Astratel Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,071,343</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Indosat
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">397,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Marubeni Corporation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">244,878</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">IFC&nbsp;&#151; USA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,829</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">NMP Singapore Pte. Ltd.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unamortized deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(278,074</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,782,810</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">727,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,004,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturity&nbsp;&#151; net of unamortized
    deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(466,508</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,385,956</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion&nbsp;&#151; net of unamortized
    deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">260,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,618,979</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">28.&nbsp;GUARANTEED NOTES AND BONDS</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guaranteed Notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">975,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,313,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Guaranteed
Notes</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In April 2002, TSFL, Telkomsel&#146;s
wholly-owned subsidiary, issued US$150&nbsp;million in notes
(&#147;Notes&#148;) guaranteed by Telkomsel. The Notes bear
interest at 9.75%, payable semi-annually on April&nbsp;30 and
October&nbsp;30 of each year and will be due on April&nbsp;30,
2007. The trustee of the notes is Deutsche Bank Trustees
(Hongkong Limited) and the custodian is Deutsche Bank AG,
Hongkong Branch.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;23, 2002, TSFL entered into
subscription agreements with UBS AG (&#147;UBS&#148;) whereby
UBS agreed to subscribe and pay for the Notes at an issue price
equal to 99.709% of the principal amount of the Notes, less any
fees. TSFL has further authorized UBS to have the Notes listed
on the Singapore Exchange Securities Trading Limited (the
&#147;Singapore Exchange&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the &#147;On-Loan Agreement&#148; dated
April&nbsp;30, 2002, between Telkomsel and TSFL, the proceeds
from the subscription of the Notes were lent to Telkomsel at an
interest rate of 9.765% per annum, payable on the same terms as
above.
</FONT>

<P align="center"><FONT size="2">F-69
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">TSFL may, on the interest payment date falling on
or about the third anniversary of the issue date redeem the
Notes, in whole or in part, at 102.50% of the principal amount
of such Notes, together with interest accrued to the date fixed
for redemption. If only part of the Notes are redeemed, the
principal amount of the Notes outstanding after such redemption
must be at least US$100&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current notes rating issued by Moodys is BB,
by Standard and Poors is B+ and by Fitch is B+.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the outstanding
balance of the Notes and the unamortized portion of the discount
are as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign currency</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah equivalent</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,341,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(389,468</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,482</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">149,610,532</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Bonds</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;16, 2002, the Company issued bonds
amounting to Rp1,000,000&nbsp;million. The bonds were issued at
par value and have a term of five years. The bonds bear interest
at a fixed rate of 17% per annum, payable quarterly beginning
October&nbsp;16, 2002. The bonds are traded on the Surabaya
Stock Exchange. The bonds mature on July&nbsp;15, 2007. The
trustee of the bonds is PT&nbsp;Bank Negara Indonesia (Persero)
Tbk and the custodian is PT&nbsp;Danareksa Sekuritas.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current bonds rating issued by Pefindo is AAA
and by Standard and Poors is B+.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the outstanding
balance of the bonds and the unamortized portion of the discount
are as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="82%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp million</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Principal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(24,008</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">975,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Before the date of redemption on outstanding
amount of bonds which should be paid by the Company, the Company
should comply with all covenants or restrictions including
maintaining consolidated financial ratios as follows:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.&nbsp;Debt service coverage ratio should exceed
1.5:1
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.&nbsp;Debt to equity ratio should not exceed:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">a.&nbsp;3:1, for the period of January&nbsp;1,
    2002 to December&nbsp;31, 2002
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">b.&nbsp;2.5:1, for the period of January&nbsp;1,
    2003 to December&nbsp;31, 2003
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">c.&nbsp;2:1, for the period of January&nbsp;1,
    2004 to the date of bonds redemption
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.&nbsp;Debt to EBITDA ratio should not exceed 3:1
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company has
complied with the covenants.
</FONT>

<P align="center"><FONT size="2">F-70
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">29.&nbsp;LONG-TERM BANK LOANS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The detail of bank loan as of December&nbsp;31,
2002 is as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in&nbsp;original</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Outstanding</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Lender</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Currency</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total facility</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currency</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Rp million)</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Citibank N.A.&nbsp;</FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">US$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,950,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,950,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,119</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hermes Kreditversicherungs AG
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">US$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,400,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">740,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,792</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Central Asia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">Rp</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173,000,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,903</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Consortium
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">US$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,288,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank Consortium
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">Rp</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,000,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,438</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">J-Exim (formerly Tomen)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">US$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,000,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">247,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities of long-term bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(162,077</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>High
Performance Backbone (&#147;HP Backbone&#148;)
Loan</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.&nbsp;On April&nbsp;10, 2002, the Company
entered into a &#147;Term Loan Agreement HP Backbone Sumatra
Project and Pledge of Right To Deposit&#148; with Citibank, N.A.
providing a total facility of US$6,950,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The facility was obtained to finance the
construction of the Sumatra High Performance Backbone, in
connection with the &#147;Partnership Agreement&#148; dated
November&nbsp;30, 2001, with PT&nbsp;Pirelli Cables Indonesia
and PT&nbsp;Siemens Indonesia for the construction and provision
of a high performance backbone in Sumatra.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has drawn down the entire facility of
US$6,950,000. As of December&nbsp;31, 2002 the outstanding
balance of the loan amounted to US$6,950,000 (equivalent to
Rp62,119&nbsp;million). The loan facility from Citibank NA is
collateralized by a time deposit of US$6,950,000 (Note&nbsp;12).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amounts drawn from the facility bear interest 1%
above the interest rate provided by the Bank on the relevant
deposit being pledged to the bank. The loans are payable in
eight monthly installments beginning April 2003. The loans were
paid by the Company in May 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.&nbsp;On April&nbsp;10, 2002, the Company
entered into a &#147;Loan Agreement&#148; with Citibank, N.A
(&#147;arranger&#148;) and Citibank International plc
(&#147;agent&#148;), which was supported by an export credit
guarantee of Hermes Kreditversicherungs AG (&#147;lender&#148;
and &#147;guarantor&#148;), providing a total facility of
US$23,400,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The facility was obtained to fund up to 85% of
the cost of supplies and services sourced in Germany relating to
the design, manufacture, construction, installation and testing
of high performance backbone networks in Sumatra pursuant to the
&#147;Partnership Agreement&#148; referred to above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Hermes required a fee of 8.4% of the total
facility. This fee is paid twice during the agreement period,
15% of the fee is required to be paid in cash and 85% is
included in the loan balance. The
</FONT>

<P align="center"><FONT size="2">F-71
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">outstanding loan as of December&nbsp;31, 2002
representing the first installment of the fee was US$740,914
(equivalent to Rp6,792&nbsp;million).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company has
drawdown US$740,914 from the total facility. The loans are
payable in ten semi-annually installments beginning in July 2004.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amounts drawn from the facility bear interest at
LIBOR plus 0.75%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.&nbsp;On April&nbsp;10, 2002, the Company
entered into a &#147;Term Loan Agreement HP Backbone Sumatra
Project&#148; with Bank Central Asia, providing a total facility
of Rp173,000&nbsp;million. The facility was obtained to fund the
Rupiah portion of the high performance backbone network in
Sumatra pursuant to the &#147;Partnership Agreement&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amounts drawn from the facility bear interest at
4.35% plus the 3-month time deposit rate. The loans are payable
in twelve quarterly installments beginning January 2004. The
loans will mature in October 2006.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total principal outstanding as of
December&nbsp;31, 2002 is Rp25,903&nbsp;million. Total available
under the facility as of December&nbsp;31, 2002 is
Rp147,097&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The loan facility from Bank Central Asia is not
collateralized.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Internet
Protocol Backbone (&#147;IP Backbone&#148;) Loan</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;25, 2002, the Company entered
into a &#147;Facility Funding Agreement&#148; with Bank DBS
Indonesia (syndicated agent), Bank Bukopin (lender) and Bank
Central Asia (lender), providing a total facility of
US$4,000,000 and Rp90,000&nbsp;million to fund the IP Backbone
project in 7&nbsp;(seven) Regional Divisions or KSO regions
divided into 6 (six)&nbsp;batches.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Amounts drawn in U.S.&nbsp;Dollars bear interest
at 2% plus the highest of 1, 2 or 3&nbsp;month SIBOR divided by
0.87% for the first year and 2% plus the 3&nbsp;month SIBOR
divided by 0.87% thereafter. Amounts drawn in Rupiah bear
interest at 19% fixed for the first year and 5% plus the average
of BCA&#146;s and Bukopin&#146;s interest rates (the highest of
1, 3, 6 or 12&nbsp;month time deposit rate) thereafter.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The loans are payable in eleven quarterly
installments beginning in September 2002. The loans will mature
on March&nbsp;15, 2005.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Total outstanding IP Backbone loans for Rupiah
and U.S.&nbsp;Dollars as of December&nbsp;31, 2002 are
Rp60,438&nbsp;million and US$3,288,000 (equivalent
Rp29,460&nbsp;million), respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The total unused credit facility for the Rupiah
and U.S.&nbsp;Dollars facility as of December&nbsp;31, 2002 is
Rp16,475&nbsp;million and US$ nil, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company pledged the assets under construction
as collateral for the IP Backbone loan pursuant to Notarial Deed
No.17 dated February&nbsp;25, 2002 of Notary Titi Sri Amiretno
Diah Wasisti Bagiono, S.H. on &#147;Fiduciary Collateral&#148;.
The pledge has a maximum amount of US$14,587,525 and
Rp401&nbsp;million.
</FONT>

<P align="center"><FONT size="2">F-72
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Average interest rates for the HP Backbone and IP
Backbone loans during 2002 were as follows:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="81%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17.14%&nbsp;&#150; 19%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.5%&nbsp;&#150; 4.38%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the Loan Agreements for HP Backbone and IP
Backbone, the Company should maintain quarterly financial ratios
as follows:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">1.&nbsp;Debt to equity ratio should not exceed 3:1
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">2.&nbsp;EBITDA to interest expense should exceed
5:1
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">3.&nbsp;EBITDA to loan installment and interest
payment should exceed 1.5:1
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the Company
complied with the above mentioned ratios.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>J-Exim
(formerly Tomen) Loan</U></FONT></I>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="75%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total outstanding amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(146,300</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(62,720</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This represents Dayamitra&#146;s obligation under
a loan facility agreement it entered into with Tomen on
April&nbsp;27, 1998. The facility has been fully drawn for
US$35&nbsp;million, which is repayable in five semi-annual
installments of US$7&nbsp;million commencing on March&nbsp;25,
2001. The Company has unconditionally guaranteed this loan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest accrues on the outstanding principal at
the rate of LIBOR plus 1% and is repayable semi-annually,
commencing on September&nbsp;25, 1998. Annual interest rates in
2002 ranged from 2.75% to 3.58%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On June&nbsp;21, 1999, an agreement was entered
into between Tomen and The Export-Import Bank of Japan
(&#147;J-Exim&#148;) under which the loan and related security
rights were assigned from Tomen to J-Exim.
</FONT>

<P align="left">
<B><FONT size="2">30.&nbsp;MINORITY INTEREST IN
SUBSIDIARIES</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest in net assets of subsidiaries:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,162,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,516,180</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Infomedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,060</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,744</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dayamitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,022</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,173</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Indonusa
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,531</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,700</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">GSD
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,235,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,595,799</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-73
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest in net income(loss) of
    subsidiaries:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">299,769</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">455,331</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">782,870</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Infomedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,067</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,031</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dayamitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Indonusa
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,034</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,831</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">GSD
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">312,930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">474,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">810,222</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">31.&nbsp;CAPITAL STOCK</FONT></B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Paid-up capital</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;A Dwiwarna share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Government of the Republic of Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Government of the Republic of Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,472,235,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,736,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Board of Commissioners:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Andi Siswaka Faisal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Board of Directors:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kristiono
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Komarudin Sastrakoesoemah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Taufik Akbar
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,910</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Mursyid Amal
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Public (below&nbsp;5% each)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,607,716,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45.71</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,303,859</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,079,999,640</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-74
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="45%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Percentage</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of ownership</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Paid-up capital</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;A Dwiwarna share
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Government of the Republic of Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Series&nbsp;B shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Government of the Republic of Indonesia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,160,235,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,580,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">JPMCB
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">879,723,798</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.73</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">439,862</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">The Bank of New York
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">610,489,548</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">305,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Board of Commissioners:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Petrus Sartono
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Board of Directors:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kristiono
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Garuda Sugardo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,262</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guntur Siregar
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Agus Utoyo
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,826</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suryatin Setiawan
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Public (below 5% each)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,429,489,054</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,714,745</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,079,999,640</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,040,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">32.&nbsp;ADDITIONAL PAID-IN CAPITAL</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Proceeds from sale of 933,333,000 shares with par
    value of Rp2,050 per share through initial public offering in
    1995
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,446,666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,446,666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalization into 746,666,640 series&nbsp;B
    shares in 1999
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(373,333</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(373,333</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,073,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-75
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">33.&nbsp;TELEPHONE REVENUES</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fixed lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Local and domestic long-distance usage
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,097,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,225,705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,447,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monthly subscription charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">887,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">997,651</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474,823</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installation charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,017</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">130,234</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Phone cards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,426</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,265</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,328</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">181,852</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,177,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,415,156</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,264,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Air time charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,484,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,987,738</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,453,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monthly subscription charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">356,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">581,566</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">593,347</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Connection fee charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">172,302</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Features
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,555</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,890,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,707,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,226,801</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Telephone Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,067,866</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,123,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,490,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">34.&nbsp;INTERCONNECTION REVENUES&nbsp;&#151;
NET</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">704,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,241,603</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,383,667</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">International
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">235,936</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,770</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">344,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,889</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,313</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,167</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">980,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,423,686</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,831,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">35.&nbsp;REVENUE UNDER JOINT OPERATION
SCHEMES</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minimum Telkom Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,556,699</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,474,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,319,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share in Distributable KSO Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">695,106</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">732,960</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">801,010</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned initial investor
    payments under Joint Operation Schemes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,349</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,426</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,267,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,219,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,128,145</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Distributable KSO Revenues represent the entire
KSO revenues, less MTR and operational expenses of the KSO
Units. These revenues are shared between the Company and the KSO
Investors based upon agreed percentages. The agreed percentages
for revenue distribution between the Company and KSO Investors
was 35%:65% for KSO Unit VII and 30%:70% for KSO Unit III and
IV, respectively.
</FONT>

<P align="center"><FONT size="2">F-76
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">36.&nbsp;DATA AND INTERNET REVENUES</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SMS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">344,600</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">997,249</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Multimedia
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,539</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">218,300</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">VoIP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">152,195</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">ISDN
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,386</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,934</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">673,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,551,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">37.&nbsp;NETWORK REVENUE</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Satellite transponder lease
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">203,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,220</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">156,779</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">211,371</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125,878</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">340,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">414,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">316,098</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">38.&nbsp;REVENUE-SHARING ARRANGEMENT
REVENUES</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-Sharing Arrangement revenues&nbsp;&#151;
    net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,478</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">211,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned income (Note&nbsp;16)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,537</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,271</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">287,670</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">264,253</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">263,754</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">39.&nbsp;OPERATING EXPENSES&nbsp;&#151;
PERSONNEL</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Salaries and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">703,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">883,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,410,670</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vacation pay, incentives and other benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297,606</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">364,707</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">655,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Early retirements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">717,289</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic post-retirement benefit cost
    (Note&nbsp;47)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306,263</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">374,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">616,512</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost (Note&nbsp;45)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">86,233</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">362,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Employee income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196,565</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,855</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201,468</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards (Note&nbsp;46)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94,540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">289,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Housing
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,315</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">89,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Medical
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,727</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,698</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,531</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,978</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,187</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,770,472</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,281,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,387,568</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-77
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">40.&nbsp;</FONT></B></TD>
    <TD>
    <B><FONT size="2">OPERATING EXPENSES&nbsp;&#151; OPERATIONS,
    MAINTENANCE AND</FONT></B></TD>
</TR>

</TABLE>

<DIV align="left">
<B><FONT size="2">TELECOMMUNICATION SERVICES</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operations and maintenance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">575,647</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">891,435</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,042,588</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Radio frequency usage charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,711</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,305</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292,703</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Electricity, gas and water
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,484</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">157,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219,913</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of phone cards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">47,076</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173,412</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Concession fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">78,482</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">163,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Insurance
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,604</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,932</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Leased lines
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,880</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Motor vehicles
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,694</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,235</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Travel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,700</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,523</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Telephone kiosks&#146; commissions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">372,258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">520,947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,094</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,385,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,149,921</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,290,219</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective January&nbsp;1, 2002, telephone kiosks
are charged 70% of the general tariff. Consequently, telephone
kiosk is no longer paid commissions and accordingly there were
no commissions in 2002.
</FONT>

<P align="left">
<B><FONT size="2">41.&nbsp;OPERATING EXPENSES&nbsp;&#151;
GENERAL AND ADMINISTRATIVE</FONT></B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="65%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Professional fees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">325,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">218,949</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Collection costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131,449</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">181,925</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">224,782</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of intangible assets (Note&nbsp;17)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Training, education and recruitment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">122,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Travel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,913</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92,828</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,427</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Security and screening
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,154</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,792</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">General and social contribution
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,604</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,419</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing and stationery
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,150</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,513</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Meetings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,711</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,498</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,719</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts and inventory
    obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">342,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,103</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Research and development
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,523</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred stock issuance amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,350</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">871,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,343,456</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,146,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-78
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The allowance for doubtful accounts includes an
allowance for the MTR and share in distributable KSO revenues
receivable from KSO III amounting to Rp14,332&nbsp;million,
Rp155,756&nbsp;million and RpNil in 2000, 2001 and 2002,
respectively. This provision was reversed in 2002 following the
settlement of the AriaWest dispute (Notes&nbsp;9 and&nbsp;56d).
</FONT>

<P align="left">
<B><FONT size="2">42.&nbsp;INCOME TAX</FONT></B>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">a.&nbsp;Prepaid taxes</FONT></I></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Corporate income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">265</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Value added tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,409</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,674</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">b.&nbsp;Taxes payable</FONT></I></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">The Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;21
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;22
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,739</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,189</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;23
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;25
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;26
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,892</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;29
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,098,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">631,124</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Value added tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">105,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,308,264</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">709,426</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;4
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">839</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;21
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;22
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;23
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,408</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;25
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,773</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,881</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;26
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,529</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,931</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Article&nbsp;29
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">357,397</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">220,377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Value added tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">83,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">569,724</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,877,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,109,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="4"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-79
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Income
tax expense</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">The Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,797</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,291,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,671,104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">281,509</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(168,815</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(153,019</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">952,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,122,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,518,085</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">557,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,076,658</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,656</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">304,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">884,504</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,380,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,520,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,006,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,898,971</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The reconciliation between income tax expense and
the theoretical tax amount on income before tax is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated income before tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,608,229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,549,891</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,748,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Add back consolidation eliminations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,059,611</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,926,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,554,407</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated income before tax and eliminations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,667,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,476,330</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,303,309</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deduct income before tax of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,940,530</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,285,548</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,745,515</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before tax attributable to the Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,727,310</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,190,782</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,557,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax calculated at progressive rates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,118,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,557,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,867,321</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income not subject to tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(182,073</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(516,707</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,677,493</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income subject to final tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(189,494</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(148,300</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(107,715</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-deductible expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">205,689</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">230,180</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">469,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax asset originating from previously
    unrecognized temporary difference
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40,252</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax assets that cannot be utilized
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,760</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total income tax expense of the Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">952,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,122,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,518,085</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total income tax expense of the subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,988</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">884,504</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,380,886</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated income tax expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,520,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,006,895</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,898,971</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-80
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The reconciliation between income before tax and
the estimated taxable income for the years ended
December&nbsp;31, 2000, 2001 and 2002 is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="57%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before tax attributable to the Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,727,310</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,190,782</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,557,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary differences:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation of property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(349,114</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">165,239</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(170,134</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gains on sale of property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(218,708</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,759</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,774</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance/(write back) for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">217,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">226,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156,223</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts receivable written off
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(44,423</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(82,474</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for inventory obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,666</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,059</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Inventory written off
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,992</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,013</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,223</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Payment of early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(140,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(155,839</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(46,852</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213,397</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred stock issuance cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,981</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,942</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(894</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,839</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,524</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for impairment of property, plant and
    equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,401</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decline in value of investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,856</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(90,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Timing difference of KSO units
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,694</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,317</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation of property, plant and equipment
    under revenue sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,271</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,884</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,576</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned income under revenue
    sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(39,832</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,380</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue from transfer of property, plant and
    equipment under revenue sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">765</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share in net loss of associated companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(531,858</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(901,001</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">514,496</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">442,196</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-81
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="56%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Permanent differences:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic post-retirement benefit cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306,263</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373,074</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">611,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of goodwill and intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">79,899</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173,794</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax penalties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,703</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">216,198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share in net loss/(income) of associates and
    subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">175,283</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,307,404</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,238,300</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain on sale of long-term investment in Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,166,086</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(631,646</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(494,332</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(359,049</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unearned income under revenue
    sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(77,705</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(57,395</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(44,273</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustment of share in net income of Telkomsel as
    a result of the recast of financial statements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(470,992</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(241,725</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income from land/building rental
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(58,211</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(116,831</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,175</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,015</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">307,813</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(590,290</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,401,192</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,429,587</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total taxable income of the Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,236,019</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,304,086</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,570,403</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current income tax expense of the Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,797</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,291,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,671,104</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current income tax expense of the subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">557,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,076,658</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,228,199</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,177,366</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,747,762</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The above taxable income and current tax payable
of the Company for 2000 are in accordance with the corporate tax
returns filed with the Tax Service Office and for 2001 and 2002
will be treated in accordance with the prevailing tax
regulations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to Decision Letter
No.&nbsp;KEP-01/WPJ.07/KP.0105/2002 dated March&nbsp;22, 2002,
the Director General of Taxation has permitted the Company to
pay taxes due on the cross-ownership transaction in nine monthly
installments ending on December&nbsp;25, 2002. Interest of
Rp1,500&nbsp;million per month is charged on the outstanding
balance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, the Company received an Underpayment Tax
Assessment Letter (SKPKB) from the Tax Service Office for its
corporate income tax for fiscal years 2000 and 2001 amounting to
Rp34,489&nbsp;million and Rp19,568&nbsp;million, respectively.
The additional tax due was settled in December 2002 and the
difference between the recorded amount of tax liabilities/
prepayments and the amount assessed by the Tax Service Office
was charged to current operations.
</FONT>

<P align="center"><FONT size="2">F-82
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">d.&nbsp;<U>Deferred
tax assets and liabilities</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The details of the Company&#146;s and
subsidiaries&#146; deferred tax assets and liabilities are as
follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Difference in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">value of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">restructuring</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transaction</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Charged)/credit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">between</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to statements of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">entities under</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">income</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">common control</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">The Company</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax assets:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,670</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,749</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,419</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for inventory obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,021</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,110</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decline in value of investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,657</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,001</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred stock issuance costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,794</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,133</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,751</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">618</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,703</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,751</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">258,439</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">318,737</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference between book and tax property,plant
    and equipment&#146;s net book value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,562,174</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,519</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,451,655</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(30,968</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,417</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(337,325</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,600</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(13,553</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,153</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,942,067</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">337,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,496,225</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities of the Company, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,683,628</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,177,488</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities of subsidiaries, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,999</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(640,748</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax liabilities, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,703,627</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,818,236</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-83
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(Charged)/credit</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to statements</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pramindo</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">of income</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">acquisition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">The Company</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax assets:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,419</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69,030</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for inventory obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,404</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,507</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">159,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">201,294</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decline in value of investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,656</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred stock issuance costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,382</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,382</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">618</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(457</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,751</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,018</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146,769</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for impairment of property, plant and
    equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,920</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,920</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">318,737</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">195,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">514,645</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference between book and tax property, plant
    and equipment&#146;s net book value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,451,655</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(61,352</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,513,007</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,417</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,119</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,153</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,165</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,988</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,496,225</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42,889</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,539,114</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities of the Company, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,177,488</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153,019</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,024,469</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax liabilities of the subsidiaries, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(638,824</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)*)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(304,228</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,115,645</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,058,697</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax liabilities, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,816,312</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,083,166</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<HR size="1" width="18%" align="left" noshade>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Including deferred tax asset of PT&nbsp;Infomedia
    Nusantara, a subsidiary, of Rp1,924&nbsp;million presented
    separately in the &#147;Advances and other non-current
    assets&#148; as at 31&nbsp;December 2001.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Administration</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under taxation laws of Indonesia, the Company
submits tax returns on the basis of self assessment. The tax
authorities may assess or amend taxes within ten years from the
date the tax became due.
</FONT>

<P align="center"><FONT size="2">F-84
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries are being
audited by the tax authorities for various fiscal years. These
tax audits are not finalized at the date of these financial
statements, however, Management believes that the outcome of
these tax audits will not be significant.
</FONT>

<P align="left">
<B><FONT size="2">43.&nbsp;BASIC EARNINGS PER SHARE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net income per share is computed by dividing net
income by the average number of shares outstanding during the
year, totaling 10,079,999,640 shares in 2000, 2001 and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company does not have potentially dilutive
ordinary shares.
</FONT>

<P align="left">
<B><FONT size="2">44.&nbsp;CASH DIVIDENDS AND GENERAL
RESERVE</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Annual General Meeting of
Stockholders as stated in notarial deed No.&nbsp;6 dated
April&nbsp;7, 2000 of Notary A. Partomuan Pohan, S.H., LL.M.,
the stockholders approved cash dividends for 1999 amounting to
Rp1,086,161&nbsp;million or Rp107.75 per share, and appropriated
Rp21,723&nbsp;million for general reserves.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Annual General Meeting of
Stockholders as stated in notarial deed No.&nbsp;17 dated
May&nbsp;10, 2001 of Notary A. Partomuan Pohan, S.H., LL.M., the
stockholders approved cash dividends for 2000 amounting to
Rp888,654&nbsp;million or Rp88.16 per share, and appropriated
Rp126,950&nbsp;million for general reserves.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Annual General Meeting of
Stockholders as stated in notarial deed No.&nbsp;16 dated
June&nbsp;21, 2002 of Notary A. Partomuan Pohan, S.H., LL.M.,
the stockholders approved cash dividends for 2001 amounting to
Rp2,125,055&nbsp;million or Rp210.82 per share, and appropriated
Rp425,012&nbsp;million for general reserves.
</FONT>

<P align="left">
<B><FONT size="2">45.&nbsp;PENSION PLAN</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>The
Company</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides a defined benefit pension
plan for its employees under which pension benefits to be paid
are based on the employee&#146;s latest basic salary and number
of years of service. The plan is managed by Dana Pensiun Telkom,
whose deed of establishment was approved by the Minister of
Finance of the Republic of Indonesia in his decision letter
No.&nbsp;S.199/MK.11/1984 dated April&nbsp;23, 1984.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Pension Fund&#146;s main sources of funds are
the contributions from the employees and the Company. Pension
contributions are determined by annual actuarial calculations.
The employees contribute 8.4% of their basic salaries to the
plan and any remaining amount required to fund the plan is
contributed by the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Annual General Meeting of
Stockholders and the Board of Commissioners meeting in 1999, the
stockholders and Board of Commissioners approved a 15% increase
in the pension benefit for pensioners and an increase in the
basic salary of active employees effective January&nbsp;1, 1999.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To increase the pension benefits, the Company
increased the basic salaries of active employees by 50%
effective August&nbsp;1, 2000.
</FONT>

<P align="center"><FONT size="2">F-85
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company added double pension benefits for
employees above 56&nbsp;years of age, deceased employees or
employees with physical disabilities. The increase applies to
employees still in active service on July&nbsp;1, 2002. The
Company also increased pension benefits of employees who retired
prior to August&nbsp;1, 2000 by 50% effective January&nbsp;1,
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s contributions to the pension
fund amounted to Rp228,482&nbsp;million, Rp129,252&nbsp;million
and Rp297,352&nbsp;million for the years ended 2000, 2001 and
2002, respectively. In addition, the pension contribution of KSO
Units during 2002 amounted to Rp30,434&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The funded status of the plan as of
December&nbsp;31, 2001 and 2002 are as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="71%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Change in benefit obligation</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit obligation at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,209,592</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,289,134</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59,629</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">277,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected employee contributions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,831</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected benefits payment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156,468</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(186,805</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Plan amendments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(36,649</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,676,601</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Actuarial loss (gain)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(83,878</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(71,672</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit obligation at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,289,134</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,248,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Change in plan assets</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of plan assets at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,091,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,571,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected employer contributions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">173,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">359,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected return on plan assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">266,324</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">343,121</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected benefit payment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(156,468</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(186,805</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Actuarial (loss) gain
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">196,354</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,893</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of plan assets at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,571,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,099,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Funded status
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">282,580</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,148,462</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unamortized net amount resulting from changes in
    plan experience and actuarial assumptions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(632,536</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(820,394</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unamortized prior service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">224,383</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,812,198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized net obligation at the date of
    initial application of PSAK No.&nbsp;24
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,158</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Prepaid pension cost</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,867</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Plan assets consist mainly of Rupiah time
deposits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unrecognized net obligation at the date of
initial application of PSAK No.&nbsp;24 is amortized over the
remaining average future working lives of active employees. This
was 17.2&nbsp;years, starting from January&nbsp;1, 1992.
</FONT>

<P align="center"><FONT size="2">F-86
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The actuarial valuations for the pension plan as
of December&nbsp;31, 2000, 2001 and 2002 were prepared
February&nbsp;1, 2001, February&nbsp;4, 2002 and
February&nbsp;28, 2003 by PT&nbsp;Watson Wyatt Purbajaga, an
independent actuary in association with Watson Wyatt Worldwide,
using the Projected Unit Credit Method with the following
assumptions:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected long-term rate of return on assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Salary growth rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The composition of the net periodic pension cost
charged to income for the Company&#146;s plan is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Return on plan assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(279,302</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(266,324</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(343,121</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">216,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">277,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization and deferral&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,068</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increase in amortization of prior service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">88,786</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,202</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost (Note&nbsp;39)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">84,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">362,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the pension cost charged to the KSO
Units amounted to Rp18,241&nbsp;million, Rp27,188&nbsp;million
and Rp25,207&nbsp;million in 2000, 2001 and 2002, respectively.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Telkomsel</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel provides a defined benefit pension plan
to its employees under which pension benefits to be paid are
based on the employee&#146;s latest basic salary and number of
years of service. The plan is managed by PT&nbsp;Asuransi
Jiwasraya, a state-owned life insurance company. The employees
contribute 5% of their basic salaries to the plan and Telkomsel
contributes any remaining amount required to fund the plan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel&#146;s contributions to the pension
fund amounted to Rp2,189&nbsp;million, Rp3,080&nbsp;million and
Rp5,163&nbsp;million for the years ended 2000, 2001 and 2002,
respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The composition of the net periodic pension cost
is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,418</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,247</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,188</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net amortization and deferral
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,410</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(943</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,070</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,304</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-87
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PT&nbsp;Watson Wyatt Purbajaga, an independent
actuary in association with Watson Wyatt Worldwide, prepared the
actuarial valuations for 2000, 2001 and 2002, using the
&#147;Projected-Unit-Credit&#148; method with the following
assumptions:
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="93%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Salary growth rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">10%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected long term return on assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The funding status of the plan as of
December&nbsp;31, 2000, 2001 and 2002 is as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="78%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Vested benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,651</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated benefit obligation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,072</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Projected benefit obligation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,927</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Plan assets at fair value
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">27,919</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Excess of plan assets over projected benefit
    obligation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,545</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized past service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized experience adjustment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,482</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,813</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid pension cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,270</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,314</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unrecognized net obligation at the date of
initial application of PSAK No.&nbsp;24 is being amortized over
the estimated average remaining service period of active
employees of 18.87&nbsp;years as of June&nbsp;1, 1999.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Other
Subsidiaries</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Certain of the Company&#146;s subsidiaries
provide defined benefit pension plans to their employees. The
employees contribute 3-5% of their basic salaries to the plan
and the subsidiary contributes any remaining amount required to
fund the plan. Pension benefit costs are calculated based on the
actuarial valuations from an independent actuary using the
Projected Unit Credit method.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, there are no
significant differences between the fair values of the plan
assets of the relevant pension fund and the projected benefit
obligations.
</FONT>

<P align="left">
<B><FONT size="2">46.&nbsp;LONG SERVICE AWARDS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s employees are entitled to
receive certain cash awards based on length of service, which
are either paid during active employment or upon resignation,
retirement or termination.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Awards paid during active employment are:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">i.&nbsp;Karya Bhakti&nbsp;&#151; long term award
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">ii.&nbsp;Long leave allowance
</FONT>

<P align="center"><FONT size="2">F-88
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Awards payable upon resignation, retirement or
termination are:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">i.&nbsp;Purnabhakti award and Pengabdian award
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">ii.&nbsp;Last housing allowance
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">iii.&nbsp;Last transportation allowance
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The actuarial valuations for the long service
awards as of December&nbsp;31, 2000, 2001 and 2002 were prepared
on January&nbsp;15, 2004 by Dayamandiri Dharmakonsilindo, an
independent actuary, using the Projected Unit Credit Method with
the following assumptions:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">%</FONT></B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Salary growth rate
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The composition of the long service award charged
to income for the Company&#146;s plan is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liability at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">191,043</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,159</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic benefit cost (Note&nbsp;39)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94,540</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">289,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit payment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,928</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28,865</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(76,525</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liability at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">210,159</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">47.&nbsp;POST-RETIREMENT BENEFITS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company provides a post-retirement health
care plan for all of its pensioners who have worked for over
20&nbsp;years and to their eligible dependents. The requirement
of working for over 20&nbsp;years does not apply to employees
who retired prior to June&nbsp;3, 1995. However, the employees
hired by the Company starting from November&nbsp;1, 1995 will no
longer be entitled to this plan. The plan is managed by Yayasan
Kesehatan Pegawai Telkom (&#147;YKPT&#148;).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company accounts for the cost of the benefits
over the working lives of its employees based on actuarial
computations in accordance with Statement of Financial
Accounting Standards No.&nbsp;106, &#147;Employers&#146;
Accounting for Post-retirement Benefits Other than
Pensions&#148; (&#147;SFAS 106&#148;), of U.S.&nbsp;GAAP. The
transition obligation at the date of initial application was
Rp524,250&nbsp;million and is being amortized over 20&nbsp;years
beginning on January&nbsp;1, 1995.
</FONT>

<P align="center"><FONT size="2">F-89
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The composition of the net periodic
post-retirement benefit cost is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected return on plan assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(41,334</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(49,011</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(33,744</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,023</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,689</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">243,386</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298,541</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of unrecognized transition obligation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of prior service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(395</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(395</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(395</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of gain/losses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,370</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net curtailment loss/gain
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,576</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic post-retirement benefit cost
    (Note&nbsp;39)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">306,263</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">374,510</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">616,512</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the cost of post-retirement benefits
charged to the KSO Units amounted to Rp16,703&nbsp;million,
Rp16,212&nbsp;million and Rp14,611&nbsp;million in 2000, 2001
and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The actuarial valuations dated January&nbsp;15,
2004 for the post-retirement benefit plan as of
December&nbsp;31, 2000 and 2001 were prepared by PT&nbsp;Watson
Wyatt Purbajaga, an independent actuary in association with
Watson Wyatt Worldwide. For the year 2002 the evaluation was
prepared by PT&nbsp;Dayamandiri Dharmakonsilindo, its actuarial
valuation dated January&nbsp;15, 2004, used the Projected Unit
Credit method with the following assumptions:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="39%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="55%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Discount rate:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">13%
    </FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected return on plan assets:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">13%
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost Trend Rate:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2000:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">16% in 2001 reducing to ultimate rate of 10% in
    2004
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2001:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">16% in 2002 reducing to ultimate rate of 10% in
    2005
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">14% in 2003 reducing to ultimate rate of 10% in
    2005
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-90
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The funded status of the plan as of
December&nbsp;31, 2001 and 2002 is as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Change in benefit obligation</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit obligation at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,321,531</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,286,991</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,689</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298,541</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected benefits payment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(50,130</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(70,491</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Actuarial loss (gain)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,102</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Benefit obligation at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,286,991</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,812,781</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Change in plan assets</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of plan assets at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">317,694</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">330,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Employer contributions
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected return on plan assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,011</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,287</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Actual benefit payment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(60,454</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(79,851</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Actuarial (loss) gain
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,483</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,544</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of plan assets at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">330,461</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">343,896</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Funded status
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,956,530</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,468,885</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized net transition obligation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">340,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">291,899</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized prior service gain
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,874</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,301</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized net losses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,573,120</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,576,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued post-retirement benefit cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,045,525</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,602,494</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A 1% increase in the cost trend rate would result
in service cost and interest cost, and accumulated
post-retirement benefit obligation as of December&nbsp;31, 2000,
2001 and 2002 as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002<SUP>*)</SUP></FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost and interest cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">444,662</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">623,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">664,741</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated post-retirement benefit obligation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,804,878</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,981,842</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,473,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">*)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Before curtailment
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">48.&nbsp;RELATED PARTY INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the normal course of business, the Company and
its subsidiaries entered into transactions with related parties.
It is the Company&#146;s, policy that, the pricing of these
transactions be the same as those of arms-length transactions.
</FONT>

<P align="center"><FONT size="2">F-91
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following are significant agreements/
transactions with related parties:
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Government
of the Republic of Indonesia</U></FONT></I>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;The Company obtained &#147;two-step
    loans&#148; from the Government of the Republic of Indonesia,
    the Company&#146;s majority stockholder.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;The Company and its subsidiary pay
    concession fees for telecommunications services provided and
    radio frequency usage charges to the Ministry of Communications
    (formerly, Ministry of Tourism, Post and Telecommunications) of
    the Republic of Indonesia.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Concession fees amounted to
Rp78,482&nbsp;million, Rp63,561&nbsp;million and
Rp163,891&nbsp;million in 2000, 2001 and 2002, respectively.
Concession fees reflected 1.2%, 0.7% and 1.4% of total operating
expenses in 2000, 2001 and 2002, respectively. Radio frequency
usage charges amounted to Rp16,711&nbsp;million,
Rp101,305&nbsp;million and Rp292,703&nbsp;million in 2000, 2001
and 2002, respectively. Radio frequency usage charges reflected
0.3%, 1.1% and 2.5% of total operating expenses in 2000, 2001
and 2002, respectively.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Commissioners
and Directors Remuneration</U></FONT></I>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;The Company and its subsidiaries provide
    honorarium and facilities to support the operational duties of
    the Board of Commissioners. The total of such benefits amounted
    to Rp4,851&nbsp;million, Rp7,189&nbsp;million and
    Rp8,706&nbsp;million in 2000, 2001 and 2002, respectively, which
    reflected 0.1%, 0.1% and 0.1% of total operating expenses in
    2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;The Company and its subsidiaries provide
    salaries and facilities to support the operational duties of the
    Board of Directors. The total of such benefits amounted to
    Rp22,650&nbsp;million, Rp30,329&nbsp;million, and
    Rp35,106&nbsp;million in 2000, 2001 and 2002, respectively,
    which reflected 0.3%, 0.3% and 0.3% of total operating expenses
    in 2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Indosat</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has an agreement with Indosat, a
telecommunications services company, in which the Government,
the majority owner of the Company has significant voting rights,
for the provision of international telecommunication services to
the public.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The principal matters covered by the agreement
are as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;The Company provides a local network for
    customers to make or receive international calls. Indosat
    provides the international network for the customers, except for
    certain border towns, as determined by the Director General of
    Post and Telecommunications of the Republic of Indonesia. The
    international telecommunications services include telephone,
    telex, telegram, package switched data network, television,
    teleprinter, Alternate Voice/Data Telecommunications
    (&#147;AVD&#148;), hotline and teleconferencing.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;The Company and Indosat are responsible
    for their respective telecommunications facilities.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iii.&nbsp;Customer billing and collection, except
    for leased lines and public phones located at the international
    gateways, are handled by the Company.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-92
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iv.&nbsp;The Company receives compensation for
    the services provided in the first item above, based on the
    interconnection tariff determined by the Minister of Tourism,
    Post and Telecommunications of the Republic of Indonesia.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has also entered into an
interconnection agreement between the Company&#146;s fixed-line
network and Indosat&#146;s cellular network in connection with
the implementation of Indosat Multimedia Mobile services and the
settlement of the related interconnection rights and obligations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Ministry of Communication Decree
regarding the transfer of the license for Indosat&#146;s mobile
cellular network operation from Indosat to PT&nbsp;Indosat
Multimedia Mobile (&#147;IM3&#148;), the Company agreed to
transfer all interconnection rights and obligations to IM3 based
on Interconnection Cooperation Agreement, as regulated in the
Amendment of Agreement in the side letter No.&nbsp;656 dated
March&nbsp;18, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company&#146;s compensation relating to
leased lines/ channel services, such as International
Broadcasting System (&#147;IBS&#148;), AVD and bill printing is
calculated at 15% of Indosat&#146;s revenues from such services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Indosat also leases circuits from the Company to
link Jakarta, Medan and Surabaya.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has been handling customer billing
and collection for Indosat. Indosat is gradually taking over the
activities and performing its own direct billing and collection.
The Company receives compensation from Indosat computed at 1% of
the collections made by the Company beginning January&nbsp;1,
1995, plus the billing process expenses which are fixed at a
certain amount per record.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel also entered into an agreement with
Indosat for the provision of international telecommunications
services to GSM mobile cellular customers. The principal matters
covered by the agreement are as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;Telkomsel&#146;s GSM mobile cellular
    telecommunications network is connected with Indosat&#146;s
    international gateway exchanges to make outgoing or receive
    incoming international calls through Indosat&#146;s
    international gateway exchanges.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;Telkomsel receives as compensation for
    the interconnection, a specific percentage of Indosat&#146;s
    revenues from the related services made through Indosat&#146;s
    international gateway exchanges.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iii.&nbsp;Billings for international calls made
    by customers of GSM mobile cellular telecommunications are
    handled by Telkomsel. Telkomsel is obliged to pay Indosat&#146;s
    share of revenue although billings to customers have not been
    collected.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iv.&nbsp;The agreement dated March&nbsp;29, 1996,
    was initially valid for one year, but extendable for one-year
    period as agreed by both parties. The latest extension expired
    on February&nbsp;28, 2003 and is still under negotiation. In the
    meantime, interconnection revenue is charged based upon the
    previous agreement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiary earned net
interconnection revenues from Indosat of Rp93,175&nbsp;million,
Rp54,024&nbsp;million and Rp274,706&nbsp;million in 2000, 2001
and 2002, respectively, reflecting 0.8%, 0.3% and 1.3% of total
operating revenues in 2000, 2001 and 2002, respectively.
</FONT>

<P align="center"><FONT size="2">F-93
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel also has an agreement for the usage of
Indosat&#146;s telecommunications facilities. The agreement,
which was made in 1997, is valid for eleven years, and subject
to change based on an annual review and agreement by both
parties. The charges for the usage of the facilities amounted to
Rp11,821&nbsp;million, Rp13,372&nbsp;million and
Rp12,703&nbsp;million in 2000, 2001 and 2002, respectively,
reflecting 0.2%, 0.2% and 0.1% of total operating expenses in
2000, 2001 and 2002, respectively. Other agreements between
Telkomsel and Indosat are as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;Development and maintenance for
    Jakarta-Surabaya cable system agreement (&#147;J&nbsp;&#151; S
    Cable System&#148;).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel, Lintasarta, Satelindo and Indosat
(&#147;the parties&#148;) entered into Development and
Maintenance for Cable System Agreement. The parties formed a
management committee consisting of a chief and a representative
of the respective parties, to direct the development of the
cable system which was completed in 1998. Based on the
agreement, Telkomsel shared 19.325% of the total development
cost. Telkomsel also shares the total cost of operation and
maintenance based on the agreed formula.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cost of operation and maintenance shared
amounted to Rp955&nbsp;million, Rp1,359&nbsp;million and
Rp956&nbsp;million for the years 2000, 2001 and 2002,
respectively.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;Indefeasible Right of Use Agreement
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On September&nbsp;21, 2000, Telkomsel entered
into agreement with Indosat with respect to the use of
SEA&nbsp;&#151; ME&nbsp;&#151; WE 3 and tail link in Jakarta and
Medan. Based on the agreement, Telkomsel was granted an
irrevocable right to use certain capacity of the network
commencing from September&nbsp;21, 2000 to 2015 by prepaying a
compensation amounting to US$2,727,273. Telkomsel is also
charged annual operation and maintenance costs amounting to
US$136,364.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iii.&nbsp;Indosat, on behalf of IM3, on
    November&nbsp;1, 2001 entered into interconnection agreement
    with Telkomsel agreeing the following:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Telkomsel&#146;s GSM cellular mobile network
    connects with IM3&#146;s network enabling Telkomsel&#146;s
    customers to make or receive a call from or to IM3&#146;s
    customers.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Supply and installation of interconnection tools
    needed is Telkomsel&#146;s responsibility.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The agreement is effective since the signing date
    and extendable as long as agreed by both parties.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the amendment to the above agreement, on
December&nbsp;14, 2001, Telkomsel&#146;s customers are able to
send and receive short message services from IM3&#146;s
customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiary earned net
interconnection revenue from IM3 of Rp157&nbsp;million in 2001
and Rp50,880&nbsp;million in 2002.
</FONT>

<P align="center"><FONT size="2">F-94
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Satelindo</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has an agreement with Satelindo, an
Indosat subsidiary, whereby both parties agreed, among other
matters, on the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;Interconnection of the Company&#146;s
    fixed-line network (&#147;PSTN&#148;) with Satelindo&#146;s
    international gateway exchange, enabling the Company&#146;s
    customers to make outgoing or receive incoming international
    calls through Satelindo&#146;s international gateway exchange.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;Billings for the international
    telecommunications services used by domestic customers through
    Satelindo&#146;s international gateway exchange will be handled
    by the Company.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also has an agreement with Satelindo
for the interconnection of Satelindo&#146;s GSM mobile cellular
telecommunications network with the Company&#146;s PSTN,
enabling the Company&#146;s customers to make outgoing calls to
or receive incoming calls from Satelindo&#146;s customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection revenues earned from Satelindo
were Rp227,253&nbsp;million, Rp293,726&nbsp;million and
Rp625,101&nbsp;million in 2000, 2001 and 2002, respectively,
which reflected 1.9%, 1.8% and 3.0% of total operating revenues
for 2000, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company leases international circuits from
Satelindo. Payments made in relation to the lease expense
amounted to Rp19,611&nbsp;million, Rp28,111&nbsp;million and
Rp32,885&nbsp;million in 2000, 2001 and 2002, respectively,
which reflected 0.3%, 0.3% and 0.3% of total operating expenses
for 2000, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on an agreement entered into among the
Company, PT&nbsp;Bimagraha Telekomindo and Indosat in 1993, at
the time of Satelindo&#146;s establishment, the Company agreed
to transfer to Satelindo, its so-called B2P, B2R and B4 Palapa
satellites and other assets relating to the Company&#146;s
satellite control station located in Jakarta. These transfers
were to be covered in a separate agreement between Satelindo and
the Company which was never made. In November 2000, the Company
entered into an agreement with a third party, in which the
Company agreed to sell the expired B2R Satellite, or to lease
the satellite to such third party if the sale is not consummated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1994, the Company transferred to Satelindo the
right to use a parcel of Company-owned land located in Jakarta
which had been previously leased to Telekomindo, an associated
company. Based on the transfer agreement, Satelindo is given the
right to use the land for 30&nbsp;years and can apply for the
right to build properties thereon. The ownership of the land is
retained by the Company. Satelindo agreed to pay
Rp43,023&nbsp;million to the Company for the thirty-year right.
Satelindo paid Rp17,214&nbsp;million in 1995 and the remaining
Rp25,809&nbsp;million was not paid because the Utilization Right
(&#147;Hak Pengelolaan Lahan&#148;) on the land could not be
delivered as provided in the transfer agreement. In 2000, the
Company and Satelindo agreed on an alternative solution
resulting in the above payment being treated as a lease expense
up to 2006. In 2001, Satelindo paid the remaining amount as
lease expense up to 2024. As of December&nbsp;31, 2002, the
prepaid portion is shown in the consolidated balance sheets as
&#147;Advances from customers and suppliers.&#148;
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">e.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company provides telecommunication services
    to Government agencies.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">f.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company has entered into agreements with
    Government agencies and associated companies, Lintasarta, CSM
    and Patrakomindo, for utilization of the Company&#146;s Palapa
    B4 and Telkom&nbsp;1 satellite transponders or frequency
    channels. Revenues earned from these transactions amounted
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-95
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">to Rp86,305&nbsp;million, Rp89,469&nbsp;million
    and Rp44,109&nbsp;million in 2000, 2001 and 2002, respectively,
    which reflected 0.7%, 0.5% and 0.2% of total operating revenues
    in 2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">g.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company provides leased lines to associated
    companies and Indosat&#146;s subsidiaries&nbsp;&#151; CSM,
    Lintasarta, Satelindo, Komselindo, Mobisel, Metrosel and PSN.
    The leased lines can be used by the associated companies for
    telephone, telegraph, data, telex, facsimile or other
    telecommunications services. Revenue earned from these
    transactions amounted to Rp17,454&nbsp;million,
    Rp19,764&nbsp;million and Rp75,704&nbsp;million in 2000, 2001
    and 2002, respectively, reflecting 0.1%, 0.1%, and 0.4% of total
    operating revenues in 2000, 2001, and 2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">h.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company provides a data communication network
    system for Lintasarta&nbsp;&#151; an Indosat subsidiary and
    operates a telemetry tracking and command station for
    PSN&nbsp;&#151; an associated company. Revenues earned by the
    Company from these transactions amounted to
    Rp16,384&nbsp;million and Rp27,963&nbsp;million in 2000 and 2001
    respectively, reflecting 0.1% and 0.2% of total operating
    revenues in 2000 and 2001. There was no revenue earned from
    these transactions in 2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">i.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company purchases property and equipment
    including construction and installation services from a number
    of related parties. These related parties include
    PT&nbsp;Industri Telekomunikasi Indonesia
    (&#147;PT&nbsp;INTI&#148;), Lembaga Elektronika Nasional,
    PT&nbsp;Adhi Karya, PT&nbsp;Pembangunan Perumahan,
    PT&nbsp;Nindya Karya, PT&nbsp;Boma Bisma Indra, PT&nbsp;Wijaya
    Karya, PT&nbsp;Waskita Karya, PT&nbsp;Gratika, Telekomindo,
    Bangtelindo, Telesera and Koperasi Pegawai Telekomunikasi.
    Purchases made from these related parties amounted to
    Rp104,669&nbsp;million, Rp100,459&nbsp;million and
    Rp154,808&nbsp;million in 2000, 2001 and 2002, respectively,
    reflecting 3.3%, 2.4%, and 2.1% of total fixed assets purchases
    in 2000, 2001, and 2002, respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">j.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">PT&nbsp;INTI is also a major contractor and
    supplier providing equipment, including construction and
    installation services for Telkomsel. Total purchases from
    PT&nbsp;INTI in 2000, 2001 and 2002 amounted to
    Rp405,351&nbsp;million, Rp663,587&nbsp;million and
    Rp34,717&nbsp;million, respectively, reflecting 12.8%, 15.7% and
    0.5% of total fixed assets purchases in 2000, 2001 and 2002,
    respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">k.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company and its subsidiaries carry insurance
    (on their property, plant and equipment against property losses,
    inventory and on employees&#146; social security) obtained from
    PT&nbsp;Asuransi Jasa Indonesia, PT&nbsp;Asuransi Tenaga Kerja
    and PT&nbsp;Persero Asuransi Jiwasraya, which are state-owned
    insurance companies. Insurance premiums amounted to
    Rp109,821&nbsp;million, Rp83,945&nbsp;million and
    Rp131,445&nbsp;million in 2000, 2001 and 2002, respectively,
    reflecting 1.7%, 0.9% and 1.1% of total operating expenses in
    2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">l.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company and its subsidiaries maintain current
    accounts and time deposits in several state-owned banks. In
    addition, some of those banks are appointed as collecting agents
    for the Company. As of December&nbsp;31, 2001, the Company also
    has an investment in mutual funds managed by Danareksa, a
    state-owned company. Total placements in form of current
    accounts and time deposits in state-owned banks and mutual funds
    amounted to Rp3,779,894&nbsp;million and Rp6,161,244 million as
    of December&nbsp;31, 2001 and 2002, respectively, reflecting
    11.4% and 13.9% of total assets as of December&nbsp;31, 2001 and
    2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">m.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company leases buildings, purchases materials
    and construction services, and utilizes maintenance and cleaning
    services from Dana Pensiun Telkom and PT&nbsp;Sandhy Putra
    Makmur, a
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-96
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">subsidiary of Yayasan Sandikara Putra
    Telkom&nbsp;&#151; a foundation managed by Dharma Wanita Telkom.
    Total charges from these transactions amounted to
    Rp35,103&nbsp;million, Rp18,680&nbsp;million and
    Rp14,570&nbsp;million in 2000, 2001 and 2002, respectively,
    reflecting 0.5%, 0.2% and 0.1% of total operating expenses in
    2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">n.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company purchased encoded phone cards from
    Perusahaan Umum Percetakan Uang Republik Indonesia, a
    state-owned company. The cost of the phone cards amounted to
    Rp2,195&nbsp;million, Rp1,781&nbsp;million and
    Rp1,377&nbsp;million in 2000, 2001 and 2002, respectively,
    reflecting 0.03%, 0.02% and 0.01% of total operating expenses
    for 2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">o.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">In 1991, the Company granted loans to Koperasi
    Telekomunikasi (&#147;Koptel&#148;) amounting to
    Rp1,000&nbsp;million to support Koptel&#146;s activities in
    providing housing loans to the Company&#146;s employees. The
    balance of the loans amounted to Rp300&nbsp;million,
    Rp200&nbsp;million and Rp100&nbsp;million in 2000, 2001 and
    2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="3%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">p.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company and its subsidiary earned
    interconnection revenues from Komselindo, Metrosel, Mobisel,
    BBT, PSN and Patrakomindo, which are associated companies,
    totaling Rp671,612&nbsp;million, Rp345,284&nbsp;million and
    Rp77,984&nbsp;million in 2000, 2001 and 2002, respectively,
    reflecting 5.5%, 2.1% and 0.4% of total operating revenues in
    2000, 2001 and 2002, respectively.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">q.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">In addition to revenues earned under the KSO
    Agreement (Note&nbsp;50), the Company also earned income from
    building rental, repairs and maintenance services and training
    services provided to the KSO Units, amounting to
    Rp95,227&nbsp;million, Rp114,200&nbsp;million and
    Rp73,679&nbsp;million in 2000, 2001 and 2002, respectively,
    reflecting 0.8%, 0.7% and 0.4% of total operating revenues in
    2000, 2001 and 2002.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">r.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company provides a defined benefit pension
    plan and a post-retirement healthcare plan for its pensioners
    through Dana Pensiun Telkom and YKPT (Notes&nbsp;45 and 47).
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">s.&nbsp;</FONT></I></TD>
    <TD align="left">
    <FONT size="2">The Company has also seconded a number of its
    employees to related parties to assist them in operating their
    business. In addition, the Company provided certain of its
    related parties with the right to use its buildings free of
    charge.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Presented below are balances of accounts with
related parties:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;assets</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;assets</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">a.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Cash and cash equivalents (Note&nbsp;7)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,430,979</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.39</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,081,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11.47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">b.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Temporary investments (Note&nbsp;8)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">523,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.18</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">c.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Trade accounts receivable (Note&nbsp;9)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,055,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">886,763</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-97
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="37%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;assets</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;assets</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">d.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Other accounts receivable
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">KSO Units
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,128</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,221</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">State-owned banks (interest)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,860</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,523</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Government Agencies
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,122</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employees
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,186</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Others
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,331</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,411</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Total
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">142,505</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">127,740</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">e.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Prepaid expenses
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.24</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,867</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">f.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Other current assets (Note&nbsp;12)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">540,520</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">g.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Advances and other non-current assets
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bank Mandiri
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,128</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.04</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">PT&nbsp;Multisaka Mitra
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,442</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">PT&nbsp;INTI
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bangtelindo
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Total
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.07</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,128</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.04</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;liabilities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;liabilities</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">h.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Trade accounts payable
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Government agencies
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">150,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.66</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">359,211</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">KSO Units
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,572</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.32</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">114,717</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Indosat
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,817</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.54</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Satelindo
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">118,173</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.52</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,378</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.27</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Koperasi Pegawai Telkom
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,353</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,279</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.05</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Perusahaan Listrik Negara
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">847</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">PSN
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,183</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.02</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">PT&nbsp;INTI
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">208,629</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.92</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,420</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">PT&nbsp;Sandhy Putra Makmur
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Excelcomindo Pratama
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,599</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Telekomindo
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bangtelindo
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,953</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Others
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,659</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.08</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">73,636</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.28</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Total
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">719,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">790,227</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.92</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">i.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Other accounts payable
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employees
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,804</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-98
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">% of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;liabilities</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rp</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">total&nbsp;liabilities</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">j.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Cross-ownership transactions (Note&nbsp;5)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,406,309</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10.59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">k.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Accrued expenses (Note&nbsp;20)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Government Agencies and State-owned banks
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">276,953</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">298,840</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Employees
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">276,481</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,082,720</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">PT&nbsp;Asuransi Jasa Indonesia
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">643</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Others
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">0.01</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Total
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">556,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2.45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,389,225</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">l.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Provision for long service award
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">275,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489,231</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1.81</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">m.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Provision for post-retirement benefits
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,045,525</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.61</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,602,494</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">n.
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Two step loans
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,482,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41.74</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,570,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31.63</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">49.&nbsp;SEGMENT INFORMATION</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and its subsidiaries have two main
business segments: fixed line and cellular. The fixed line
segment provides local and domestic long distance telephone
services and other telecommunications services (including among
others, leased lines, telex, transponder, satellite and Very
Small Aperture Terminal-VSAT) as well as ancillary services. The
cellular segment provides basic telecommunication services,
particularly mobile cellular telecommunication services.
Operating segments that do not individually represent more than
10% of the Company&#146;s operations are presented as
&#147;Other&#148; comprising the telephone directories and
building management businesses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Segment revenues and expenses include
transactions between business segments and are accounted for at
their stated prices, that represent market prices.
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fixed line</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cellular</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Consolidated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">External operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,868,214</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,223,087</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,877</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intersegment operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">486,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(421,630</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">65,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,166</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,355,010</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,801,457</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,877</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,255,344</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,166</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,190,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-99
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fixed line</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cellular</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Consolidated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Segment result</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,931,124</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,632,004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,587,233</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,826</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,596,059</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(816,749</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(816,749</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(816,749</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">631,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">60,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,962</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,962</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain (loss)&nbsp;on foreign exchange&nbsp;&#151;
    net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,064,184</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,107</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(944,077</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(944,077</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (charges)&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(64,093</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">321,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,826</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">313,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share of associates&#146; net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">356,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">356,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(588,619</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(232,044</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(952,306</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(560,063</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,925</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,520,294</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,520,294</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,378,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,345,682</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(47,913</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,676,554</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(588,619</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,087,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unallocated minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(312,930</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,378,785</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,345,682</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(47,913</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,676,554</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(588,619</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Other information</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Segment assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,459,551</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,670,571</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">186,547</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,316,669</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,569,919</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,746,750</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investments in associates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272,190</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,731,741</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,670,571</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">186,547</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,588,859</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,569,919</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,018,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,480,210</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,180,506</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(111,906</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,772,622</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">40,780</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,731,842</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital expenditure
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,769,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,365,191</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,424</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,156,624</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,156,624</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,087,824</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(331,245</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,419,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,419,069</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other non-cash expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(278,960</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(69,461</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(348,421</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(348,421</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows provided from operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,927,885</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,918,662</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,212</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,875,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,875,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows used in investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,308,976</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,574,572</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(39,023</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,922,571</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,922,571</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows used in financing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,772,496</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(324,513</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,964</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109,973</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,109,973</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-100
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fixed line</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cellular</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">consolidated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">External operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,549,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,590,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">144,055</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intersegment operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,174,993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(671,884</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(503,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,724,637</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,918,224</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">144,055</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,786,916</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(503,109</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,283,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Segment result</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,758,031</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,985,305</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,275</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,611</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(346,204</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,419,407</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,302,452</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,190</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,329,642</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,329,642</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">506,464</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,220</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">571,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">571,586</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Loss on foreign exchange&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(322,511</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(53,946</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,263</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(378,720</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(378,720</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (charges)&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">644,492</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,513</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,514</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">621,493</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(268,547</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">352,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share of associates&#146; net income (loss)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,334,083</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,334,083</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,419,769</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(85,686</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,114,574</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(881,867</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,454</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,006,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,006,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,503,533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,044,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,577,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,034,520</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,542,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unallocated minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,605</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,503,533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,044,009</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,577,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,034,520</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Other information</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Segment assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,678,357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,363,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,294,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,449,250</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,845,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investments in associates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">190,488</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,868,845</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,363,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">253,153</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,485,320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,449,250</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,036,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,583,335</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,143,805</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(146,137</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,873,277</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153,502</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,719,775</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital expenditure
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,903,486</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,780,366</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,416</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,698,268</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,698,268</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,346,535</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(513,065</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,172</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,869,772</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,869,772</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,709</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,709</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,709</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other non-cash expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(305,698</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,307</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,895</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(342,900</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(342,900</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows provided from operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,215,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,759,528</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,012,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,012,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows used in investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,064,442</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,629,620</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,539</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,712,601</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(403,195</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,115,796</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows (used in)/ provided from financing
    activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,291,844</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">218,808</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,066,006</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">403,195</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,662,811</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-101
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fixed line</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cellular</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">consolidated</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Operating revenues</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">External operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,245,303</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,315,028</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">242,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Intersegment operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">155,105</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">245,970</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,624</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">409,699</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(409,699</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total operating revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,400,408</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,560,998</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">251,111</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,212,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(409,699</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,802,818</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Segment result</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,875,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,114,243</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,034,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,520</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,130,215</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,405,409</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(177,341</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,582,750</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,582,750</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">367,725</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,176</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,901</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479,802</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">479,802</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain (loss)&nbsp;on foreign exchange&nbsp;&#151;
    net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">554,741</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,311</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(439</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">556,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">556,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other income (charges)&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,327</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,257</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,494</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59,564</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(95,520</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,956</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,659,363</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,226,958</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,650</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,898,971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,898,971</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Share of associates&#146; net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,066,277</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,066,277</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,061,679</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain on sale of long-term investment in Telkomsel
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,196,380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,196,380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,196,380</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,077,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,787,174</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,911,610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,061,679</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,849,931</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unallocated minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(810,222</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,077,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,787,174</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">46,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,911,610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other Information
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Segment assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,177,425</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,255,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">310,828</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,743,753</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,561,340</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,182,413</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investments in associates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">124,683</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,302,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,255,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">310,828</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,868,436</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,561,340</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,307,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total consolidated liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(24,348,322</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,066,412</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(198,756</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28,613,490</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,515,810</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,097,680</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital expenditure
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,266,859</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,730,028</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,531</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,032,418</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,032,418</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation and amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,576,073</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(984,039</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,256</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,567,368</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,675</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,562,693</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(187,990</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(187,990</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(187,990</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other non-cash expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">106,329</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(139,214</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,047</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,932</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(35,932</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows provided from operating activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,237,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,557,442</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">69,626</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,864,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,864,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-102
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total before</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Total</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fixed line</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cellular</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Elimination</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">consolidated</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows used in investing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,492,286</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,531,036</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,653</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,049,975</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,049,975</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash flows used in financing activities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,482,408</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(146,819</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40,989</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,670,216</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,670,216</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">50.&nbsp;JOINT OPERATION SCHEME
(&#147;KSO&#148;)</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1995, the Company and five investors
(PT&nbsp;Pramindo Ikat Nusantara, PT&nbsp;AriaWest
International, PT&nbsp;Mitra Global Telekomunikasi Indonesia,
PT&nbsp;Dayamitra Telekomunikasi and PT&nbsp;Bukaka Singtel
International) entered into agreements for Joint Operation
Schemes (&#147;KSO&#148;) and KSO construction agreements for
the provision of telecommunication facilities and services for
the Sixth Five-Year Development Plan
(&#147;Repelita&nbsp;VI&#148;) of the Republic of Indonesia. The
five investors undertook the development and operation of the
basic fixed telecommunications facilities and services in five
of the Company&#146;s seven&nbsp;regional divisions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Distributable KSO revenues are the entire KSO
revenues, less the Minimum Telkom Revenues (&#147;MTR&#148;) and
the operational expenses of the KSO Units, as provided in the
KSO agreements. These revenues are shared between the Company
and the KSO Investors based on agreed upon percentages.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company receives 35% of the distributable KSO
revenues from Regional Division&nbsp;VII and 30% from the other
KSO Regional Divisions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the end of the KSO period, all rights, title
and interests of the KSO Investor in existing installations and
all work in progress, inventories, equipment, materials, plans
and data relating to any approved additional new installation
projects then uncompleted or in respect of which Interconnection
Tests have not then been successfully completed, shall be sold
and transferred to the Company without requiring any further
action by any party, upon payment by the Company to the KSO
Investor of one hundred Rupiah, plus:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;the net present value, if any, of the KSO
    Investor&#146;s projected share in distributable KSO revenues,
    from the additional new installations forming part of the KSO
    system on the termination date, over the balance of the
    applicable payback periods.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;an amount to be agreed upon between the
    Company and the KSO Investor as fair compensation in respect of
    any uncompleted or untested additional new installations
    transferred.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The depreciation of the Rupiah against the
U.S.&nbsp;Dollars, which started in the second half of 1997, has
impacted the financial condition of the KSO Investors. In
response to economic conditions, on June&nbsp;5, 1998, all KSO
Investors and the Company have signed a Memorandum of
Understanding (&#147;MoU&#148;) to amend certain provisions of
the KSO agreements. Among the amendments are as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;The percentage of sharing of the
    distributable KSO revenues for 1998 and 1999 was 10% and 90% for
    the Company and the KSO Investors, respectively.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;The minimum number of access line units
    to be installed by the KSO Investors up to March&nbsp;31, 1999
    was 1,268,000 lines.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-103
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iii.&nbsp;The incremental rate of the MTR would
    not exceed 1% in 1998 and 1.5% in 1999 for the KSO agreements
    with the Investors that have MTR incremental factors.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">iv.&nbsp;&#147;Operating Capital
    Expenditures&#148; in each of the KSO Units will be shared
    between the Company and the respective KSO Investors in
    proportion to the previous year&#146;s share in the annual net
    income of the KSO Units, starting from 1999.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">v.&nbsp;The cancellation of the requirement to
    maintain a bank guarantee in respect of MTR.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1998 and 1999, the Company adopted the
provisions of the MoU. Beginning November 1999, the Company and
the KSO Investors had begun to renegotiate the terms of the KSO
agreements in conjunction with the changing environment and the
expiration of certain terms in the MoU. Among others, it was
agreed to return to most of the provisions of the original KSO
agreements beginning January&nbsp;1, 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is seeking a fair resolution to the
KSO problems. The Company believes that the long-term solution
for all five KSOs requires Government intervention and must be
considered in the context of restructuring the entire Indonesian
telecommunication sector.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>KSO
I</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and the stockholders of Pramindo
reached an agreement in which the Company has acquired 100% of
Pramindo (Note&nbsp;6b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>KSO
III</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On May&nbsp;8, 2002, the Company entered into a
Conditional Sales and Purchase Agreement with PT&nbsp;Aria
Infotek, Media International B.V. and Asian Infrastructure Fund
(&#147;selling stockholders&#148;) regarding the acquisition of
100% of AriaWest&#146;s shares (Note&nbsp;56d).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>KSO
IV</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The sale of KSO IV to Indosat which was placed
under the cross-ownership transactions (Note&nbsp;5) was
cancelled. The Company has, however, entered into an amendment
to the KSO agreement (Note&nbsp;56e).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>KSO
VI</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company acquired 90.32% and entered into a
put and call option arrangement for the remaining 9.68% of the
issued and paid up capital of Dayamitra, the KSO VI Investor
(Note&nbsp;6a).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>KSO
VII</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and PT&nbsp;Bukaka Singtel
International intend to continue the KSO schemes in accordance
with original agreements with some modifications.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The gross MTR and distributable KSO revenues of
the unconsolidated KSO&#146;s for the years ended
December&nbsp;31, 2000, 2001 and 2002 were Rp3,771&nbsp;billion,
Rp3,771&nbsp;billion and Rp3,586&nbsp;billion, respectively.
</FONT>

<P align="center"><FONT size="2">F-104
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">51.&nbsp;REVENUE-SHARING
ARRANGEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company has entered into separate agreements
with several investors under Revenue-Sharing Arrangements
(&#147;RSA&#148;) to develop fixed lines, analog mobile cellular
lines, public card-phone booths (including their maintenance)
and related supporting telecommunications facilities.
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">RSA Partner</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Location</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Start date</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Concession period</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Aneka Usaha Sembhada
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Surabaya
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">October 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">129&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Bakrie Electronics Company
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">January 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">130&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Centralindo Pancasakti Cellular
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Surabaya
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">October 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">147&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Citra Sarana Komunikatama
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Batam
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">July 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">120&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Erakomindo Puranusa
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">April 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">176&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Elektrindo Nusantara
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">April 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">140&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sarana Telwijaya
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">167&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Sritex Delta
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Solo
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">September 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">104&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Surabaya
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">October 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">108&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Palembang
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">December 1992
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">124&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Balikpapan
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">January 1993
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">123&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Denpasar
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">January 1993
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">123&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">August 1993
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">132&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">January 1995
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">172&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Telekomindo Primabhakti
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Bandung
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">October 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">97&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Wahana Komunikatama
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">April 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">146&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PT&nbsp;Wahana Esa Sembhada
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Jakarta
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">April 1994
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">120&nbsp;months</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the RSA, the investors finance the costs
incurred in developing telecommunications facilities. Upon
completion of the construction, the Company manages and operates
the facilities and bears the cost of repairs and maintenance
during the revenue-sharing period. The investors legally retain
the rights to the property, plant and equipment constructed by
them during the revenue-sharing periods. At the end of each
revenue-sharing period, the investors transfer the ownership of
the facilities to the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The revenues earned from the customers in the
form of line installation charges are fully for the account of
the investors. The revenues from outgoing telephone pulse and
monthly subscription charges are shared between the investors
and the Company 55:45 or 70:30 (in favor of the investors)
depending on the agreements. Certain additional arrangements are
made for revenues earned from analog mobile cellular, whereby
revenues from international outgoing pulses are fully owned by
the Company. Revenues earned from pay phone cards during the
revenue-sharing period are shared 60:40 (in favor of the
investors) based on the recorded usage of pulses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The net book value of property, plant and
equipment under RSA which have been transferred to owned assets
amounted to RpNil and Rp726&nbsp;million in 2001 and 2002,
respectively (Note&nbsp;16).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The investors&#146; share of revenues amounted to
Rp508,355&nbsp;million, Rp546,701&nbsp;million and
Rp636,985&nbsp;million in 2000, 2001 and 2002, respectively.
</FONT>

<P align="center"><FONT size="2">F-105
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">52.&nbsp;TELECOMMUNICATIONS SERVICES
TARIFFS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Law No.&nbsp;36&nbsp;year 1999 and
Government Regulation&nbsp;No.&nbsp;52&nbsp;year 2000, tariffs
for the use of telecommunications network and telecommunication
services are determined by providers based on the tariffs
category, structure and with respect to fixed line
telecommunication services price cap formula set by the
Government.
</FONT>

<P align="left">
<B><FONT size="2">Fixed Line Telephone tariffs</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Fixed line telephone tariffs are imposed for
network access and usage. Access charges consist of a one-time
installation charge and a monthly subscription charge. Usage
charges are measured in pulses and classified as either local or
domestic long-distance. The tariffs depend on call distance,
call duration, the time of day, the day of the week and holidays.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Tariffs for fixed line telephone are regulated
under Minister of Communication Decree No.&nbsp;KM.12&nbsp;year
2002 dated January&nbsp;29, 2002 concerning the addendum of the
decree of Minister of Tourism, Post and Telecommunication
(&#147;MTPT&#148;) No.&nbsp;79&nbsp;year 1995, concerning the
Method for Basic Tariff Adjustment on Domestic Fixed Line
Telecommunication Services. Furthermore, the Minister of
Communication issued Letter No.&nbsp;PK 304/1/3 PHB-2002 dated
January&nbsp;29, 2002 concerning the price cap in basic the
tariff increase of fixed line telephone services. According to
the letter, tariff for fixed line domestic calls would increase
by 45.49% over three years. The average increase in 2002 is 15%.
This increase was effective on February&nbsp;1, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To follow up the previous Letter, the Ministry of
Communications issued Letter No.&nbsp;PR.304/2/4/PHB-2002 dated
December&nbsp;17, 2002 regarding tariff adjustment for domestic
fixed line services effective on January&nbsp;1, 2003.
Considering the fact that the Independent Regulatory Body, a
precondition for the tariff adjustment, had not been
established, The Minister of Communications postponed the
implementation of tariff adjustment by issuing Ministerial
Letter No.&nbsp;PR.304/1/1/PHB/-2003, dated January&nbsp;16,
2003.
</FONT>

<P align="left">
<B><FONT size="2">Mobile Cellular Telephone Tariffs</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Tariff for cellular providers are set on the
basis of the MTPT decree No. KM. 27/PR.301/MPPT-98 dated
February&nbsp;23, 1998. Under the regulation, the cellular
tariffs consist of activation fees, monthly charges and usage
charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The maximum tariff for the activation fee is
Rp200,000 per new subscriber number. The maximum tariff for the
monthly charges is Rp65,000. Usage charges consist of the
following:
</FONT>

<P align="left">
<B><FONT size="2">a.&nbsp;Airtime</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The basic airtime tariff charged to the
originating cellular subscriber is Rp325/minute. The details are
as follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1.&nbsp;Cellular to cellular:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">2 times airtime rate
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2.&nbsp;Cellular to PSTN:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">1 times airtime rate
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">3.&nbsp;PSTN to cellular:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">1 times airtime rate
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4.&nbsp;Card Phone to cellular:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">1 times airtime rate plus 41% surcharges
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-106
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">b.&nbsp;Usage Tariff</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">1.&nbsp;Usage tariff charged for a cellular
    subscriber who makes a call to another subscriber using the PSTN
    network is similar to the usage tariffs for PSTN subscribers.
    For the use of local PSTN network, the tariff is computed at 50%
    of the prevailing local PSTN tariff.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">2.&nbsp;The long-distance usage tariff between
    two different service areas is similar to the prevailing tariff
    for a domestic long-distance call (&#147;SLJJ&#148;) for a PSTN
    subscriber.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the Decree
No.&nbsp;KM.&nbsp;79&nbsp;year 1998 of the Ministry of
Communications, the maximum tariff for prepaid customers may not
exceed 140% of the peak time tariffs for post-paid subscribers.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Interconnection
Tariffs</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection tariffs regulate the sharing of
interconnection calls between the Company and other cellular
operators.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The current interconnection tariff is governed
under MTPT Decree No.&nbsp;KM.46/PR.301/MPPT-98
(&#147;KM.&nbsp;46&nbsp;year 1998&#148;) dated February&nbsp;27,
1998 which came into effect on April&nbsp;1, 1998 and was
further revised by the Minister of Communication&#146;s Decree
No.&nbsp;KM.37&nbsp;year 1999 dated June&nbsp;11, 1999
(&#147;KM.&nbsp;37&nbsp;year 1999&#148;).
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;International
interconnection with PSTN and cellular telecommunications
network</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Based on KM.&nbsp;37&nbsp;year 1999, effective
    December&nbsp;1, 1998, the international interconnection tariff
    is calculated by applying the following charges to successful
    incoming and outgoing calls to the Company&#146;s network:
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Tarif</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Access change
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Rp850 per call
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Usage change
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Rp550 per paid minute
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Universal Service Obligation (USO)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Rp750 per call
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Indosat is exempted from paying the USO until
    December&nbsp;31, 2004, while the USO charges payable by
    Satelindo are paid directly to the MTPT or Minister of
    Communications.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.&nbsp;Mobile
and fixed cellular interconnection with the PSTN</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Based on KM.&nbsp;46&nbsp;year 1998, cellular
    interconnection tariffs with PSTN are as follows:
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;Local
Calls</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">For local calls from a mobile cellular network to
    PSTN, the cellular operator pays the Company 50% of the
    prevailing tariff for local calls. For local calls from PSTN to
    a cellular network, the Company charges its subscribers the
    applicable local call tariff plus an air time charge, and pays
    the cellular operator the air time charge.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-107
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;Domestic
Long-distance Calls</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">KM. 46&nbsp;year 1998 provides tariffs which vary
    among long-distance carriers depending upon the routes and the
    long distance network used. Pursuant to this decree, for
    long-distance calls which originate from the PSTN, the Company
    is entitled to retain a portion of the prevailing long-distance
    tariff, which portion ranges from 40% of the tariff, in cases
    where the entire long-distance portion is carried by one
    cellular operator and delivered to another, and up to 85% of the
    tariff, in cases where the entire long-distance portion is
    carried by the PSTN.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">For long-distance calls which originate from a
    cellular operator, the Company is entitled to retain a portion
    of the prevailing long-distance tariff, which portion ranges
    from 25% of the tariff, in cases where the entire long-distance
    portion is carried by a cellular operator and the call is
    delivered to a cellular subscriber, and up to 85% of the tariff,
    in cases where the entire long-distance portion is carried by
    the PSTN and the call is delivered to a PSTN subscriber.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection tariffs with mobile satellite
networks (&#147;STBSAT&#148;) are established based on a Joint
Operation Agreements between the Company and STBSAT providers
pursuant to Minister of Communication Decree
No.&nbsp;KM.&nbsp;30&nbsp;year 2000 concerning Global Mobile
Personal Telecommunication Service Tariffs by Garuda Satellite
dated March&nbsp;29, 2000. Flat interconnection tariffs per
minute apply for those Companies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection tariffs with mobile cellular
networks, including USO, are determined based on the duration of
the call. Access and usage charges for international
telecommunications traffic interconnection with
telecommunications networks of more than one domestic carrier
are to be shared proportionately with each carrier involved,
which proportion is determined by the MTPT.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interconnection tariffs between a fixed wireless
network and PSTN, and amongst PSTN, are regulated under MTPT
letter No.&nbsp;KU.506/1/1/MPPT-97 dated January&nbsp;2, 1997
and letter No.&nbsp;KU.506/4/6/MPPT-97 dated July&nbsp;21, 1997.
Currently, Ratelindo is the only operator of a fixed wireless
network and apart from the Company, PT&nbsp;Batam Bintan
Telekomunikasi (&#147;BBT&#148;) is the only operator of PSTN.
For fixed wireless interconnection with the PSTN and BBT with
the PSTN, the &#147;sender-keeps-all&#148; basis for local calls
is applied and for domestic long-distance calls that originate
from Ratelindo&#146;s network and transit to the PSTN, the
Company receives 35% of Ratelindo&#146;s revenue for such calls.
For domestic long-distance calls that originate from the PSTN,
the Company retains 65% as its revenue for such calls. For long
distance calls from and to BBT, the Company retains 75% of the
revenue while BBT receives the remaining 25%.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.&nbsp;Mobile
cellular interconnection with other mobile cellular
providers</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Based on KM. 46&nbsp;year 1998, the mobile
    cellular interconnection tariffs with other mobile cellular
    providers are as follows:
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;Local
Calls</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">For local calls from one cellular
    telecommunications network to another, the originating cellular
    operator pays the airtime to the destination cellular operator.
    If the call is carried by the PSTN, the cellular operator pays
    the PSTN operator 50% of the prevailing tariff for local calls.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-108
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;Domestic
Long-distance Calls</FONT></B>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">For long-distance calls which originate from a
    cellular telecommunications network, the cellular operator is
    entitled to retain a portion of the prevailing long-distance
    tariff, which portion ranges from 15% of the tariff in cases
    where the entire long-distance portion is not carried by the
    cellular operator, up to 60% of the tariff in cases where the
    entire long-distance portion is carried by the cellular operator
    and the call is delivered to another cellular operator, or up to
    75% if the call is delivered to the same cellular operator.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the issuance of Law
No.&nbsp;36&nbsp;year 1999 and Government
Regulation&nbsp;No.&nbsp;52&nbsp;year 2000, the Minister of
Communications, on May&nbsp;31, 2001, issued Decree No.&nbsp;KM.
20&nbsp;year 2001, concerning Operations of Telecommunications
Network and KM. 21&nbsp;year 2001 concerning Operations of
Telecommunications Services, which came to effective from at the
date of the decree. Subsequently, the Minister of Communication
issued Decree No. KM. 84&nbsp;year 2002 concerning
Telecommunication Traffic Clearing Process.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public Phone
Kiosk (&#147;Wartel&#148;) Tariff</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is entitled to retain 70% of the
telephone tariff based on Director for Operational and Marketing
Decree No.&nbsp;KD 01/HK220/OPSAR-33/2002 dated January&nbsp;16,
2002, which came into effect on February&nbsp;16, 2002. This
governs the transition of the business arrangement between
Telkom and Wartel providers, from a commission-based revenue
sharing into agreed usage charges (pulses).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;7, 2002, the Minister of
Communications issued Decree No.&nbsp;KM. 46&nbsp;year 2002
regarding the operation of phone kiosks. The decree provides
that the Company is entitled to retain a maximum of 70% of the
phone kiosk basic tariff from domestic calls and up to 92% of
telephone kiosk basic tariffs from international calls.
</FONT>

<P align="left">
<B><FONT size="2">53.&nbsp;COMMITMENTS</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Letters
of Comfort</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company issued letters of comfort to certain
lenders of Komselindo with respect to a US$100,000,000 loan in
1997 and to lenders of Mobisel, with respect to a US$60,000,000
loan in 1996, which were due in 2002 and 2001, respectively. On
August&nbsp;30, 2002 Komselindo&#146;s stockholders agreed to
issue additional paid up capital for loan restructuring
(Note&nbsp;13j). The letter of comfort was terminated following
the debt to equity swap on October&nbsp;29, 2002. The Mobisel
letter of comfort was waived in September 2003 following the
equity call and debt for equity swap in November 2002
(Note&nbsp;13i).
</FONT>

<P align="center"><FONT size="2">F-109
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Capital
Expenditures</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of December&nbsp;31, 2002, the amount of
capital expenditures committed under contractual arrangements,
principally relating to procurement and installation of
switching equipment, transmission equipment and cable network,
are as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amounts in</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">foreign currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equivalent</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">in Rupiah</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Rupiah
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,322,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">257,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,309,049</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">925,094</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,055,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">381,655</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,938,779</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Included above are the following significant
agreements:
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Procurement
Agreements</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In September 2001, Telkomsel entered into
partnership agreements with Motorola, Inc., Ericsson Radio A.B.
and Siemens Aktiengesellschaft (AG) (&#147;Strategic
Partners&#148;) and Nokia Oyj (&#147;Strategic Supplier&#148;)
for the procurement of equipment and related services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The partnership agreements are valid and
effective as of the execution date by the respective parties for
a period of three years and extendable upon mutual agreement of
the parties for a maximum of two additional years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel uses the LC facility from Citibank
(Note&nbsp;53c) to pay for goods and services procured under the
Partnership Agreements.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U>Procurement
of TELKOM-2 Satellite</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with Agreement
No.K.TEL.191/HK.810/UTA-00/2002 dated October&nbsp;24, 2002, the
Company and Orbital Sciences Corporation
(&#147;Contractor&#148;) agreed on the procurement of the
TELKOM-2 satellite. The total price of US$73,000,000 is expected
to be fully paid in January 2005. The agreement also includes a
refund provision of US$4,338,292 for any transponder that has
its communication capabilities reduced below 3dB and which
cannot be corrected by switching to a redundant transponder.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U>Launching
of TELKOM-2 Satellite</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;8, 2002, the Company and
ARIANESPACE S.A. agreed on the launching of TELKOM-2 between
November&nbsp;1, 2004 and January&nbsp;31, 2005. Payments
totalling US$62,880,000 will be made between January 2004 and
September 2004.
</FONT>

<P align="center"><FONT size="2">F-110
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U>PSTN
Excellence Regional Junction DIVRE II Project</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On February&nbsp;8, 2002, the Company entered
into agreement with Consortium Olex-Lucent-Brimbun
(&#147;Consortium&#148;) for the procurement of in SDH
Transmission System, Optical Fiber, Network Management System
(&#147;NMS&#148;) and other services with a value of
US$28,800,000 and Rp102.8&nbsp;billion. Subsequently, the
agreement was amended several times with the latest amendment on
June&nbsp;26, 2003 whereby the total cost of services and
equipment became US$26,054,093 and Rp11,038&nbsp;million,
respectively. The amount will be settled in March 2004.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U>CDMA
Procurement Agreement with Samsung Consortium</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On October&nbsp;9, 2002, the Company signed an
Initial Purchase Order Contract for CDMA 2000-IX with Samsung
Consortium for Base Station Subsystem (&#147;BSS&#148;)
procurement in Regional Division II, and on December&nbsp;23,
2002, the Company signed a Master Procurement Partnership
Agreement (&#147;MPPA&#148;). The MPPA provides for planning
manufacturing, delivery, and construction of 1.6&nbsp;million
lines as well as service level agreement. The MPPA between the
Company and Samsung consists of construction of 1,652,300 lines
of Network and Switching Subsystem (&#147;NSS&#148;) for
nationwide and 802,000 lines of BSS for Regional Division IV, V,
VI and VII for US$116 per line for BSS and US$34 per line for
NSS. This project will be partly financed by The Export-Import
Bank of Korea as contemplated in the Loan Agreement dated
August&nbsp;27, 2003. The total facility amounts to
US$123,965,000 and will be available from the execution of the
agreement until April 2006.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;<U>CDMA
Procurement Agreement with Ericsson CDMA
Consortium</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and Ericsson CDMA Consortium have
also entered into a Master of Procurement Partnership Agreement
(&#147;MPPA&#148;) on December&nbsp;23, 2002. The MPPA consists
of construction of 631,800 lines of BSS for US$116 per line.
This MPPA is part of the planning, manufacturing, delivery and
construction of total 1.6&nbsp;million CDMA lines as well as
service level agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the MPPA, the work related to network
deployment shall be carried out and completed within
42&nbsp;months (six months after end of fiscal year 2005).
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp; </FONT></I></TD>
    <TD>
    <I><U><FONT size="2">Partnership Agreement for the Construction
    and Provision of High Performance Backbone in
    Sumatera</FONT></U></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;30, 2001, the Company signed a
partnership agreement with a consortium consisting of
PT&nbsp;Pirelli Cables Indonesia and PT&nbsp;Siemens Indonesia
for the construction and provision of a high performance
backbone network in Sumatera. The agreement became effective as
of June&nbsp;10, 2002. The scope of work includes the provision
of an optical fiber cable, together with transmission equipment
and network management systems. The Company is obligated to pay
approximately US$46,300,000 and Rp172,700&nbsp;million (together
with value-added tax thereon) as consideration. On June&nbsp;12,
2003, the parties agreed to amend this agreement to reflect
additional work being carried out by the consortium in
consideration for an additional US$2,800,000 and
Rp1,699.1&nbsp;million. The amount will be fully settled in
February 2004.
</FONT>

<P align="center"><FONT size="2">F-111
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp; </FONT></I></TD>
    <TD>
    <I><U><FONT size="2">Partnership Agreement for the Development
    of a PSTN Regional Junction for Regional Division V (East
    Java)</FONT></U></I></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;5, 2001, the Company entered
into a partnership agreement with a consortium consisting of NEC
Corporation and PT&nbsp;Nasio Karya Pratama for the development
of a high quality PSTN Regional Junction for Regional Division V
(East Java). The scope of work includes the development of a SDH
transmission system, as well as the provision of ancillary fiber
optic and other related equipment. The Company is obligated to
pay approximately Japanese Yen 3,670.9&nbsp;million and
Rp125,500&nbsp;million (which is inclusive of value-added tax).
The parties agreed to add another partner to the consortium,
PT&nbsp;Communication Cable System Indonesia, on
September&nbsp;22, 2002. In addition, the parties agreed to
increase the consideration payable by the Company by an
additional Japanese Yen 1,384.7&nbsp;million and
Rp207,900&nbsp;million (inclusive of value-added tax) pursuant
to an amendment in December 2002. The amounts will be paid in
the first quarter of 2004.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;<U>Supply
Contract for Thailand-Indonesia-Singapore (TIS) Cable
Network</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;11, 2002, the Company entered
into a supply contract with NEC Corporation, the Communication
Authority of Thailand (the &#147;CAT&#148;) and Singapore
Telecommunications Limited (&#147;SingTel&#148;) whereby NEC
Corporation has agreed to construct a submarine fiber optic
network linking Thailand, Indonesia and Singapore. Under the
terms of this agreement, the Company, SingTel and the CAT will
contribute equally to a payment of US$32,680,000 (inclusive of
value-added tax). The amount will be fully settled in November
2004.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Credit
Facilities</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Telkomsel has credit facilities related to a
procurement contract with Motorola Inc., Ericsson Radio A.B.,
Nokia Oyj and Siemens Aktiengesellschaft (AG). The details are
as follows:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">1.&nbsp;Letter of Credit (&#147;LC&#148;)
    Facilities
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(a)&nbsp;On June&nbsp;7, 2002, Telkomsel entered
    into an Opening LC Agreement with Deutsche Bank A.G., Jakarta.
    The agreement requires Telkomsel to deposit an amount equal to
    the LC amount prior to the issuance of the LC. Upon the maturity
    date which is 180&nbsp;days from the date of Bill of Lading, the
    outstanding LC shall be settled by applying the deposit. Through
    December&nbsp;31, 2002, Telkomsel has entered into LC
    transactions totaling to US$8,200,435.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(b)&nbsp;On July&nbsp;12, 2002, Telkomsel entered
    into an Opening LC and Trust Receipt Loan Facility Agreement
    with Citibank N.A., Jakarta covering an LC amount of
    US$40,000,000 with two credit structures as follows:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">i.&nbsp;Structure 1 Credit
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Prior to issuance of the Credit, Telkomsel must
    deposit 20% of the face value of the Credit. Upon maturity, the
    Usance Draft will be settled by applying the initial 20% deposit
    together with Telkomsel&#146;s loan drawn from the facility for
    the remaining 80% of the face value of the Usance Draft.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The Credit will be available for one drawing by
    the beneficiary made against presentation of a Usance Draft with
    a maturity date of 120&nbsp;days. The drawing will only be
    available for six (6)&nbsp;months from the issuance date of the
    Credit.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-112
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The repayment of the loan will be made in three
    equal monthly installments, commencing upon the maturity date of
    the Usance Draft, with an interest rate of 2.5% above the
    bank&#146;s cost of funds. Telkomsel may, however, upon at least
    fourteen days prior written notice to the bank, prepay the loan
    in whole, provided that Telkomsel first pays to the Bank any
    interest, fees and or other amounts due.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ii.&nbsp;Structure 2 Credit
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Prior to issuance of the Credit, Telkomsel must
    deposit 25% of the face value of the Credit to be available upon
    the acceptance of the Sight Draft.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The first drawing is for a Sight Draft available
    in an amount up to 25% of the face value of the Credit and such
    drawing is only be available for 2 (two) months from the
    issuance date of the Credit.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The second drawing will be for a Usance Draft in
    an amount up to 75% of the face value of the Credit with a
    maturity date of 180&nbsp;days after the acceptance of the Sight
    Draft. Such drawing will only be available for 4 (four) months
    from the issuance date of the Credit.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Upon maturity date of the Usance Draft, the
    outstanding balance payable by Telkomsel will be converted into
    a loan. The repayment of the loan will be made in 9 (nine) equal
    monthly installments, commencing on the acceptance of the Usance
    Draft, with an interest rate of 2.5% above the Bank&#146;s cost
    of funds. Telkomsel may, however, upon at least 14 (fourteen)
    days prior written notice to the Bank, prepay the loan in whole,
    provided that Telkomsel first pays to the Bank any interest,
    fees, and or other amounts due.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">As of December&nbsp;31, 2002, the unused portion
    of the facility amounted to US$8,857,725.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(c)&nbsp;On July&nbsp;19, 2002, Telkomsel entered
    into an Opening LC Agreement with Standard Chartered Bank,
    Jakarta. The agreement requires Telkomsel to deposit an amount
    equal to the LC amount prior to the issuance of the LC. Upon
    maturity date which is 180&nbsp;days from the date of the Bill
    of Lading, the payment of the LC will be made by applying the
    deposit.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(d)&nbsp;On October&nbsp;29, 2002, Telkomsel
    entered into a Banking Facilities Credit Agreement with Standard
    Chartered Bank with details are as follows:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">i.&nbsp;Import Facilities (I)&nbsp;&#151;
    US$25,000,000
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Sight or usance documentary letters of credit,
    secured and unsecured by the underlying goods and covering the
    procurement of materials or equipment in relation to
    Telkomsel&#146;s operation with a corresponding acceptance
    against the trust receipt facility.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ii.&nbsp;Local LC Facility (II)&nbsp;&#151;
    Rp100,000,000,000
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Documentary local letter of credit up to
    12&nbsp;months for the procurement of materials or equipment
    from local suppliers with corresponding loans against the trust
    receipt facility.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-113
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">iii.&nbsp;Bank Guarantee&nbsp;&#151; US$25,000,000
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">For issuance of various bank guarantees in
    relation to Telkomsel&#146;s operations against a letter of
    indemnity from Telkomsel for a period up to 12&nbsp;months.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">iv.&nbsp;Foreign Exchange Facility (I)
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The Bank will quote rates for spot, forwards and
    swap foreign exchange transactions up to 3 (three)&nbsp;years.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">v.&nbsp;Foreign Exchange Facility (II)
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The Bank will quote rates for foreign exchange
    spot transactions up to 2 (two) days.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The facility was obtained to finance
    Telkomsel&#146;s funding requirements for transactions with
    vendors and expired on July&nbsp;31, 2003 without extension. A
    loan drawn from the facility bears interest on the basis of
    SIBOR plus 2.5% per annum for the U.S.&nbsp;Dollars facility and
    of the three-month SBI plus 2% per annum for Indonesian Rupiah.
    Telkomsel is allowed to make a prepayment of the loan on 10
    (ten) days notice without penalty. A prepayment fee of 3.5% per
    annum of the prepaid amount will be applied if written notice is
    given less than the above notice period.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">As of December&nbsp;31, 2002, Telkomsel has
    utilised US$3,600,000 of the LC facility.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">2.&nbsp;EKN-Backed Facility
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">On December&nbsp;2, 2002, pursuant to the
    partnership agreement with PT&nbsp;Ericsson Indonesia, Telkomsel
    obtained an EKN-Backed Facility (&#147;Facility&#148;) with
    Citibank International plc (as &#147;Arranger&#148; and
    &#147;Agent&#148;) covering a total facility of US$70,483,426.49
    which was divided into several tranches.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The interest rate on the facility is the
    aggregate of the applicable margin, CIRR (Commercial Interest
    Reference Rate) and mandatory cost, if any. Interest will be
    paid semi-annually, starting on the date the facility is drawn.
    As of December&nbsp;31, 2002, the facility has not been used.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">As of December&nbsp;31, 2002, the Company has not
    used this facility.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">3.&nbsp;Hermes Export Facility
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">On December&nbsp;2, 2002, pursuant to the
    Partnership Agreement with Siemens Aktiengesellschaft (AG),
    Telkomsel entered into a Hermes Export Facility Agreement
    (&#147;Facility&#148;) with Citibank International plc (as
    &#147;Arranger&#148; and &#147;Agent&#148;) covering a total
    facility of EUR76,195,313 which is divided into several tranches.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">The interest rate on the facility is aggregate of
    the applicable margin, EURIBOR and mandatory cost, if any.
    Interest will be paid semi-annually, starting on the facility is
    drawn.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">As of December&nbsp;31, 2002, the Company has not
    used this facility.
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">4.&nbsp;Bank Mandiri Facility
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">On February&nbsp;11, 2002, the Company entered
    into a credit facility with Bank Mandiri, a related party,
    amounting to Rp 500,000&nbsp;million. The Company&#146;s time
    deposits of
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-114
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Rp500,000&nbsp;million were pledged as collateral
    for this facility. Interest is calculated from the pledged
    deposits rate plus 2%. The credit facility was never used and
    was closed on February&nbsp;18, 2003. The time deposits have
    been released from the pledge.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Agreement
on Derivative Transaction</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2002, the Company entered into two derivative
facility agreements with Bank Mandiri and HSBC with the
intention of hedging the Company&#146;s liabilities in foreign
currency and for the Company&#146;s liability under the cross
ownership transaction amounting to US$120,000,000 and
US$1,000,000, respectively. The facility agreement with Bank
Mandiri was extended until April&nbsp;4, 2004, whilst the
facility agreement with HSBC was extended until August&nbsp;31,
2004. The Company has not used these derivative facilities.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Loan
Agreements</U></FONT></I>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">(1)&nbsp;Loan
Agreement Regional Division V Junction Project
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">On June&nbsp;21, 2002, the Company entered into a
    loan agreement with a consortium of banks amounting to
    Rp400,000&nbsp;million for financing the Regional Division V
    Junction Project. Bukopin acting as facility agent, charged the
    interest for the first year on the signing date, of 19.5% and
    then the average 3&nbsp;month deposit rate plus 4% for the
    remaining year. The disbursement period is 19&nbsp;months from
    the signing of the loan agreement with the repayment period 14
    times quarterly starting from April 2004. The loan facility is
    secured by the project equipment, with a value of not less than
    Rp500,000&nbsp;million.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Subsequently, based on an Addendum to the loan
    agreement dated April&nbsp;4, 2003, the loan facility was
    reduced to Rp150,000&nbsp;million. The disbursement period
    changed to 18&nbsp;months from the signing of the Addendum. The
    repayment schedule in 14 quarterly instalments starting from
    May&nbsp;21, 2004 and ending on June&nbsp;21, 2007.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">As of December&nbsp;31, 2002, the Company has not
    used this facility.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT size="2">(2)&nbsp;Loan
Agreement with Citibank N.A. and Citibank International plc
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">On April&nbsp;10, 2002, the Company entered into
    a &#147;Loan Agreement&#148; with Citibank, N.A
    (&#147;arranger&#148;) and Citibank International plc
    (&#147;agent&#148;) supported by an export credit guarantee of
    Instituto per I Servizi Assicurativi del Commercio Estero
    (SACE-Italy), providing a total syndicated facility from lenders
    of US$21,000,000. The facility was obtained to fund up to 85% of
    the cost of supplies and services sourced in Italy relating to
    the design, manufacture, construction, installation and testing
    of Sub-System VI, part of the high performance backbone network.
    This facility was secured by the Company&#146;s assets under
    construction pursuant to the &#147;Partnership Agreement&#148;.
    The repayment of the loan will be made in ten equal semi-annual
    instalments. This facility bears interest at LIBOR plus 0.75%
    per annum.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">As of December&nbsp;31, 2002, the Company has not
    used this facility.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-115
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">54.&nbsp;CONTINGENCIES</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Completion
of 2002 Annual Report for SEC purposes</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The SEC requires that the Company&#146;s Annual
Report on Form&nbsp;20-F be filed within six months after the
reported balance sheet date. In this respect, the Company
published its previous 2002 consolidated financial statements in
March&nbsp;31, 2003 and, as outlined in Note&nbsp;4, submitted
the Annual Report on Form&nbsp;20F to the SEC on April&nbsp;17,
2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In May 2003, however, the SEC informed the
Company that it considered that the submitted 2002 consolidated
financial statements were un-audited as the audit firm that was
originally appointed to perform the 2002 audit was not qualified
for SEC purposes. Due to the time consumed in selecting an SEC
qualified auditor, KAP Drs.&nbsp;Hadi Sutanto &#38; Rekan, the
member firm of PricewaterhouseCoopers in Indonesia, began their
work in July 2003. As a result, the Company was not able to meet
its June&nbsp;30, 2003 deadline to file a fully compliant Annual
Report on Form&nbsp;20-F with the SEC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of the foregoing and the fact that Annual
Report will be filed after the June&nbsp;30, 2003 deadline, the
Company may face an SEC enforcement action under
U.S.&nbsp;securities law and other legal liability and adverse
consequences such as delisting of its ADSs from the New York
Stock Exchange.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the staff of the SEC described a
press release that the Company issued and furnished to the SEC
on Form&nbsp;6-K in May 2003 as &#147;grossly understating the
nature and severity of the staff&#146;s concerns&#148; regarding
matters related to the Company&#146;s filing of a non-compliant
Annual Report. Such press release could also form the basis of
an SEC enforcement action and other legal liability. The Company
cannot at this time predict the likelihood or severity of an SEC
enforcement action or any other legal liability or adverse
consequences.
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I><FONT size="2">b.</FONT></I><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">In the ordinary course of business, the Company
    has been named as a defendant in various legal actions. Based on
    Management&#146;s estimate of the outcome of these matters, the
    Company accrued Rp49,540&nbsp;million at December&nbsp;31, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Default
and waiver of defaults under debt facilities</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of the Company&#146;s failure to file
a fully compliant Annual Report on Form&nbsp;20-F for 2002 with
the SEC as outlined above, the Company may have been in breach
of certain covenants in its Citibank and Bank Central Asia
(&#147;BCA&#148;) debt facilities that require the Company,
among other things, to comply with all laws and regulations
applicable to the Company and deliver financial statements to
the lenders. The Company has obtained written waivers from both
Citibank, acting as agent for the lenders under the relevant
facility agreements, and BCA with respect to such breaches.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any of the foregoing could give rise to defaults
under one or more of our debt facilities and cross defaults
under other debt facilities with respect to such defaults. If
the Company was unable to obtain waivers of any such defaults,
indebtedness outstanding under such debt facilities could become
immediately due and payable, which could have a material adverse
effect on the financial condition and results of operations.
</FONT>

<P align="center"><FONT size="2">F-116
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">55.&nbsp;ASSETS AND LIABILITIES DENOMINATED IN
FOREIGN CURRENCIES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The balances of monetary assets and liabilities
denominated in foreign currencies are as follows:
</FONT>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equivalent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equivalent</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,250</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">637,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">349,800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,127,211</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,148</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">170,040</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">454</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">800</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,320</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,812</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50,041</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,984</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,374</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125,049</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,503</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,018</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accounts receivable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,927</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,808</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Singapore Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Malaysian Ringgit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,373</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,282</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances and other non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,711</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Escrow account
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">171,080</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">297,928</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,143,353</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,917,375</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-117
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="41%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equivalent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equivalent</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Trade accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Mark
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,196</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,868</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,091</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,345</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,433</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">487,715</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,027</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,007</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,661</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183,819</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">343,543</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197,544</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,228</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">245,952</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Mark
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,989</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,533</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Swedish Krona
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,355</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Great Britain Pounds sterling
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">319</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,985</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,934</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Singapore Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other accounts payable
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">354</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,109</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">147,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">161,116</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">392</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,599</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,555</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">252,604</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,069</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,007</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Netherlands Guilder
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,796</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deutsche Mark
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,093</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Short-term bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Third Parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,385</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,205</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Advances from customers and suppliers
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,057</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,046</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,555</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current maturities of long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">116,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,212,234</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">249,823</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,238,421</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,781</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,455</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,119</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,401</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">374,364</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">374,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,306</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Netherlands Guilder
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,774</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-118
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="40%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Foreign</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">currencies</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Rupiah</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equivalent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(in thousands)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">equivalent</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Related parties
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;Dollars
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">425,693</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,448,491</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">724,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,488,764</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Euro
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">180,297</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">French Franc
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,358</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">155,530</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Japanese Yen
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,874,011</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,422,353</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,626,220</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,330,614</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Netherlands Guilder
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,699</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total Liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,150,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,726,642</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net Liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,006,987</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,809,267)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">56.&nbsp;SUBSEQUENT EVENTS</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Earnings
distribution</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the Annual General Meeting of
Stockholders as stated in notarial deed No.&nbsp;173/V/2003
dated May&nbsp;9, 2003 of Notary A. Partomuan Pohan, S.H., LLM.,
the stockholders approved cash dividends for 2002 amounting to
Rp3,338,109&nbsp;million or Rp331.16 per share, investment of
Rp4,172,637&nbsp;million, social contribution fund (&#147;Dana
Bina Lingkungan&#148;) of Rp20,863&nbsp;million and appropriated
Rp813,664&nbsp;million for general reserves.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Changes
in ownership in associated companies</U></FONT></I>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Napsindo
Primatel Internasional (&#147;Napsindo&#148;)</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the notarial Deed No.&nbsp;47 dated
December&nbsp;30, 2002 of Notary H. Yunardi, S.H., the Company
purchased a further 28% of Napsindo&#146;s shares from
PT&nbsp;Info Asia Sukses Makmur Mandiri for US$4,900,000
(equivalent of Rp43,620&nbsp;million), thereby increasing the
Company&#146;s ownership to 60% which was effective after the
settlement of payment on January&nbsp;28, 2003.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-swap
&#147;KMT&nbsp;&#151; IP&#148; transaction package</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;8, 2003, the Company and
PT&nbsp;Centralindo Pancasakti Cellular (&#147;CPSC&#148;)
signed a share-swap agreement for their associated companies
shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With the transaction, the Company delivered all
of its 14.20% shares in PT&nbsp;Komunikasi Selular Indonesia
(&#147;Komselindo&#148;), all of its 20.17% shares in
PT&nbsp;Metro Selular Nusantara (&#147;Metrosel&#148;), and all
of its 100% shares in PT&nbsp;Telekomindo Selular Raya
(&#147;Telesera&#148;) to CPSC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At the same time, CPSC delivered its 30.58%
shares in PT&nbsp;Indonusa Telemedia (&#147;Indonusa&#148;) and
issued an option to the Company to buy its 16.85% shares in
PT&nbsp;Pasifik Satelit Nusantara (&#147;PSN&#148;) within the
period of 1 (one) year starting from the signing of share-swap
agreement to the Company. The call option is guaranteed with
Rp169&nbsp;billion promissory notes which will fall due on
August&nbsp;8,
</FONT>

<P align="center"><FONT size="2">F-119
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">2004. In addition to the Indonusa and PSN shares,
the Company received a cash payment of Rp5,400&nbsp;million.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt
to equity swap for Indonusa</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to an extraordinary meeting of
shareholders of CPSC on October&nbsp;29, 2003, CPSC agreed to
convert an additional Rp13,500&nbsp;million of debt owed to the
Company into shares of Indonusa. Following such conversion, the
Company&#146;s ownership in Indonusa increased from 88.08% to
90.39% (Note&nbsp;1b).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-swap
agreement with Indocitra</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On April&nbsp;8, 2003, the Company and
PT&nbsp;Indocitra Grahabawana (&#147;Indocitra&#148;) entered
into a share swap agreement. Pursuant to the agreement, the
Company sold its investment in PT&nbsp;Menara Jakarta in
exchange for Indocitra&#146;s 69% equity interest in Metra.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Establishment
of PT&nbsp;Pro Infokom Indonesia</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;29, 2003, the Company together
with PT&nbsp;Indonesia Comnet Plus, a subsidiary of Perusahaan
Perseroan (Persero) PT&nbsp;Perusahaan Listrik Negara
(&#147;PLN&#148;), and PT&nbsp;Prima Infokom Indonesia, has
established PT&nbsp;Pro Infokom Indonesia (&#147;PII&#148;),
domiciled in Jakarta. The establishment has been notarized by
deed of A. Partomuan Pohan, S.H., LLM., notary in Jakarta, under
Article of Association No.24, dated January&nbsp;29, 2003. The
Company holds 51% of PII.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PII was established to develop a national
information network system as the back-bone for the development
of the Indonesian e-Government. The co-operation between the
Company and PLN on this new company is intended to maximize the
utilization of both company&#146;s existing infrastructure.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PII will act as a service provider that manages
the Government Secure Intranet and Government Information Center
Management where all government institution, including
state-owned companies, are expected to take advantage of this
network.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Closing
settlement for buy-out of KSO III with PT&nbsp;AriaWest
International (&#147;AWI&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On July&nbsp;31, 2003 (the &#147;closing
date&#148;), the Company entered into the First Amendment to the
Conditional Sale and Purchase Agreement with the stockholders of
AWI in which both parties agreed on the Company&#146;s 100%
acquisition of AWI.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In accordance with the agreement, the Company
acquired 100% of AWI shares and KSO III management. In
accordance with AWI acquisition:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;The Company paid in cash US$58,670,000
    (US$20,000,000 (equivalent to Rp196,463&nbsp;million) of which
    was paid upon the signing of CSPA on May&nbsp;8, 2002 and the
    remaining US$38,670,000 was paid at the closing date) and in the
    form of non-interest bearing promissory notes of US$109,100,000
    which will be paid in ten semi-annual installments.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;AWI loans to its creditors were
    restructured. The Company repaid AWI&#146;s loans of
    US$99,070,000, including accrued interest, and entered into a
    new loan agreement with AWI&#146;s lenders for the balance of
    US$196,970,000 which is to be repaid within four years.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-120
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also entered into a settlement
agreement with AWI pursuant to which the Company and AWI
irrevocably settled, discharged, and released claims and
counterclaims in their ICC arbitration proceeding and the
Company agreed to pay a settlement amount of US$20&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on the above settlements and subsequent
receipt of KSO III MTR, the Company decided to reverse the
provision for bad debts that had previously been recognized and
has accrued the costs related to the settlement at
December&nbsp;31, 2002 (Notes&nbsp;4, 9 and 20).
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Amendment
of KSO IV Agreement with PT&nbsp;Mitra Global Telekomunikasi
Indonesia (&#147;MGTI&#148;)</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;20, 2004, the Company and MGTI
entered into an agreement to amend and restate the KSO Agreement
with respect to Regional Division IV. Under the amended KSO
Agreement, for the remaining KSO period, the Company will be
entitled at its sole discretion and expense to construct new
telecommunication facilities in Divre IV. MGTI will receive a
fixed monthly payment drawn from revenues generated by Divre IV
operations.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Master
Procurement Partnership Agreement (&#147;MPPA&#148;) with
PT&nbsp;INTI</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company and PT&nbsp;INTI signed an MPPA on
August&nbsp;26, 2003 whereby PT&nbsp;INTI is appointed to
construct a CDMA fixed wireless access network and integrate
such network with the Company&#146;s existing network and all
ancillary services relating thereto in West Java and Banten.
Under the terms of this Agreement, PT&nbsp;INTI must deliver the
CDMA 2000 IX system within thirty-four months of August&nbsp;26,
2003 and will be paid a total of approximately US$23,000,000 and
Rp61,500&nbsp;million. PT&nbsp;INTI will service and maintain
the CDMA 2000 IX system pursuant to a Service Level Agreement
dated the same date in return for an annual consideration of
US$2,305,000.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U>Master
Procurement Partnership Agreement (&#147;MPPA&#148;) with
Motorola</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On March&nbsp;24, 2003, the Company signed an
MPPA with Motorola, Inc. Under the MPPA, Motorola is obligated
to undertake and be jointly responsible for the demand forecast
and solely responsible for the survey, design, development,
manufacture, delivery, supply, installation, integration and
commissioning of the network, including all project management,
training and other related services in relation to the
establishment of the &#147;T-21 Program&#148;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The MPPA consists of 225,500 lines of BSS (radio
system) for Regional Division I Sumatera for a total of
approximately US$3,600,000. The agreed price does not include
the service level agreement, training for technical staff and
documentation. The NSS system will use Samsung&#146;s NSS as
already contracted on December&nbsp;23, 2002 (Note&nbsp;53b(v)).
The agreement extends until approximately the middle of 2006.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<U>Partnership
Agreement with Siemens Consortium</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company entered into a Partnership Agreement
with a consortium led by Siemens AG on September&nbsp;24, 2003
for the development, procurement and construction of a backbone
transmission network in Kalimantan and Sulawesi, a related work
management system and the provision of maintenance services in
connection with this network. Other members of the consortium
include PT&nbsp;Siemens Indonesia, PT&nbsp;LEN Industri and
Corning Cable System Gmbh &#38; Co. The consideration payable by
the Company for the fiber optic networks is approximately
US$3,800,000 plus
</FONT>

<P align="center"><FONT size="2">F-121
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">Rp74,000&nbsp;million for the network located
within Kalimantan and approximately US$3,800,000 plus
Rp70,700&nbsp;million for the network located within Sulawesi.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<U>Metro
Junction and Optical Network Access Agreement for Regional
Division III with PT&nbsp;INTI</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On November&nbsp;12, 2003, the Company entered
into an agreement with PT&nbsp;INTI for the construction and
procurement of an optical network, as well as a network
management system and other related services and equipment, with
respect to Regional Division&nbsp;III (West&nbsp;Java). Under
this agreement, the Company is obligated to pay PT&nbsp;INTI a
total consideration of approximately US$6,500,000 and
Rp112,400&nbsp;million.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.&nbsp;<U>Agreement
for the Procurement of Softswitch System Class&nbsp;4 with a
consortium led by Santera-Olex</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On December&nbsp;18, 2003, the Company entered
into an agreement with a consortium led by Santera-Olex for the
construction and procurement of a softswitch system
(class&nbsp;4) and the improvement of switching capacity in the
existing switching system in Jakarta, Bandung and Surabaya.
Pursuant to the terms of this agreement, the Company will pay
approximately US$4,000,000 and Rp2,500&nbsp;million.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.&nbsp;<U>Loan
Agreement with ABN-AMRO</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;29, 2004, the Company signed a
short-term loan agreement with ABN-AMRO Bank NV Jakarta
(&#147;ABN-AMRO&#148;) in the amount of approximately
US$130,000,000. The loan will be used to re-purchase the
promissory notes outstanding on March&nbsp;15, 2004 which were
issued in the Pramindo transaction (Notes&nbsp;6b and 27).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The loan and interest is payable to ABN-AMRO in
10&nbsp;monthly installments commencing March&nbsp;2004.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.&nbsp;<U>Loan
agreement with The Export-Import Bank of Korea</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On August&nbsp;27, 2003, the Company entered into
a loan agreement with the Export-Import Bank of Korea in the
amount of US$123,965,000. The loan will be used to finance the
CDMA procurement with Samsung Consortium (Note&nbsp;53b.v) up to
US$123,965,000 and will be available until April 2005.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The loan and interest is payable in 10
semi-annual installments on June&nbsp;30 and December&nbsp;30 in
each year.
</FONT>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">57.&nbsp;</FONT></B></TD>
    <TD>
    <B><FONT size="2">SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN
    ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN INDONESIA AND
    U.S.&nbsp;GENERALLY ACCEPTED ACCOUNTING PRINCIPLES</FONT></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consolidated financial statements have been
prepared in accordance with generally accepted accounting
principles in Indonesia (&#147;Indonesian GAAP&#148;), which
differ in certain respects with generally accepted accounting
principles in the United States of America
(&#147;U.S.&nbsp;GAAP&#148;). A description of the differences
and their effects on net income and stockholders&#146; equity
are set forth below, followed by a summary of the effect of
restatements made to net income for fiscal 2000, 2001 and 2002
and stockholders&#146; equity as of December&nbsp;31, 2001 and
2002 under U.S.&nbsp;GAAP.
</FONT>

<P align="center"><FONT size="2">F-122
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">(1)&nbsp;Description of differences between
Indonesian GAAP and U.S.&nbsp;GAAP</FONT></B>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Termination
benefits</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, termination benefits are
recognized as liabilities when certain criteria are met (e.g.
the enterprise is demonstratively committed to provide
termination benefits as a result of an offer made in order to
encourage voluntary redundancy).
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, termination benefits were
recognized as liabilities when the employees accept the offer
and the amount can be reasonably estimated.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Foreign
exchange differences on property under
construction</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, foreign exchange
differences resulting from loans used to finance property under
construction are capitalized. Capitalization of foreign exchange
differences cease when the construction of the qualifying asset
is substantially completed and the constructed property is ready
for its intended use.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, foreign exchange
differences are charged to current operations.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Interest
capitalized on property under construction</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, one of the criteria for
capitalizing interest cost into a qualifying asset is that the
interest should be attributable to the qualifying asset (an
asset that necessarily takes a substantial period of time to get
ready for its intended use or sale,&nbsp;i.e. minimum
12&nbsp;months). The interest income arising from any unused
borrowings should offset against any capitalized interest
expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, there is no limit on the
length of the construction period in which the interest expense
could be capitalized and interest cost need not arise from
borrowings specifically made to acquire the qualifying assets.
The interest income arising from any unused borrowings is
recognized directly to current operations.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Revenue-sharing
arrangements</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, property, plant and
equipment built by an investor under revenue-sharing
arrangements are recognized as property, plant and equipment
under revenue-sharing arrangements in the books of the party to
whom ownership in such properties will be transferred at the end
of the revenue-sharing period, with a corresponding initial
credit to unearned income. The property, plant and equipment are
depreciated over their useful lives, while the unearned income
is amortized over the revenue-sharing period. The Company
records its share of the revenues earned on a net basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under US GAAP, the accounting for revenue-sharing
arrangements depends on whether or not the investor will receive
a guaranteed minimum return. When there is no guaranteed
investment return to the investor, the accounting treatment is
not materially different from that under Indonesian GAAP. When
there is a guaranteed investment return, the assets under
revenue-sharing arrangements are recorded and, correspondingly,
an obligation under revenue-sharing arrangements is recorded. A
portion of the investor&#146;s share in revenue is recorded as
interest expense based on the implicit rate of return and the
balance is treated as a reduction of the obligation. Revenues
are recorded on a gross basis.
</FONT>

<P align="center"><FONT size="2">F-123
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Revaluation
of property, plant and equipment</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While Indonesian GAAP does not generally allow
companies to recognize increases in the value of property, plant
and equipment that occur subsequent to acquisition, an exception
is provided for revaluations made in accordance with Government
regulations. The Company revalued its property, plant and
equipment that were used in operations as of January&nbsp;1,
1979 and January&nbsp;1, 1987.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, asset revaluations are not
permitted. The effects of the previous revaluations have been
fully reversed in 2002, such that there is no difference in
equity as of December&nbsp;31, 2002.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Pension</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 1994 and 1998, the Company provided increases
in pension benefits for pensioners. Under Indonesian GAAP, the
prior service costs attributable to the increases in pension
benefits for pensioners were directly charged to expense in
those years. Under SFAS&nbsp;87, because the majority of plan
participants are still active, such prior service costs are
deferred and amortized systematically over the remaining service
period for active employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, the Company would be
required to recognize an additional minimum liability when the
accumulated benefit obligation exceeds the fair value of the
plan assets, and an equal amount would be recognized as an
intangible asset, provided that the asset recognized does not
exceed the amount of unrecognized prior service cost.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.&nbsp;<U>Equity
in net income/(loss) of associated companies</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company records its equity in net income of
associated companies based on the associates&#146; financial
statements that have been prepared under Indonesian GAAP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For U.S.&nbsp;GAAP reporting purposes, the
Company recognized the effect of the differences of
U.S.&nbsp;GAAP and Indonesian GAAP in the investment accounts
and its share of the earnings or losses of those associates.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.&nbsp;<U>Land
rights</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In Indonesia, the title of land rests with the
State under the Basic Agrarian Law No.&nbsp;5 of 1960. Land use
is accomplished through land rights whereby the holder of the
right enjoys the full use of the land for a stated period of
time, subject to extensions. The land rights generally are
freely tradeable and may be pledged as security under borrowing
agreements. Under Indonesian GAAP, land ownership is not
depreciated unless it can be foreseen that the possibility for
the holder to obtain an extension or renewal of the rights is
remote.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, the cost of acquired land
rights is amortized over the period the holder is expected to
retain the land rights.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.&nbsp;<U>Stock
issuance costs</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, stock issuance costs are
deferred and amortized. The Company amortized deferred stock
issuance costs over five years using the straight-line method.
Effective 2000, the Capital Market Supervisory Agency (BAPEPAM)
requires that stock issuance costs should be recorded as part of
additional paid-in capital.
</FONT>

<P align="center"><FONT size="2">F-124
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, stock issuance costs are
offset against the proceeds. The deferred stock issuance cost
was fully amortized in 2000.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.&nbsp;<U>Employee
bonuses</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In 2000, Telkomsel charged employee bonuses
amounting to Rp26,714&nbsp;million to retained earnings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP personnel and related costs,
including bonuses, are charged to current operations.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.&nbsp;<U>Equipment
to be installed</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, equipment is depreciated
starting when the asset is ready for its intended use.
Temporarily idle equipment or equipment that is awaiting
installation is not depreciated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP equipment is depreciated
when it is ready for its intended use. Temporarily idle
equipment continues to be depreciated. In 2002, prior year
equipment to be installed was fully installed and their carrying
values have been reclassified to property, plant and equipment.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.&nbsp;<U>Revenue
recognition</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, revenue from cellular
service connection fees are recognized as income when the
connection takes place (for postpaid service) or at the time of
delivery of starter packs to distributors, dealers or customers
(for prepaid service). Installation fees for wire line services
are recognized at the time of installation. The revenue from
calling cards (&#147;Kartu Telepon&#148;) is also recognized
when the Company sells the card.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, revenue from front-end fees
are deferred and recognized over the expected term of the
customer relationship or the contractual term. Directly
incremental costs are deferred up to the extent of deferred
revenues. Revenues from calling cards are recognized upon usage
or expiration.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.&nbsp;<U>Goodwill</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, goodwill is amortized over
a period, not exceeding 20&nbsp;years, that it is expected to
benefit the Company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, effective January&nbsp;1,
2002, goodwill is no longer amortized but rather subjected to a
test for impairment.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.&nbsp;<U>Capital
leases</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, a lease is capitalized if
(a)&nbsp;the lessee has the option to purchase the leased asset
at the end of the lease period at a price agreed upon at the
inception of the lease agreement, and (b)&nbsp;the sum of
periodic lease payments made by the lessee, plus the residual
value, will cover the acquisition price of the leased asset and
related interest, and (c)&nbsp;there is a minimum lease period
of 2&nbsp;years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, a leased asset is
capitalized if (a)&nbsp;there is an automatic transfer of
ownership at the end of the lease term or (b)&nbsp;a bargain
purchase option or (c)&nbsp;the lease term is for 75% or more of
the economic life of the asset; or (d)&nbsp;the lease payments
are at least 90% of the fair value of the asset.
</FONT>

<P align="center"><FONT size="2">F-125
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o.&nbsp;<U>Acquisition
of Dayamitra</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company acquired a 90.32% interest in
Dayamitra and contemporaneously acquired a call option to buy
the other 9.68% at a fixed price at a stated future date, and
provided to the minority interest holder a put option to sell
the other 9.68% percent to the Company under those same terms
meaning that the fixed price of the call is equal to the fixed
price of the put option. Under U.S.&nbsp;GAAP, the Company
should account for the option contracts on a combined basis with
the minority interest and account for it as a financing of the
purchase of the remaining 9.68% minority interest. As such,
under U.S.&nbsp;GAAP, the Company has consolidated 100% of
Dayamitra and attributed the stated yield earned under the
combined derivative and minority interest position to interest
expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is no such requirement under Indonesian
GAAP.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p.&nbsp;<U>Reversal
of difference due to change of equity in associated
companies</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Indonesian GAAP, differences previously
charged directly to equity as a result of equity transactions in
associated companies are released to the income statement upon
the sale of an interest in the associate in proportion with the
percentage of the interest sold.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under U.S.&nbsp;GAAP, such amounts can not be
released to the income statement and consequently remain in
equity indefinitely.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q.&nbsp;<U>Deferred
income taxes</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There are no differences between Indonesian GAAP
and U.S.&nbsp;GAAP with respect to deferred income taxes that
affect the Company. The amounts included in the reconciliation
below show the income tax effects of the differences between
Indonesian GAAP and U.S.&nbsp;GAAP as described above.
</FONT>

<P align="center"><FONT size="2">F-126
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">(2)&nbsp;</FONT></B><FONT size="2">A summary
of the significant adjustments to consolidated net income for
the years ended December&nbsp;31, 2000, 2001 and 2002 and to
consolidated stockholders&#146; equity as of December&nbsp;31,
2001 and 2002 which would be required if U.S.&nbsp;GAAP had been
applied, instead of Indonesian GAAP, in the consolidated
financial statements are set forth below:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Note</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income according to the consolidated
    statements of income prepared under Indonesian GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,775,005</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,068,391</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,039,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;GAAP adjustments&nbsp;&#151; increase
    (decrease) due to:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(a</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">530,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalization of foreign exchange differences,
    net of related depreciation of (47,188), (76,732) and (79,797),
    respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(b</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(111,022</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,987</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest capitalized on property under,
    construction net of related depreciation of (nil), (nil) and
    (3,061) respectively
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(c</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(d</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(29,692</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,999</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revaluation of property, plant and equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(e</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,095</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,929</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pension
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(f</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,172</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(19,640</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,415</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in net income/(loss) of associated
    companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(g</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,786</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(182</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(h</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,119</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,409</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,781</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred stock issuance costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(i</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,402</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Employee bonuses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(j</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,713</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation of equipment to be installed
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(k</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,561</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue recognition:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of accounting change
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(l</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(814,799</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current year amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(l</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(89,274</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(m</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,269</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital leases
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(n</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustment for Dayamitra accounted at 100%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(o</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,191</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,270</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Reversal of difference due to change of equity in
    associated companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(p</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(65,158</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income tax effect on U.S.&nbsp;GAAP
    adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(q</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">199,247</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(100,942</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(220,724</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(563,279</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229,232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">513,521</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,599</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">577</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">34,029</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(558,680</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">229,809</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">547,550</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-127
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Note</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income in accordance with U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per share&nbsp;&#151; in full Rupiah
    amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">851.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income per ADS (20 Series&nbsp;B shares per
    ADS)&nbsp;&#151; in full Rupiah amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,397.47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,528.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,038.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Note</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity according to the consolidated balance
    sheets prepared under Indonesian GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,080,961</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,613,617</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">U.S.&nbsp;GAAP adjustments&nbsp;&#151; increase
    (decrease) due to:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Early retirement benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(a</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">140,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">670,981</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capitalization of foreign exchange
    differences&nbsp;&#151; net of related depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(b</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(734,594</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(627,229</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest capitalized on property under
    construction&nbsp;&#151; net of related depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(c</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,690</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,735</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(d</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(538,814</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(470,855</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revaluation of property, plant and equipment:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Increment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(e</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(664,974</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(664,974</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated depreciation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(e</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">661,045</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">664,974</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pension
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(f</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">120,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">231,490</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in net loss of associated companies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(g</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(17,900</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(18,082</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(h</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(43,218</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(54,999</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Depreciation of equipment to be installed
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(k</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,706</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue recognition
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(l</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(626,048</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(715,322</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(m</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,269</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Capital leases
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(n</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustment for Dayamitra accounted at 100%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(o</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,972</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,242</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred income tax effect on U.S.&nbsp;GAAP
    adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(q</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,736</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,345,956</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(767,277</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64,524</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,315,461</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(702,753</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in accordance with U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-128
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The changes in stockholders&#146; equity in
accordance with U.S.&nbsp;GAAP for the years ended
December&nbsp;31, 2000, 2001 and 2002 are as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity at beginning of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,802,649</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,927,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Changes during the year:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dividends
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,086,161</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(888,654</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,125,055</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference due to change in equity of investees
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6,178</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(119,961</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other comprehensive income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,158</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,612</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,802</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Common control transaction
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(40,761</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,455,490</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(296,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Other
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,761</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity at end of year
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,927,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With regard to the consolidated balance sheets,
the following significant captions determined under
U.S.&nbsp;GAAP would have been:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="71%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated balance sheets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,522,986</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,628,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,925,899</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,994,014</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,448,885</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,622,947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,282,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,037,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Non-current liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,196,084</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,143,607</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,478,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,180,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority interest in net assets of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,204,839</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,531,276</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total liabilities and equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,448,885</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,622,947</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-129
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">(3)&nbsp;Changes in U.S.&nbsp;GAAP Information
Previously Disclosed</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the restatements to the Indonesian
GAAP financial statements described in Note&nbsp;4, the Company
has also made certain adjustments to the previously reported
consolidated stockholders&#146; equity as of December&nbsp;31,
2000, 2001 and 2002 and consolidated net income for the years
then ended, that only had an impact on the previously reported
U.S.&nbsp;GAAP amounts. The total impact of these adjustments on
consolidated stockholders&#146; equity as of December&nbsp;31,
2000, 2001 and 2002 and consolidated net income for the years
then ended are presented below. Restatements of
Rp264,192&nbsp;million relating to periods prior to 2000 were
recorded as a reduction of opening retained earnings as of
January&nbsp;1, 2000.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under U.S.&nbsp;GAAP as previously
    reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,952,133</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,036,641</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,274,249</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impact of Indonesian GAAP restatements on U.S
    GAAP net income:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Aggregate Indonesian GAAP restatements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(234,998</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(181,719</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(305,565</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amount which are not restatements for U.S.GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">a</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,663</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(10,632</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(66,456</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(218,335</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(192,351</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(372,021</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of restatements on previously reported U.S
    GAAP net income:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installation revenue:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">b</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cumulative effect of accounting change
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(814,799</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Current year amortization
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">107,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(22,870</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">c</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,041</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,650</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">d</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,108</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">347,333</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(337,864</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Dayamitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">e</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,809</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(9,374</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">f</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,937</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">307</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,820</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(517,473</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">453,910</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(314,969</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under U.S.&nbsp;GAAP as restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">292.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400.46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">920.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219.87</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">426.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">851.91</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per ADS (full amount)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,857.41</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,009.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,401.29</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">As restated
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,397.47</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,528.17</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,038.21</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under U.S.&nbsp;GAAP as
    previously reported
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,146,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,240,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,745,181</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-130
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="47%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Impact of Indonesian GAAP restatements on U.S
    GAAP stockholders&#146; equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Aggregate Indonesian GAAP restatements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(436,112</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(242,614</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,285,566</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amounts which are not restatements for U.S. GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">a</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(598</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,229</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,527</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(436,710</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(253,843</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,298,093</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of restatements on previously reported U.S
    GAAP equity:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Installation revenue
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">b</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(707,477</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(626,048</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(648,918</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenue-sharing arrangements
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">c</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(166,575</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(128,925</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(60,966</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred taxes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">d</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">119,561</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">421,243</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">93,284</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Acquisition of Dayamitra
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">e</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">129,968</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">f</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(27,174</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,867</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(49,592</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(781,665</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(221,255</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(536,224</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Stockholders&#146; equity under U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,927,793</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,765,500</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,910,864</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;<U>Impact
of Indonesian GAAP Restatements</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The restatements to the financial position and
results of operations under Indonesian GAAP as described in
Note&nbsp;4, have the same impact on consolidated
stockholders&#146; equity and net income presented under
U.S.&nbsp;GAAP, except for restatements with respect to revenue
sharing arrangements and related deferred taxes. Accordingly, no
restatement of stockholders&#146; equity or net income under
U.S.&nbsp;GAAP is required with respect to these items.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;<U>Installation
Revenue</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company was required to adopt the provisions
of the SEC Staff Accounting Bulletin (SAB) No.&nbsp;101,
&#147;Revenue Recognition in Financial Statements&#148; in 2001,
and retroactively apply its provisions as of January&nbsp;1,
2000. The Company did not initially record the full impact of
SAB No.&nbsp;101 on its results. SAB 101 requires the Company to
defer certain non-recurring fees, such as service activation and
installation fees, and recognize those revenues over the
expected term of the customer relationship. For 2000, the
adjustment presented includes an amount, which represents the
initial impact of adopting SAB101. For U.S.&nbsp;GAAP purposes
this should be recorded as a cumulative effect of an accounting
change.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)&nbsp;<U>Revenue
Sharing Arrangements</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Based on further review, the Company has
concluded that the accounting provided for the revenue sharing
arrangements under Indonesian GAAP requires an adjustment to
conform to U.S.&nbsp;GAAP. A discussion of the differences in
accounting for the revenue sharing arrangements under the
respective GAAPs may be found in (1)&nbsp;d. above.
</FONT>

<P align="center"><FONT size="2">F-131
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)&nbsp;<U>Deferred
Taxes</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As discussed above the deferred tax liability
related to investments in consolidated subsidiaries has been
adjusted in the restated Indonesian GAAP financial statements to
conform to SFAS&nbsp;109. Accordingly, an adjustment was made to
eliminate the U.S.&nbsp;GAAP difference related to the deferred
tax liability on the undistributed earnings of subsidiaries and
associates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also made adjustments in relation to
other restated amounts.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)&nbsp;<U>Acquisition
of Dayamitra</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The adjustment reflects the U.S.&nbsp;GAAP
requirement, as described under (1)&nbsp;o. above, to record the
Dayamitra acquisition as an acquisition of 100% of the
outstanding interest during the year ended December&nbsp;31,
2001, and the effect of the reversal of foreign exchange
capitalized by Dayamitra as the related assets were carried at
fair value upon application of purchase accounting.
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="73%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Effect on</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Net income</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Equity</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Option
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign exchange capitalized
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(14,859</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137,292</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(12,809</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">139,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)&nbsp;<U>Others</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other adjustments represent individually
insignificant adjustments consisting of land rights amortization
and certain capitalized foreign exchange gains and losses.
</FONT>

<P align="center"><FONT size="2">F-132
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">(4)&nbsp;</FONT></B></TD>
    <TD>
    <B><FONT size="2">Additional Financial Statement disclosures
    required by U.S.&nbsp;GAAP and U.S.&nbsp;SEC</FONT></B></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Income
Tax</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The reconciliation between the expected income
tax provision in accordance with U.S.&nbsp;GAAP and the actual
provision for income tax recorded in accordance with
U.S.&nbsp;GAAP is as follows:
</FONT>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="58%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Consolidated income before tax in accordance with
    U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,660,501</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,880,064</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,483,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income tax in accordance with U.S.&nbsp;GAAP at
    statutory tax rates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,398,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,064,002</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,744,927</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of permanent differences at the enacted
    maximum tax rate (30%):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic post-retirement benefits cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of deferred interest
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,515</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,298</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of intangible assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,713</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,616</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax penalty
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">72,471</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Employee benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,233</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,707</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">24,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Permanent differences of the KSO Units
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,177</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,209</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(8,767</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Amortization of landrights
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,534</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest income which was already subject to
    final tax
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(210,142</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(169,447</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(140,982</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Decline in value of investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,288</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gain on sale of Telkomsel&#146;s shares
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(949,826</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equity in net loss of associates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,842</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,465</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,908</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(26,837</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,788</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,834</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(625,232</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferred tax recognized on equity in net income
    of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">159,557</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for income tax in accordance with
    U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,565,487</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,107,836</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,119,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-133
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="70%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Deferred tax asset/(liability)&nbsp;&#151;
    current:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for doubtful accounts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">197,909</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,955</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Allowance for inventory obsolescence
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,614</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Tax loss carryforward
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,254</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Pension costs
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(61,159</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(79,303</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid expenses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(7,315</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,618</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">sub total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222,862</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,902</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Deferred tax asset/(liability)&nbsp;&#151; non
    current:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Difference between book and tax&nbsp;&#151;
    non-current assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,279,705</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,690,548</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Provision for long service awards
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">82,751</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">146,769</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Deferral of revenue
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187,814</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,605</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign exchange capitalized
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">220,378</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">188,169</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Others
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">26,393</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,580</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">sub total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,762,369</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,108,988</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total deferred tax liabilities&nbsp;&#151; net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(1,539,507</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,027,086</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Benefits enjoyed by pensioners fall under the
category of benefits in kind which are non-deductible expenses
under Indonesian tax laws.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Fair
Value of Financial Instruments</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following methods and assumptions are used to
estimate the fair value of each class of financial instruments:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash and cash equivalents and temporary
investments
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The carrying amount approximates fair value
because of the short-term nature of the instruments.
</FONT>

<P align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term
liabilities
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(i)&nbsp;The fair value of two-step loans are
    estimated on the basis of the discounted value of future cash
    flows expected to be paid, considering rates of interest at
    which the Company could borrow as of the respective balance
    sheet dates.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">For purposes of estimating the fair value of
    two-step loans, the Company has used the average Rupiah
    borrowing rates of 16.57% and 14.92%, the average
    U.S.&nbsp;Dollars borrowing rate of 7.37% and 1.65% and the
    respective average borrowing rates for 2001 and 2002 for the
    debt in other currencies. Under the current environment, an
    estimate of the interest rates as of a point in time, given the
    significance of the Company&#146;s debt and the general
    unavailability of funds, is difficult. For one percentage point
    increase in the above-mentioned borrowing rates, the fair value
    of the Company&#146;s long-term two-step loans at
    December&nbsp;31, 2002 would decrease by Rp359,730&nbsp;million.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-134
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(ii)&nbsp;The fair value of suppliers&#146;
    credit loans, bridging loan and long-term bank loan is estimated
    on the basis of the discounted value of future cash flows
    expected to be paid, considering rates of interest at which the
    Company could borrow as of the balance sheet date.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(iii)&nbsp;The fair value of the liability for
    the acquisition of subsidiaries is estimated on the basis of the
    discounted future cash flows expected to be paid.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(iv)&nbsp;The fair value of the bonds and
    guaranteed notes are based on market prices at balance sheet
    date.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The estimated fair values of the Company and its
subsidiaries&#146; financial instruments are as follows:
</FONT>

<CENTER>
<TABLE width="70%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="68%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Carrying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">amount</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair value</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2001</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,644,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">348,915</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Two-step loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,482,706</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,879,285</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suppliers&#146; credit loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">461,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,538</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bridging loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">128,121</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,557</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liability for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">727,348</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">696,806</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219,450</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,031</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="10"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">2002</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,699,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,699,070</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Temporary investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">573,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">573,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term liabilities:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Two-step loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,570,142</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,866,256</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Suppliers&#146; credit loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">338,697</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">361,388</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bridging loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bonds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">975,992</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,050,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Guaranteed notes
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,337,518</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,441,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Liability for acquisition of subsidiaries
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,004,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,235,312</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">247,432</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">268,309</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The methods and assumptions followed to determine
the fair value estimates are inherently judgmental and involve
various limitations, including the following:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">i.&nbsp;Fair values presented do not take into
    consideration the effect of future currency fluctuations.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">ii.&nbsp;Estimated fair values are not
    necessarily indicative of the amounts that the Company and its
    subsidiary would record upon disposal/ termination of the
    financial instruments.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">F-135
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;<U>Research
and Development</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Research and development expenditures, as
determined under U.S.&nbsp;GAAP, amounted to approximately
Rp33,110&nbsp;million, Rp39,523&nbsp;million and
Rp8,995&nbsp;million in 2000, 2001 and 2002, respectively.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;<U>Comprehensive
Income</U></FONT></I>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="64%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net income under U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,216,325</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,298,200</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,587,259</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized gain (loss) in value of securities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(42</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Foreign exchange translation of associates
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,164</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,654</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,009</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,237,483</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,301,812</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,566,457</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Adjustments to net income to arrive at
comprehensive income include foreign currency translation
adjustments and unrealized gains (losses) in the value of
securities.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.&nbsp;<U>Pension
plan</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Additional disclosures required under
U.S.&nbsp;GAAP are as follows:
</FONT>

<CENTER>
<TABLE width="90%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="60%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net periodic pension cost under FAS
    87:</FONT></B></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,202</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,216</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,656</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Interest cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">216,869</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">277,077</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Expected return on assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(279,302</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(266,325</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(343,122</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net amortization and deferral:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Amortization of transition amount
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,634</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,634</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,634</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Amortization of prior service cost
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,110</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,111</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,495</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&#151;&nbsp;Amortization of loss
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(44,506</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,391</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(33,572</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net periodic pension cost/(income)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(21,993</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">102,322</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">256,135</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total net periodic pension cost attributable to
    KSO units
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,241</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,413</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,213</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accumulated benefit obligation (ABO)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,790,885</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,851,620</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,436,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Fair value of plan asset
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,091,721</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(2,571,714</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,099,648</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(300,836</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(720,094</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">336,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Excess of ABO over fair value of plan assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">336,536</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Prepaid pension expense
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">349,582</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Additional minimum liability under U.S.&nbsp;GAAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">686,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrecognized prior service cost&nbsp;&#151;
    intangible asset
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">686,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left"><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-136
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PERUSAHAAN PERSEROAN (PERSERO)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk AND
SUBSIDIARIES</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151; (Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2001 AND 2002, AND FOR YEARS
ENDED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">DECEMBER&nbsp;31, 2000, 2001 AND
2002&nbsp;&#151; AS RESTATED</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(Figures in tables are presented in millions
of Rupiah, unless otherwise stated)</FONT></B>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.&nbsp;<U>Recent
Accounting Pronouncements</U></FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">SFAS No.&nbsp;146 &#147;Accounting for Costs
Associated with Exit or Disposal
Activities&#148;</FONT></I><FONT size="2"> requires that a
liability for a cost that is associated with an exit or disposal
activity be recognized when the liability is incurred. Under
SFAS&nbsp;146, the FASB determined that an entity&#146;s
commitment to a plan does not, by itself, create a present
obligation to other parties that meets the definition of a
liability. SFAS&nbsp;146 also establishes that fair value is the
objective for the initial measurement of the liability.
Management believes that the adoption of this standard will not
have a material effect on the Company&#146;s results of
operations or financial position.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">FASB Interpretation No.&nbsp;45
&#147;Guarantor&#146;s Accounting and Disclosure Requirements
for Guarantees, Including Indirect Guarantees of Indebtedness of
Others&#148;</FONT></I><FONT size="2"> clarifies the
requirements for a guarantor&#146;s accounting for and
disclosures of certain guarantees issued and outstanding. The
initial recognition and initial measurement provisions of this
Interpretation are applicable on a prospective basis to
guarantees issued or modified after December&nbsp;31, 2002,
irrespective of the guarantor&#146;s fiscal year-end. The
Company has not yet evaluated the impact on its financial
position or results of operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">FASB Interpretation No.&nbsp;46,
&#147;Consolidation of Variable Interest
Entities&#148;</FONT></I><FONT size="2"> includes requirements
for financial reporting by companies involved with variable
interest entities. A variable interest entity is a corporation,
partnership, trust or any other legal structure used for
business purposes that either (a)&nbsp;does not have equity
investors with voting rights, or (b)&nbsp;has equity investors
that do not provide sufficient financial resources for the
entity to support its activities. FIN&nbsp;46 changes that by
requiring a variable interest entity to be consolidated by a
company if that company is subject to a majority of the risk of
loss from the variable interest entity&#146;s activities or
entitled to receive a majority of the entity&#146;s residual
returns, or both. FIN&nbsp;46 also requires disclosures about
variable interest entities that a company is not required to
consolidate but in which it has a significant variable interest.
In December 2003, the FASB approved a partial deferral of
FIN&nbsp;46. Under the new guidance, application of FIN&nbsp;46R
(or Interpretation&nbsp;46) is required in financial statements
of public entities that have interests in structures that are
commonly referred to as special-purpose entities for periods
ending after December&nbsp;15, 2003. Application by public
entities, other than small business issuers, for all other types
of variable interest entities is required in financial
statements for periods ending after March&nbsp;15, 2004. The
Company does not expect the provisions of this standard to have
a material impact on its financial position or results of
operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">EITF Issue 00-21 (EITF 00-21) &#147;Accounting
for Revenue Arrangements with Multiple
Deliverables&#148;.</FONT></I><FONT size="2"> The Issue
addresses a vendor&#146;s accounting for transactions involving
the delivery of more than one product or service, and when it is
necessary to separate the transaction into individual component
deliverables, each with its own separate earnings process. If
the conditions requiring separate revenue recognition exist,
revenue is allocated among the different deliverables based on
their relative fair values (the relative fair value of each of
the component deliverables to the aggregated relative fair value
of the bundled deliverables), with revenue for each component
deliverable recognized when the revenue is realized and earned.
The final consensus will be applicable to agreements entered
into in fiscal periods beginning after June&nbsp;15, 2003 with
early adoption permitted. The Company does not expect the
provisions of this standard will have a material impact on its
financial position or results of operations.
</FONT>

<P align="center"><FONT size="2">F-137
</FONT>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>3
<FILENAME>u92256exv4w1.txt
<DESCRIPTION>EX-4.1 AGREEMENT SALE & PURCHASE DATED APR 3,2002
<TEXT>
<PAGE>
                                                                     Exhibit 4.1


                           AGREEMENT FOR THE SALE AND

                            PURCHASE OF THE SELLER'S

                        ASSETS RELATING TO TELKOM MOBILE

                       NO: K. TEL. /HK. 850/UTA - 00/2002

                                 By and Between

                         PERUSAHAAN PERSEROAN (PERSERO)
                         PT TELEKOMUNIKASI INDONESIA TBK

                                    as Seller

                                       And

                           PT TELEKOMUNIKASI SELULAR

                                  as Purchaser

                            Dated as of 3 April 2002

<PAGE>

THIS AGREEMENT is made on 3 April 2002

BETWEEN:

(A)      Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, whose
         Articles of Association have been published in the State Gazette of the
         Republic of Indonesia Number 5, dated 7 January 1992, Supplement of the
         State Gazette of the Republic of Indonesia Number 210, as amended
         several times lastly have been published in the State Gazette of the
         Republic of Indonesia Number 92, dated 17 November 2000, Supplement of
         the State Gazette of the Republic of Indonesia Number 336, domiciled at
         Jl. Japati No. 1, Bandung 40133, in this legal action is legally
         represented by Muhammad Nazif, title President Director, in this
         Agreement is stated as the "Seller"; and

(B)      PT Telekomunikasi Selular, whose Articles of Association have been
         published in the State Gazette of the Republic of Indonesia Number 94,
         dated 24 November 1995, Supplement of the State Gazette of the Republic
         of Indonesia Number 9719, as amended several times lastly have been
         published in the State Gazette of the Republic of Indonesia Number 73,
         dated 10 September 1996, Supplement of the State Gazette of the
         Republic of Indonesia Number 7788, domiciled at Graha Surya Internusa
         Level 18, Jl. H.R. Rasuna Said Kav. X-0, Jakarta 12950, in this legal
         action is legally represented by Mulia P. Tambunan, title President
         Director, in this Agreement is stated as the "Purchaser".

WHEREAS:

(a)      On 3 January 2002 the parties entered into the Cooperation Agreement in
         relation to the DCS 1800 Operational and Frequency Licenses of the
         Seller.

(b)      In accordance with that Cooperation Agreement, the parties agreed to
         sign an agreement for the sale and purchase of the Seller's assets
         relating to and the transfer of the employees of Telkom Mobile.

THE PARTIES AGREE as follows:

1.       INTERPRETATION

1.1      In this Agreement:

                                       1
<PAGE>

         "PURCHASED ASSETS" means all the items referred to in clause 2.1;

         "EXCLUDED ASSETS" means, all the items referred to in clause 2.2;

         "GOVERNMENTAL ENTITY" means a court, arbitral tribunal, administrative
         agency or commission or other governmental or regulatory authority or
         agency of the central government or provincial or local government in
         the Republic of Indonesia or elsewhere in the world;

         "RECORDS" means the Seller's books and records maintained as books and
         records of Telkom Mobile (including, without limitation, any bought and
         sold ledgers, purchase and sales day books, purchase and sales
         invoices) in the possession of the Seller as of the Effective Time,
         provided that the records shall not include any of the foregoing
         relating to the Excluded Assets or the Tax Records, and further
         provided that the Purchaser shall be entitled to copies of the Tax
         Records relating to the conduct of Telkom Mobile, but only if and to
         the extent that such Tax Records are relevant to the determination of
         Taxes for Telkom Mobile for a period ending after the Effective Time;

         "TAX RECORDS" means all corporate records, and financial records and
         files, and books and records of the Seller relating to Taxes for all
         periods prior to the Effective Time;

         "TELECOMMUNICATIONS FACILITIES" means all telecommunications
         facilities, furnishings, computers, equipment, inventory stock and
         systems designated as assets of Telkom Mobile as set out in Schedule 5;

         "PURCHASE PRICE" shall have the meaning set forth in clause 4.1;

         "BUSINESS DAY" means a day other than a Saturday or Sunday or public
         holiday in the Republic of Indonesia;

         "SELLER WARRANTIES" shall have the meaning set forth in clause 7.4; and

                                       2

<PAGE>

         "ASSET WARRANTY" means a representation and warranty contained in Part
         B of Schedule 1 and "ASSET WARRANTIES" means all such representations
         and warranties;

         "SIGNING WARRANTY" means a representation and warranty contained in
         Part A of Schedule 1 and "SIGNING WARRANTIES" means all such
         representations and warranties;

         "CLOSING WARRANTIES" shall have the meaning set forth in clause 7.3;

         "PURCHASER WARRANTY" means a statement contained in Schedule 2 and
         "PURCHASER WARRANTIES" means all those statements;

         "INTELLECTUAL PROPERTY" means:

         (i)      patents, trade marks, service marks, registered designs,
                  applications and rights to apply for any of those rights,
                  trade, business and company names, internet domain names and
                  e-mail addresses, unregistered trade marks and service marks,
                  copyrights, database rights, knowhow, rights in designs and
                  inventions;

         (ii)     rights under licences, consents, orders, statutes or otherwise
                  in relation to a right in paragraph (i);

         (iii)    rights of the same or similar effect or nature as or to those
                  in paragraphs (i) and (ii) which now or in the future may
                  subsist; and

         (iv)     the right to sue for past infringements of any of the
                  foregoing rights;

         "CONTRACTS" means all the contracts set out in Schedule 6, and
         "CONTRACT" means any one of the Contracts;

         "EXCLUDED CONTRACTS" means all contracts of the Seller not being the
         Contracts;

         "SELLER DISCLOSURE SCHEDULES" shall have the meaning set forth in
         clause 7.4;

                                       3

<PAGE>

         "ASSET DISCLOSURE SCHEDULE" shall have the meaning set forth in clause
         7.2;

         "SIGNING DISCLOSURE SCHEDULE" shall have the meaning set forth in
         clause 7.1;

         "CLOSING DISCLOSURE SCHEDULE" shall have the meaning set forth in
         clause 7.3;

         "PURCHASER DISCLOSURE SCHEDULE" shall have the meaning set forth in
         clause 9.1;

         "TAX RETURN" means any return, declaration, report, claim for refund or
         information return or statement relating to Taxes, including any such
         document prepared on a consolidated, combined or unitary basis and also
         including any schedule or attachment thereto, and including any
         amendment thereof;

         "TAX" OR "TAXES" means all taxes, charges, fees, duties, levies,
         penalties or other assessments imposed by any Governmental Entity and
         shall include interest or penalties thereon;

         "EMPLOYEES" means all employees of the Seller listed in Schedule 4;

         "ENCUMBRANCE" means a mortgage, hak tanggungan (hipotek), hak gadai,
         hak jaminan fidusia, charge, pledge, lien, option, restriction, right
         of first refusal, right of pre-emption, third-party right or interest,
         other encumbrance or security interest of any kind, or another type of
         preferential arrangement (including, without limitation, a title
         transfer or retention arrangement) having similar effect;

         "LIENS" shall mean any pledge, mortgage, charge, claim, title,
         imperfection, defect or objection, security interest, conditional or
         instalment sales agreement, encumbrance, easement, encroachment, third
         party right or restriction, of any kind, whether incurred or assumed by
         the Seller;

         "PERMITTED LIENS" means (i) Liens for current taxes not yet due or
         taxes being contested in good faith, (ii) mechanics', materialmen's
         warehousemen's, contractors', workmens', repairmens', carriers and
         similar

                                       4

<PAGE>

         Liens attaching by operation of law, incurred in the ordinary course of
         business and securing payments not delinquent or payments which are
         being contested in good faith, which are not, individually or in the
         aggregate, material and (iii) Liens, imperfections of title and
         easements and zoning restrictions, if any, which do not materially
         detract from the value of the property subject thereto and purposes to
         which such property is currently employed;

         "KNOWLEDGE" of any party shall mean the actual knowledge of each of the
         directors of such party and, in the case of the Seller, the actual
         knowledge of each of the directors of the Seller;

         "CLOSING" means closing of the sale and purchase of the Purchased
         Assets referred to in clause 5.1;

         "CONSENT" means, with respect to any Government Entity or any other
         third party, any approval, consent, ratification, permit, licence,
         waiver or other authorisation of, filing with or notice to such
         Government Entity or other third party, as the case may be;

         "PROCEEDING" means any action, suit, enquiry, proceeding or
         investigation by or before any Governmental Entity;

         "EFFECTIVE TIME" means the close of business on the Business Day before
         the Closing Date;

         "CLOSING DATE" means the date and time at which the Closing actually
         occurs;

         "ASSUMED LIABILITIES" shall have the meaning set forth in clause 11.1;

         "EXCLUDED LIABILITIES" shall have the meaning set forth in clause 11.2;

         "TRANSACTION" means the sale and purchase of the Purchased Assets and
         the transfer of the Employees pursuant to this Agreement;

                                       5

<PAGE>

         "TELKOM MOBILE" means the unit of the Seller responsible for developing
         the DCS 1800 License granted to Seller;

1.2      In this Agreement, a reference to:

         1.2.1    liability under, pursuant to or arising out of (or any
                  analogous expression) any agreement, contract, deed or other
                  instrument includes a reference to contingent liability under,
                  pursuant to or arising out of (or any analogous expression)
                  that agreement, contract, deed or other instrument;

         1.2.2    a statutory provision includes a reference to the statutory
                  provision as amended, modified or re-enacted from time to
                  time, any statutory provision substituted therefor and any
                  subordinate legislation made under the statutory provision (as
                  so amended, modified or re-enacted);

         1.2.3    any party to this Agreement or any other agreement or document
                  shall include such party's successors and permitted assigns;

         1.2.4    a clause, paragraph or schedule, unless the context otherwise
                  requires, is a reference to a clause or paragraph of or
                  schedule to this Agreement; and

         1.2.5    any reference to any event, change or effect being "material"
                  or having a "material adverse effect" on or with respect to
                  any business or entity means such event, change or effect is
                  materially adverse to (i) financial condition or results of
                  operations of such business or entity as a whole or (ii) the
                  ability of such business or entity to consummate the
                  Transaction.

                                       6

<PAGE>

1.3      The headings in this Agreement do not affect its interpretation.

2.       SALE AND PURCHASE

2.1      On the terms and subject to the conditions set forth in this Agreement,
         the Seller shall sell, convey, assign, transfer and deliver to the
         Purchaser, and the Purchaser shall buy, receive and accept, in each
         case with effect from the Closing Date, the following assets as they
         exist at the Effective Time:

         2.1.1    all of the Seller's right, title and interest in and to, and
                  liabilities and obligations under and associated with, the
                  Contracts (subject to clauses 10.6 and 11.2);

         2.1.2    all of the Seller's right, title and interest in and to the
                  Telecommunications Facilities.

2.2      Notwithstanding any other provision of this Agreement, the following
         assets shall not be included in the Purchased Assets to be sold or
         acquired pursuant to this Agreement:

         2.2.1    all Excluded Contracts;

         2.2.2    all right, title and interest to the Intellectual Property
                  owned by the Seller;

         2.2.3    all Tax Records;

         2.2.4    any refunds of Taxes or other amounts receivable with respect
                  to the Taxes of the Seller; and

         2.2.5    any and all assets of the Seller not listed in the Schedules.

3.       CONDITIONS

3.1      The respective obligations of each of the Purchaser and the Seller to
         consummate the

                                       7

<PAGE>

         Transaction shall be subject to the satisfaction of the following
         conditions any of which may be waived in writing by both, but only
         both, parties:

         3.1.1    No statute, rule or regulation shall have been enacted or
                  promulgated by any Governmental Entity which prohibits, and
                  there shall have been no order, writ or injunction of a
                  court of competent jurisdiction in effect precluding the
                  performance by either party of its material obligations
                  hereunder.

         3.1.2    Since the date of this Agreement, there shall not have been
                  commenced or threatened against the Purchaser or the Seller,
                  any Proceeding that is reasonably likely to have the effect of
                  preventing, materially delaying, making illegal, or otherwise
                  materially interfering with the performance by either party of
                  any of its obligations hereunder, except for such obligations
                  that, considered individually or in the aggregate, are not
                  material.

         3.1.3    Each of the Consents necessary for the performance by the
                  Seller of its material obligations hereunder, other than,
                  without prejudice to clause 10.6, Consents necessary in order
                  to assign and novate the Contracts shall have been obtained
                  and shall be in full force and effect.

         3.1.4    Each of the Consents necessary for the performance by the
                  Purchaser of its material obligations hereunder, other than,
                  without prejudice to clause 10.6, Consents necessary in order
                  to assign and novate the Contracts shall have been obtained
                  and shall be in full force and effect.

         3.1.5    The Seller shall have transferred or assigned to the Purchaser
                  all of Seller's right, title and interest in and to the
                  Contracts, and novated to the Purchaser the obligations and

                                       8

<PAGE>

                  liabilities under and associated with the Contracts; and the
                  Purchaser shall have assumed, become liable for and agreed to
                  perform the Contracts.

         3.1.6    The parties shall have executed and delivered to each other an
                  agreement with regard to the transfer of Employees to the
                  Purchaser incorporating the provisions of clause 12.1.

3.2      The obligation of the Purchaser to consummate the Transaction shall be
         subject to the satisfaction of the following conditions, any of which
         may be waived in writing by the Purchaser:

         3.2.1    Each of the necessary approvals of the Boards of Directors and
                  Commissioners of Seller shall have been obtained and remain in
                  full force and effect.

         3.2.2    There must not have been made or threatened by any third party
                  any material claim asserting the Seller is not the legal owner
                  of substantially all of the Purchased Assets save and except
                  for such claims as the Purchaser has Knowledge, or has reason
                  to believe, to be frivolous or made without basis.

         3.2.3    The Seller shall have delivered to the Purchaser the documents
                  required by clause 5.2.

         3.2.4    All of the representations and warranties of the Seller set
                  forth in this Agreement or in any certificate delivered in
                  connection herewith that are qualified as to materiality shall
                  have been true and correct in all respects and each such
                  representation that is not so qualified (considered
                  individually), and all such representations and warranties
                  that are not so qualified (considered collectively) shall have
                  been true and correct in all material respects, (i) in the
                  case of the representations and warranties in Part A and Part
                  B of Schedule 1, as of the date of this Agreement and (ii) as
                  if made on and

                                       9

<PAGE>

                  as of the Closing Date (without recognising as valid
                  disclosures in the case of the representations and warranties
                  in Part A and Part B of Schedule 1, those disclosures made in
                  any supplement or amendment to the Signing Disclosure Schedule
                  in the form in which it was delivered simultaneously with the
                  execution of this Agreement).

3.3      The obligation of the Seller to consummate the Transaction shall be
         subject to the satisfaction of the following conditions, any of which,
         may be waived in writing by the Seller:

         3.3.1    Each of the necessary approvals of the Boards of Directors and
                  Commissioners and the General Meeting of Shareholders of
                  Purchaser shall have been obtained and remain in full force
                  and effect.

         3.3.2    The Purchaser shall have delivered to the Seller the documents
                  required by clause 5.3.

         3.3.3    All of the representations and warranties of the Purchaser set
                  forth in this Agreement or in any certificate delivered in
                  connection herewith that are qualified as to materiality shall
                  have been true and correct in all respects, and each such
                  representation that is not so qualified (considered
                  individually), and all such representations and warranties
                  that are not so qualified (considered collectively), shall
                  have been true and correct in all material respects, in each
                  case as of the date of this Agreement and as of the Closing
                  Date.

         3.3.4    If considered appropriate by the Seller, the approval by the
                  General Meeting of the Shareholders of Seller of the
                  consummation of the Transaction by Seller has been obtained
                  and remains in full force and effect.

3.4      If, at any time, the Seller or the Purchaser becomes aware of facts or
         circumstances

                                       10

<PAGE>

         which it determines, in its sole and absolute discretion, could have a
         material adverse effect on the consummation of the Transaction, it
         shall promptly notify the other party in writing.

4.       PURCHASE PRICE

4.1      The purchase price of the Purchased Assets is Rp 135,518,783,330 (the
         "PURCHASE PRICE"), as detailed in Attachment 5 and 6.

4.2      At Closing, the Purchaser shall pay to the Seller, or as the Seller
         directs, in an amount equal to the Purchase Price by wire transfer in
         immediately available funds to a bank account of the Seller, details of
         which are to be provided to the Purchaser at least five (5) Business
         Days prior to the expected date of the Closing. Upon receipt of the
         Purchase Price, the Seller shall promptly deliver to the Purchaser a
         written acknowledgement thereof.

5.       CLOSING

5.1      The Closing shall take place at the offices of Hadiputranto, Hadinoto &
         Partners at The Jakarta Stock Exchange Building, Tower II, 21st Floor,
         Jl. Jend, Sudirman Kav. 52-53, Jakarta 12910, or at such other place as
         the parties shall agree upon in writing, at 10.00 a.m. (local time) on
         30 April 2002 or at such other time and date as the parties shall agree
         upon in writing, effective as of 12:01 a.m. on the following day;
         provided that the Closing Date shall be no later than 30 June 2002
         (unless otherwise extended pursuant to clause 6.1(c)(i) or clause
         6.1(d)(i)).

5.2      At the Closing, the Seller shall deliver to the Purchaser the
         following:

         5.2.1    The Records, executed sale and purchase contracts,
                  assignments, registrations and other instruments of sale and
                  purchase, assignment and transfer as shall be effective to
                  vest in the Purchaser all of the right, title and interest of
                  the Seller in the Purchased Assets.

                                       11

<PAGE>

         5.2.2    A certificate of an authorized director of the Seller dated
                  the Closing Date, to the effect that (a) the Closing
                  Warranties are true and correct in all material respect as of
                  the Closing Date as if made on the Closing Date (recognising
                  as valid disclosures those disclosures made in the Closing
                  Disclosure Schedule), and (b) the Seller has performed all
                  obligations required under this Agreement to be performed by
                  it at or prior to the Closing.

         5.2.3    A deed of transfer evidencing the transfer of all right, title
                  and interest and assumption of all liabilities pursuant to
                  this Agreement in the Purchased Assets (the "DEED OF
                  TRANSFER"), executed by the Seller.

         5.2.4    Novation agreements in respect of the Contracts, executed by
                  the Seller and the counterparties to such Contracts.

5.3      At the Closing, the Purchaser shall deliver to the Seller the
         following:

         5.3.1    The Purchase Price, in the manner required by clause 4.2.

         5.3.2    The Deed of Transfer, executed by the Seller and the
                  Purchaser.

         5.3.3    A certificate of an authorized director of the Purchaser dated
                  the Closing Date, to the effect that (a) the Purchaser
                  Warranties are true and correct in all material respect as of
                  the Closing Date as if made on the Closing Date and (b) the
                  Purchaser has performed all obligations required under this
                  Agreement to be performed by it at or prior to the Closing.

         5.3.4    Novation agreements in respect of the Contracts, executed by
                  the Purchaser.

                                       12

<PAGE>

6.       TERMINATION PRIOR TO THE CLOSING DATE

6.1      This Agreement may be terminated prior to the Closing Date only as
         follows:

         (a)      By mutual written consent of the Purchaser and the Seller;

         (b)      By the Purchaser or the Seller if any Governmental Entity
                  shall have issued an order, decree or ruling or taken any
                  action (which order, decree, ruling or other action the
                  parties hereto shall use their reasonable efforts to lift),
                  which prohibits the acquisition of the Purchased Assets by the
                  Purchaser and such order, decree, ruling or other action shall
                  have become final and non-appealable;

         (c)      By the Purchaser (i) if the Seller shall have breached any of
                  its representations, warranties, covenants or other agreements
                  contained in this Agreement which breach would give rise to
                  the failure of a condition set forth in clause 3, and which
                  breach cannot be or is not cured within 30 days after the
                  giving of written notice by the Purchaser to the Seller
                  specifying such breach; or (ii) upon written notice to the
                  Seller if any of the conditions in clauses 3.1 or 3.2 has not
                  been satisfied as of 30 April 2002 or if satisfaction of such
                  condition is or becomes impossible (other other primarily
                  through the failure of the Purchaser to comply with its
                  obligations under this Agreement) and the Purchaser has not
                  waived such condition on or before 30 April 2002; or (iii) on
                  or after 30 April 2002, if the Closing shall not have
                  theretofore occurred and if the failure of the Closing to
                  occur is not the result of a breach of representation,
                  warranty, covenant or other agreement contained herein by the
                  Purchaser;

                                       13

<PAGE>

         (d)      By the Seller (i) if the Purchaser shall have breached any of
                  its representations, warranties, covenants or other agreements
                  contained in this Agreement and which breach would give rise
                  to the failure of a condition set forth in clause 3, and which
                  breach cannot be or is not cured within 30 days after the
                  giving of written notice by the Seller to the Purchaser
                  specifying such breach; or (ii) upon written notice to the
                  Purchaser if any of the conditions in clauses 3.1 or 3.3 has
                  not been satisfied as of 30 April 2002 or if satisfaction of
                  such condition is or becomes impossible (other than primarily
                  through the failure of the Seller to comply with its
                  obligations under this Agreement) and the Seller has not
                  waived such condition on or before 30 April 2002; or (iii) on
                  or after 30 April 2002, if the Closing shall not have
                  theretofore occurred and if the failure of the Closing to
                  occur is not the result of a breach of representation,
                  warranty, covenant or other agreement contained herein by the
                  Seller.

6.2      Termination of this Agreement by any party hereto pursuant to clause
         6.1 shall be effected by the Purchaser or the Seller by delivering
         written notice thereof to the other party specifying the provision
         hereof pursuant to which such termination of the Transaction is made,
         and thereafter no party shall have any liability or obligation to the
         other party hereunder except for fraud or for breach of this Agreement
         prior to such termination of this Agreement.

6.3      The Purchaser and the Seller hereby waive the provisions of Article
         1266 of the Indonesian Civil Code to the extent it requires a court
         pronouncement in respect of termination of this Agreement.

                                       14

<PAGE>

7.       REPRESENTATIONS AND WARRANTIES OF THE SELLER

7.1      On the date of this Agreement, the Seller represents and warrants to
         the Purchaser that the Signing Warranties are true and correct, subject
         to the qualifications and exceptions set forth in the disclosure
         schedule delivered to the Purchaser in writing simultaneously therewith
         (the "SIGNING DISCLOSURE SCHEDULE").

7.2      On the date of this Agreement, the Seller represents and warrants to
         the Purchaser that the Asset Warranties are true and correct, subject
         to the qualifications and exceptions set forth in a disclosure schedule
         to be delivered to the Purchaser in writing simultaneously therewith
         (the "ASSET DISCLOSURE SCHEDULE").

7.3      At the Effective Time, the Seller represents and warrants to the
         Purchaser that the representations and warranties repeating each of the
         Signing Warranties and the Asset Warranties and updating each of them
         for new developments or additional disclosures in the case of the
         Signing Warranties since the date hereof, (the "CLOSING WARRANTIES")
         are true and correct in all material respect, subject to the
         qualifications and exceptions set forth in a disclosure schedule to be
         delivered to the Purchaser in writing simultaneously therewith (the
         "CLOSING DISCLOSURE SCHEDULE").

7.4      The Signing Warranties, the Asset Warranties and the Closing Warranties
         (together the "SELLER WARRANTIES") are qualified by the facts and
         circumstances fully and fairly disclosed in the Signing Disclosure
         Schedule, the Asset Disclosure Schedule and the Closing Disclosure
         Schedule (together the "SELLER DISCLOSURE SCHEDULES"), respectively.
         Each disclosure set forth in the Disclosure Schedules shall be
         identified by reference to, or grouped under a heading referring to, a
         clause in Schedule 1. Each such disclosure shall be deemed to be
         disclosed with respect to each such clause and to each other clause to
         which it reasonably relates.

                                       15

<PAGE>

7.5      Each Warranty is to be construed independently and (except where this
         Agreement provides otherwise) is not limited by a provision of this
         Agreement or another Warranty.

7.6      Except as otherwise specifically set forth in this Agreement, Seller
         makes no express or implied warranty of merchantability or fitness for
         a particular purpose, or any other warranty as to the condition or
         operation of any Purchased Assets.

7.7      Limitations on Liability

         7.7.1    The Seller will have no liability (for indemnification or
                  otherwise) with respect of the Seller Warranties in Part B of
                  Schedule 1 unless and until the total of any or all damages
                  due to the Purchaser with respect to Seller Warranties equals
                  or exceeds in the aggregate of Rp 3,501,534,148, in which case
                  the Seller shall be liable for the entire amount of such
                  damages; provided that in no event shall the Seller's
                  liability for damages with respect to the Purchaser exceed in
                  aggregate the Purchase Price.

8.       COVENANT OF THE SELLER

         From the date of this Agreement through the Effective Time, the Seller
         shall comply with Schedule 3.

9.       WARRANTIES OF THE PURCHASER

9.1      On the date of this Agreement, the Purchaser represents and warrants to
         the Seller that the Purchaser Warranties are true and correct, subject
         to the qualifications and exceptions set forth in the disclosure
         schedule delivered to the Seller in writing simultaneously therewith
         (the "PURCHASER DISCLOSURE SCHEDULE").

                                       16

<PAGE>

9.2      The Purchaser Warranties are qualified by the facts and circumstances
         fully and fairly disclosed in the Purchaser Disclosure Schedule. Each
         disclosure set forth in the Purchaser Disclosure Schedule shall be
         identified by reference to, or grouped under a heading referring to, a
         clause in Schedule 2. Each such disclosure shall be deemed to be
         disclosed with respect to each such clause and to each other clause to
         which it reasonably relates.

9.3      Each Purchaser Warranty is to be construed independently and (except
         where this Agreement provides otherwise) is not limited by a provision
         of this Agreement or another Warranty.

10.      MUTUAL COVENANTS

10.1     Between the date of this Agreement and the Closing, the Seller will,
         upon delivery by the Purchaser of reasonable prior written notice (i)
         afford the Purchaser and its authorised representatives reasonable
         access to all books and records in relation to the Purchased Assets;
         and (ii) permit the Purchaser to make such inspections (including
         making such investigations and assessments, as the Purchaser deems
         necessary or appropriate in its sole and absolute discretion, of the
         Purchased Assets. The Purchaser and its authorised representatives
         shall conduct all such inspections in a manner that will minimise
         disruptions to the business and operations of Telkom Mobile and the
         Seller's other businesses.

10.2     Prior to the Closing, upon the terms and subject to the conditions of
         this Agreement, the Purchaser and the Seller shall use their respective
         reasonable efforts to take, or cause to be taken, all actions, and to
         do, or cause to be done and to cooperate with each other in order to do
         so, all things necessary, proper or advisable (subject to any
         applicable laws) to consummate the Closing and the Transaction as
         promptly as practicable after receiving any necessary or desirable
         corporate approvals or other approvals (including, but not limited to
         the preparation and filing of all forms, registrations and notices
         required to be filed

                                       17

<PAGE>

         to consummate the Closing and the Transaction and the taking of such
         legal actions as are necessary to obtain any requisite Consents of any
         Governmental Entity and any other third party). In addition, no party
         hereto shall take any action after the date hereof that could
         reasonably be expected to materially delay the obtaining of, or result
         in not obtaining, any Consent from any Governmental Entity or other
         third party required to be obtained prior to the Closing.

10.3     Prior to the Closing, each party shall promptly consult with the other
         party hereto with respect to, provide any necessary information with
         respect to, and provide the other party (or its counsel) with copies
         of, all filings made by such party with any Governmental Entity or any
         other information supplied by such party to a Governmental Entity in
         connection with this Agreement and the Transaction. Each party hereto
         shall promptly provide the other parties with copies of any written
         communication received by such party from any Governmental Entity
         regarding the Transaction. If any party hereto receives a request for
         additional information or documentary material from any such
         Governmental Entity with respect to the Transaction, then such party
         shall endeavor in good faith to make, or cause to be made, as soon as
         reasonably practicable and after consultation with the other parties,
         an appropriate response in compliance with such request.

10.4     For a period of ten (10) years after the Closing Date, the Purchaser
         and the Seller shall provide each other with such reasonable assistance
         as may be requested by them in connection with the preparation of any
         Tax Return, any Tax audit or other examination by any Governmental
         Entity, or any judicial or administrative proceedings related to
         liability for Taxes. The Purchaser and the Seller shall retain and
         provide each other upon written request with records or information
         which may be relevant to such preparation, audit, examination,
         proceeding or determination. The party requesting assistance hereunder
         shall reimburse the other for reasonable out-

                                       18

<PAGE>

         of-pocket expenses incurred in providing such assistance.

10.5     In case at any time after the Closing Date any further action is
         necessary, proper or advisable to carry out the purposes of this
         Agreement, as soon as reasonably practicable, each of the Purchaser and
         the Seller shall use its reasonable efforts to take, or cause its
         directors, commissioners or other representatives to take, all such
         necessary, proper or advisable actions including, but not limited to,
         the Seller giving the Purchaser such information in the Seller's
         possession necessary in the process of registering the Purchased Assets
         required to be registered (the Purchaser to bear the cost of the
         Seller's reasonable expenses).

10.6     If any Contract, or any other instrument or arrangement cannot be
         assigned or transferred to the Purchaser except by an assignment or
         transfer made with the Consent of a third person or by a novation
         agreement:

         10.6.1   this Agreement shall not constitute an agreement to assign or
                  transfer any interest in any Contract, or other instrument or
                  arrangement, if an assignment or transfer or an attempt to
                  make such an assignment or transfer without the Consent of a
                  third party or a novation agreement would constitute a breach
                  or violation thereof, or affect adversely the rights of the
                  Purchaser or the Seller thereunder; any transfer or assignment
                  of any such Contract, or other instrument or arrangement that
                  requires the Consent of a third party or novation agreement
                  shall be made subject to such Consent or novation agreement
                  being obtained; and from the date of this Agreement to the
                  Effective Time, each party shall use reasonable efforts to
                  obtain any such Consent or novation agreement; and

         10.6.2   in the event a Contract is not transferred to the Purchaser on
                  or prior to the Closing Date, from the

                                       19

<PAGE>

                  period commencing on the Closing Date until such Contract is
                  transferred to the Purchaser, each party shall continue to use
                  reasonable efforts to obtain the third party's consent to the
                  assignment, or achieve the novation, of such Contract.

10.7     If title to any of the Purchased Assets, including the Contracts, is
         not effectively vested in the Purchaser at Closing, the parties shall
         work together in good faith to allow the Purchaser to receive the
         benefits of such Purchased Assets until that Purchased Asset has been
         effectively vested in the Purchaser.

11.      LIABILITIES AND APPORTIONMENTS

11.1     On the Closing Date, the Seller shall transfer and the Purchaser shall
         assume, become liable for and agree to pay, discharge and perform,
         subject to clause 11.2, liabilities and obligations associated with the
         Contracts (the "ASSUMED LIABILITIES").

11.2     The Purchaser shall not assume, and the Seller shall retain and
         indemnify the Purchaser against, each of the following liabilities
         pursuant to this Agreement (collectively, the "EXCLUDED LIABILITIES"):

         11.2.1   liabilities, other than Assumed Liabilities, incurred by the
                  Purchaser in connection with the Purchased Assets before the
                  Effective Time;

         11.2.2   claims, other than Assumed Liabilities, by any person
                  outstanding against the Seller before the Effective Time or
                  arising by reason of any act or omission by it before the
                  Effective Time; and

         11.2.3   all liabilities for breach of any Contract relating to the
                  period prior to the Effective Time.

11.3     The Purchaser is responsible for all liabilities incurred by it in
         connection with the Purchased Assets from and after the Effective Time,
         including, without limitation, all

                                       20

<PAGE>

         expenses owed in connection with the Purchased Assets from and after
         the Effective Time and in connection with the Employees (including,
         without limitation, wages, accrued holiday pay, bonuses and other
         expenses in respect of the Employees) from and after the date of this
         Agreement.

12.      EMPLOYEES

12.1     Subject to clause 12.2 and acceptance of the employment by the
         Employees, the parties agree that the Employees shall become employees
         of the Purchaser, subject to the following conditions:

         12.1.1   there shall be no substantial change of job position, subject
                  to performance and competence; and

         12.1.2   the minimum remuneration of an Employee shall be not less than
                  that received by that Employee at the date of this Agreement.

12.2     The matters set out in clause 12.1 shall be provided for in detail in a
         separate agreement, including the arrangements/terms regarding pensions
         and welfare.

13.      COSTS

         Except where this Agreement provides otherwise, each party shall pay
         its own costs relating to the negotiation, preparation, execution and
         performance by it of this Agreement and of each document referred to in
         it.

14.      GENERAL

14.1     An amendment to this Agreement is valid only if it is in writing and
         signed by or on behalf of each party.

14.2     The failure to exercise or delay in exercising a right or remedy
         provided by this Agreement or by law does not constitute a waiver of
         the right or remedy or a waiver of other rights or remedies. No single
         or partial exercise of a right or remedy provided by this Agreement or
         by law prevents further exercise of the right or remedy or the exercise
         of another right or remedy.

                                       21

<PAGE>

14.3     Except to the extent that they have been performed and except where
         this Agreement provides otherwise, the obligations contained in this
         Agreement remain in force after Closing.

14.4     This Agreement (i) constitutes the entire Agreement and supersedes all
         prior agreements and understandings (except the Cooperation Agreement
         provided that if there are conflicting provisions between the
         Cooperation Agreement and this Agreement the provisions of this
         Agreement shall prevail), both written and oral, between the parties
         with respect to the subject matter hereof and thereof; and (ii) not
         intended to confer any rights or remedies upon any third party other
         than the parties hereto and thereto.

14.5     Any term or provision of this Agreement that is held by a court of
         competent jurisdiction or other authority to be invalid, void or
         unenforceable in any situation in any jurisdiction shall not affect
         the validity or enforceability of the remaining terms and provisions
         hereof or the validity and enforceability of the remaining terms and
         provisions in any other situation or in any other jurisdiction. If the
         final judgment of a court of competent jurisdiction or other authority
         declares that any term or provision hereof is invalid, void or
         unenforceable, the parties agree that the court making such
         determination shall have the power to reduce the scope, duration, area
         or applicability of the term or provision, to delete specific words or
         phrases or replace any invalid, void or enforceable term or provision
         with a term or provision that is valid and enforceable and it comes
         closest to expressing the intentions of the invalid or unenforceable
         term or provision.

14.6     At any time prior to the Closing Date, either party may (i) extend the
         time for the performance of any of applications or other acts of the
         other party; (ii) waive any

                                       22

<PAGE>


         inaccuracies in the representations and warranties of the other party
         obtained in this Agreement or in any other document executed pursuant
         to this Agreement; or (iii) waive compliance by the other party of any
         of agreements or conditions contained in this Agreement. Any agreement
         on the part of the party to any such extension or waiver shall be valid
         only if set out in writing signed by or on behalf of such party. The
         failure of any party to this Agreement to assert any of its rights
         under this Agreement or otherwise shall not constitute a waiver of
         those rights.

15.      ASSIGNMENT

         Neither party may assign and transfer any of its rights or obligations
         under this Agreement without the prior written consent of the other
         party.

16.      NOTICES

16.1     A notice on other communication under or in connection with this
         Agreement (a "NOTICE") shall be:

         16.1.1   in writing; and

         16.1.2   delivered personally or sent by fax to the party due to
                  receive the Notice to the address set out in clause 16.3 or to
                  another address, person or fax number specified by that party
                  by not less than 7 days' written notice to the other party
                  received before the Notice was dispatched.

16.2     Unless there is evidence that it was received earlier, a Notice is
         deemed given if:

         16.2.1   delivered personally, when left at the address referred to in
                  clause 16.1.2; and

         16.2.2   sent by fax, when confirmation of its transmission has been
                  recorded by the sender's fax machine.

                                       23

<PAGE>

16.3     The Address referred to in clause 16.1.2 is:

<TABLE>
<CAPTION>
                                                                            MARKED
NAME OF PARTY                 ADDRESS                 FACSIMILE      FOR THE ATTENTION OF
- -----------------------------------------------------------------------------------------
<S>               <C>                               <C>              <C>
  Seller          Jl. Japati No. 1 Bandung 40133,    (022)440-313    President Director
                  Indonesia
- -----------------------------------------------------------------------------------------
  Purchaser       Graha Surya Internusa, Jl. H.R.   (021)527-2950    President Director
                  Rasuna Said Kav. X-0, Jakarta
                  12950, Indonesia
- -----------------------------------------------------------------------------------------
</TABLE>

17.      GOVERNING LAW AND ARBITRATION

17.1     This Agreement shall be governed by and construed in accordance with
         the laws of the Republic of Indonesia.

17.2     The Purchaser and the Seller agree that if any difference, dispute,
         conflict or controversy (a "DISPUTE"), arises out of or in connection
         with this Agreement or its performance, including without limitation
         any dispute regarding its existence, validity, termination of rights or
         obligations of any party hereto, the Purchaser and the Seller will
         attempt for a period of thirty (30) days after the receipt of one party
         of a written notice from the other party of the existence of the
         Dispute to settle the Dispute by amicable settlement between the
         parties.

17.3     If the Purchaser and the Seller are unable to reach agreement to settle
         the Dispute within the thirty (30) day period set forth in clause 17.2,
         then either party, may submit the Dispute to a Board of Arbitration
         under the applicable rules of the Indonesian National Board of
         Arbitration (BANI) (the "BANI RULES"). The arbitration will be
         conducted in Bahasa Indonesia in Jakarta. Notwithstanding the
         provisions of clause 16, any notice of arbitration, response or other
         communication given to or by a party to the arbitration must be given
         and deemed received as provided in the BANI Rules.

                                       24

<PAGE>


17.4     The Board of Arbitration will consist of three arbitrators appointed in
         accordance with the BANI Rules.

17.5     The Board of Arbitration appointed must conduct the arbitration in
         accordance with this Agreement, the BANI Rules and the prevailing
         Indonesian laws and regulations relating (to arbitration ("ARBITRATION
         LAWS AND REGULATIONS"). Where this Agreement, the BANI Rules, or the
         Arbitration Laws and Regulations are silent as to the conduct of the
         arbitration proceedings, the Board of Arbitration must decide as to how
         the proceedings will be conducted. The parties shall each use their
         reasonable efforts to ensure that a hearing on the merits shall be
         commenced no later than three (3) months after the appointment of the
         third arbitrator, unless the parties agree on an extension of time or
         the tribunal extends such time for good cause shown. Each of the
         parties expressly agree to waive the applicability of Article 48(1) and
         Article 73(b) of Law No. 30 of 1999 on Arbitration and Alternative
         Dispute Resolution ("ARBITRATION LAW NO. 30") and agree that the
         arbitration proceedings need not be completed within a specified time.

17.6     Other than (i) an application for pre-arbitral injunction, pre-arbitral
         attachment or other order in aid of arbitral proceedings which may be
         made by either party or (ii) after the matter has been determined by
         the Board of Arbitration as provided in this clause 17, and then only
         for the enforcement of the arbitration award, neither the Purchaser nor
         the Seller will be entitled to commence or file any action in a court
         of law relating to any Dispute.

17.7     Except as otherwise permitted in the Arbitration Laws and Regulations,
         any decision of the Board of Arbitration in any matter within this
         clause 17 will be final, binding and incontestable and may be used
         as a basis for enforcement thereon in the Republic of Indonesia or
         elsewhere. The Board of Arbitration will be entitled to include in its
         decision a determination as to the payment of the cost and expenses of
         the arbitrators, the administrative costs of the arbitration, the legal
         fees incurred by the parties, the cost and expenses of witnesses and

                                       25

<PAGE>

         all other costs and expenses necessarily incurred in the opinion of the
         Board of Arbitration in order to properly settle the Dispute. Each of
         the parties renounce its right to appeal the decision of the panel of
         arbitrators in accordance with Article 70 of the Arbitration Law No. 30
         and agrees that no party shall appeal the decision of the panel of
         arbitrators to any court.

17.8     The Purchaser and the Seller expressly agree (i) that the decisions of
         the Board of Arbitration must be made based on majority votes of the
         arbitrators, (ii) that the Board of Arbitration must state the reasons
         for its decisions in writing and must make the decisions entirely on
         the basis of applicable laws and not on the basis of the principle of
         ex aequo et bono, and (iii) that the mandate of the Board of
         Arbitration duly constituted in this Agreement will remain in effect
         until a final arbitration award has been issued by the Board of
         Arbitration.

18.      GOVERNING LANGUAGE

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

19.      COUNTERPARTS

         This Agreement may be executed in any number of counterparts, each of
         which when executed and delivered is an original and all of which
         together evidence the same agreement.

                                       26

<PAGE>

IN WITNESS WHEREOF, the duly authorized representatives of Purchaser and Seller
have executed this Agreement as of the date first written above.

PERUSAHAAN PERSEROAN (PERSERO) PT          PT TELEKOMUNIKASI SELULAR
TELEKOMUNIKASI INDONESIA TBK

                                           [STAMP]

by    : /s/ Muhammad Nazif                 by    : /s/ Mulia P. Tambunan
        ---------------------                      -----------------------
Name  : Muhammad Nazif                     Name  : Mulia P. Tambunan
Title : President Director                 Title : President Director

                                       27

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>4
<FILENAME>u92256exv4w2.txt
<DESCRIPTION>SETTLEMENT AGREEMENT, DATED JULY 31, 2003
<TEXT>
<PAGE>
                                                                     Exhibit 4.2



                              SETTLEMENT AGREEMENT

                        NO: K.TEL. 76/HK810/SEK-32/2002

                                 BY AND BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                                       AND

                           PT ARIA WEST INTERNATIONAL

                               DATED JULY 31, 2003

<PAGE>

                              SETTLEMENT AGREEMENT
                        NO: K.TEL.76/HK810/SEK-32/2002

This Settlement Agreement ("Settlement Agreement"), dated as of July 31, 2003,
is made by and between PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI
INDONESIA TBK., a limited liability company organized under the laws of the
Republic of Indonesia ("Telkom"), and PT ARIA WEST INTERNATIONAL, a limited
liability company organized under the laws of the Republic of Indonesia
("AriaWest"). Telkom and AriaWest are collectively referred to herein as
"parties" and each as a "party". Capitalized terms used but not defined herein
shall have the meaning ascribed to such terms in the KSO Agreement (defined
below) and the Sale and Purchase Agreement (defined below).

WHEREAS, Telkom and AriaWest entered into the KSO Agreement No.
PKS.222/HK.810/UTA-00/95, dated October 25, 1995, as amended and restated on
July 31, 2003 (the "KSO Agreement") for the development of a fixed-line
telecommunications network in West Java, Indonesia.

WHEREAS, Telkom and AriaWest also entered into the KSO Construction Agreement
No.PKS.222/K.810/UTA-00/95 dated October 20, 1995, the Side Agreement on the
Validity of the KSO Agreement dated October 20, 1995, the Side Agreement on
Relief of VAT dated October 26, 1995, the Agreement between Telkom and AriaWest
regarding Section 16.2 of the KSO Agreement dated October 25, 1995, the
Agreement for the Conduct of a Feasibility Study between Telkom and AriaWest
dated January 24, 1997, the Agreement on Feasibility Study between Telkom and
AriaWest dated January 28, 1997, the Statement of Agreement dated July 28, 1996,
the Memorandum of Understanding dated July 31, 1996, the Memorandum of
Understanding dated August 19, 1996, the Memorandum of Understanding dated June
5, 1998 (as to AriaWest) (the "1998 MOU"), the PTO Guarantee, the Side Letter
Regarding the Effective Date of the 1998 MOU dated August 28, 1998 (as to
AriaWest), the Undated Note of Clarification to Section 2.6 of the 1998 MOU
dated June 5, 1998 made in December

                                       2
<PAGE>

1998 (as to AriaWest), the Good Faith Interim Solutions Agreement dated
September 11, 2000, (such agreements collectively, together with any and all
other agreements between the parties with respect to the KSO Unit, the KSO
System and the KSO Project, but excluding the KSO Agreement and the License
dated October 19, 1995 (Ref: K.S. 001/3/5 MPPT-95), are hereafter referred to
as the "KSO Project Agreements").

WHEREAS, an arbitration proceeding (reference number 11 565/BWD/SPB/JNK) (the
"Arbitration Proceeding") is currently pending between Telkom and AriaWest
before the International Chamber of Commerce Court of Arbitration ("ICC").

WHEREAS, on May 16, 2001 AriaWest filed with the ICC a request for arbitration
setting forth various claims in connection with the KSO Project, the KSO
Agreement, certain of the KSO Project Agreements and the operation and
management of the KSO Unit and the KSO System and subsequent thereto AriaWest
has filed certain answers to Telkom's counterclaims and additional claims with
the arbitration tribunal (the "Arbitration Tribunal") in the Arbitration
Proceeding.

WHEREAS, on August 20, 2001 Telkom filed with the ICC an answer to AriaWest's
request for arbitration, denying any liability to AriaWest and setting forth
various counterclaims against AriaWest in connection with the KSO Project, the
KSO Agreement, certain of the KSO Project Agreements and the operation and
management of the KSO Unit and the KSO System, and subsequent thereto Telkom has
filed certain additional counterclaims with the Arbitration Tribunal in the
Arbitration Proceeding.

WHEREAS, pursuant to a Conditional Sale and Purchase Agreement, dated May 8,
2002 (the "Sale and Purchase Agreement"), as amended by the First Amendment to
Conditional Sale and Purchase Agreement dated July 31, 2003, among Telkom, PT
Aria Infotek ("Aria Infotek"), MediaOne International I, B.V. ("MediaOne") and
The Asian Infrastructure Fund ("AIF" and together

                                       3
<PAGE>

with Aria Infotek and MediaOne collectively, the "Selling Shareholders" and each
a "Selling Shareholder"), the Selling Shareholders have agreed to sell, and
Telkom has agreed to purchase, all of the issued and paid-up ordinary shares of
AriaWest owned or held by the Selling Shareholders (the "Sale Shares").

WHEREAS, pursuant to the Sale and Purchase Agreement, it is a condition
precedent to closing of the sale and purchase of the Sale Shares that Telkom and
AriaWest enter into this Settlement Agreement, and Telkom and AriaWest now
enter into this Settlement Agreement as of the Closing Date on the terms and
conditions set forth herein.

WHEREAS, in light of the foregoing and considering the costs and risks of
further litigation, the parties now enter into this Settlement Agreement to
permanently settle, resolve and put to rest with prejudice all claims and causes
of action between and among them, that were or could have been raised in the
Arbitration Proceeding or in any other proceeding that are in any way based
upon, relating to or arising out of the KSO Project, the KSO Agreement, the KSO
Project Agreements or the management and operation of the KSO Unit and the KSO
System, on the terms and conditions set forth herein.

WHEREAS, this Settlement Agreement is not an admission of guilt or liability on
the part of either party hereto and shall not be used as such. The parties
hereto nevertheless agree to the terms set forth below solely in order to
resolve the disputes between them without the costs and risks of further
litigation.

NOW THEREFORE, in consideration of the mutual covenants, representations,
warranties and agreements set forth herein, the parties hereby agree as follows:

Section 1. Payment of the Settlement Amount.

(a)      Subject to the terms and conditions set forth in this Settlement
Agreement, and in

                                       4
<PAGE>

consideration of the releases, promises and other agreements set forth herein,
Telkom shall pay US$ 20,000,000 (the "Settlement Amount") to AriaWest at the
Closing.

(b)      Telkom shall pay the Settlement Amount to AriaWest in U.S. Dollars by
wire transfer in immediately available funds to the bank account designated by
the Selling Shareholders to Telkom in writing no later than three Business Days
prior to the scheduled date of Closing. Upon receipt of the Settlement Amount,
AriaWest shall promptly deliver to Telkom a written acknowledgment thereof.

(c)      In the event Telkom is required to deduct or withhold any taxes in
respect of the payment of the Settlement Amount, AriaWest shall only be entitled
to receive from Telkom the Settlement Amount less the amount of such deduction
or withholding.

Section 2. Dismissal and Costs of the Arbitration Proceeding.

(a)      On the Closing Date, Telkom and AriaWest shall execute and submit a
joint irrevocable request to the Arbitration Tribunal in the form of Exhibit A
hereto to dismiss the Arbitration Proceeding with prejudice to the claims and
counterclaims of Telkom and AriaWest. Each of Telkom and AriaWest will use its
reasonable efforts to effect the dismissal of the Arbitration Proceeding in
accordance with such request.

(b)      Telkom and AriaWest shall share equally the administrative fees and
arbitrators' fees and expenses of the Arbitration Proceeding, but with each
party paying its own costs, including without limitation the fees of its
attorneys, advisors and experts.

Section 3. AriaWest Release.

Except as set forth in Section 5, in consideration of payment of the Settlement
Amount by Telkom and the promises and agreements set forth herein, on and from
the Closing, AriaWest, on behalf of itself and its subsidiaries, affiliates,
past and present

                                       5
<PAGE>

directors, commissioners, officers, employees and agents, and predecessors,
successors and assigns (AriaWest and such individuals and/or entities
collectively, the "AriaWest Releasing Parties"), does hereby release, remise,
resign and forever discharge Telkom and its subsidiaries, divisions, partners,
affiliates, lenders, shareholders (including without limitation the Government
of Indonesia and its ministries, agencies, officials, employees and agents),
past and present directors, commissioners, officers, employees and agents, and
predecessors, successors and assigns (Telkom and such individuals and/or
entities collectively, the "Telkom Released Parties") from any and all manner of
actions, causes of actions, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, covenants, contracts and agreements, controversies,
variances, trespasses, damages, judgments, extents, executions, claims and
demands of any nature whatsoever, in law or in equity, of every kind and
description (including, without limitation, for fraud), which the AriaWest
Releasing Parties ever had, now has, or which it or its successors and assigns
hereafter can, shall or may have against the Telkom Released Parties arising out
of or in any way connected with the facts or circumstances existing at the date
of this Settlement Agreement from the beginning of time to the date of this
Settlement Agreement, including without limitation any claim relating to or in
any way connected with any of the KSO Project, the KSO Agreement, the License,
the KSO Project Agreements, the business, operation or management of AriaWest,
the KSO Unit or the KSO System or any and all claims that are the subject of the
Arbitration Proceeding.

                                       6
<PAGE>

Section 4. Telkom Release.

Except as set forth in Section 5, in consideration of the releases, promises and
agreements set forth herein, on and from the Closing, Telkom, on behalf of
itself and its subsidiaries, divisions, affiliates, past and present directors,
commissioners, officers, employees and agents, and predecessors, successors and
assigns (Telkom and such individuals and/or entities collectively, the "Telkom
Releasing Parties"), does hereby release, remise, resign and forever discharge
AriaWest and its subsidiaries, affiliates, lenders, shareholders, past and
present directors, commissioners, officers, employees and agents, and
predecessors, successors and assigns (AriaWest and such individuals and/or
entities collectively, the "AriaWest Released Parties") from any and all manner
of actions, causes of actions, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, covenants, contracts and agreements, controversies,
variances, trespasses, damages, judgments, extents, executions, claims and
demands of any nature whatsoever, in law or in equity, of every kind and
description (including, without limitation, for fraud), which the Telkom
Releasing Parties ever had, now has, or which it or its successors and assigns
hereafter can, shall or may have against the AriaWest Released Parties arising
out of or in any way connected with the facts or circumstances existing at the
date of this Settlement Agreement from the beginning of time to the date of this
Settlement Agreement, including without limitation any claim relating to or in
any way connected with any of the KSO Project, the KSO Agreement, the License,
the KSO Project Agreements, the business, operation or management of Ariawest,
the KSO unit or the KSO System or any and all claims that are the subject of the
Arbitration Proceeding.

                                       7
<PAGE>

Section 5. Exceptions to Release.

The parties acknowledge and agree that nothing in this Settlement Agreement
releases, remises, resigns or otherwise releases or discharges any party or any
other person, including without limitation any Selling Shareholder or the
Guarantor, from any of their respective rights or obligations under the Letter
Agreement, the KSO Agreement or any of the Transaction Documents.

Section 6. Termination of KSO Project Agreements.

(a)      Subject to the terms and conditions set forth herein, and in
consideration of the releases, promises and other agreements set forth herein,
each of the parties, on behalf of itself, its parents, subsidiaries, divisions,
affiliates, past and present directors, commissioners, officers, employees, and
agents, and predecessors, successors and assigns, agrees that from the date
hereof each of the KSO Project Agreements shall terminate without notice of any
kind and cease to be of any further force or effect whatsoever.

(b)      The parties agree as soon as practicable to execute all such deeds,
agreements, documents and do all such things as may be necessary or appropriate
to give full effect to the terminations intended to be effected pursuant to
Section 6(a).

Section 7. Representations and Warranties.

Each party represents and warrants that (i) it has all requisite power and
authority to execute and deliver this Settlement Agreement and to perform its
obligations hereunder and (ii) this Settlement Agreement has been duly executed
and delivered by it and, assuming due and valid authorization, execution and
delivery by the other parties, this Settlement Agreement constitutes a legal,
valid and binding obligation upon it, enforceable against it in accordance with
its terms, except (A) as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization or other

                                       8
<PAGE>

similar laws affecting the enforcement of the other parties' rights generally
and (B) general equitable principles.

Section 8. No Admission. This Settlement Agreement is entered into solely to
resolve the dispute between the parties without the expense and risk of further
litigation. The terms of this Settlement Agreement shall not be deemed, used or
construed as evidence of any guilt or an admission on the part of any party of
any liability or wrongdoing whatsoever, or of the truth of any allegations,
claims or counterclaims asserted in the Arbitration Proceeding.

Section 9. Entire Agreement. This Settlement Agreement constitutes the entire
agreement among the parties hereto and supercedes any other agreements,
representations or warranties with respect to the subject matter hereof, whether
oral or written, between or among the parties.

Section 10. Language.

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

Section 11. Governing Law.

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

Section 12. Dispute Resolution.

(a)      Amicable Settlement. AriaWest and Telkom agree that if any difference,
dispute, claim or controversy, arises out of or in connection with this
Settlement Agreement, or any exhibits or schedules hereto, or its performance,
including without limitation any dispute regarding its breach, existence,
validity, or termination (a "Dispute"), AriaWest and Telkom will attempt, for a
period of thirty (30) days after the receipt by one

                                       9
<PAGE>

party of a written notice from the other party of the existence of the Dispute,
to settle the Dispute by settlement discussions between the parties.

(b)      Referral to Arbitration. If the Dispute is not settled for any reason
within the 30-day period set forth in Section 11(a), then at the request of any
party, the Dispute shall be finally settled by arbitration under the Rules of
Arbitration (the "ICC Rules") of the International Chamber of Commerce ("ICC")
then in effect. The arbitration will be conducted and the award will be rendered
in the English language in London, England.

(c)      Arbitral Tribunal. There shall be three arbitrators. One arbitrator
will be nominated by AriaWest and one arbitrator will be nominated by Telkom.
The third arbitrator, who shall be the chair of the arbitral tribunal, will be
nominated by the arbitrators appointed by AriaWest and Telkom within thirty (30)
days of the confirmation of the appointment of the second arbitrator, in each
case in accordance with the ICC Rules. Subject to any extension that may be
agreed to by the parties or granted by the International Court of Arbitration of
the ICC (the "ICC Court"), if any arbitrator is not timely nominated, such
arbitrator shall be appointed by the ICC Court in accordance with the ICC Rules.

(d)      Provisional Relief. Notwithstanding the parties agreement to arbitrate
as set forth herein, the parties agree that any party may apply to any competent
judicial authority for interim or conservatory measures in support of the
arbitration in accordance with Article 23 of the ICC Rules. Without prejudice to
such provisional remedies in aid of arbitration as may be available from any
competent judicial authority, the arbitral tribunal shall have full authority to
grant provisional remedies in accordance with Article 23 of the ICC Rules.

                                       10
<PAGE>

(e)      Arbitral Award. The parties expressly agree that leave to appeal under
Section 45 or Section 69 of the English Arbitration Act 1996 may not be sought
with respect to any question of law arising in the course of the arbitration or
with respect to any award made. In order to further ensure the final and binding
nature of the arbitral award, the parties expressly agree to waive any time
limits contained in the Law of the Republic of Indonesia No. 30 of 1999. The
award shall be final and binding upon the parties as from the date rendered.
Judgment upon any award may be entered in any court having jurisdiction thereof.

(f)      Consolidation. If any party hereto submits a request for arbitration
("Request") in connection with a Dispute, and an arbitration proceeding under
any Transaction Document is already pending under the ICC Rules, the ICC Court
or, if constituted, the arbitral tribunal in the pending arbitration, shall
include the claims contained in the Request in the pending proceeding
(regardless of whether the Terms of Reference have been signed), if the ICC
Court or the arbitral tribunal finds that (i) there are issues of fact or law
common to the proceedings so that a consolidated proceeding would be more
efficient than separate proceedings, and (ii) no party would be unduly
prejudiced as a result of such consolidation through undue delay or otherwise.

(g)      Agreement in Effect. Save as otherwise provided for herein, this
Settlement Agreement and the rights and obligations of the parties shall remain
in full force and effect pending the award in any arbitration proceeding
hereunder.

(h)      Binding on Successors. This arbitration agreement set forth in this
Section 12 shall be binding upon the parties, their successors and assigns.

Section 13. Counterparts.

This Settlement Agreement may be signed in any number of counterparts, all of
which when taken together shall constitute one agreement and a party may execute
this Settlement Agreement by signing any counterpart.

                                       11
<PAGE>

Section 14. No Assignment.

Neither any rights nor any obligations arising under this Settlement Agreement
may be assigned by any party to any other person without the prior written
consent of the other party hereto.

Section 15. Amendments.

No modification or restatement of or amendment or supplement to this Settlement
Agreement shall be valid or binding unless set forth in writing and duly
executed by all parties hereto.

                                       12
<PAGE>

IN WITNESS WHEREOF, the duly authorized representative of each of the parties
has executed this Settlement Agreement as of the date first written above.

PERUSAHAAN PERSEROAN(PERSERO)
PT TELEKOMUNIKASI INDONESIA

/s/ Kristiono
- --------------------------
Name: KRISTIONO
Title: President Director

PT ARIA WEST INTERNATIONAL

[STAMPED]

/s/ Yap Tjay Hing
- --------------------------
Name:  YAP TJAY HING
Title: Director
<PAGE>

                                    EXHIBIT A

                JOINT IRREVOCABLE REQUEST TO ARBITRATION TRIBUNAL

                             NO. 11 565/BWD/SPB/JNK

                        INTERNATIONAL CHAMBER OF COMMERCE
                       INTERNATIONAL COURT OF ARBITRATION

                   -------------------------------------------
                           PT ARIA WEST INTERNATIONAL,

                                                Claimant and Counter-Respondent,

                                      -v-

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                              Respondent and Counter-Claimant.

                   -------------------------------------------

                 JOINT REQUEST OF PT ARIA WEST INTERNATIONAL AND
                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA, TBK.
                TO WITHDRAW ARBITRATION CLAIMS AND COUNTERCLAIMS

                   -------------------------------------------

Kim M. Rooney                           Dana H. Freyer
White & Case LLP                        Angela G. Garcia
9th Floor, Gloucester Tower             Skadden, Arps, Slate,
11 Pedder Street, Central                   Meagher & Flom LLP
Hong Kong                               Four Times Square
                                        New York, NY 10036

- -and-                                   Counsel for Respondent and
                                        Counter-Claimant
Stephen Bond
White & Case LLP
11, Boulevard de la Madeleine
75001 Paris

Counsel for Claimant and Counter-
Respondent

<PAGE>

         1.       Through their undersigned counsel, Claimant and Counter-
Respondent PT Aria West International ("AriaWest") and Respondent and
Counter-Claimant Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, TBK
("Telkom"), having now settled their dispute and having agreed to withdraw this
arbitration and all claims and counterclaims asserted herein, hereby request
that this arbitration and all claims and counterclaims which the parties have
asserted herein be withdrawn.

         2.       Telkom and AriaWest have further agreed to share and pay on
an equal basis the administrative fees, arbitrators' fees and expenses of the
arbitration proceeding, except that each party shall be responsible for, and
shall pay, its own fees, costs and expenses which have arisen in the arbitration
proceeding, including, without limitation, the fees, costs and expenses of its
own attorneys, advisors and experts.

                                       2
<PAGE>

Dated: July 31,2003                     Respectfully submitted,

________________________________          ________________________________
Kim M. Rooney                             Dana H. Freyer
White & case LLP                          Angela G. Garcia
9th Floor, Gloucester Tower               Skadden, Arps, Slate,
11 Pedder Street, Central                 Meagher & Flom LLP
Hong Kong                                 Four Times Square
Tel: (852) 2822 8700                      New York, NY 10036
                                          Tel: (1)212 735 3000
- -and-

Stephen Bond                              Counsel for Respondent and
White & Case LLP                          Counter-Claimant
11, Boulevard De La Madeleine             Perusahaan Perseroan
75001 Paris                               (Persero) PT Telekomunikasi
Tel: (331)55041515                        Indonesia, Tbk.

Counsel for Claimant
and Counter-Respondent
PT Aria West International

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>5
<FILENAME>u92256exv4w3.txt
<DESCRIPTION>CREDIT AGREEMENT, DATED JULY 31, 2003
<TEXT>
<PAGE>
                                                                     Exhibit 4.3



                                                           EXECUTION COUNTERPART

================================================================================

                                CREDIT AGREEMENT

                        NO : K.TEL.167/HK950/SEK-20/2003

                                   dated as of

                                  July 31, 2003

                                      among

        PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK.,

                            The LENDERS Party Hereto

                                       and

                     JPMORGAN CHASE BANK, HONG KONG OFFICE,
                                as Facility Agent

                               -------------------

                                US$196,970,274.71

                               -------------------

================================================================================

                       MILBANK, TWEED, HADLEY & MCCLOY LLP

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                     Page
                                                                                                     ----
<S>                                                                                                  <C>
ARTICLE I DEFINITIONS..............................................................................    2

         SECTION 1.01.  Defined Terms..............................................................    2
         SECTION 1.02.  Terms Generally............................................................    9
         SECTION 1.03.  Accounting Terms; GAAP.....................................................    9

ARTICLE II THE CREDITS.............................................................................    9

         SECTION 2.01.  The Loan...................................................................    9
         SECTION 2.02.  Repayment of Loan; Evidence of Debt........................................    9
         SECTION 2.03.  Prepayment of Loan.........................................................   10
         SECTION 2.04.  Fees.......................................................................   11
         SECTION 2.05.  Interest...................................................................   11
         SECTION 2.06.  Taxes......................................................................   12
         SECTION 2.07.  Payments Generally; Pro Rata Treatment; Sharing of Set-offs................   13
         SECTION 2.08.  Increased Costs............................................................   15
         SECTION 2.09.  Illegality.................................................................   16
         SECTION 2.10.  Designation of a Different Lending Office; Replacement of Lenders..........   16
         SECTION 2.11.  Break Funding Payments.....................................................   17

ARTICLE III REPRESENTATIONS AND WARRANTIES.........................................................   17

         SECTION 3.01.  Organization; Powers.......................................................   17
         SECTION 3.02.  Authorization; Enforceability..............................................   17
         SECTION 3.03.  Governmental Approvals; No Conflicts.......................................   18
         SECTION 3.04.  Financial Condition........................................................   18
         SECTION 3.05.  Properties.................................................................   18
         SECTION 3.06.  Actions, Suits and Proceedings.............................................   19
         SECTION 3.07.  Compliance with Laws and Agreements........................................   19
         SECTION 3.08.  Taxes......................................................................   19
         SECTION 3.09.  Disclosure.................................................................   19
         SECTION 3.10.  Legal Form.................................................................   19
         SECTION 3.11.  Ranking....................................................................   19
         SECTION 3.12.  Commercial Activity; Absence of Immunity...................................   19
         SECTION 3.13.  Solvency...................................................................   20
         SECTION 3.14.  Telkomsel..................................................................   20

ARTICLE IV CONDITIONS PRECEDENT TO EFFECTIVE DATE..................................................   20

ARTICLE V AFFIRMATIVE COVENANTS....................................................................   22

         SECTION 5.01.  Financial Statements and Other Information.................................   22
         SECTION 5.02.  Notices of Material Events.................................................   23
         SECTION 5.03.  Existence; Conduct of Business.............................................   24
         SECTION 5.04.  Payment of Obligations.....................................................   24
         SECTION 5.05.  Maintenance of Properties; Insurance.......................................   24
</TABLE>

                                      - i -

<PAGE>

<TABLE>
<CAPTION>
                                                                                                     Page
                                                                                                     ----
<S>                                                                                                  <C>
         SECTION 5.06.  Books and Records; Inspection Rights.......................................   24
         SECTION 5.07.  Compliance with Laws.......................................................   24
         SECTION 5.08.  Governmental Approvals.....................................................   25
         SECTION 5.09.  Credit Rating..............................................................   25
         SECTION 5.10.  Filings....................................................................   25
         SECTION 5.11.  Listing....................................................................   25
         SECTION 5.12.  Compliance.................................................................   26
         SECTION 5.13.  Ranking with Other Creditors...............................................   26
         SECTION 5.14.  Lines of Business..........................................................   26

ARTICLE VI NEGATIVE COVENANTS......................................................................   26

         SECTION 6.01.  Limitation on Fundamental Changes and Sale of Assets.......................   26
         SECTION 6.02.  Transaction with Affiliates................................................   26

ARTICLE VII EVENTS OF DEFAULT......................................................................   26

ARTICLE VIII THE FACILITY AGENT....................................................................   29

         SECTION 8.01.  Appointment................................................................   29
         SECTION 8.02.  Rights as a Lender.........................................................   29
         SECTION 8.03.  Limitation on Duties.......................................................   29
         SECTION 8.04.  Reliance by Agent..........................................................   30
         SECTION 8.05.  Sub-Agents.................................................................   30
         SECTION 8.06.  Resignation................................................................   31
         SECTION 8.07.  Reliance by Lenders........................................................   31
         SECTION 8.08.  Legal Restrictions.........................................................   31
         SECTION 8.09.  Information................................................................   31
         SECTION 8.10.  Application of Proceeds....................................................   31
         SECTION 8.11.  Directions.................................................................   32
         SECTION 8.12.  Affiliates.................................................................   32
         SECTION 8.13.  Banking Business...........................................................   32
         SECTION 8.14.  Defaults...................................................................   33
         SECTION 8.15.  Failure to Act.............................................................   33
         SECTION 8.16.  Call Option and Escrow Agreement...........................................   33

ARTICLE IX MISCELLANEOUS...........................................................................   33

         SECTION 9.01.  Notices....................................................................   33
         SECTION 9.02.  Waivers; Amendments........................................................   34
         SECTION 9.03.  Expenses; Indemnity; Damage Waiver.........................................   35
         SECTION 9.04.  Successors and Assigns.....................................................   36
         SECTION 9.05.  Survival...................................................................   38
         SECTION 9.06.  Counterparts; Integration; Effectiveness...................................   38
         SECTION 9.07.  Severability...............................................................   39
         SECTION 9.08.  Right of Set-off...........................................................   39
         SECTION 9.09.  Governing Law; Jurisdiction; Service of Process; Etc. .....................   39
         SECTION 9.10.  Waiver of Jury Trial.......................................................   40
</TABLE>

                                     - ii -

<PAGE>

<TABLE>
<CAPTION>
                                                                                                     Page
                                                                                                     ----
<S>                                                                                                  <C>
         SECTION 9.11.  No Immunity................................................................   40
         SECTION 9.12.  Judgment Currency..........................................................   40
         SECTION 9.13.  Use of English Language....................................................   41
         SECTION 9.14.  Headings...................................................................   41
         SECTION 9.15.  Confidentiality............................................................   42

SCHEDULE I              -    Principal Amount
SCHEDULE II             -    Treaty Countries
EXHIBIT A               -    Form of Assignment and Acceptance
EXHIBIT B               -    Form of Process Agent Acceptance
</TABLE>

                                     - iii -

<PAGE>

                  This CREDIT AGREEMENT (this "AGREEMENT") dated as of July 31,
2003, is entered into by and between PERUSAHAAN PERSEROAN (PERSERO) PT
TELEKOMUNIKASI INDONESIA, TBK., a limited liability company organized under the
laws of the Republic of Indonesia, the LENDERS party hereto, and JPMORGAN CHASE
BANK, Hong Kong Office, as Facility Agent.

                                    RECITALS

1.       AWI and the Borrower have entered into a KSO Agreement No. PKS
         222/HK.810/UTA-00/95 dated October 20, 1995 to develop, construct and
         operate fixed line telecommunications facilities in the Regional
         Division III West Java operating area of Indonesia (the "PROJECT");

2.       Pursuant to the Amendment and Restatement dated as of May 12, 1999 of
         the Credit Facility Agreement dated as of April 30, 1996 among AWIF, as
         borrower, AWI, as guarantor, the Lenders and other parties referred to
         therein (the "ARIA WEST CREDIT AGREEMENT"), the Lenders have provided
         various financing arrangements to AWI and AWIF to enable AWI to
         undertake the Project;

3.       The Borrower has agreed to purchase all of the issued and outstanding
         shares of AWI, being 2,704,444 ordinary shares of nominal value Rp.
         114,000 per share, (the "SHARES") from the Selling Shareholders
         pursuant to a Conditional Sale and Purchase Agreement No:
         K.Tel.76/HK810/SEK-32/2002 dated May 8, 2002 and as amended pursuant to
         The First Amendment to the Conditional Sale and Purchase Agreement
         dated as of July 31, 2003 (the "PURCHASE AGREEMENT");

4.       In order to help facilitate the repayment of the Aria West Credit
         Agreement and such other financing agreements entered into in relation
         to the Aria West Credit Agreement, the Borrower and the Lenders are
         willing to enter into this Agreement on the terms and conditions set
         forth herein and the other Basic Documents on the terms and conditions
         set forth therein.

                                    AGREEMENT

                  NOW THEREFORE in consideration of the mutual representations,
warranties, promises, covenants and agreements set forth herein, the receipt and
adequacy of which are hereby acknowledged, intending to be legally bound hereby,
the Borrower and the Lenders agree as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:

                  "AFFILIATE" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

                  "AGENCY AGREEMENT" means the agency agreement dated as of July
31, 2003 among the Borrower, the Selling Shareholders and Bank of New York, as
Agent.

                  "APPLICABLE RATE" means 3.5% per annum.

                  "ARIAWEST RELEASE AGREEMENT" means the release agreement dated
as of July 31, 2003 between AWI, AWIF, the lenders party thereto and CIBC Asia
Limited, as existing facility agent and JPMorgan Chase Bank, as existing
collateral agent under the AriaWest Credit Agreement.

                  "ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Facility Agent, in
the form of Exhibit A or any other form approved by the Facility Agent.

                  "AWI" means PT AriaWest International, a limited liability
company organized under the laws of Indonesia.

                  "AWIF" means Aria West International Finance B.V., a closed
company with limited liability duly organized and validly existing under the
laws of The Netherlands, having its corporate seat in Amsterdam.

                  "BAPEPAM" has the meaning assigned to such term in Section
3.04(a).

                  "BASIC DOCUMENTS" means, collectively, this Agreement, the
Promissory Notes, the Call Option and Escrow Agreement and the AriaWest Release
Agreement.

                  "BORROWER" means Perusahaan Perseroan (Persero) PT
Telekomunikasi Indonesia, Tbk., a limited liability company organized under the
laws of the Republic of Indonesia, which for the avoidance of doubt includes all
its divisions and any interest it may have in any Kerjasama Operasi (KSO) units.

                  "BUSINESS DAY" means any day that is not a Saturday, Sunday or
other day on which commercial banks in Jakarta, Hong Kong or New York City are
authorized or required by law to remain closed.

                                      - 2 -

<PAGE>

                  "CALL OPTION AND ESCROW AGREEMENT" means the Call Option and
Escrow Agreement dated as of July 31, 2003 between the Selling Shareholders, the
Lenders, the Facility Agent and the Escrow Agent.

                  "CAPITAL LEASE OBLIGATIONS" of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

                  "CHANGE IN LAW" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement, (c) compliance by any Lender with
any request, guideline or directive (whether or not having the force of law, if
the jurisdiction of the applicable lending office of such Lender is set forth in
Schedule II) of any Governmental Authority made or issued after the date of this
Agreement, or (d) compliance by any Lender with a lending office not set forth
in Schedule II with any request, guideline or directive of any Governmental
Authority made or issued after the date of this Agreement (not having the force
of law) which is being generally complied with by financial institutions in the
relevant jurisdiction.

                  "COMMON AGREEMENT" means the Amendment and Restatement dated
as of May 12, 1999 of the Common Agreement dated as of April 30, 1996 among
AWIF, as borrower, AWI, as guarantor, the lenders party thereto, CIBC Asia
Limited, as facility agent and intercreditor agent, Credit Lyonnais S.A., as
technical agent and JPMorgan Chase Bank (formerly The Chase Manhattan Bank), as
collateral agent.

                  "CONTROL" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or
otherwise. "CONTROLLING" and "CONTROLLED" have meanings correlative thereto.

                  "DEFAULT" means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

                  "DEFAULT INTEREST PERIOD" means, at any time after a Default
has occurred and is continuing, each successive period as the Facility Agent
shall from time to time (with the approval of the Required Lenders) choose;
provided that (a) no such period shall exceed three months, (b) the first such
period shall commence as of the date on which such principal or other amount
became due and is not paid in accordance herewith and each succeeding period
shall commence upon the expiry of the immediately preceding period and (c) in
the absence of or pending such consent from the Required Lenders, each Default
Interest Period shall have a duration of one month.

                  "DOCUMENTATION BANK" means JPMorgan Chase Bank.

                  "DOLLARS" OR "$" means the lawful currency of the United
States of America.

                                     - 3 -

<PAGE>

                  "EFFECTIVE DATE" means the date on which the conditions
specified in Article IV are satisfied (or waived in accordance with Section
9.02).

                  "ELIGIBLE ASSIGNEE" means any Person other than (a) a Person
who does not ordinarily buy and sell financial instruments of this nature, (b) a
telecommunications operator or (c) employees or management of the Borrower and
its Subsidiaries.

                  "ENVIRONMENTAL LAWS" means all laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

                  "ESCROW AGENT" means The Bank of New York, as Escrow Agent
pursuant to the Call Option and Escrow Agreement.

                  "EVENTS OF DEFAULT" has the meaning assigned to such term in
Article VII.

                  "EXCLUDED TAXES" means, with respect to the Facility Agent,
any Lender or any other recipient of any payment to be made by or on account of
any obligation of the Borrower hereunder, (a) income tax, capital gains tax or
franchise tax, or similar tax imposed generally on the income or gains of the
Facility Agent, such Lender or such other recipient of any payment to be made by
or on account of any obligation of the Borrower hereunder, as the case may be,
by the jurisdiction in which the Facility Agent or such other recipient of any
payment to be made by or on account of any obligation of the Borrower hereunder,
as the case may be, is located or such Lender's applicable lending office, as
applicable, is located, (b) any branch profits tax or similar tax imposed on the
Facility Agent or such other recipient of any payment to be made by or on
account of any obligation of the Borrower hereunder, as the case may be, by the
jurisdiction in which the Facility Agent or such recipient is located or imposed
on any Lender by the jurisdiction in which the applicable Lender's lending
office is located, as applicable and (c) to the extent any withholding tax is
imposed in excess of 10% of the relevant payment amount as a result of any
Lender's failure to comply with the requirements of Section 2.06(e).

                  "FACILITY AGENT" means JPMorgan Chase Bank, Hong Kong Office,
in its capacity as facility agent for the Lenders hereunder.

                  "FEE LETTER" means the fee letter agreement dated July 16,
2003 between the Borrower and the Facility Agent.

                  "FINANCIAL OFFICER" means the chief financial officer,
principal accounting officer, treasurer or controller of the Borrower.

                  "FOREIGN LENDER" means any Lender that is organized under the
laws of a jurisdiction other than Indonesia.

                  "GAAP" means generally accepted accounting principles in
Indonesia.

                                     - 4 -

<PAGE>

                  "GOVERNMENTAL AUTHORITY" means the government of Indonesia, or
of any other nation, or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity (including any federal or other association of or
with which any such nation may be a member or associated) exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

                  "GUARANTEE" of or by any Person (the "GUARANTOR") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "PRIMARY OBLIGOR") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.

                  "HAZARDOUS MATERIALS" means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

                  "INDEBTEDNESS" of any Person means, without duplication, (a)
all obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person upon which interest charges are customarily paid, (d)
all obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (e) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of
business), (f) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on property owned or acquired by such Person, whether or not the
Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person
of Indebtedness of others, (h) all Capital Lease Obligations of such Person as
lessee, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty and (j)
all obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

                                     - 5 -

<PAGE>

                  "INDEMNIFIED TAXES" means Taxes (other than Excluded Taxes) on
or with respect to any payment by or on account of any obligation of the
Borrower hereunder.

                  "INDONESIA" means the Republic of Indonesia and its
territorial waters.

                  "INTEREST PERIOD" means the period commencing on, in respect
of the first Interest Period, the Effective Date, and ending on the Payment Date
following the Effective Date and, for each subsequent Interest Period,
commencing on the last day of the preceding Interest Period, and ending on the
next Payment Date; provided that (i) if any Interest Period would end on a day
other than a Business Day, such Interest Period shall end on the immediately
preceding Business Day and (ii) notwithstanding the foregoing, if any Interest
Period would otherwise end after the Maturity Date, such Interest Period shall
end on the Maturity Date.

                  "LENDERS" means the Persons listed on Schedule I and any other
Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Acceptance.

                  "LIBO RATE" means, with respect to the then outstanding
principal amount of the Loan for any Interest Period (or for any Default
Interest Period for any principal of any Loan or any other amount under this
Agreement), the rate appearing on LIBOR01 page of the Reuters screen (or on any
successor or substitute page of such service, or any successor to or substitute
for such service, providing rate quotations comparable to those currently
provided on such page of such service, as determined by the Facility Agent from
time to time for purposes of providing quotations of interest rates applicable
to Dollar deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two London Banking Days prior to the commencement of such Interest
Period (or Default Interest Period), as the rate for Dollar deposits of an
amount comparable to the then outstanding principal amount of the Loan with a
maturity term comparable to such Interest Period (or Default Interest Period).
In the event that such rate is not available at such time for any reason, then,
the LIBO Rate with respect to such Loan for such Interest Period (or Default
Interest Period) shall be the arithmetic average of the rates (rounded upwards,
if necessary, to the next 1/16 of 1%) at which Dollar deposits in an amount
comparable to the then outstanding principal amount of the Loan to be made by
the respective Reference Lenders for such Interest Period and for a maturity
comparable to such Interest Period (or Default Interest Period) are offered by
the principal London office of the respective Reference Lenders in immediately
available funds in the London interbank market at approximately 11:00 a.m.,
London time, two London Banking Days prior to the commencement of such Interest
Period (or Default Interest Period). If any Reference Lender does not timely
furnish the information required for determination of any LIBO Rate, the
Facility Agent shall determine such LIBO Rate on the basis of the information
timely furnished by the remaining Reference Lenders.

                  "LIEN" means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, fiduciary security,
charge or security interest in, on or of such asset, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in the
case of securities, any purchase option, call or similar right of a third party
with respect to such securities.

                                     - 6 -

<PAGE>

                  "LOAN" means the loans made by the Lenders to the Borrower
pursuant to this Agreement.

                  "LONDON BANKING DAY" means, in relation to any day for which
an interest rate is to be determined, any day that is not a Saturday, Sunday or
other day on which commercial banks in London are authorized or required by law
to remain closed; provided that "London Banking Day" shall also exclude any day
on which banks are not open for dealings in Dollar deposits in the London
interbank market.

                  "MATERIAL ADVERSE EFFECT" means a material adverse effect on
(a) the business, assets, operations, or financial condition of the Borrower and
its Material Subsidiary taken as a whole, (b) the ability of the Borrower to
perform any of its obligations under any of the Basic Documents to which it is a
party or (c) the rights of or benefits available to the Lenders under this
Agreement.

                  "MATERIAL SUBSIDIARY" means PT Telekomunikasi Selular so long
as the Borrower or any of its Subsidiaries directly or indirectly owns more than
50% of its issued and outstanding shares and at all other times, there shall be
no Material Subsidiary.

                  "MATURITY DATE" means June 30, 2007.

                  "NOTEHOLDERS" has the meaning assigned to such term in the
Call Option and Escrow Agreement.

                  "OTHER TAXES" means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies (other than Excluded Taxes) arising from any payment made hereunder or
from the execution, delivery or enforcement of, or otherwise with respect to,
this Agreement.

                  "PAYMENT DATE" means each June 30 and December 31 from the
date hereof (but not including the date hereof) through and including the
Maturity Date; provided, that if such day is not a Business Day then the
immediately preceding Business Day.

                  "PERSON" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.

                  "PROCESS AGENT" has the meaning assigned to such term in
Section 9.09(c).

                  "PROCESS AGENT ACCEPTANCE" means a letter from the Process
Agent to the Facility Agent, substantially in the form of Exhibit B.

                  "PROMISSORY NOTES" means collectively, the Tranche A
Promissory Notes and the Tranche B Promissory Notes.

                  "PROPERTY" of any Person means any property, assets or
revenues of such Person or any interest therein.

                                     - 7 -

<PAGE>

                  "REFERENCE LENDERS" means the principal London offices of
JPMorgan Chase Bank, Deutsche Bank and BNP Paribas (or their respective
applicable lending offices, as the case may be).

                  "REGISTER" has the meaning set forth in Section 9.04(c).

                  "RELATED PARTIES" means, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

                  "REQUIRED LENDERS" means, at any time, Lenders holding at
least 66 2/3% of the aggregate principal amount of the then total outstanding
amount of the Loan.

                  "SEC" means the Securities and Exchange Commission of the
United States of America.

                  "SELLING SHAREHOLDERS" means collectively, PT Aria Infotek, a
limited liability company organized under the laws of Indonesia, Mediaone
International I B.V., a private limited company incorporated under the laws of
the Netherlands and The Asian Infrastructure Fund, an exempted limited duration
company organized under the laws of the Cayman Islands (each, a "SELLING
SHAREHOLDER").

                  "SHAREHOLDERS RELEASE AGREEMENT" means the release agreement
dated as of July 31, 2003 between the Selling Shareholders, the lenders party
thereto and CIBC Asia Limited, as existing facility agent and JPMorgan Chase
Bank, as existing collateral agent under the AriaWest Credit Agreement.

                  "SUBSIDIARY" means, with respect to any Person (the "PARENT")
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of
such date, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent. Unless
otherwise specified, "SUBSIDIARY" means a Subsidiary of the Borrower.

                  "TAXES" means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

                  "TRANCHE A PROMISSORY NOTES" means collectively, the Series II
promissory notes dated July 31, 2003 with a maturity date of July 31, 2008
issued by the Borrower pursuant to the Purchase Agreement which were transferred
by the Selling Shareholders to the Noteholders pursuant to the Shareholders
Release Agreement.

                                     - 8 -

<PAGE>

                  "TRANCHE B PROMISSORY NOTES" means collectively, the Series II
promissory notes dated July 31, 2003 with a maturity date of January 31, 2009
issued by the Borrower pursuant to the Purchase Agreement which were transferred
by the Selling Shareholders to the Noteholders pursuant to the Shareholders
Release Agreement.

                  "TRANSACTIONS" means the execution, delivery and performance
by the Borrower of this Agreement and the other Basic Documents to which it is a
party.

                  SECTION 1.02. Terms Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words "asset" and "property" shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

                  SECTION 1.03. Accounting Terms; GAAP. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time.

                                   ARTICLE II

                                   THE CREDITS

                  SECTION 2.01. The Loan. Each Lender agrees on the terms and
conditions set forth herein to lend to the Borrower on the Effective Date the
amount set forth opposite such Lender's name in Schedule I. The Borrower agrees
that the Loan has been fully drawn on the Effective Date. The Borrower and each
Lender confirm that the outstanding principal amount of the Loan owing to such
Lender on the Effective Date is correctly set forth in Schedule I . Amounts
prepaid or repaid in respect of the Loan may not be reborrowed.

                  SECTION 2.02. Repayment of Loan; Evidence of Debt.

                                     - 9 -

<PAGE>

                  (a)      Repayment. The Borrower hereby unconditionally and
irrevocably promises to pay to the Facility Agent for account of the Lenders the
amount set forth next to each Payment Date on such Payment Date, as set forth
below:

<TABLE>
<CAPTION>
                                            Principal Amount
Payment Date                                 Amount of Loan
- ------------                                ----------------
<S>                                         <C>
December 31, 2003                            $24,655,151.30
June 30, 2004                                $24,655,151.30
December 31, 2004                            $24,655,151.30
June 30, 2005                                $24,655,151.30
December 31, 2005                            $24,655,151.30
June 30, 2006                                $24,655,151.30
December 31, 2006                            $24,655,151.30
Maturity Date                                $24,384,215.58
</TABLE>

                  (b)      Maintenance of Records by the Facility Agent. The
Facility Agent shall maintain records in which it shall record (i) the amount of
the Loan made hereunder, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Facility Agent hereunder for
account of the Lenders and each Lender's share thereof.

                  (c)      Effect of Entries. The entries made in the records
maintained pursuant to paragraph (b) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein;
provided that the failure of the Facility Agent to maintain such records or any
error therein shall not in any manner affect the obligation of the Borrower to
repay the Loan in accordance with the terms of this Agreement.

                  SECTION 2.03. Prepayment of Loan.

                  (a)      Right to Prepay Borrowings. The Borrower shall have
the right at any time and from time to time to prepay the Loan in whole or in
part without premium or penalty, subject to the requirements of this Section.
Any prepayment of the Loan pursuant to this Section shall be applied to the
installments thereof in the inverse order of maturity.

                  (b)      Notices, Etc. The Borrower shall notify the Facility
Agent of any prepayment hereunder not later than 11:00 a.m., Jakarta time, 10
Business Days before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of
the Loan to be prepaid. Promptly following receipt of any such notice relating
to the Loan, the Facility Agent shall advise the Lenders of the contents
thereof. Each partial prepayment of the Loan shall be in an amount of not less
than $5,000,000 and in multiples of $1,000,000 in excess thereof (or if less,
the amount then outstanding on the Loan), in each case in the aggregate for all
Lenders. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.05. If such payment date is not a Payment Date, the
Borrower shall pay to the Lenders the break funding payments pursuant to Section
2.11.

                                     - 10 -

<PAGE>

                  SECTION 2.04. Fees.

                  (a)      Facility Agent Fees. The Borrower agrees to pay to
the Facility Agent, for its own account, fees payable in the amounts and at the
times separately agreed upon between the Borrower and the Facility Agent as set
forth in the Fee Letter.

                  (b)      Payment of Fees. All fees payable hereunder shall be
paid on the dates due, in immediately available funds, to the Facility Agent for
distribution. Fees paid shall not be refundable under any circumstances.

                  SECTION 2.05. Interest.

                  (a)      Loan. Unpaid principal amounts under the Loan shall
bear interest at a rate per annum equal to the LIBO Rate plus the Applicable
Rate.

                  (b)      Default Interest. Notwithstanding the foregoing, if
any principal of or interest on any Loan or any fee or other amount payable by
the Borrower hereunder is not paid when due (including during any grace period),
whether at stated maturity, upon acceleration or otherwise, such overdue amount
shall bear interest, after as well as before judgment, at a rate per annum equal
to 2% plus the rate applicable to the Loan as provided in paragraph (a) of this
Section.

                  (c)      Payment of Interest. Accrued interest on the Loan
shall be payable in arrears on each Payment Date; provided that interest accrued
pursuant to paragraph (b) of this Section shall be payable on demand.

                  (d)      Computation. All interest hereunder shall be computed
on the basis of a year of 360 days, and shall be payable for the actual number
of days elapsed (including the first day but excluding the last day of an
Interest Period or Default Interest Period, as the case may be). The applicable
LIBO Rate shall be determined by the Facility Agent, and such determination
shall be conclusive absent manifest error. At the request of the Borrower, the
Facility Agent shall deliver to the Borrower a statement setting forth the
quotations and calculations methods used by the Facility Agent to determine any
interest payable pursuant to this Section.

                  (e)      Alternate LIBO Rate of Interest. If before the
commencement of any Interest Period:

                           (i)      the Facility Agent, after consultation with
         the Reference Lenders determines (which determination shall be
         conclusive in the absence of manifest error) that adequate and
         reasonable means do not exist for ascertaining the LIBO Rate for such
         Interest Period due to non-availability of the Reuters Services or
         non-availability of any quote from the Reference Lenders; or

                           (ii)     the Facility Agent is advised by the
         Required Lenders that the LIBO Rate for such Interest Period will not
         adequately and fairly cover the cost to such Lenders of maintaining
         their Loan for such Interest Period;

                                     - 11 -

<PAGE>

then, the Facility Agent shall forthwith furnish a notice (a "DETERMINATION
NOTICE") to the Borrower and each of the Lenders specifying the circumstances
therefor. During the period of 10 days after a Determination Notice has been
furnished by the Facility Agent, the affected Lenders shall enter into good
faith negotiations with the Borrower with a view of establishing a satisfactory
alternative basis for computing interest on the then outstanding amount of the
Loan of the affected Lenders for the Interest Period to which the Determination
Notice relates (the "AFFECTED INTEREST PERIOD"). If the affected Lenders and the
Borrower agree in writing upon such alternative basis on or before the 30th day
after the Determination Notice, interest shall accrue, and be payable by the
Borrower, on the then outstanding amount of the Loan of the affected Lenders
during the Affected Interest Period in accordance with the alternative basis. If
the affected Lenders and the Borrower fail to agree on such alternative basis on
or before such 30th day, within five Business Days thereafter, the affected
Lenders shall give notice to the Borrower of the rate of interest the affected
Lenders determine is the sum of the Applicable Rate and the effective cost
(expressed as an annual rate) to the affected Lenders of funding their Loan for
the Affected Interest Period, and interest shall accrue, and be payable by the
Borrower, on the then outstanding amount of the Loan of the affected Lenders
during the Affected Interest Period at the rate set forth in that notice. While
any such alternative basis is in force, if the affected Lenders and the Borrower
determine that the alternative basis is no longer be necessary, they shall
notify the Facility Agent and the interest rates on the affected Loan shall be
calculated in accordance with Section 2.05(a).

                  SECTION 2.06. Taxes.

                  (a)      Payments Free of Taxes. Any and all payments by or on
account of any obligation of the Borrower hereunder shall be made free and clear
of and without deduction for any Indemnified Taxes or Other Taxes; provided that
if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes
from such payments, then (i) the sum payable shall be increased as necessary so
that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Facility Agent or Lender (as the
case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrower shall make such deductions and
(iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law; provided further, that
if a Lender has designated a lending office for funding or booking its Loan
which is not located in a country listed in Schedule II, then for so long as it
continues to designate such lending office for booking its Loan, the Borrower's
obligation to pay such additional sum to such Lender under this Section 2.06(a)
shall, solely with respect to payments in connection with any withholding tax
obligation, be an amount equal to not more than 10% of the payment amount which
such Lender would have received had no such withholding been required.

                  (b)      Payment of Other Taxes by the Borrower. In addition,
the Borrower shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

                                     - 12 -

<PAGE>

                  (c)      Indemnification by the Borrower. The Borrower shall
indemnify the Facility Agent and each Lender, within 10 days after written
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Facility Agent
or such Lender, as the case may be, and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender, or by the Facility
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.

                  (d)      Evidence of Payments. As soon as practicable after
any payment of Indemnified Taxes or Other Taxes by the Borrower to a
Governmental Authority, the Borrower shall deliver to the Facility Agent the
original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Facility Agent.

                  (e)      Each Lender will provide a certificate to the
Borrower stating the jurisdiction in which it is a taxable entity, as may be
reasonably requested from time to time by the Borrower in writing reasonably in
advance of the relevant Payment Date for the purpose of enabling payments to be
made without withholding or at a reduced rate; provided, that the Borrower's
obligation to pay additional amounts pursuant to this Section 2.06 in respect of
withholding taxes shall be limited to a maximum of 10% of the relevant payment
amount for such Lender in the event that such Lender shall fail to deliver such
a certificate.

                  SECTION 2.07. Payments Generally; Pro Rata Treatment; Sharing
of Set-offs.

                  (a)      Payments by the Borrower. The Borrower shall make
each payment required to be made by it hereunder (whether of principal, interest
or fees, or under Section 2.06, or otherwise) prior to 9:30 a.m., Jakarta time,
on the date when due, in immediately available funds, without set-off or
counterclaim and the Facility Agent shall receive from the Borrower a copy of
the executed payment evidence from the Borrower's remitting bank (such as SWIFT
MT 103 or MT 202) prior to 11:00 a.m. Jakarta time on such date. Any amounts
received after such time on any date may, in the discretion of the Facility
Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to
account no. 001-0-959229, maintained by the Facility Agent at JPMorgan Chase
Bank in New York, New York, U.S.A., except payments pursuant to Sections 2.08
and 9.03, which shall be made directly to the Persons entitled thereto. The
Facility Agent shall distribute any such payments received by it for account of
any other Person to the appropriate recipient promptly following receipt
thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be the immediately preceding Business Day, and
such reduction of time shall in each case be included and reflected in the
computation of interest and other fees and amounts payable under this Agreement.
All payments hereunder shall be made in Dollars.

                  (b)      Application of Insufficient Payments. If at any time
insufficient funds are received by and available to the Facility Agent to pay
fully all amounts of principal, interest and fees then due hereunder, such funds
shall be applied (i) first, to pay all fees and other expenses of the

                                     - 13 -

<PAGE>

Facility Agent or the Lenders that may be due by the Borrower or unpaid by the
Borrower together with any default interest (including fees and disbursements of
legal counsel and other advisors); (ii) second, to pay interest and fees then
due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (iii) third, to pay
principal then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal then due to such parties.

                  (c)      Pro Rata Treatment. Except to the extent otherwise
provided herein the Facility Agent shall apply: (i) each payment or prepayment
of principal of the Loan by the Borrower for account of the Lenders pro rata in
accordance with the respective unpaid principal amount of the Loan held by them;
and (ii) each payment of interest on the Loan by the Borrower for account of the
Lenders pro rata in accordance with the amounts of interest on the Loan then due
and payable to the respective Lenders.

                  (d)      Sharing of Payments by Lenders. If any Lender shall,
whether through the exercise of a right of banker's lien, set-off or
counterclaim against the Borrower or otherwise, obtain any payment of principal
of or interest on the Loans or other amounts owing to such Lender by the
Borrower hereunder and, as a result of such payment, such Lender shall have
received a greater percentage of the principal of or interest on such Loans or
other amounts then due to such Lender, than the percentage received by any other
Lender or Lenders of the principal of or interest (other than as provided in any
Basic Document) on the Loans or other amounts then due to such other Lender or
Lenders (any such payment to such first-mentioned Lender being herein called a
"DISPROPORTIONATE PAYMENT" to such Lender), such first-mentioned Lender shall
(i) promptly notify the Facility Agent and (ii) promptly and in any event within
five Business Days of receipt or recovery of such payment pay to the Facility
Agent an amount equal to the amount of such payment. The Facility Agent shall
treat such Disproportionate Payment as if it were a payment by the Borrower
hereunder to be apportioned among the Lenders as contemplated by Section
2.07(c). As between the Borrower and such first-mentioned Lender, such payment
shall be treated as not having been paid (except as provided in the following
sentence). As between the Borrower and each Lender such payment shall be treated
as having been paid to such Lender from the Facility Agent pursuant to the
second sentence of this paragraph (d). If such first-mentioned Lender shall not
pay to the Facility Agent an amount equal to the Disproportionate Payment, the
Facility Agent shall, out of the amounts next received from the Borrower, make
an adjustment in the distribution of such amount such that each Lender's pro
rata share of the then aggregate outstanding principal amount of the Loans after
such payment shall be the same as such Lender's pro rata share of the then
aggregate outstanding principal amount of the Loans before such Disproportionate
Payment. The foregoing shall not affect the right of any Lender to exercise and
retain the benefits of exercising any right with respect to any other
Indebtedness or other obligations of the Borrower; and, if any Lender commences
any action in any court to enforce its rights under this Agreement and, as a
result thereof, or in connection therewith, receives any amount, then such
Lender shall not be required to share any portion of such amount with any Lender
which has a legal right to, but does not, join in such action.

                  (e)      Presumptions of Payment. Unless the Facility Agent
shall have received notice from the Borrower prior to the date on which any
payment is due to the Facility Agent for account of the Lenders hereunder that
the Borrower will not make such payment, the Facility Agent may assume that the
Borrower has made such payment on such date in accordance herewith and may,

                                     - 14 -

<PAGE>

in reliance upon such assumption, distribute to the Lenders the amount due. In
such event, if the Borrower has not in fact made such payment, then each of the
Lenders severally agrees to repay to the Facility Agent forthwith on demand the
amount so distributed to such Lender together with an amount sufficient to
indemnify the Facility Agent against any cost or loss which it may have suffered
or incurred by reason of it having paid such sum prior to it having received
such sum.

                  (f)      Certain Deductions by the Facility Agent. If any
Lender shall fail to make any payment required to be made by it pursuant to
Section 2.07(e), then the Facility Agent may, in its discretion (notwithstanding
any contrary provision hereof), apply any amounts thereafter received by the
Facility Agent for account of such Lender to satisfy such Lender's obligations
under such Sections until all such unsatisfied obligations are fully paid.

                  SECTION 2.08. Increased Costs.

                  (a)      Increased Costs Generally. If any Change in Law
shall:

                           (i)      impose, modify or deem applicable any
         reserve, special deposit or similar requirement against assets of,
         deposits with or for account of, or credit extended by, any Lender; or

                           (ii)     impose on any Lender any other condition
         affecting this Agreement or the Loan;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining the Loan or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest
or otherwise), then the Borrower will pay to such Lender such additional amount
or amounts as will compensate such Lender for such additional costs incurred or
reduction suffered as set forth in the certificate delivered by such Lender to
the Borrower pursuant to Section 2.08(c).

                  (b)      Capital Requirements. If any Lender determines that
any Change in Law regarding capital requirements has or would have the effect of
reducing the rate of return on such Lender's capital or on the capital of such
Lender's holding company, if any, as a consequence of this Agreement or the Loan
made by such Lender to a level below that which such Lender or such Lender's
holding company could have achieved but for such Change in Law (taking into
consideration such Lender's policies and the policies of such Lender's holding
company with respect to capital adequacy), then from time to time the Borrower
will pay to such Lender such additional amount or amounts as will compensate
such Lender (or enable such Lender to compensate its holding company) for any
such reduction suffered.

                  (c)      Certificates from Lender. A certificate of the Lender
setting forth the amount or amounts necessary to compensate such Lender (or to
enable such Lender to compensate its holding company, as the case may be), as
specified in paragraph (a) or (b) of this Section, setting forth in reasonable
detail the quotations and bases of calculations used by such Lender to determine
such amount or amounts shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower shall pay the Lender the amount
shown as due on any such certificate within 10

                                     - 15 -
<PAGE>

days after receipt thereof.

                  (d)      Delay in Requests. Failure or delay on the part of
the Lender to demand compensation pursuant to this Section shall not constitute
a waiver of the Lender's right to demand such compensation, provided however
that on and after the date which is 60 days after the date that full, complete
and irrevocable payment of all amounts due and payable hereunder have been made
and to the extent the Lenders have not prior to such time exercised a right to
demand compensation, the Lenders shall be deemed to have waived such right.

                  SECTION 2.09. Illegality. If it shall become unlawful for any
Lender to continue to fund or maintain its Loan or to make its Loan hereunder,
then upon receipt of notice to such effect to the Borrower from such Lender,
such Lender's obligation to make its Loan hereunder shall be suspended and the
Borrower shall repay to such Lender the outstanding principal of its Loan in
full within 30 days thereafter (or on such earlier day as such Lender may
specify if such Lender may not lawfully continue to fund and maintain its Loan
to the end of such 30 day period). Before giving any notice pursuant to this
Section, such Lender shall designate a different applicable lending office if
such designation will avoid the need for giving such notice and will not, in the
reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.
Upon repayment by the Borrower to such Lender in accordance with the foregoing,
all of the Borrower's obligations to such Lender under this Agreement shall be
deemed terminated.

                  SECTION 2.10. Designation of a Different Lending Office;
Replacement of Lenders.

                  (a)      Designation of a Different Lending Office. If any
Lender requests compensation under Section 2.08, or if the Borrower is required
to pay any sums with respect to payments in connection with any withholding tax
obligation in excess of 10% of the relevant payment amount to any Lender or any
Governmental Authority for the account of any Lender, in each case pursuant to
Section 2.06, then such Lender shall, if requested to by the Borrower in
writing, use reasonable efforts to designate a different lending office for
funding or booking its Loan hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the
reasonable judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 2.06 or Section 2.08, as
the case may be, and (ii) would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

                  (b)      Replacement of Lenders. If any Lender requests
compensation under Section 2.08, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Facility Agent, require such Lender
to assign and transfer, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) such Lender shall have received payment of an
amount equal to the then outstanding principal of its Loan, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (ii) in the case of
any such assignment resulting from a claim for compensation under Section 2.08
such

                                     - 16 -

<PAGE>

assignment will result in a reduction in such payments. A Lender shall not be
required to make any such assignment and transfer if, prior thereto, as a result
of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and transfer cease to apply.

                  SECTION 2.11. Break Funding Payments. The Borrower shall from
time to time promptly pay to the Facility Agent for the account of each Lender,
upon the request of such Lender through the Facility Agent, such amount or
amounts as shall be sufficient (in the reasonable opinion of such Lender, as
described in a certificate of such Lender) to compensate it for any loss, cost
or expense incurred by such Lender that such Lender determines is attributable
to any payment or prepayment of a Loan (other than payments made pursuant to
Section 2.09) made by the Borrower for any reason on a date other than a Payment
Date. Without limiting the effect of the preceding sentence, such compensation
shall include an amount equal to the excess, if any, of (i) the amount of
interest that otherwise would have accrued on the principal amount so paid or
prepaid for the period from the date of such payment or prepayment to the last
day of the then-current Interest Period for such Loan at the applicable rate of
interest for such Loan provided for herein over (ii) the amount of interest that
otherwise would have accrued on such principal amount for such period at a rate
per annum equal to the interest component of the amount such Lender would have
bid for Dollar deposits from other banks in the market at the commencement of
such period. A certificate of the Lender setting forth any amount or amounts
that it is entitled to receive pursuant to this Section, setting forth the
relevant calculations in reasonable detail, shall be delivered to the Borrower
and shall be conclusive absent manifest error. The Borrower shall pay the Lender
the amount shown as due on any such certificate within ten days after receipt
thereof.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

                  The Borrower represents and warrants to the Lenders on the
Effective Date that:

                  SECTION 3.01. Organization; Powers. The Borrower is duly
organized and validly existing and in good standing under the laws of Indonesia,
has all requisite power and authority to carry on its business as now conducted
and, is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required.

                  SECTION 3.02. Authorization; Enforceability. The Transactions
are within the Borrower's corporate powers and have been duly authorized by all
necessary corporate and, if required, by all necessary shareholder action. This
Agreement has been duly executed and delivered by the Borrower and constitutes,
and each of the other Basic Documents to which it is a party when executed and
delivered will constitute, a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except
as such enforceability may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium or similar laws of general applicability affecting
the enforcement of creditors' rights and (b) the application of general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

                                     - 17 -

<PAGE>

                  SECTION 3.03. Governmental Approvals; No Conflicts. The
Transactions (a) do not require any consent or approval (including any exchange
control approval) of, registration or filing with, or any other action by, any
Governmental Authority (including Bank Indonesia), except such as have been
obtained or made and are in full force and effect (which includes the approval
of the Foreign Commercial Loan Coordinating Team (the "PKLN TEAM")), other than
(i) the filing of an initial report accompanied by a copy of this Agreement to
Bank Indonesia, Ministry of Finance and the PKLN Team within 15 Business Days
after the execution of this Agreement; (ii) the filing of periodic reports with
respect to the implementation of this Agreement and the application of the
proceeds thereof to Bank Indonesia, Ministry of Finance and the PKLN Team, and
(iii) the filing of foreign exchange flow activities report in relation to its
receipt of the Loans and payment under this Agreement to Bank Indonesia as
required by Bank Indonesia Regulation No. 4/2/PBI/2002, the implementing
regulations thereto and any amendments thereof, (b) will not violate any
material law or regulation (including regulations of Bank Indonesia) or the
charter, by-laws or other organizational documents of the Borrower or any order
of any Governmental Authority, (c) will not violate or result in a default under
any material indenture, agreement or other instrument binding upon the Borrower
or any of its assets, or give rise to a right thereunder to require any payment
to be made by any such Person, and (d) will not result in the creation or
imposition of any Lien on any asset of the Borrower.

                  SECTION 3.04. Financial Condition. The Borrower has furnished
to the Lenders its consolidated balance sheet and statements of income,
stockholders' equity and cash flows (i) as of and for the fiscal year ended
December 30, 2002, audited by Eddy Pianto/KAP Jimmy Budhi, independent public
accountants registered with the Indonesian Capital Market Supervisory Board
("BAPEPAM"), and (ii) as of and for the fiscal quarter and the portion of the
fiscal year ended March 31, 2003, certified by the President Director or any
other duly authorized Director of the Borrower. Based on the audit of Eddy
Pianto/KAP Jimmy Budhi and in its view, management has no reason to believe that
such financial statements do not present fairly in all material respects the
financial position and results of operations and cash flows of the Borrower and
its consolidated Subsidiaries as of such dates and for such periods in
accordance with GAAP.

                  SECTION 3.05. Properties.

                  (a)      Property Generally. The Borrower and its Material
Subsidiary has good title to, or valid leasehold interests in, all its real and
personal property material to its business, and except for defects in title that
do not materially interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes.

                  (b)      Intellectual Property. The Borrower and its Material
Subsidiary owns, or is licensed to use, all trademarks, tradenames, copyrights,
patents and other intellectual property material to its business, and the use
thereof by the Borrower and its Material Subsidiary does not infringe upon the
rights of any other Person except in each case for any matters that individually
or in the aggregate do not result in a Material Adverse Effect.

                                     - 18 -

<PAGE>

                  SECTION 3.06. Actions, Suits and Proceedings. There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority now pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower or any of its Material Subsidiary which, if
adversely determined, could reasonably be expected to have a Material Adverse
Effect.

                  SECTION 3.07. Compliance with Laws and Agreements. The
Borrower and its Material Subsidiary are in compliance with all laws,
regulations and orders of any Governmental Authority (including all
Environmental Laws) material to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except for
such failures to comply that individually or in the aggregate could not
reasonably be expected to result in a Material Adverse Effect. No Default has
occurred and is continuing.

                  SECTION 3.08. Taxes. Each of the Borrower and its Material
Subsidiary has timely filed or caused to be filed all material Tax returns and
reports required to have been filed and has paid or caused to be paid all
material Taxes required to have been paid by it, except Taxes that are being
contested in good faith by appropriate proceedings and for which such Person has
set aside on its books adequate reserves in accordance with GAAP.

                  SECTION 3.09. Disclosure. The Borrower has no knowledge of any
matter that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.

                  SECTION 3.10. Legal Form. This Agreement is in proper legal
form under the law of Indonesia for the enforcement thereof against the Borrower
under such law, and if this Agreement were stated to be governed by such law, it
would constitute legal, valid and binding obligations of the Borrower under such
law, enforceable in accordance with its terms. All formalities required in
Indonesia for the validity and enforceability of this Agreement (including any
necessary approval, registration, recording or filing with any court or other
authority in Indonesia) have been accomplished, and no Taxes or Other Taxes are
required to be paid to Indonesia, or any political subdivision thereof or
therein, and no notarization is required, for the validity and enforceability
thereof. The choice by the Borrower of New York law to govern this Agreement and
the submission by the Borrower to the non-exclusive jurisdiction of the United
States District Court for the Southern District of New York, in the Supreme
Court of the State of New York sitting in New York County or the courts of
Indonesia are valid and binding.

                  SECTION 3.11. Ranking. This Agreement and the obligations
evidenced hereby are and will at all times be direct and unconditional
obligations of the Borrower, and rank and will at all times rank in right of
payment and in all other respects at least pari passu with all other unsecured
unsubordinated Indebtedness of the Borrower, whether now existing or hereafter
outstanding, except for those whose claims are preferred by any bankruptcy,
insolvency, liquidation or other similar laws of general application.

                  SECTION 3.12. Commercial Activity; Absence of Immunity. The
Borrower is subject to civil and commercial law with respect to its obligations
under this Agreement. The execution, delivery and performance by the Borrower of
this Agreement constitute private and commercial acts rather than public or
governmental acts. Neither the Borrower, nor any of its

                                     - 19 -

<PAGE>

properties or revenues, is entitled to any right of immunity in any jurisdiction
from suit, court jurisdiction, judgment, attachment (whether before or after
judgment), set-off or execution of a judgment or from any other legal process or
remedy relating to the obligations of the Borrower under this Agreement.

                  SECTION 3.13. Solvency. There are no proceedings commenced or,
to the knowledge of the Borrower, threatened or any involuntary petition filed
or, to the knowledge of the Borrower, threatened, seeking (i) liquidation,
reorganization or other relief in respect of the Borrower or its debts, or of a
substantial part of its assets, under any bankruptcy, insolvency,
administration, receivership or similar law now or hereafter in effect or (ii)
the appointment of a receiver, trustee, custodian, administrator, administrative
receiver, sequestrator, conservator or similar official for the Borrower or for
a substantial part of its assets.

                  SECTION 3.14. Telkomsel. As of the Effective Date, the
Borrower directly owns 65% of the issued and fully paid common shares of PT
Telekomunikasi Selular.

                                   ARTICLE IV

                     CONDITIONS PRECEDENT TO EFFECTIVE DATE

                  This Agreement shall not become effective until the date on
which the Facility Agent shall have received each of the following documents,
each of which shall be satisfactory to the Facility Agent (and to the extent
specified below, to each Lender) in form and substance, (or such condition shall
have been waived in accordance with Section 9.02) or confirmation of the matters
set out below:

                  (a)      Executed Counterparts. From each party hereto either
(i) a counterpart of this Agreement signed on behalf of such party or (ii)
written evidence satisfactory to the Facility Agent that such party has signed a
counterpart of this Agreement.

                  (b)      Opinion of Counsel to the Borrower. A favorable
written opinion (addressed to the Facility Agent and the Lenders and dated the
Effective Date) of Skadden, Arps, Slate, Meagher & Flom LLP, special New York
counsel for the Borrower, and Adnan Kelana Haryanto & Hermanto, Indonesian
counsel for the Borrower, and covering such other matters relating to the
Borrower, this Agreement and each of the Basic Documents to which it is a party,
as the Required Lenders shall reasonably request (and the Borrower hereby
instructs such counsel to deliver such opinion to the Lenders and the Facility
Agent).

                  (c)      Opinion of Counsel to the Selling Shareholders. A
favorable written opinion (addressed to the Facility Agent and the Lenders and
dated the Effective Date) of White & Case, international counsel for the Selling
Shareholders, AWI and AWIF, and covering such other matters relating to the
Selling Shareholders, the Shareholders Release Agreement, the AriaWest Release
Agreement and the Call Option and Escrow Agreement as the Required Lenders shall
reasonably request.

                                     - 20 -

<PAGE>

                  (d)      Opinion of Counsel to the Lenders. An opinion, dated
the Effective Date, of Milbank, Tweed, Hadley & McCloy LLP, addressed to the
Facility Agent and the Lenders, and Makarim & Taira S., addressed to the
Facility Agent and the Lenders.

                  (e)      Organizational Documents. Such documents and
certificates as the Facility Agent or its counsel may reasonably request
relating to the organization, existence and good standing of the Borrower
(including certified copies of (i) the Borrower's constitutive documents and any
amendments thereto and (ii) minutes of the general meeting of shareholders of
the Borrower evidencing the appointment of the incumbent members of the Board of
Directors and the Board of Commissioners), the approval and authorization of the
Transactions (including all relevant resolutions signed by the Board of
Commissioners and the shareholders) and any other legal matters relating to the
Borrower, this Agreement or the Transactions, all in form and substance
satisfactory to the Facility Agent and its counsel.

                  (f)      Officer's Certificate. A certificate, dated the
Effective Date and signed by the President Director or any other duly authorized
Director, confirming the following:

                           (i)      the representations and warranties of the
         Borrower set forth in this Agreement are true and correct on and as of
         the Effective Date; and

                           (ii)     as of the Effective Date, no Default shall
         have occurred and be continuing.

                  (g)      Other Basic Documents. The Basic Documents (other
than this Agreement), the Agency Agreement and the Shareholders Release
Agreement shall have been duly executed and delivered by each Person party
thereto and the Promissory Notes shall have been transferred into the name of
the Persons which are Noteholders as of the Effective Date.

                  (h)      Approvals. Evidence that all governmental licenses,
authorizations, consents, permits and approvals required under applicable law
for the Borrower to undertake the Transactions, including the remittance to each
Lender or its assigns in Dollars of all monies payable in respect thereof to the
extent required hereunder, have been obtained and are in full force and effect,
together with copies certified as of the Effective Date to be true and complete
by the President Director or any other duly authorized director of the Borrower
of all such government approvals.

                  (i)      Payments. Evidence that contemporaneous with the
closing hereof, the Lenders have received from AWIF the following amounts:

                           (i)      $12,479,839.23 in payment of accrued
         interest at the LIBO Rate plus 3.5% per annum on the outstanding
         principal amount under the AriaWest Credit Agreement from August 31,
         2002 until but not including the Effective Date;

                           (ii)     $12,633,216.75 in payment of accrued
         interest under the AriaWest Credit Agreement accrued to August 31,
         2002; and

                           (iii)    $73,965,453.90 in payment of 27.3% of the
         total outstanding

                                     - 21 -

<PAGE>

         principal under the AriaWest Credit Agreement.

                  (j)      Shareholder Payment Obligations:

                           (i)      Evidence of payment by the Selling
         Shareholders of all outstanding fees and expenses in connection with
         the negotiation, preparation, execution and delivery of this Agreement
         and the Loan hereunder and as otherwise may have been payable before
         the Effective Date in connection with the AriaWest Credit Agreement,
         including all fees and expenses of Milbank, Tweed, Hadley & McCloy LLP,
         Makarim & Taira S. and the Principal Creditors (as defined in the
         Common Agreement).

                           (ii)     Evidence of payment by the Selling
         Shareholders of the fees of the Documentation Bank as agreed between
         the Selling Shareholders and the Documentation Bank.

                           (iii)    Evidence of payment by the Selling
         Shareholders of the fees of the Escrow Agent as agreed between the
         Selling Shareholders and the Escrow Agent in connection with the Call
         Option and Escrow Agreement.

                  (k)      Facility Agent Fees. Evidence of payment of the
Facility Agent fees as agreed between the Borrower and the Facility Agent.

                  (l)      Process Agent Acceptance. A Process Agent Acceptance,
duly executed and delivered by the Process Agent.

                  (m)      Consummation of Acquisition. A certificate of the
President Director or any other duly authorized Director of the Borrower and
each Selling Shareholder that the acquisition of all the shares of AWI by the
Borrower from the Selling Shareholders has been (or shall be simultaneously)
consummated in all material respects in accordance with the terms of the
Purchase Agreement. In addition, the Facility Agent shall have received copies
of the legal opinions delivered by counsel to the Borrower pursuant to the
Purchase Agreement, together with a letter from each Person delivering such
opinion (or authorization within such opinion) authorizing reliance thereon by
the Facility Agent.

                  (n)      Other Documents. Such other documents as the Facility
Agent or any Lender or legal counsel to the Lenders may reasonably request.

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

                  Until the principal of and interest on each Loan and all fees
payable hereunder shall have been paid in full, the Borrower covenants and
agrees with the Lenders that:

                  SECTION 5.01. Financial Statements and Other Information. The
Borrower will

                                     - 22 -

<PAGE>

furnish to the Facility Agent:

                  (a)      beginning with fiscal year 2003, as soon as they
become available, but in any event within 180 days after the end of each fiscal
year of the Borrower, the audited consolidated balance sheet and related income
statements and statement of changes in equity and cash flows of the Borrower and
its consolidated Subsidiaries as of the end of and for such year, setting forth
in each case in comparative form the figures for the previous fiscal year, all
audited by independent public accountants of recognized national standing and
registered with Bapepam to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied;

                  (b)      beginning with fiscal year 2004, as soon as they
become available, but in any event within 90 days after the end of the first
semi-annual financial period of each fiscal year of the Borrower, the
consolidated balance sheet and related income statements and statement of
changes in equity and cash flows of the Borrower and its consolidated
Subsidiaries as of the end of and for such fiscal semi-annual period and the
then elapsed portion of the fiscal year, setting forth in each case in
comparative form the figures for (or, in the case of the balance sheet, as of
the end of) the corresponding period or periods of the previous fiscal year, all
certified by a Financial Officer of the Borrower as presenting fairly in all
material respects the financial condition and results of operations of the
Borrower and its consolidated Subsidiaries on a consolidated basis in accordance
with GAAP consistently applied, subject to normal year-end audit adjustments and
the absence of footnotes;

                  (c)      concurrently with any delivery of financial
statements under clause (a) or (b) of this Section, a certificate of the
President Director or any other duly authorized Director of the Borrower (i)
certifying as to whether a Default has occurred and, if a Default has occurred,
specifying the details thereof and any action taken or proposed to be taken with
respect thereto and (ii) stating whether any change in GAAP or in the
application thereof has occurred since the date of the audited financial
statements referred to in Section 3.04 and, if any such change has occurred,
specifying the effect of such change on the financial statements accompanying
such certificate;

                  (d)      promptly after the same become publicly available,
copies of all periodic and other reports, proxy statements and other materials
filed by the Borrower or its Material Subsidiary with the SEC, Bapepam and the
Indonesian Stock Exchange where shares of the Borrower are listed, or any
Governmental Authority succeeding to any or all of the functions of said
Commission, or with any national securities exchange, or distributed by the
Borrower to its shareholders generally or to holders of Indebtedness generally,
as the case may be; and

                  (e)      promptly following any request therefor, such other
information regarding the operations, business affairs and financial condition
of the Borrower or any of its consolidated Subsidiaries, or compliance with the
terms of this Agreement, as the Facility Agent or any Lender may reasonably
request.

                  SECTION 5.02. Notices of Material Events. The Borrower will
furnish to the Facility Agent and each Lender prompt written notice of the
following:

                                     - 23 -

<PAGE>

                  (a)      the occurrence of any Default;

                  (b)      the filing or commencement of any material action,
suit or proceeding by or before any arbitrator or Governmental Authority against
or affecting the Borrower or its Material Subsidiary; and

                  (c)      any other development that results in, or could
reasonably be expected to result in, a Material Adverse Effect.

                  Each notice delivered under this Section shall be accompanied
by a statement of the President Director or any other duly authorized director
of the Borrower setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

                  SECTION 5.03. Existence; Conduct of Business. The Borrower
will, and will cause its Material Subsidiary to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business; provided that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution, amalgamation or
conveyance, sale, lease, assignment, transfer or other disposition permitted
under Section 6.01.

                  SECTION 5.04. Payment of Obligations. The Borrower will, and
will cause its Material Subsidiary to, pay its material obligations, including
material tax liabilities, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings and (b) the Borrower or
its Material Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP.

                  SECTION 5.05. Maintenance of Properties; Insurance. The
Borrower will, and will cause its Material Subsidiary to (a) keep and maintain
all property material to the conduct of its business in good working order and
condition, ordinary wear and tear excepted, and (b) maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against
such risks as are customarily maintained by companies engaged in the same or
similar businesses operating in the same or similar locations.

                  SECTION 5.06. Books and Records; Inspection Rights. The
Borrower will, and will cause its Material Subsidiary to, keep proper books of
record and accounts in which full, true and correct entries are made of all
dealings and transactions in relation to its business and activities. The
Borrower will, and will cause its Material Subsidiary to, permit any
representatives designated by the Facility Agent or any Lender, upon reasonable
prior notice, to visit and inspect its properties, to examine and make extracts
from its books and records, and to discuss its affairs, finances and condition
with its officers and independent accountants, all at such reasonable times and
as often as reasonably requested.

                  SECTION 5.07. Compliance with Laws. The Borrower will, and
will cause its Material Subsidiary to, comply with all material laws, rules,
regulations and orders of any Governmental Authority (including all
Environmental Laws) applicable to it or its property,

                                     - 24 -

<PAGE>

including filing all relevant tax returns in a timely manner; provided, that the
Borrower will not be in breach of this Section to the extent its violation or
non-compliance with this Section relates to or is connected with the Borrower's
failure to comply with the laws, rules, regulations or the policies or
procedures of the SEC, relating to the Borrower's Annual Report on Form 20-F for
2002, the qualifications of and audit by Eddy Pianto/KAP Jimmy Budhi for fiscal
2002, any statements, disclosures or releases relating to the foregoing, or the
filing of any of the foregoing with the SEC. The Borrower agrees to use its
reasonable efforts to comply with such laws, rules, regulations, policies and
procedures with respect thereto, as soon as reasonably practicable.

                  SECTION 5.08. Governmental Approvals. The Borrower will
promptly obtain from time to time at its own expense all such governmental
licenses, authorizations, consents, permits and approvals as may be required for
the Borrower to operate its business and to comply with its obligations, and
preserve its rights under, this Agreement.

                  SECTION 5.09. Credit Rating. The Borrower will at all times
maintain a credit rating of AA or better by PEFINDO (PT Pemeringkat Efek
Indonesia), or an equivalent or better credit rating by PT Kasnis Konsultama or
an equivalent rating by a credit rating agency satisfactory to the Facility
Agent.

                  SECTION 5.10. Filings.

                  (a)      The Borrower will make all necessary filings and
registrations with Bapepam, the SEC and all relevant exchanges; provided, that
the Borrower will not be in breach of this Section to the extent its violation
or non-compliance with this Section relates to or is connected with the
Borrower's failure to comply with the laws, rules, regulations or the policies
or procedures of the SEC, relating to the Borrower's Annual Report on Form 20-F
for 2002, the qualifications of and audit by Eddy Pianto/KAP Jimmy Budhi for
fiscal 2002, any statements, disclosures or releases relating to the foregoing,
or the filing of any of the foregoing with the SEC; provided, further, the
Borrower agrees to use its reasonable efforts to comply with such laws, rules,
regulations, policies and procedures with respect thereto, as soon as reasonably
practicable.

                  (b)      The Borrower will: (i) no later than 15 days after
the execution of this Agreement, make an initial report; and (ii) make monthly
periodic reports no later than the 15th day of the relevant month, in relation
to this Agreement to Bank Indonesia, the Ministry of Finance of Indonesia and
the Foreign Commercial Loan Coordinating Team in Indonesia, each in the form as
required by the relevant government entity.

                  (c)      The Borrower will: (i) no later than 4:00 p.m.
(Jakarta Time) on the last date of the month following the Effective Date and
(ii) on September 30 and March 31 of each year, make a report of foreign
exchange flow activity to Bank Indonesia in the form required by Bank Indonesia.

                  SECTION 5.11. Listing. The Borrower will (a) maintain its
listing on the Jakarta Stock Exchange and (b) will use its reasonable efforts to
remain listed with the New York Stock Exchange; provided, that the Borrower
shall not be in violation of this Section 5.11 if (i) the Government of
Indonesia directs the Borrower in writing to delist or (ii) the Borrower is
unable, after reasonable efforts, to find an auditor in Indonesia who is
qualified to audit the Borrower's financial statements in accordance with U.S.
federal securities laws and SEC requirements.

                                     - 25 -

<PAGE>

                  SECTION 5.12. Compliance. The Borrower will comply with all
its obligations under this Agreement and the other Basic Documents to which it
is a party.

                  SECTION 5.13. Ranking with Other Creditors. The Borrower will
ensure that at all times the claims of the Lenders against it under this
Agreement rank at least pari passu with the claims of all its other unsecured
unsubordinated Indebtedness, save those whose claims are preferred by any
bankruptcy, insolvency, liquidation or other similar laws of general
application.

                  SECTION 5.14. Lines of Business. The Borrower's principal
business will be the business of providing telecommunication services.


                                   ARTICLE VI

                               NEGATIVE COVENANTS

                  Until the principal of and interest on each Loan and all fees
payable by the Borrower hereunder have been paid in full, the Borrower covenants
and agrees with the Lenders that:

                  SECTION 6.01. Limitation on Fundamental Changes and Sale of
Assets.

                  (a)      The Borrower will not (i) enter into any transaction
of merger or consolidation or amalgamation unless, after giving effect to such
transaction, the surviving entity is the Borrower and no Default or Event of
Default has occurred and is continuing or (ii) liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease,
assign, transfer or otherwise dispose of, all or substantially all of its
Property.

                  (b)      The Borrower will not convey, sell, lease, assign,
transfer or otherwise dispose of Property, where the effect of such transaction
would place the Borrower in Default of its obligations under this Agreement.

                  SECTION 6.02. Transaction with Affiliates. The Borrower will
not, nor will it permit its Material Subsidiary to, sell, lease or otherwise
transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any
of its Affiliates, except transactions not prohibited by BAPEPAM rules and
regulations.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

                  If any of the following events ("EVENTS OF DEFAULT", each an
"EVENT OF DEFAULT") shall occur:

                  (a)      the Borrower shall fail to pay any principal of, or
interest on, any Loan or any

                                     - 26 -
<PAGE>

fee or any other amount payable under this Agreement when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise; provided that the Borrower shall be entitled to
a cure period of three Business Days from the date when any payment becomes due
and payable, and, provided further, that with respect to any failure caused
solely by an administrative or technical error, the Borrower shall be entitled
to an additional two Business Day cure period;

                  (b)      any representation or warranty made or deemed made by
or on behalf of the Borrower in or in connection with this Agreement shall prove
to have been incorrect when made or deemed made, or any representation or
warranty made or deemed made by or on behalf of the Borrower in connection with
any amendment or modification hereof, or in any report, certificate, financial
statement or other document furnished pursuant to or in connection with this
Agreement or any amendment or modification hereof, shall prove to have been
materially incorrect when made or deemed made;

                  (c)      the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in Section 5.02, 5.03 (with respect
to the Borrower's existence), 5.07, 5.13 or in Article VI, or the Borrower shall
fail to observe or perform any covenant, condition or agreement contained in the
other Basic Documents to which it is a party;

                  (d)      the Borrower shall fail to observe or perform any
covenant, condition or agreement contained in this Agreement (other than those
specified in clause (a) or (c) of this Article) and if such failure is capable
of remedy, such failure shall continue unremedied for a period of 15 or more
days after the Borrower becoming aware of such default;

                  (e)      the Borrower or its Material Subsidiary shall fail to
make any payment of $1,000,000 or more (whether of principal or interest) in
respect of any Indebtedness of a principal amount exceeding $10,000,000 or
equivalent, when and as the same shall become due and payable, and such failure
shall continue after the applicable grace period, if any, specified in the
agreement or instrument relating to such Indebtedness;

                  (f)      any event or condition shall occur and be continuing
that results in any Indebtedness of $10,000,000 or more becoming due prior to
its scheduled maturity or that enables or permits the holder or holders of such
Indebtedness or any trustee or agent on its or their behalf to cause any
Indebtedness to become due, or to require the prepayment, repurchase, redemption
or defeasance thereof, prior to its scheduled maturity, in each case, after
giving effect to the applicable grace period, if any, specified in the agreement
or instrument evidencing such Indebtedness;

                  (g)      an involuntary proceeding shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation, reorganization,
delay of payment or other relief in respect of the Borrower or its Material
Subsidiary or their respective debts, or of a substantial part of their
respective assets, under any bankruptcy, insolvency, receivership or similar law
now or hereafter in effect or (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or its
Material Subsidiary or for a substantial part of their respective assets, in
each case, in respect of which an order for relief is entered or an adjudication
or appointment is made, as applicable, but remains undismissed for a period of
90 days or more;

                                     - 27 -
<PAGE>

                  (h)      the Borrower or its Material Subsidiary shall (i)
voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization or other relief under any bankruptcy, insolvency, receivership or
similar law now or hereafter in effect, (ii) consent to the institution of, or
fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (g) of this Article, (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or its Material Subsidiary or for a
substantial part of their respective assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v)
make a general assignment for the benefit of creditors or (vi) take any action
for the purpose of effecting any of the foregoing;

                  (i)      the Borrower or its Material Subsidiary shall become
unable, admit in writing its inability or fail generally to pay its debts as
they become due;

                  (j)      one or more judgments for the payment of money in an
aggregate amount in excess of $5,000,000 shall be rendered against the Borrower
or its Material Subsidiary or any combination thereof and such judgments shall
continue unsatisfied and in effect for a period of 90 days without being
vacated, discharged, satisfied, or stayed or bonded pending appeal, or any
action shall be legally taken by a judgment creditor to attach or levy upon any
assets of the Borrower or its Material Subsidiary to enforce any such judgment;

                  (k)      any license, consent, authorization, registration or
approval at any time necessary to enable the Borrower to comply with any of its
material obligations under this Agreement shall be revoked, withdrawn or
withheld or shall be modified or amended in a manner prejudicial to the
interests of the Lenders hereunder; or any Governmental Authority of Indonesia
shall promulgate or declare effective any law, rule or regulation that could
have a Material Adverse Effect;

                  (l)      any Governmental Authority shall take any action to
condemn, seize, nationalize or appropriate any substantial portion of the
property of the Borrower (without payment of fair compensation) or shall take
any action that materially affects the ability of the Borrower to perform its
obligations under this Agreement; or the Borrower shall be prevented from
exercising normal control over all or a substantial part of its property;

                  (m)      Indonesia or any competent authority thereof shall
declare a moratorium on the payment of indebtedness by Indonesia or any
governmental agency or authority thereof or the Borrower or its Material
Subsidiary;

                  (n)      the occurrence of any event or series of events which
has had or could reasonably be expected to have a Material Adverse Effect;

                  (o)      the Borrower repudiates this Agreement or any other
Basic Document to which it is a party or does or causes or permits to be done
any act or thing constituting a repudiation of this Agreement or any other Basic
Document to which it is a party; or

                                     - 28 -
<PAGE>

                  (p)      it becomes unlawful at any time for the Borrower to
perform all or any of their respective obligations under this Agreement or any
other Basic Document to which it is a party;

then, and in every such event (other than an event with respect to the Borrower
described in clause (g) or (h) of this Article), and at any time thereafter
during the continuance of such event, the Facility Agent may, and at the request
of the Required Lenders shall, by notice to the Borrower, take either or both of
the following actions, at the same or different times: (i) declare the Loan then
outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be
due and payable), and thereupon the principal of the Loan so declared to be due
and payable, together with accrued interest thereon and all fees and other
obligations of the Borrower accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrower; and (ii) in case of any event
with respect to the Borrower described in clause (g) or (h) of this Article, the
principal of the Loan then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrower.

                                  ARTICLE VIII

                               THE FACILITY AGENT

                  SECTION 8.01. Appointment. Each of the Lenders hereby
irrevocably appoints the Facility Agent as its agent and authorizes the Facility
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Facility Agent by the terms hereof, together with such actions
and powers as are reasonably incidental thereto.

                  SECTION 8.02. Rights as a Lender. The Person serving as the
Facility Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not
the Facility Agent, and such Person and its Affiliates may accept deposits from,
lend money to and generally engage in any kind of business with the Borrower or
any Subsidiary or other Affiliate thereof as if it were not the Facility Agent
hereunder.

                  SECTION 8.03. Limitation on Duties. The Facility Agent shall
not have any duties or obligations except those expressly set forth herein.
Without limiting the generality of the foregoing, (a) the Facility Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Facility Agent shall not have
any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby that the
Facility Agent is required to exercise in writing as directed by the Required
Lenders (or such other number or percentage of the Required Lenders as shall be
necessary under the circumstances as provided in Section 9.02, and (c) except as
expressly set forth herein, the Facility Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Subsidiaries that is communicated to or
obtained by the bank serving as Facility Agent or any of its Affiliates in any
capacity. The Facility Agent shall not be liable for any action taken or not
taken by it with the

                                     - 29 -
<PAGE>

consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.02) or in the absence of its own gross negligence or
wilful misconduct. The Facility Agent shall be deemed not to have knowledge of
any Default unless and until written notice thereof is given to the Facility
Agent by the Borrower or a Lender, and the Facility Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with this Agreement, (ii)
the contents of any certificate, report or other document delivered hereunder or
in connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Facility Agent.

                  SECTION 8.04. Reliance by Agent. The Facility Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any
notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the
proper Person. The Facility Agent also may rely upon any statement made to it
orally, by telephone, facsimile, email, telex or any other mode of communication
and believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon. The Facility Agent may consult with legal counsel
(who may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts. As to
any matters not expressly provided for by this Agreement, the Facility Agent
shall in all cases be fully protected in acting, or in refraining from acting,
hereunder or thereunder in accordance with instructions given by the Required
Lenders and such instructions of such Lenders and any action taken or failure to
act pursuant thereto shall be binding on all of the Lenders.

                  SECTION 8.05. Sub-Agents. The Facility Agent may perform any
and all its duties and exercise its rights and powers by or through any one or
more sub-agents appointed by the Facility Agent. The Facility Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Facility Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Facility Agent.

                                     - 30 -
<PAGE>

                  SECTION 8.06. Resignation. Subject to the appointment and
acceptance of a successor Facility Agent as provided in this Section, the
Facility Agent may resign at any time by notifying the Lenders and the Borrower
and the Lenders shall have the right to remove the Facility Agent by notifying
the Borrower and the Facility Agent. Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor. In the case of a
resignation by the Facility Agent, if no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Facility Agent gives notice of its resignation, then the
retiring Facility Agent may, on behalf of the Lenders, appoint a successor
Facility Agent. Upon the acceptance by a successor of its appointment as
Facility Agent hereunder, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring (or retired)
Facility Agent hereunder and under the Call Option and Escrow Agreement and the
retiring Facility Agent shall be discharged from its duties and obligations
hereunder and under the Call Option and Escrow Agreement. The fees payable by
the Borrower to a successor Facility Agent shall be the same as those payable to
its predecessor unless otherwise agreed between the Borrower and such successor.
After the Facility Agent's resignation or removal hereunder, the provisions of
this Article and Section 9.03 shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting as
Facility Agent.

                  SECTION 8.07. Reliance by Lenders. Each Lender acknowledges
that it has, independently and without reliance upon the Facility Agent or any
other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Facility Agent or any other Lender and based on such documents
and information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any related agreement or any document furnished hereunder or
thereunder.

                  SECTION 8.08. Legal Restrictions. The Facility Agent may
refrain from doing anything (including disclosing any information) which might
in its opinion (a) constitute a breach of any law or regulation or (b) be
actionable at the suit of any Person, and may do anything which in its opinion
is necessary or desirable to comply with any law or regulation.

                  SECTION 8.09. Information. The Facility Agent shall (a) send a
copy of all notices and other communications and all financial statements,
reports, certificates and other documents delivered to it by the Borrower under
this Agreement to each of the Lenders; (b) not be obligated to transmit to the
Lenders any information in any way relating to any of the parties hereto to
which it may have acquired otherwise than in its capacity as Facility Agent in
connection with this Agreement; and (c) at the request of any Lender, furnish
any notice or other communication or make any request that it is entitled to do
under this Agreement.

                  SECTION 8.10. Application of Proceeds. Subject to Section
2.07, all sums received or recovered by the Facility Agent pursuant to or upon
the enforcement of this Agreement after the giving of a declaration under
Article VII shall be paid to the Facility Agent and, if denominated in a
currency other than Dollars, converted by the Facility Agent into Dollars at the
rate of exchange calculated in accordance with Section 9.12 and thereafter
applied (irrespective of any contrary appropriation by the Borrower) in the
following order of priority:

                                     - 31 -
<PAGE>

                  (a)      in or towards payment of all fees, costs and expenses
properly incurred by or on behalf of the Facility Agent (or any receiver and/or
manager, administrative receiver, trustee or similar officer appointed pursuant
to this Agreement) in connection with the enforcement of this Agreement;

                  (b)      in payment to those of the Lenders to whom are owed
sums outstanding under this Agreement in the following order of priority:

                           (i)      in or towards payment pro rata of any
         interest or fees accrued but unpaid under this Agreement;

                           (ii)     in or towards payment pro rata of any
         principal sums outstanding under this Agreement; and

                           (iii)    in or towards payment pro rata of any other
         financing costs accrued but unpaid under this Agreement;

                  (c)      as to any balance, in payment to the Borrower or
other Person properly entitled thereto.

                  SECTION 8.11. Directions. The Facility Agent may require the
receipt of security satisfactory to it against any liability or loss which it
may incur in taking any proceedings or action arising out of or in connection
with this Agreement before it commences those proceedings or takes that action.

                  SECTION 8.12. Affiliates. In order to enable JPMorgan Chase
Bank, Hong Kong Office to bring relevant expertise to bear on its engagement
under this Agreement from among its global affiliates, the Borrower agrees that
JPMorgan Chase Bank, Hong Kong Office may share information obtained from the
Borrower hereunder with its affiliates, and may perform the services
contemplated hereby in conjunction with its affiliates, and that any JPMorgan
Chase Bank, Hong Kong Office affiliates performing services hereunder shall be
entitled to the benefits and subject to the terms of this Agreement.

                  SECTION 8.13.  Banking Business.  The Facility Agent may:

                  (a)      carry on any business with the Borrower or any
Subsidiary or other Affiliate thereof;

                  (b)      act as agent or trustee for, or in relation to any
financing involving, the Borrower or any Subsidiary or other Affiliate thereof;
and

                  (c)      retain any profits or remuneration in connection with
its activities under this Agreement or in relation to any of the foregoing and
shall not be required to account to any Lenders in respect of such profits or
remuneration.

                                     - 32 -
<PAGE>

                  SECTION 8.14. Defaults. The Facility Agent shall not be deemed
to have knowledge or notice of the occurrence of a Default (other than the
non-payment of amounts stated herein to be payable directly to it) unless the
Facility Agent has received notice from a Lender or the Borrower specifying such
Default. In the event that the Facility Agent receives such notice of the
occurrence of a Default, the Facility Agent shall give prompt notice thereof to
the Lenders (and shall give each Lender prompt notice of each such non-payment).
The Facility Agent shall (subject to Section 8.15) take such action with respect
to such Default as shall be directed by the Required Lenders; provided that,
unless and until the Facility Agent shall have received such directions, the
Facility Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to such Default as it shall deem advisable
in the best interest of the Lenders except to the extent that this Agreement
expressly requires that such action be taken, or not be taken, only with the
consent or upon the authorization of the Required Lenders.

                  SECTION 8.15. Failure to Act. Except for action expressly
required of the Facility Agent hereunder to which the Facility Agent is intended
to be a party, the Facility Agent shall in all cases be fully justified in
failing or refusing to act hereunder and thereunder unless it shall receive
further assurances to its satisfaction from the Lenders of their indemnification
obligations under Section 9.03 against any and all liability and expense that
may be incurred by it by reason of taking or continuing to take any such action.

                  SECTION 8.16. Call Option and Escrow Agreement. The Lenders
hereby authorize and instruct the Facility Agent to enter into the Call Option
and Escrow Agreement and to provide the information required from the Facility
Agent thereunder, and the Borrower consents to the Facility Agent doing so.

                                   ARTICLE IX

                                  MISCELLANEOUS

                  SECTION 9.01. Notices. All notices, demands and other
communications provided for herein shall be in writing and shall be delivered by
hand or overnight courier service, mailed by certified or registered mail or
sent by facsimile or, in the case of notices and other communications between
the Facility Agent and the Lenders, the Facility Agent shall have the option to
deliver such notices and other communications by electronic mail to the Lenders
provided that the Facility Agent shall also deliver such notices and
communication by letter to such Lender. All notices, demands and other
communications provided for herein shall be delivered to the following
addresses:

                  (a)      if to the Borrower, to it at Jl. Japti No.1, Bandung
40133, Indonesia, Attention of President Director (Facsimile No. (62 22)
424-0313; Telephone No. (62 22) 242-0313);

                  (b)      if to the Facility Agent, to it at 21st Floor,
JPMorgan Tower, Grand Central Plaza, 138 Shatin Rural Committee Road, Shatin,
N.T., Hong Kong, Attention of Terence Yeung (Facsimile No. +852 2836 9672/2836
9651; Telephone No. +852 2800 5059); and

                  (c)      if to a Lender, to it at its address, facsimile
number or electronic mail address

                                     - 33 -
<PAGE>

designated for such lender on the signature pages hereof;

                  Any party hereto may change its address, facsimile number or
electronic mail address for notices and other communications hereunder by
providing not less than five Business Days prior written notice to the other
parties hereto (or, in the case of any such change by a Lender of its lending
office and/or office for notices, by notice to the Borrower and the Facility
Agent). Any notice, demand or other communication so addressed to the relevant
party shall be deemed to have been delivered: (a) if given by letter, when
actually delivered to the relevant address; (b) if given or made by facsimile,
when dispatched if the transmission report states that it has been sent in full
without error; provided that, if the day on which such notice, demand or other
communication would otherwise be deemed to have been delivered is not a working
day in the place to which it is sent, such notice, demand or other communication
shall be deemed to have been delivered on the next following day at such place;
and (c) if given by electronic mail, be deemed to have been duly given (i) on
the day (if a Business Day and, if not, on the next following Business Day) on
which such electronic mail is validly transmitted if transmitted before 5.00
p.m. local time in the place of address, and if transmitted after that time, on
the next following Business Day and (ii) upon the Facility Agent's mailbox
receiving an acknowledgement that the transmission has been received by the
recipient's mailbox and no failed delivery message; provided that any
communication or document to be made or delivered to the Facility Agent shall be
effective only when received by its agency division and then only if the same is
expressly marked for the attention of the department or officer identified with
the Facility Agent's signature below (or such other department or officer as the
Facility Agent shall from time to time specify for this purpose).

                  Notices and other communications to the Lenders hereunder may
be delivered or furnished by electronic communications pursuant to procedures
approved by the Facility Agent and the applicable Lender; provided that the
foregoing shall not apply to notices pursuant to Article II unless otherwise
agreed by the Facility Agent and the applicable Lender. The Facility Agent or
the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.

                  SECTION 9.02.  Waivers; Amendments.

                  (a)      No Deemed Waivers; Remedies Cumulative. No failure or
delay by the Facility Agent or any Lender in exercising any right or power
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of
the Facility Agent and the Lenders hereunder are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver of
any provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.

                  (b)      Amendments. Neither this Agreement nor any provision
hereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into

                                     - 34 -
<PAGE>

by the Borrower and the Required Lenders or by the Borrower and the Facility
Agent with the consent of the Required Lenders; provided that no such agreement
shall

                           (i)      reduce the principal amount of any Loan or
         reduce the rate of interest thereon, or reduce any fees payable
         hereunder, without the written consent of each Lender affected thereby,

                           (ii)     postpone the scheduled date of payment of
         the principal amount of any Loan, or any interest thereon, or any fees
         payable hereunder, or reduce the amount of, waive or excuse any such
         payment, without the written consent of each Lender affected thereby,

                           (iii)    change Section 2.07 without the written
         consent of each Lender affected thereby, or

                           (iv)     change any of the provisions of this Section
         or the percentage in the definition of the term "Required Lenders" or
         any other provision hereof specifying the number or percentage of
         Lenders required to waive, amend or modify any rights hereunder or make
         any determination or grant any consent hereunder,

without the written consent of each Lender; and provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of the
Facility Agent hereunder without the prior written consent of the Facility
Agent.

                  SECTION 9.03.  Expenses; Indemnity; Damage Waiver.

                  (a)      Costs and Expenses. The Borrower shall pay (i) all
out-of-pocket expenses incurred by the Facility Agent and its Affiliates,
including the fees, charges and disbursements of counsel for the Facility Agent,
in connection with the preparation and administration of this Agreement or any
amendments, modifications or waivers of the provisions hereof (whether or not
the transactions contemplated hereby or thereby shall be consummated), (ii) all
out-of-pocket expenses incurred by the Facility Agent or any Lender, including
the fees, charges and disbursements of any counsel for the Facility Agent, or
any Lender, in connection with the enforcement or protection of its rights in
connection with this Agreement, including its rights under this Section, or in
connection with the Loan made hereunder, including in connection with any
workout, restructuring or negotiations in respect thereof and (iii) all
transfer, stamp, documentary or other similar taxes, assessments or charges
levied by any governmental or revenue authority in respect of this Agreement or
any other document referred to herein in each case, as required to be paid by
the Borrower pursuant to the terms of this Agreement or the other Basic
Documents to which the Borrower is a party.

                  (b)      Indemnification by the Borrower. The Borrower shall
indemnify the Facility Agent and each Lender, and each Related Party of any of
the foregoing Persons (each such Person being called an "INDEMNITEE") against,
and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in

                                     - 35 -
<PAGE>

connection with, or as a result of (i) the execution or delivery of this
Agreement or any agreement or instrument contemplated hereby, the performance by
the parties hereto of their respective obligations hereunder or the consummation
of the Transactions or any other transactions contemplated hereby, (ii) any Loan
or the use of the proceeds therefrom, or (iii) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto (iv) acting or relying on any notice, request
or instruction which it believes to be genuine, correct and appropriately
authorized relating to this Agreement, or (v) investigating any event which it
reasonably believes is a Default; provided that such indemnity shall not, as to
any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

                  (c)      Reimbursement by Lenders. The Lenders agree to
indemnify the Facility Agent (to the extent not reimbursed under Section
9.03(b), but without limiting the obligations of the Borrower under Section
9.03(b)) ratably in accordance with the principal amount of the Loan held by the
Lenders, for any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind and
nature whatsoever that may be imposed on, incurred by or asserted against the
Facility Agent (including by any Lender) arising out of or by reason of any
investigation or any way relating to or arising out of this Agreement (including
the costs and expenses that the Borrower are obligated to pay under Section
9.03(b) but excluding, unless a Default has occurred and is continuing, normal
administrative costs and expenses incident to the performance of its agency
duties hereunder) or the enforcement of any of the terms hereof; provided that
no Lender shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of the Facility Agent.

                  (d)      Waiver of Consequential Damages, Etc. To the extent
permitted by applicable law, the Borrower shall not assert, and hereby waives,
any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement
or any agreement or instrument contemplated hereby, the Transactions, any Loan
or the use of the proceeds thereof.

                  (e)      Payments. All amounts due under this Section shall be
payable on demand therefor.

                  SECTION 9.04.  Successors and Assigns.

                  (a)      Assignments Generally. The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrower without such consent shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Related Parties of each of the Facility Agent and the
Lenders) any legal or

                                     - 36 -
<PAGE>

equitable right, remedy or claim under or by reason of this Agreement.

                  (b)      Assignments by Lenders. Any Lender may assign to one
or more Eligible Assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of the Loan at the time owing to it
provided that any such assignment shall be in a minimum amount of $1,000,000 or
equivalent to the balance of principal payable to the Lender under this
Agreement); provided that

                           (i)      each partial assignment shall be made as an
         assignment of a proportionate part of all the assigning Lender's rights
         and obligations under this Agreement, and

                           (ii)     the parties to each assignment shall execute
         and deliver to the Facility Agent an Assignment and Acceptance, and the
         assignee shall pay a processing and recordation fee of $1,000 to the
         Facility Agent.

                  Upon acceptance and recording pursuant to paragraph (d) of
this Section, from and after the effective date specified in each Assignment and
Acceptance, the assignee thereunder shall be a party hereto and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender's
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.11
and 9.03). Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (e) of this Section.

                  (c)      Maintenance of Register by the Facility Agent. The
Facility Agent shall maintain at one of its offices a copy of each Assignment
and Acceptance delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the principal amount of the Loan owing to,
each Lender pursuant to the terms hereof from time to time (the "REGISTER"). The
entries in the Register shall be conclusive, and the Borrower, the Facility
Agent and the Lenders may treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

                  (d)      Effectiveness of Assignments. Upon its receipt of a
duly completed Assignment and Acceptance executed by an assigning Lender and an
assignee, the processing and recordation fee referred to in paragraph (b) of
this Section, the Facility Agent shall accept such Assignment and Acceptance,
record the information contained therein in the Register and notify the Borrower
of such assignment. No assignment shall be effective for purposes of this
Agreement unless it has been recorded in the Register as provided in this
paragraph.

                  (e)      Participations. Any Lender may, without the consent
of the Borrower or the

                                     - 37 -
<PAGE>

Facility Agent, sell participations to one or more banks or other entities (a
"PARTICIPANT") in all or a portion of such Lender's rights and obligations under
this Agreement (including all or a portion of the Loan owing to it); provided
that (i) such Lender's obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (iii) the Borrower, the Facility Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement.

                  (f)      Limitations on Rights of Participants. A Participant
shall not be entitled to receive any greater payment under Section 2.06 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.06 unless the Borrower is notified of the
participation sold to such Participant.

                  (g)      Certain Pledges. Any Lender may at any time pledge or
assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender and this Section shall not apply
to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such assignee for such Lender as a
party hereto.

                  (h)      No Assignments to the Borrower or Affiliates.
Anything in this Section to the contrary notwithstanding, no Lender may assign
or participate any interest in any Loan held by it hereunder to the Borrower or
any of its Affiliates or Subsidiaries without the prior consent of each Lender.

                  SECTION 9.05. Survival. All covenants, agreements,
representations and warranties made by the Borrower herein and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement and the
making of any Loan, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Facility Agent or any Lender may
have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on any
Loan or any fee or any other amount payable under this Agreement is outstanding
and unpaid. The provisions of Sections 2.11 and 9.03 and Article VIII shall
survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loan or the
termination of this Agreement or any provision hereof.

                  SECTION 9.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement and
any separate letter agreements with respect to fees payable to the Facility
Agent

                                     - 38 -
<PAGE>

constitute the entire contract between and among the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except
as provided in Article IV, this Agreement shall become effective when it shall
have been executed by the Facility Agent and when the Facility Agent shall have
received counterparts hereof which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns. Delivery of an executed counterpart of a signature page to this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

                  SECTION 9.07. Severability. Any provision of this Agreement
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

                  SECTION 9.08. Right of Set-off. If an Event of Default shall
have occurred and be continuing, each Lender is hereby authorized at any time
and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender
to or for the credit or the account of the Borrower against any of and all the
obligations of the Borrower now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement and although such obligations may be unmatured. The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

                  SECTION 9.09.  Governing Law; Jurisdiction; Service of
Process; Etc.

                  (a)      Governing Law. This Agreement shall be construed in
accordance with and governed by the law of the State of New York.

                  (b)      Submission to Jurisdiction. The Borrower hereby
agrees that any suit, action or proceeding with respect to this Agreement or any
judgment entered by any court in respect thereof may be brought in the United
States District Court for the Southern District of New York, in the Supreme
Court of the State of New York sitting in New York County (including its
Appellate Division), or in any other appellate court in the State of New York,
as the party commencing such suit, action or proceeding may elect in its sole
discretion; and the Borrower hereby irrevocably submits to the jurisdiction of
such courts for the purpose of any such suit, action, proceeding or judgment.
The Borrower further submits, for the purpose of any such suit, action,
proceeding or judgment brought or rendered against it, to the appropriate courts
of the jurisdiction of its domicile.

                  (c)      Process Agent. The Borrower hereby agrees that
service of all writs, process and summonses in any such suit, action or
proceeding brought in the State of New York may be made upon CT Corporation,
presently located at 111 Eighth Avenue, New York, New York 10011 (the "PROCESS
AGENT"), and the Borrower hereby confirms and agrees that the Process Agent has
been duly and irrevocably appointed as its agent and true and lawful
attorney-in-fact in its name,

                                     - 39 -
<PAGE>

place and stead to accept such service of any and all such writs, process and
summonses, and agrees that the failure of the Process Agent to give any notice
of any such service of process to the Borrower shall not impair or affect the
validity of such service or of any judgment based thereon. The Borrower hereby
further irrevocably consents to the service of process in any suit, action or
proceeding in such courts by the mailing thereof by the Facility Agent or any
Lender by registered or certified mail, postage prepaid, at its address set
forth beneath its signature hereto.

                  (d)      Other Service. Nothing herein shall in any way be
deemed to limit the ability of the Facility Agent or any Lender to serve any
such writs, process or summonses in any other manner permitted by applicable law
or to obtain jurisdiction over the Borrower in such other jurisdictions, and in
such manner, as may be permitted by applicable law.

                  (e)      Waiver of Venue. The Borrower hereby irrevocably
waives any objection that it may now or hereafter have to the laying of the
venue of any suit, action or proceeding arising out of or relating to this
Agreement brought in the Supreme Court of the State of New York, County of New
York or in the United States District Court for the Southern District of New
York, and hereby further irrevocably waives any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum.

                  SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

                  SECTION 9.11. No Immunity. To the extent that the Borrower may
be or become entitled, in any jurisdiction in which judicial proceedings may at
any time be commenced with respect to this Agreement, to claim for itself or its
properties or revenues any immunity from suit, court jurisdiction, attachment
prior to judgment, attachment in aid of execution of a judgment, execution of a
judgment or from any other legal process or remedy relating to its obligations
under this Agreement, and to the extent that in any such jurisdiction there may
be attributed such an immunity (whether or not claimed), the Borrower hereby
irrevocably agrees not to claim and hereby irrevocably waives such immunity to
the fullest extent permitted by the laws of such jurisdiction.

                  SECTION 9.12. Judgment Currency. This is an international loan
transaction in which the specification of Dollars is of the essence, and the
obligations of the Borrower under this Agreement to make payment to (or for
account of) a Lender in Dollars shall not be discharged or satisfied by any
tender or recovery pursuant to any judgment expressed in or converted into any
other currency or in another place except to the extent that such tender or
recovery results in the effective

                                     - 40 -
<PAGE>

receipt by such Lender of the full amount of Dollars payable to such Lender
under this Agreement. If for the purpose of obtaining judgment in any court it
is necessary to convert a sum due hereunder in Dollars into another currency (in
this Section called the "JUDGMENT CURRENCY"), the rate of exchange that shall be
applied shall be that at which in accordance with normal banking procedures the
Facility Agent could purchase such Dollars at the principal office of the
Facility Agent with the judgment currency on the Business Day next preceding the
day on which such judgment is rendered. The obligation of the Borrower in
respect of any such sum due from it to the Facility Agent or any Lender
hereunder (in this Section called an "ENTITLED PERSON") shall, notwithstanding
the rate of exchange actually applied in rendering such judgment, be discharged
only to the extent that on the Business Day following receipt by such Entitled
Person of any sum adjudged to be due hereunder in the judgment currency such
Entitled Person may in accordance with normal banking procedures purchase and
transfer Dollars with the amount of the judgment currency so adjudged to be due;
and the Borrower hereby, as a separate obligation and notwithstanding any such
judgment, agrees to indemnify such Entitled Person against, and to pay such
Entitled Person on demand, in Dollars, the amount (if any) by which the sum
originally due to such Entitled Person in Dollars hereunder exceeds the amount
of the Dollars so purchased and transferred.

                  SECTION 9.13. Use of English Language. This Agreement has been
negotiated and executed in the English language. All certificates, reports,
notices and other documents and communications given or delivered pursuant to
this Agreement (including any modifications or supplements hereto) shall be in
the English language, or accompanied by a certified English translation thereof.
Except in the case of laws or official communications of Indonesia, in the case
of any document originally issued in a language other than English, the English
language version of any such document shall for purposes of this Agreement, and
absent manifest error, control the meaning of the matters set forth therein.

                  SECTION 9.14. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and shall not affect the construction of, or be taken
into consideration in interpreting, this Agreement.

                                     - 41 -
<PAGE>

                  SECTION 9.15 Confidentiality. All material, non-public
information provided to or received by, or otherwise obtained by, the Facility
Agent or any Lender pursuant to this Agreement shall be kept secret and
confidential by the Facility Agent or such Lender, as the case may be, except
that such information may be disclosed (i) to its and its Affiliates' head
office, other branches, representative offices, directors, officers, employees
and agents, including accountants, auditors, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such information and instructed to keep
such information confidential), (ii) to the extent requested by any regulatory
authority, (iii) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (iv) to any other party to this Agreement
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such information and instructed to keep
such information confidential), (v) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (vi) subject to an agreement containing
provisions substantially the same as those of this paragraph, to any assignee of
or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement (it being understood that the Persons
to whom such disclosure is made will be informed of the confidential nature of
such information and instructed to keep such information confidential), (vii)
with the prior written consent of the Borrower or (viii) to the extent such
information (A) becomes publicly available other than as a result of a breach of
this paragraph or (B) becomes available to the Facility Agent or any Lender on a
nonconfidential basis.

                                     - 42 -
<PAGE>

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

PERUSAHAAN PERSEROAN (PERSERO) PT
TELEKOMUNIKASI INDONESIA, TBK.

By /s/ Kristiono
   _________________________
  Name:  Kristiono
  Title: President Director

By_________________________
  Name:
  Title:

JPMORGAN CHASE BANK,
HONG KONG OFFICE, as Facility Agent

By /s/ Sigit Priwibowo
   _________________________
  Name:  Sigit Priwibowo
  Title: Vice President

                                     - 43 -
<PAGE>

LENDERS

ASO I (MAURITIUS) LIMITED

By  /s/ Mark McGoldrick
   ________________________
   Name: Mark McGoldrick
   Title: Director

Lending office and address for notices:

Attention of:     Fred Tai/Nelly Cheng
Address:          c/o: 68th Floor, Cheung Kong Center
                  2 Queen's Road Central
                  Hong Kong
Facsimile No.:    (852) 2978-0619
Telephone No.:    (852) 2978-1275/2978-1625
E-mail:           ficc-lstops-hk@fi.fi.gs.com

                                     - 44 -
<PAGE>

AVENUE ASIA CAPITAL PARTNERS, L.P.

By /s/ Malcolm Robinson
  _________________________
  Name: Malcolm Robinson
  Title: Managing Director

Lending office and address for notices:

Attention of:     Malcolm Robinson/Alexa Kim
Address:          c/o Avenue Capital Group (New York)
                  535 Madison Avenue, 15th Floor
                  New York, NY 10022
                  USA
Facsimile No.:    (1-212) 878-3585
Telephone No.:    (1-212) 850-7540/878-3528
E-mail:           malrobinson@bloomberg.net
                  alexa.kim@avenue-asia.com

And to:

Attention of:     Ivy Santoso
Address:          c/o Avenue Capital Group (Jakarta)
                  Wisma GKBI 39th Floor, Suite 3901
                  Jl. Jend. Sudirman No. 28
                  Jakarta 10210
                  Indonesia
Facsimile No.:    (62-21) 5799-8138
Telephone No.:    (62-21) 5799-8137
E-mail:           ivy.santoso@avenue-asia.com

                                     - 45 -
<PAGE>

AVENUE ASIA INTERNATIONAL LTD.

By /s/ Malcolm Robinson
  _________________________
  Name: Malcolm Robinson
  Title: Managing Director

Lending office and address for notices:

Attention of:     Malcolm Robinson/Alexa Kim
Address:          c/o Avenue Capital Group (New York)
                  535 Madison Avenue, 15th Floor
                  New York, NY 10022
                  USA
Facsimile No.:    (1-212) 878-3585
Telephone No.:    (1-212) 850-7540/878-3528
E-mail:           malrobinson@bloomberg.net
                  alexa.kim@avenue-asia.com

And to:

Attention of:     Ivy Santoso
Address:          c/o Avenue Capital Group (Jakarta)
                  Wisma GKBI 39th Floor, Suite 3901
                  Jl. Jend. Sudirman No. 28
                  Jakarta 10210
                  Indonesia
Facsimile No.:    (62-21) 5799-8138
Telephone No.:    (62-21) 5799-8137
E-mail:           ivy.santoso@avenue-asia.com

                                     - 46 -
<PAGE>

AVENUE ASIA INVESTMENTS, L.P.

By /s/ Malcolm Robinson
  _________________________
  Name: Malcolm Robinson
  Title: Managing Director

Lending office and address for notices:

Attention of:     Malcolm Robinson/Alexa Kim
Address:          c/o Avenue Capital Group (New York)
                  535 Madison Avenue, 15th Floor
                  New York, NY 10022
                  USA
Facsimile No.:    (1-212) 878-3585
Telephone No.:    (1-212) 850-7540/878-3528
E-mail:           malrobinson@bloomberg.net
                  alexa.kim@avenue-asia.com

And to:

Attention of:     Ivy Santoso
Address:          c/o Avenue Capital Group (Jakarta)
                  Wisma GKBI 39th Floor, Suite 3901
                  Jl. Jend. Sudirman No. 28
                  Jakarta 10210
                  Indonesia
Facsimile No.:    (62-21) 5799-8138
Telephone No.:    (62-21) 5799-8137
E-mail:           ivy.santoso@avenue-asia.com

                                     - 47 -
<PAGE>

AVENUE ASIA SPECIAL SITUATIONS FUND II, L.P.

By /s/ Malcolm Robinson
  _________________________
  Name: Malcolm Robinson
  Title: Managing Director

Lending office and address for notices:

Attention of:     Malcolm Robinson/Alexa Kim
Address:          c/o Avenue Capital Group (New York)
                  535 Madison Avenue, 15th Floor
                  New York, NY 10022
                  USA
Facsimile No.:    (1-212) 878-3585
Telephone No.:    (1-212) 850-7540/878-3528
E-mail:           malrobinson@bloomberg.net
                  alexa.kim@avenue-asia.com

And to:

Attention of:     Ivy Santoso
Address:          c/o Avenue Capital Group (Jakarta)
                  Wisma GKBI 39th Floor, Suite 3901
                  Jl. Jend. Sudirman No. 28
                  Jakarta 10210
                  Indonesia
Facsimile No.:    (62-21) 5799-8138
Telephone No.:    (62-21) 5799-8137
E-mail:           ivy.santoso@avenue-asia.com

                                     - 48 -
<PAGE>

BANK OF BERMUDA (GUERNSEY) LIMITED, AS SUB CUSTODIAN AND AGENT FOR SPINNAKER
GLOBAL EMERGING MARKETS FUND AND SPINNAKER GLOBAL OPPORTUNITY FUND

By /s/ Keith Doman
  _________________________
  Name: Keith Doman
  Title: Head of Global Fund Services (Guernsey)

Lending office and address for notices:

Attention of:     Rebecca Brehaut
Address:          PO Box 208, Bermuda House
                  St. Julian's Avenue, St. Peter Port
                  Guernsey, Channel Islands GY1 3NF
Facsimile No.:    (44-1481) 707-237
Telephone No.:    (44-1481) 707-054
E-mail:           rebecca.brehaut@bankofbermuda.com

                                     - 49 -
<PAGE>

BANK ONE, NA

By /s/ Michael S. Brown
  _________________________
  Name:  Michael S. Brown
  Title: Managing Director
         Regional Executive, Asia Pacific

Address for Lending Office:

Bank One, NA
Suite IL1-0629, 1-10
1 Bank One Plaza
Chicago, Illinois 60670-0629

Address for notices:

Bank One, NA, HK Branch
Attention of:         Wicky Tam
Address:              Hong Kong Branch
                      7th Floor, Jardine House, 1 Connaught Place
                      Central, Hong Kong
Facsimile No.:        (852) 2844-9318
Telephone No.:        (852) 2844-9222 (Main) / 2844-9250 (Direct)
E-mail:               wicky_tam@bankone.com

And to:

Bank One, NA
Attention of:         Sandra S. Nimtz
Address:              Suite IL 1-0318, 1-17
                      1 Bank One Plaza
                      Chicago, Illinois 60670-0318
Facsimile No.:        (1-312) 732-1158
Telephone No.:        (1-312) 732-3967
E-mail:               sandy_nimtz@bankone.com

                                     - 50 -
<PAGE>

BAYERISCHE HYPO- UND VEREINSBANK AG

By /s/ Anil Yadav
  _________________________
  Name:  Anil Yadav
  Title: Director - Project and Export Finance Asia Pacific

Lending office and address for notices:

Attention of:     Anil Yadav/Lee Thiam Seng/Kelly Lee
Address:          Bayerische Hypo-und Vereinsbank AG, Singapore Branch
                  30 Cecil Street, #26-01 Prudential Tower
                  Singapore 049712
Facsimile No.:    (65) 6413-3824/3714
Telephone No.:    (65) 6413-3502/3852/3772
Email:            anil.kumar.yadav@hvbasia.com
                  Thiam.Seng.lee@hvbasia.com
                  Kelly.Lee@hvbasia.com

And to:

Attention of:     Angelo Bartoli
Address:          Bayerische Hypo-und Vereinsbank AG
                  MCP 6, Am Tucherpark 1
                  D-80311, Munich
                  Germany
Facsimile No.:    (49-89) 378-28197
Telephone No.:    (49-89) 378-26293
Email:            angelo.bartoli@hvb.de

                                     - 51 -
<PAGE>

BAYERISCHE LANDESBANK, SINGAPORE BRANCH

By /s/ Sarah Lim                                /s/ Daniel Soo
  _________________________                   _________________________
  Name:  Sarah Lim                             Daniel Soo
  Title: Vice President                        Assistant Vice President

Lending office and address for notices:

Attention of:     Sarah Lim/Daniel Soo
Address:          300 Beach Road
                  #37-01 The Concourse
                  Singapore 199555
Facsimile No.:    (65) 6293-3171
Telephone No.:    (65) 6390-6643/6390-6614
Email:            limsarah@bayernlb.de
                  danielsoo@bayernlb.de

                                     - 52 -
<PAGE>

BNP PARIBAS, SINGAPORE BRANCH

By /s/ Robert Dolk                                 /s/ Denis Fargier
  _________________________                      ________________________
 Name:  Robert Dolk                              Denis Fargier
 Title: Regional Head, Structured Finance        Head, Leveraged Finance Group
        Asia & Australasia                       Asia-Pacific

Lending office and address for notices:

Attention of:     Sandeep Aggarwal/Fabien Banaletti
Address:          20 Collyer Quay
                  Tung Centre
                  Singapore 049319
Facsimile No.:    (65) 6210-1809
Telephone No.:    (65) 6210-1801/6210-1807
Email:            sandeep.aggarwal@asia.bnpparibas.com;
                  fabien.banaletti@asia.bnpparibas.com

                                     - 53 -
<PAGE>

CARGILL FINANCIAL SERVICES INTERNATIONAL, INC.

By /s/ Gerardo J. Bernaldez                           /s/ Christopher J. Hedberg
  _________________________                          _________________________
  Name: Gerardo J. Bernaldez                         Christopher J. Hedberg
  Title: Portfolio Manager                           Operations Manager

Lending office and address for notices:

Attention of:     Joshua M. Jongewaard/Sandra Sullivan
Address:          12700 Whitewater Drive MS 53
                  Minnetonka, Minnesota 55343-9439
                  USA
Facsimile No.:    (952) 984-3895/3728
Telephone No.:    (952) 984-3641/3762
Email:            Joshua_jongewaard@cargill.com
                  Sandra_Sullivan@cargill.com

                                     - 54 -
<PAGE>

COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK,
SINGAPORE BRANCH

By /s/ How Seen Tiat                 By /s/ Peter Tang
  _________________________            _________________________
  Name:  How Seen Tiat                 Name:  Peter Tang
  Title: Director                      Title: Senior Manager

Lending office and address for notices:

Attention of:     Peter Tang/Tan Mui Kheng/Lim Geat Choo
Address:          77 Robinson Road
                  #09-00 SIA Building
                  Singapore 068896
Facsimile No.:    (65) 6536-3200/6438-4706
Telephone No.:    (65) 6230-6778/6230-6730/6230-6732
E-mail:           peter.tangcw@rabobank.com
                  muikheng.tan@rabobank.com
                  geatchoo.lim@rabobank.com

                                     - 55 -
<PAGE>

CREDIT AGRICOLE INDOSUEZ (SUISSE) SA

By /s/ Christel Lambeln             By /s/ Christophe Mottaz
  _________________________           __________________________
  Name: Christel Lambeln              Name: Christophe Mottaz
  Title:                              Title:

Lending office and address for notices:

Attention of:         Alberto Diaz-Guerra
Address:              4, Quai General Guisan
                      1204 Geneva
                      Switzerland
Facsimile No.:        (41-22) 319-9678
Telephone No.:        (41-22) 319-9155
E-mail:               Alberto_Diaz-Guerra@ca-indosuez.ch

                                     - 56 -
<PAGE>

DEUTSCHE BANK AG, LONDON

By /s/ Lee, Soo Cheon              By /s/ Tod Macr
  _________________________          ____________________
  Name: Lee, Soo Cheon               Name: Tod Macr
  Title: Director                    Title: Director

Lending office and address for notices:

Attention of:     Lindsay Powell
Address:          Winchester House
                  1 Great Winchester Street
                  London EC2N 2DB
                  United Kingdom
Facsimile No.:    (44-20) 7547-2707
Telephone No.:    (44-20) 7547-3463
E-mail:           lindsay.powell@db.com

And to:

Attention of:     London Loan Operations
Address:          Deutsche Bank AG, London
                  21st Floor
                  99 Bishopsgate
                  London
                  United Kingdom
Facsimile No.:    (44-20) 7547-5843
Telephone No.:    (44-20) 7545-7163
E-mail:           LS2.DisTrading@list.db.com;
                  janet.young@db.com

                                     - 57 -
<PAGE>

FARALLON CAPITAL MANAGEMENT, L.L.C.

By /s/ William F. Mellin
  _________________________
  Name: William F. Mellin
  Title: Managing Member

Lending office and address for notices:

Attention of:     Colby Trexler
Address:          One Maritime Plaza, Suite 1325
                  San Francisco, CA 94111
                  USA
Facsimile No.:    (415) 421-3876
Telephone No.:    (415) 421-2132
E-mail:           ctrexler@FarallonCapital.com

                                     - 58 -
<PAGE>

HILLSIDE APEX FUND LIMITED

By /s/ Rob King
  _________________________
  Name:  Rob King
  Title: Director

Lending office and address for notices:

Attention of:         Chris Currington
Address:              Thames River Capital (UK) Limited
                      51 Berkeley Square
                      London W1J 5BB
                      United Kingdom
Facsimile No.:        (44-20) 7360-1249
Telephone No.:        (44-20) 7360-1248
E-mail:               ccurington@thamesriver.co.uk
                      btallaksen@thamesriver.co.uk
                      mmabbutt@thamesriver.co.uk

                                     - 59 -
<PAGE>

HSH NORDBANK INTERNATIONAL S.A.

By /s/ Sonja Risch                 By /s/ Franz-Josef Glauben
  _________________________          ___________________________
  Name: Sonja Risch                  Name: Franz-Josef Glauben
  Title: Banking Officer             Title: Manager

Lending office and address for notices:

Attention of:         Monica Biedermann
Address:              2, rue Jean Monnet
                      L-2180 Luxembourg
Facsimile No.:        (352) 4241-97
Telephone No.:        (352) 4241-41-245
E-mail:               monica.biedermann@hsh-nordbank-int.com

And to:

HSH NORDBANK AG
Attention of:         Ursula Kollex
Address:              Martensdamm 6
                      24103 Kiel
Facsimile No.:        (49-431) 9006-13034
Telephone No.:        (49-431) 900-13034
E-mail:               ursula.kollex@hsh-nordbank.com

                                     - 60 -
<PAGE>

JPMORGAN CHASE BANK, SINGAPORE BRANCH

By /s/ Michael Choo
  _________________________
  Name:  Michael Choo
  Title: VP

Lending office and address for notices:

Attention of:         S. Tiwari or Sharath S.Shetty

Address:              c/o JPMorgan Services (I) Private Limited
                      Technopolis Knowledge Park,
                      Mahakali Caves Road,
                      Andheri  (East), Mumbai 400 093
                      India
Facsimile No.:        (91) (22) 5695 4361
Telephone No.:        (91) (22) 5695 3621/23
E-mail:               Bipin.S.Tiwari@jpmorgan.com
                      Sharath.S.Shetty@jpmorgan.com

And to:

Attention of:         Michael Choo
Address:              JPMorgan Chase Bank, Singapore Branch
                      168 Robinson Road
                      #17-00 Capital Tower
                      Singapore 068912
Facsimile No.:        (65) 6392-7264
Telephone No.:        (65) 6882-1331
E-mail:               michael.choo@jpmorgan.com

                                     - 61 -
<PAGE>

JP MORGAN EUROPE LIMITED

By /s/ Michael Choo
  _________________________
  Name:  Michael Choo
  Title: VP

Lending office and address for notices:

Attention of:         Gwen Griffiths/Mike Brosnan
Address:              125 London Wall
                      11th Floor
                      London EC2Y 5AJ
                      England
Facsimile No.:        (44-207) 742 7922
Telephone No.:        (44-207) 777-4703 / 777-4532
Email:                Gwen.Griffiths@jpmchase.com
                      Mike.Brosnan@jpmchase.com

                                     - 62 -
<PAGE>

KBC BANK N.V., LONDON BRANCH

By /s/ Eric Nelsen                     By /s/ Alex Skinner
  _________________________              _________________________
  Name:  Eric Nelsen                     Name: Alex Skinner
  Title: Head of Credit Risk             Title: Documentation Officer

Lending office and address for notices:

Attention of:         Simon Lay
Address:              KBC Bank N.V., London Branch
                      5th Floor, 111 Old Broad Street
                      London EC2N 1BR
                      United Kingdom
Facsimile No.:        (44-20) 7256-2141
Telephone No.:        (44-20) 7256-4856
Email:                simon.lay@kbc.be

And to:

Attention of:         Gilbert Yu
Address:              KBC Bank N.V.
                      Global Structured Finance
                      39th Floor, Central Plaza
                      18 Harbour Road
                      Wanchai, Hong Kong
Facsimile No.:        (852) 2879-3418
Telephone No.:        (852) 2879-3424
Email:                waihonggilbert.yu@kbc.com

And to:

Attention of:         Frank Stokes/Nyree O'malley
Address:              KBC Bank N.V., Dublin Branch
                      KBC House, 4 Georges Dock
                      IFSC
                      Dublin 1
                      Ireland
Facsimile No.:        (353-1) 661-0196
Telephone No.:        (353-1) 670-0888
Email:                frank.stokes@kbc.be
                      nyree.omalley@kbc.be

                                     - 63 -
<PAGE>

KORAM BANK

By /s/ Eung Shik Shin
  --------------------------------
  Name:  Eung Shik Shin
  Title: Head of Investment Banking Team

Lending office and address for notices:

Attention of:         Y.S. Jeong (Assistant Manager)/C.W. Bang (Assistant
                      Manager)
Address:              #39, Da-Dong Chung-Ku
                      Seoul
                      Korea (100-180)
Facsimile No.:        (822) 3455-2923
Telephone No.:        (822) 3455-2547/2543
E-mail:               jeong@goodbank.com

                                     - 64 -
<PAGE>

LANDESBANK HESSEN-THUERINGEN GIROZENTRALE

By /s/ Ulrich Paehler                            /s/ Claudia Schmidt
  --------------------------------               -------------------------------
  Name:  Ulrich Paehler                          Claudia Schmidt
  Title: Senior Vice President                   Project Analyst

Lending office and address for notices:

Attention of:         Structured Finance/Credit and Cash Flow Analysis
Address:              Main Tower
                      Neue Mainzer Strasse 52-58
                      60311 Frankfurt am Main
                      Germany
Facsimile No.:        (49-69) 9132-3208
Telephone No.:        (49-69) 9132-2892
E-mail:               Claudia.Schmidt@helaba.de

                                     - 65 -
<PAGE>

NIB CAPITAL BANK LTD

By /s/ H. Huyssen van Kattendijke                       /s/ Ng Eng Chye
  ---------------------------------                     ------------------------
  Name:  H. Huyssen van Kattendijke                     Ng Eng Chye
  Title: Managing Director                              Vice President

Lending office and address for notices:

Attention of:         Ng Eng Chye/Teo Siok Choo
Address:              1 Finlayson Green, #15-01
                      Singapore 049246
Facsimile No.:        (65) 6538-2510
Telephone No.:        (65) 6230-8107/6230-8114
E-mail:               eng.chye.ng@nibcapital.com;
                      teo.siok.choo@nibcapital.com

                                     - 66 -
<PAGE>

PT. INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO)

By /s/ John Welly
  -------------------------------
  Name:  John Welly
  Title: President Director

Lending office and address for notices:

Attention of:         Rizka Irawan/Bahrun Rosyadi/Waseso Adiatmo
Address:              Fixed Network and Access Division/Corporate Secretary
                      Gedung Kantor Pusat
                      Jl. Mohammad Toha 77
                      Bandung 40253
                      Indonesia
Facsimile No.:        (62-22) 520-5394/522-4636
Telephone No.:        (62-22) 520-2615/520-1501 ext: 2410
E-mail:               rizka@inti.co.id
                      bahrun@inti.co.id
                      waseso@inti.co.id

                                     - 67 -
<PAGE>

SOCIETE GENERALE, SINGAPORE BRANCH

By /s/ DANIEL MOLLE
  -------------------------------
  Name:  DANIEL MOLLE
  Title: CHIEF COUNTRY MANAGER

Lending office and address for notices:

Attention of:         Sunny Lui/Cecilia Wong/Michael Yap/Alex Teo
Address:              80 Robinson Road, #25-00
                      Singapore 068898
Facsimile No.:        (852) 2804-6215/(65) 6224-5417/6221-3826
Telephone No.:        (852) 2166-5671/(65) 6326-7551/6326-7553
E-mail:               cecilia-c-k.wong@sgcib.com;
                      sunny.lui@sgcib.com

                                     - 68 -
<PAGE>

SUMITOMO MITSUI BANKING CORPORATION

By /s/ Jun Ohta
  --------------------------------
  Name:  Jun Ohta
  Title: General Manager

Lending office and address for notices:

Attention of:         Edwin Lee/Ichiro Takano/Cathrine Lai
Address:              Structured Finance Department, Asia/Credit Administration
                      Department
                      3 Temasek Avenue, #06-01
                      Centennial Tower
                      Singapore 039190
Facsimile No.:        (65) 6883-0335/6882-0023
Telephone No.:        (65) 6882-0233/6882-0530
E-mail:               edwin_lee@sg.smbc.co.jp;
                      cathrine_lai@sg.smbc.co.jp

                                     - 69 -

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.4
<SEQUENCE>6
<FILENAME>u92256exv4w4.txt
<DESCRIPTION>EX-4.4 1ST AMENDMENT CONDITIONAL SALE AND PURCHASE
<TEXT>
<PAGE>
                                                                     Exhibit 4.4


                               FIRST AMENDMENT TO
                    CONDITIONAL SALE AND PURCHASE AGREEMENT

                         NO: K.TEL.168/HK810/SEK-20/2003

                                  by and among

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                                  as Purchaser

                                       and

                                 PT ARIA INFOTEK
                          MEDIAONE INTERNATIONAL I B.V.
                          THE ASIAN INFRASTRUCTURE FUND

                          as the Selling Shareholders

                         relating to the acquisition of

                           PT ARIA WEST INTERNATIONAL

                            dated as of July 31, 2003

<PAGE>

THIS FIRST AMENDMENT to the Conditional Sale and Purchase Agreement dated as of
May 8, 2002 (the "CSPA") by and among PERUSAHAAN PERSEROAN (PERSERO) PT
TELEKOMUNIKASI INDONESIA TBK, a limited liability company organized under the
laws of the Republic of Indonesia (the "Purchaser"), PT ARIA INFOTEK, a limited
liability company organized under the laws of the Republic of Indonesia ("Aria
Infotek"), MEDIAONE INTERNATIONAL I B.V. ("MediaOne"), a private limited company
incorporated under the laws of the Netherlands and THE ASIAN INFRASTRUCTURE
FUND, an exempted limited duration company organized under the laws of the
Cayman Islands, ("AIF" and together with Aria Infotek and MediaOne, the "Selling
Shareholders" and each a "Selling Shareholder") is made and entered into by the
Purchaser and the Selling Shareholders as of July 31, 2003 (the "Amendment").
Capitalized terms not otherwise defined have the meanings assigned to them in
the Article 1 of the CSPA.

WHEREAS, the Purchaser and the Selling Shareholders entered into the CSPA
relating to the acquisition of shares of PT Aria West International:

WHEREAS, the Purchaser and the Selling Shareholders intend and desire to amend
the CSPA as set forth herein;

NOW THEREFORE, in consideration of the mutual representations, warranties,
promises, covenants and agreements set forth herein, intending to be legally
bound hereby, the Purchaser and the Selling Shareholders agree

                                       2
<PAGE>

as follows:

1.       In the CSPA, each instance of "2,704,444" is hereby amended to read
         "2,704,440".

2.       In Section 1.1 of the CSPA, in the definition of "Balance Amount", the
         words, "One Hundred Twenty Million U.S. Dollars (US$120,000,000)" are
         hereby amended to read "One Hundred Nine Million Ninety Thousand Nine
         Hundred Nine Dollars and Nine Cents (US$109,090,909.09)".

3.       In Section 1.1 of the CSPA, in the definition of "Shareholder Balance
         Amount", the numbers, "US$120,000,000" are hereby amended to read
         "US$109,090,909.09".

4.       In Section 1.1 of the CSPA, in the definition of "Initial Payment", the
         words, "Twenty Four Million Five Hundred Thousand U.S. Dollars (US
         $24,500.000)" are hereby amended to read, "US$18,675,874.15".

5.       In Section 1.1 of the CSPA, within the definition of "Shareholder
         Initial Payment", the words "Exhibit J" are hereby amended to read,
         "Exhibit I".

6.       In Section 1.1 of the CSPA, the definition of "Agreement" or "this
         Agreement" is hereby amended to read in its entirety as follows:

         "Agreement" or "this Agreement" shall mean this Conditional Sale and
         Purchase Agreement, as amended,  together with the Schedules (including
         the Signing Disclosure

                                       3
<PAGE>

         Schedule and the Closing Disclosure Schedule) and Exhibits hereto."

7.       In Section 1.1 of the CSPA, the definition of "AriaWest Loan
         Restructuring Agreement" is hereby amended to read in its entirety as
         follows:

         "Purchaser Loan Agreement" shall mean the agreement, in form and
         substance acceptable to Purchaser in its sole and absolute discretion
         between the Purchaser, the lenders party thereto and JP Morgan Chaser
         Bank, Hong Kong Office, as Facility Agent."

8.       In the CSPA, each instance of "AriaWest Loan Restructuring Agreement"
         is hereby amended to read "Purchaser Loan Agreement".

9.       In Section 1.1 of the CSPA, within the definition of "Shareholder Sale
         Shares", the words "Exhibit K" are hereby amended to read, "Exhibit I".

10.      In Section 1.1 of the CSPA, a new definition of "Telkom-AWI Loan
         Agreement" is hereby added in its entirety as follows:

         "Telkom-AWI Loan Agreement" shall mean the agreement, in form and
         substance acceptable to Purchaser in its sole and absolute discretion
         between Purchaser and the Company dated as of July 31, 2003."

11.      In Section 1.1 of the CSPA, the definition of "Purchase Price" is
         hereby amended in its entirety to read,

                                       4
<PAGE>

         "Purchase Price" shall mean US$147,766,783.24."

12.      In Section 1.1 of the CSPA, the definition of "Aggregate Purchase
         Price" is hereby amended in its entirety to read," "Aggregate Purchase
         Price" shall mean US$127,766,783.24."

13.      In Section 1.1 of the CSPA, the definition of "Seventh Maturity Date"
         is hereby amended in its entirety to read, ""Fourth Maturity Date"
         shall have the meaning assigned to such term in Exhibit R."

14.      In the CSPA (excluding, in Exhibit R as amended by this Amendment),
         each instance of "Fifth Maturity Date" is hereby amended to read,
         "Fourth Maturity Date".

15.      In the CSPA (excluding, in Exhibit R as amended by this Amendment),
         each instance of "Sixth Maturity Date" is hereby amended to read,
         "Fifth Maturity Date".

16.      In the CSPA (excluding, in Exhibit R as amended by this Amendment),
         each instance of "Seventh Maturity Date" is hereby amended to read,
         "Sixth Maturity Date".

17.      In the CSPA, a new definition of "Shareholders Release Agreement" is
         hereby added in its entirety to read as follows:

                                       5
<PAGE>

         ""Shareholders Release Agreement" shall mean the agreement by and
         between the parties to the AriaWest Loan and the Selling Shareholders
         dated as of the Closing Date."

18.      In Section 3.2 of the CSPA, a new Section 3.2(t) is hereby added to
         read in its entirety as follows:

         "a copy of the resolution of the Company's shareholders authorizing the
         Company's (i) acceptance of the resignations of each of the members of
         (A) the Board of Commissioners and (B) the Board of Directors and (ii)
         appointment of each of the individuals nominated by the Purchaser to
         (x) the Board of Commissioners and (y) the Board of Directors, in each
         case, effective immediately upon consummation of the Closing.

19.      In Section 3.2 of the CSPA, a new Section 3.2(u) is hereby added to
         read in its entirety at follows:

         "the Shareholders Release Agreement duly executed by such Selling
         Shareholder,"

20.      In Section 3.2 of the CSPA, a new Section 3.2(v) is hereby added to
         read in its entirety as follows:

         "evidence of payment of (i) all outstanding fees and expenses in
         connection with the negotiation, preparation, execution and delivery of
         the Purchaser Loan Agreement and as otherwise may have been payable by
         the Selling Shareholders, whether

                                       6
<PAGE>

         individually or collectively in connection with the AriaWest Loan,
         including all fees and expenses of Milbank, Tweed, Hadley & McCloy LLP,
         Makarim & Taira S. and the Principal Creditors (as defined in the
         AriaWest Loan documents), (ii) the fees of the Documentation Bank (as
         defined in the Purchaser Loan Agreement and (iii) the fees of the
         Paying Agent (as defined in the Agency Agreement)."

21.      In Section 3.3 of the CSPA, a new Section 3.3(j) is hereby added to
         read in its entirety as follows:

         "the Purchaser Loan Agreement, duly executed by all parties thereto "

22.      In Section 3.4(b) of the CSPA, the numbers, "US$120,000,000" are hereby
         amended to read, "US$109,090,909.09".

23.      Section 4.14(a) of the CSPA is hereby amended to read in its entirety
         as follows:

         "As of the Closing Date except for the liabilities and obligations owed
         to the KSO Unit or as set forth in Schedule 4.14 of the Closing
         Disclosure Schedule, neither the Company nor any of its Subsidiaries
         has any liability or obligation of any nature, whether or not absolute,
         accrued, contingent or otherwise."

24.      In Section 4.26(k) of the CSPA, in

                                       7
<PAGE>

         each instance, the words, "Financial Statements" are hereby amended to
         read, "Audited Financial Statements".

25.      Section 4.26(b) of the CSPA, is hereby amended to read in its entirety
         as follows:

         "As of the Closing Date, true and complete copies of all Tax Returns of
         each of the Company and its Subsidiaries and other documents relating
         to such Tax Returns dated prior to June 20, 2003 have been delivered to
         Purchaser by the Selling Shareholders (other than Tax Returns that
         shall not have been required to be filed as of such date").

26.      In Section 6.3(a) of the CSPA, the words, "but in any event prior to
         August 30, 2002" we hereby amended to read, "but in any event on or
         prior to August 30, 2003".

27.      Section 6.11(b) of the CSPA is hereby deleted in its entirety.

28.      In Section 6.12 of the CSPA, a new Section 6.12(c) is hereby added in
         its entirety to read as follows:

         "As soon as practicable following the final completion of each of the
         financial statements set forth in Section 7.2(t), each of the Selling
         Shareholders shall cause each of the Persons appointed by the Company
         pursuant to Section 7.2(t) to certify such financial statement."

29.      In Section 7.2 of the CSPA, a new

                                       8
<PAGE>

         Section 7.2(s) is hereby added to read in its entirety as follows:

         "The Telkom-AWI Loan Agreement shall have become effective upon due
         execution and delivery by a duly authorized representative from each of
         the parties thereto."

30.      In Section 7.2 of the CSPA, a new Section 7.2(t) is hereby added in its
         entirety to read as follows:

         "Financial Statements.

         (A)      On or prior to the Closing Date, the Company shall have
                  appointed and engaged, at the sole cost and expense of the
                  Selling Shareholders, (i) accountants, reasonably satisfactory
                  to the Purchaser, to prepare in accordance with GAAP applied
                  on a basis consistent with the Audited Financial Statements
                  consolidated balance sheet of the Company and its Subsidiaries
                  as at December 31, 2002 together with consolidated statements
                  of income, shareholders' equity and cash flows for the year
                  then ended and the notes thereto, and (ii) auditors,
                  reasonably satisfactory to Purchaser, to audit, certify and
                  prepare in accordance with GAAP the audited consolidated
                  balance sheet of the Company and its Subsidiaries as at
                  December 31, 2002 together with audited consolidated
                  statements of income, shareholders' equity and cash flows for
                  the year then ended and the notes

                                       9
<PAGE>

                  thereto, the audit report and opinion (if any) therein and any
                  letter issued in connection therewith.

         (B)      On or prior to the Closing Date, the Company shall have
                  appointed one or, more Directors of the Company, as required
                  by the orgnizational documents of the Company, any applicable
                  law or any Governmental Entity, to certify (i) each of the
                  financial statements set forth in the immediately preceding
                  clause (A) and (ii) consolidated balance sheet of the Company
                  and its Subsidiaries as at June 30, 2003 together with
                  consolidated statements of income, shareholders' equity and
                  cash flows for the six-month period then ended and the notes
                  thereto."

31.      In Section 7.3 of the CSPA, a new Section 7.3(f) is hereby added to
         read in its entirety as follows:

         "The Telkom-AWI Loan Agreement shall have become effective upon due
         execution and delivery by a duly authorized representative from each of
         the parties thereto."

32.      In Section 8.1(c)(ii) of the CSPA, the words, "August 30, 2002" are
         hereby amended to read, "August 30, 2003".

                                       10
<PAGE>

33.      In Section 8.1(d)(ii) of the CSPA, the words, "August 30, 2002" are
         hereby amended to read, "August 30, 2003"

34.      In Section 9.1 of the CSPA, the words, "December 31, 2003" are hereby
         amended to read, "December 31, 2004".

35.      Clause (i) of Section 9.1 of the CSPA, is hereby amended in its
         entirety to read as follows:

         "(i) indefinitely with respect to each covenant contained in Sections
         6.2(b), 6.6, the obligations contained in Sections 9.2(d) and 9.2(e),
         and the representations and warranties set forth in Sections 4.1, 4.2,
         4.3, 4.4, 4.6, 4.7, 4.8, 4.9, 4.11, 4.16, 5.1, 5.2, 5.3 and 5.4."

36.      In Section 9.2 of the CSPA, a new Section 9.2(d) is hereby added to
         read in its entirety as follows:

         "(d) any and all Damages arising from or in connection with any claim,
         obligation or liability asserted by the Existing Facility Agent,
         Existing Collateral Agent or any one of more of the AriaWest Lenders
         (each, as defined in the Release Agreement dated as of the Closing Date
         and entered into by and among the Company. AriaWest International
         Finance B.V., CIBC Asia Limited, as Existing Facility Agent, JP Morgan
         Chase Bank; as Existing Collateral Agent, and the AriaWest Lenders (as
         defined therein) (the "AWI Release Agreement")) under or pursuant to
         section 7.04 of the Common Agreement (as defined in the AWI

                                       11
<PAGE>

         Release Agreement or section 8.05 of the AriaWest Credit Agreement (as
         defined in the AWI Release Agreement)"

37.      In Section 9.2 of the CSPA, a new Section 9.2(e) is hereby added to
         read in its entirety as follows:

         "(e) any and all Damages arising from or in connection with (i) any
         goods or services provided, or agreed or claimed to be provided, on or
         prior to the Closing Date to AWI, AWIF, the KSO Unit, the Selling
         Shareholders, their respective Affiliates, or any officers or employees
         of any of the foregoing, by Prince Consulting Limited, Dyah Erista &
         Rokan, David Laithold, their respective Affiliates or Subsidiaries or
         any officers or employees of any of the foregoing or (ii) any of the
         liabilities or obligations referred to in Section 7.2(n) for which
         release letters were not provided to Purchaser on or before the Closing
         Date."

38.      Section 9.6(b) is hereby amended in its entirety as follows:

         "Section 9.6(a) shall not apply to, and each Selling Shareholder shall
         be immediately liable for, all claims (i) under Sections 9.2(b),
         9.2(c), 9.2(d) and 9.2(e) and (ii) with respect to any breach of
         representation and warranty under Sections 4.1, 4.2, 4.3, 4.4, 4.5,
         4.6, 4.7, 4.8, 4.9, 4.10, 4.11, 4.14,

                                       12
<PAGE>

         4.16, 4.26 and 4.28.

39.      The first sentence of Section 9.6(c) is hereby amended in its entirety
         as follows:

         "(c) Each Selling Shareholder's maximum aggregate liability to
         Purchaser under this Agreement for breaches of representations and
         warranties, covenents or agreements shall be such Selling Shareholder's
         Pro Rata Share of US$184,500,000 (the "Liability Cap") (exclusive of
         reasonable attorney's fees and expenses, reasonable accountant's fees
         and expenses and other reasonable fees and expenses incurred in the
         investigation or defense of any of the same or in asserting, preserving
         or enforcing any of the obligations of such Selling Shareholder under
         this Agreement), provided however that the foregoing limitation shall
         not apply to (x) fraudulent misrepresentation or fraudulent conduct by
         such Selling Shareholder: (y) any interest payable by a Selling
         Shareholder as a result of such Selling Shareholder's breach under
         Section 1(c) of the Interim Management Agreement: and (z) any Damages
         arising under Sections 9.2(d) or 9.2(e) (together (x), (y) and (z), the
         "Cap Exceptions"), and provided further, however, that the amount of
         any Cap Exceptions shall not be counted towards calculating the
         Liability Cap."

                                       13
<PAGE>

40.      Exhibit I of the CSPA is hereby amended in its entirety and replaced by
         Exhibit I attached hereto.

41.      Exhibit R of the CSPA is hereby amended in its entirety and replaced by
         Exhibit R attached hereto.

In the event of any conflict or inconsistency between the provisions of this
Amendment and the provisions of the CSPA, the provisions of this Amendment shall
prevail. Each and every term, condition, covenant, representation, warranty and
provision set forth in the CSPA, not expressly amended herein, shall remain in
full force and affect.

This Amendment may be executed in one or more counterparts, all of which shall
be considered one and the same agreement and shall become effective when two or
more counterparts have been signed by each of the parties and delivered to all
the other parties.

This Amendment shall be governed by and construed in accordance with the laws
of the Republic of Indonesia. Any and all disputes, claims or controversies
among the parties hereto arising out of or relating to this Amendment shall be
resolved in accordance with the procedures set forth in Section 10.8 of the
CSPA.

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

                       [Signatures on the following page]

                                       14
<PAGE>

IN WITNESS WHEREOF, the duly authorized representatives of the parties have
executed this Agreement as of the dated first written above.

PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK.

By: /s/ Kristiono
    ----------------------
Name: KRISTIONO
Title: President Director

PT ARIA INFOTEK

By: /s/ SanisTaga S. Ono
    ----------------------
Name: SANISTAGA S. ONO
Title: DIRECTOR

MEDIAONE INTERNATIONAL I B.V.

By: /s/ Denis Koh
    ----------------------
Name: DENIS KOH
Title: AUTHORISED PERSON

THE ASIAN INFRASTRUCTURE FUND

By: /s/ Antonio Young
    ----------------------
Name: ANTONIO YOUNG
Title: ATTORNEY

<PAGE>

                                    EXHIBIT I

          Shareholder Balance Amount/Initial Payment/Sale Shares

<TABLE>
<CAPTION>
    SELLING SHAREHOLDER         SALE SHARES   INITIAL PAYMENT    BALANCE AMOUNT
- --------------------------------------------------------------------------------
<S>                             <C>           <C>               <C>
PT Aria Infotek                  1,419,831    US$9,804,833.93   US$57,272,727.27
- --------------------------------------------------------------------------------
The Asian Infrastructure Fund      338,055    US$2,334,484.27   US$13,636,363.64
- --------------------------------------------------------------------------------
MediaOne International I B.V.      946,554    US$6,536,555.95   US$38,181,818.18
- --------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                   EXHIBIT R

<TABLE>
<CAPTION>
REPAYMENT AMOUNTS                            MATURITY DATES
- ----------------------------------------------------------------------
<S>                             <C>
US$10,909,090.91                12 months after the Closing Date
- ----------------------------------------------------------------------
US$10,909,090.91                18 months after the Closing Date
- ----------------------------------------------------------------------
US$10,909,090.91                24 months after the Closing Date
- ----------------------------------------------------------------------
US$10,909,090.91                30 months after the Closing Date (such
                                date the "Fourth Repayment Date")
- ----------------------------------------------------------------------
US$10,909,090.91                36 months after the Closing Date (such
                                date the "Fifth Repayment Date")
- ----------------------------------------------------------------------
US$10,909,090.91                42 months after the Closing Date (such
                                date the "Sixth Repayment Date")
- ----------------------------------------------------------------------
US$10,909,090.91                48 months after the Closing Date
- ----------------------------------------------------------------------
US$10,909,090.91                54 months after the Closing Date
- ----------------------------------------------------------------------
US$10,909,090.91                60 months after the Closing Date
- ----------------------------------------------------------------------
US$10,909,090.90                66 months after the Closing Date
- ----------------------------------------------------------------------
</TABLE>

Total: US$109,090,909.09

The Restricted Notes shall comprise US$3,454,545.45 of the Notes issued to Aria
Infotek having a stated maturity date of the Fourth Repayment Date.
US$3,454,545.45 of the Notes issued to Aria Infotek having a stated maturity
date of the Fifth Repayment Date and US$3,090,909.10 of the Notes issued to Aria
Infotek having a stated maturity date of the Sixth Repayment Date, which
Restricted Notes shall be subject to Purchaser's right to set-off, as provided
in this Agreement.

If the maturity date for any amount of principal in respect of any Note is not
a Business Day, the holder of such Note shall not be entitled to payment of the
amount due under such Note until the next following Business Day and shall not
be entitled to any further interest or payment in respect of any such delay.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.5
<SEQUENCE>7
<FILENAME>u92256exv4w5.txt
<DESCRIPTION>EX-4.5 CONDITIONAL SALE & PURCHASE AGREEMENT
<TEXT>
<PAGE>
                                                                     Exhibit 4.5



                     CONDITIONAL SALE AND PURCHASE AGREEMENT

                         NO: K.TEL.76/HK810/SEK-32/2002

                                  by and among

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                                  as Purchaser

                                       and

                                 PT ARIA INFOTEK
                          MEDIAONE INTERNATIONAL I B.V.
                          THE ASIAN INFRASTRUCTURE FUND

                           as the Selling Shareholders

                         relating to the acquisition of

                           PT ARIA WEST INTERNATIONAL

                             dated as of May 8, 2002

<PAGE>

                              CONDITIONAL SALE AND
                               PURCHASE AGREEMENT
                         NO: K.TEL.76/HK810/SEK-32/2002
                                DATED MAY 8, 2002

Conditional Sale and Purchase Agreement, dated as of May 8, 2002, by and among
PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA TBK., a limited
liability company organized under the laws of the Republic of Indonesia (the
"Purchaser"), PT ARIA INFOTEK, a limited liability company organized under the
laws of the Republic of Indonesia ("Aria Infotek"), MEDIAONE INTERNATIONAL I
B.V. ("MediaOne"), a private limited company incorporated under the laws of the
Netherlands and THE ASIAN INFRASTRUCTURE FUND, an exempted limited duration
company organized under the laws of the Cayman Islands, ("AIF" and together with
Aria Infotek and MediaOne, the "Selling Shareholders" and each a "Selling
Shareholder"). Capitalized terms not otherwise defined have the meanings
assigned to them in Article I.

WHEREAS, the Selling Shareholders wish to sell to Purchaser and Purchaser wishes
to purchase from the Selling Shareholders in aggregate 2,704,444 ordinary shares
of nominal value Rp. 114,000 per share of PT ARIA WEST INTERNATIONAL, a limited
liability company organized under the laws of the Republic of Indonesia (the
"Company"), representing all of the issued and paid-up ordinary shares of the
Company;

WHEREAS pursuant to the Interim Management Agreement dated of even date herewith
by and among Purchaser, the Company and the Selling Shareholders, the KSO Unit
will pay US$41,750,000 to Purchaser and Purchaser will pay, and as payment in
advance of the Purchase Price for the Sale Shares, an aggregate amount of
US$20,000,000 to the Selling Shareholders and the parties have agreed to certain
arrangements regarding the management and operation of the KSO Unit pending the
closing of the transactions contemplated herein;

WHEREAS, pursuant to the Settlement Agreement to be executed at of the date of
the closing of the transactions contemplated herein Purchaser and the Company
have agreed to permanently settle, resolve and put to rest all claims and causes
of action between and among them that were or could have been raised in the
Arbitration Proceeding or in any

                                     - 1 -

<PAGE>

other Proceeding that are in any way based upon, relating to or arising out of
the KSO Project, agreements relating to the KSO Project or the management,
operation and finances of the KSO Unit and the KSO System; and

WHEREAS, a separate Indemnity and Guarantee Agreement ("Guarantee") has been
executed and delivered by AT&T Wireless Services Inc., ("AT&T Wireless") on the
date hereof, in the form of Exhibit A.

NOW, THEREFORE, intending to be legally bound hereby, the parties hereto agree
as follows:

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

Section 1.1       Definitions. For purposes of this Agreement, except as
otherwise expressly provided or unless the context clearly requires otherwise:

"Affiliate" shall mean, with respect to a Person, any entity directly or
indirectly controlling, controlled by, or under common control with a Person,
where "control" (including with correlative meanings, the terms "controlling",
"controlled by" and "under common control with") as applied to any Person, shall
mean the possession, directly or indirectly, of the power to direct the
management and policies of that Person, whether through ownership of voting
securities or by contract or otherwise.

"Agent" shall have the meaning assigned to such term in 3.4(c).

"AIF" shall have the meaning assigned to such term in the preamble.

"Aria Infotek" shall have the meaning assigned to such term in the preamble.

"Deed of Transfer" shall mean the Deed of Transfer in the form annexed hereto as
Exhibit B.

"Subsidiary" shall mean, with respect to any Person, any corporation or other
organization, whether incorporated or unincorporated, of which (a) at least a
majority of the securities, or other interests having by their terms ordinary
voting power to elect a majority of the Board of Directors or others performing
similar functions with respect to such corporation or other organization, is
directly or indirectly owned or controlled by such Person or by any one or more
of its Subsidiaries, or by such Person and one or more of its Subsidiaries, (b)
such

                                       2

<PAGE>

Person or any other Subsidiary of such Person is a general partner (excluding
any such partnership where such Person or any Subsidiary of such Person does not
have a majority of the voting interest in such partnership, or (c) such Person
and any of its Subsidiaries in aggregate have a majority of the economic
interests.

"Assets" shall have the meaning assigned to such term in Section 4.19(a).

"AT&T Wireless" shall have the meaning assigned to such term in the recitals.

"Governmental Entity" shall mean any court, administrative agency, ministry or
commission, or other governmental or regulatory authority or agency, of any
jurisdiction.

"Pro Rata Share" shall mean with respect to each Selling Shareholder, the ratio
of the number of Sale Shares owned by such Selling Shareholder to the total
number of Sale Shares.

"Materials of Environmental Concern" shall mean chemicals, pollutants,
contaminants, wastes, toxic or hazardous substances, materials and wastes,
petroleum and petroleum products, asbestos and asbestos-containing materials,
polychlorinated biphenyls, lead and lead-based paints and materials, radon and
other materials determined by a Governmental Entity of the Republic of Indonesia
to be harmful or otherwise determined to have adverse effects to human health or
the environment.

"Payment Cap" shall have the meaning assigned to such term in Section 9.6(c).

"Liability Cap" shall have the meaning assigned to such term in Section 9.6(c).

"Cap Exceptions" shall have the meaning assigned to such terms in Section
9.6(c).

"Unpaid Interest" shall have the meaning assigned to such term in Section
3.5(c).

                                       3
<PAGE>

"Material Adverse Effect" shall mean any circumstance, event, change or effect
that is or can be reasonably foreseen to be materially adverse to (i) with
respect to the Company and its Subsidiaries, the business, operations,
prospects, assets, condition (financial or otherwise), liabilities (absolute,
accrued, contingent or otherwise), or results of operations of the Company and
its Subsidiaries taken as a whole and (ii) with respect to the Company and its
Subsidiaries and each Selling Shareholder, the ability of the Company, its
Subsidiaries or such Selling Shareholder to consummate the Transactions.

"Transaction Documents" shall mean this Agreement, the AriaWest Loan
Restructuring Agreement, the Interim Management Agreement, (including the
promissory notes delivered by the Selling Shareholders to Purchaser pursuant
thereto), the Settlement Agreement, the Mutual Waivers, and any other contract,
agreement, certificate or other document entered into or delivered pursuant to
any of the foregoing or contemplated by any of the foregoing.

"U.S. Dollar" and "USS" shall mean the lawful currency of the United States of
America.

"GAAP" shall mean generally accepted accounting principles in the Republic of
Indonesia established by the Indonesian Accounting Association as in effect at
the relevant time.

"Intellectual Property" shall mean any intellectual property rights, including
any trademarks, patents, copyrights, trade, secrets, know-how, licenses, service
marks, trade names, trade secrets, and computer software programs.

"Purchase Price" shall mean US$164,500,000.

"Aggregate Purchase Price" shall mean One Hundred Forty Four Million and Five
Hundred Thousand U.S. Dollars (US$144,500,000).

"Business Day" shall mean any day other than a Saturday or Sunday or on which
banks in Jakarta, Singapore and New York are not required to be open or are
permitted to remain closed.

"Real Property" shall mean all real property that is owned or used by the
Company or any of its Subsidiaries or that is reflected as an asset of the
Company or any of is Subsidiaries in any of the Financial Statements, and shall
include the KSO Unit Installations.

                                       4

<PAGE>

"Environmental Law" shall mean each federal, state, provincial or local law or
regulation of the Republic of Indonesia relating to pollution, protection or
preservation of human health or the environment including ambient air, surface
water, ground water, land surface or subsurface strata, and natural resources,
and including each such law or regulation relating to emissions, discharges,
releases or threatened releases of Materials of Environmental Concern, or
otherwise relating to the manufacturing, processing, distribution, use,
treatment, generation, storage, containment (whether above ground or
underground), disposal, transport or handling of Materials of Environmental
Concern, or the preservation of the environment or mitigation of adverse effects
thereon and each law and regulation with regard to record keeping, notification,
disclosure and reporting requirements respecting Materials of Environmental
Concern.

"Indebtedness" shall mean (i) all indebtedness for borrowed money or for the
deferred purchase price of property or services, (ii) any other indebtedness
that is evidenced by a note, bond, debenture or similar instrument, (iii) all
obligations under financing leases and all other repurchase or similar
obligations, (iv) all obligations in respect of acceptances issued or created,
(v) all liabilities secured by any lien on any property and (vi) all guarantee,
financial support, keep-well and other obligations of a similar nature.

"Voting Debt" shall mean with respect to any Person, Indebtedness having voting
rights or the right to nominate one or more directors or commissioners, and debt
convertible into securities having either of such rights.

"ICC" shall mean the International Chamber of Commerce.

"Consent" shall mean, with respect to any Governmental Entity or any other
Person, any approval (including shareholder and other corporate approvals),
consent, ratification, permit, license, waiver or other authorization of, filing
with, or notice to such Governmental Entity or other Person, as the case may be.

"License" shall have the meaning assigned to such term in the KSO Agreement.

"New Installations" shall have the meaning assigned

                                       5

<PAGE>

to such term in the KSO Agreement.

"Additional New Installations" shall have the meaning assigned to such term in
the KSO Agreement.

"Existing Installation" shall have the meaning assigned to such term in the KSO
Agreement.

"KSO Unit Installations" shall mean the New Installations and any Additional New
Installations which are uncompleted or in respect of which Interconnection Tests
have not been successfully completed and any other telecommunications facilities
(and all related supporting facilities, buildings, furnishings, computer and
other equipment, systems, and other assets and resources, including replacements
and non maintenance related upgrades to the Existing Installation) provided or
constructed by the Company which are uncompleted or in respect of which
Interconnection Tests have not been successfully completed.

"Remaining Withheld Amount" shall have the meaning assigned to such term in
Section 3.5(c).

"Balance Amount" shall mean One Hundred Twenty Million U.S. Dollars
(US$120,000,000), payable by Purchaser to the Selling Shareholders by the
issuance of Notes in accordance with Section 3.4(b) and subject to the other
provisions of this Agreement.

"Withheld Amount" shall have the meaning assigned to such term in Section
3.5(b).

"Eligible Amounts" shall have the meaning assigned to such term in Section
3.5(a).

"Shareholder Balance Amount" shall mean, with respect to each Selling
Shareholder, such Selling Shareholder's Pro Rata Share of US$120,000,000 as set
forth opposite such Selling Shareholder's name in Exhibit I.

"Denied Amount" shall have the meaning assigned to such term in Section 9.2(c).

"Additional KSO Employee" shall have the meaning assigned to such term in the
KSO Agreement, provided however that the term General Manager as used in such
definition shall only be a reference to an individual who held the title of
general manager

                                       6

<PAGE>
of the KSO Unit at any time during the period beginning on September 11, 2000
and ending on the Closing Date.

"Excess Amount" shall have the meaning assigned to such term in Section 3.5(c).

"Excess Claim Amount" shall have the meaning ascribed to such term in Section
3.5(d).

"Excess Security Amount" shall have the meaning ascribed to such term in Section
3.5(d).

"Damages" shall mean in the case of any Person, collectively, any loss,
liability, claim, damage, judgment, settlement and expense (including interest
and penalties recovered by any third-party with respect thereto and reasonable
attorney's fees and expenses, reasonable accountant's fees and expenses and
other reasonable fees and expenses incurred in the investigation or defense of
any of the same or in asserting, preserving or enforcing any of the rights of
Purchaser arising under Article IX or the other provisions of this Agreement) or
diminution of value, whether or not involving a third-party claim, suffered or
incurred by such Person but shall not include any punitive, indirect losses or
future lost profits.

"Tax Loss Carryforwards" shall mean tax losses of the Company which are
available to be carried forward and offset against taxable income of the Company
for the purposes of calculation of Indonesian income Tax of the Company.

"Contracts" shall have the meaning assigned to such term in Section 4.22(a).

"Closing Disclosure Schedule" shall mean the Closing Disclosure Schedule dated
as of the date hereof prepared and signed by each Selling Shareholder and
annexed hereto.

"Purchaser Disclosure Schedule" shall mean the Purchaser Disclosure Schedule
dated as of the date hereof prepared and signed by Purchaser and delivered to
the Selling Shareholders simultaneously with the execution hereof.

"Signing Disclosure Schedule" shall mean the Signing Disclosure Schedule dated
as of the date

                                       7

<PAGE>

hereof prepared and signed by each Selling Shareholder and annexed hereto.

"Tax Return" shall mean any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any such document
prepared on a consolidated, combined or unitary basis, and also including any
schedule or attachment thereto, and any amendment thereof.

"Unaudited Financial Statements" shall mean an unaudited consolidated balance
sheet of the Company and its Subsidiaries as at March 31, 2002 and unaudited
consolidated statements of income, shareholders' equity and cash flows for the
quarterly period then ended and the notes thereto.

"Audited Financial Statements" shall mean the consolidated balance sheet of the
Company and its Subsidiaries as at December 31, 2001 together with consolidated
statements of income, shareholders' equity and cash flows for the year then
ended, and the notes thereto, the audit report and opinion (if any) therein and
any letter issued in connection therewith, in each case certified or prepared
by, as applicable, by Ernst & Young, independent certified public accountants.

"Letter Agreement" shall mean the letter agreement relating to the MOU dated
April 11, 2002 among the Selling Shareholders, the Company and Purchaser.

"Restriction Period" shall mean the period on and from the Closing Date up to
and including the later of (A) the date 2 years following the Closing Date and
(B) if Purchaser shall have notified Aria Infotek of one or more claims under
the Transaction Documents on or before the date referred to in subsection (A),
such notice setting forth with reasonable specificity the nature of such claims,
the last date on which all such claims in respect of which the Purchaser has
commenced Arbitration Proceedings within 3 years following the Closing Date (the
"Arbitrated Claims") are finally resolved or settled between the parties hereto
or a final arbitral award has been issued by an arbitral tribunal for each
Arbitrated Claim and to the extent any such resolution, settlement or final
arbitral award requires payment by Aria Infotek to Purchaser, such resolution,
settlement or final arbitral award (as applicable) has been paid in full with
respect to all Arbitrated Claims.

                                       8

<PAGE>

"MediaOne" shall have the meaning assigned to such term in the preamble.

"MOU" shall have the meaning assigned to such term in Section 10.5.

"Tax" or "Taxes" shall mean all taxes, charges, fees, duties, levies, penalties
or other assessments imposed by any Governmental Entity or other federal, state,
local or foreign governmental authority, including income, capital gains,
receipts, fringe benefits, employee, excise, property, sales, gain, use,
license, custom duty, stamp duty, unemployment, capital stock, transfer,
franchise, payroll, withholding, social security, minimum estimated, profit,
gift, severance, value added, disability, premium, recapture, credit,
occupation, service, leasing, employment, stamp and other taxes, and shall
include interest, fines, charges, penalties or additions attributable thereto or
attributable to any failure to comply with any requirement regarding Taxes or
Tax Returns.

"Initial Payment" shall mean the amount payable by Purchaser to the Selling
Shareholders in accordance with the provisions of Section 3.4(a), being in the
aggregate Twenty Four Million Five Hundred Thousand U.S. Dollars
(US$24,500,000).

"Shareholder Initial Payment" shall mean, with respect to each Selling
Shareholder, the amount of the Shareholder Initial Payment set forth opposite
such Selling Shareholder's name on Exhibit J under the column, "Shareholder
Initial Payment."

"Encumbrances" shall mean any and all encumbrances, liens, charges, fiduciary
transfers, security interests, options, claims, mortgages, hak tanggungan, hak
gadai, jaminan fiducia, hak reklame, hak retensi, pledges, or agreements,
obligations, understandings or arrangements or other restrictions or limitations
on title, transfer, sale or other disposition of any nature whatsoever and with
respect to the Sale Shares, shall include, in addition to the foregoing, any
proxies, voting trusts or agreements, obligations, understandings or other
restrictions or limitations on voting of any nature whatsoever.

"Mutual Waivers" shall mean the Mutual Waiver between the Selling Shareholders
and Purchaser and the Mutual Waiver between the Selling Shareholders and the
Company annexed hereto as Exhibits D and E respectively.

                                       9
<PAGE>

"Purchaser" shall have the meaning assigned to such term in the preamble.

"Selling Shareholder" shall have the meaning assigned to such term in the
preamble.

"Minimum Telkom Revenue" shall have the meaning assigned to such term in the KSO
Agreement.

"Selling Shareholder Opinions" shall have the meaning assigned to such term in
Section 3.2(l).

"ICC Court" shall have the meaning assigned to such term in Section 10.8(b)(i).

"Knowledge of the Selling Shareholders" concerning a particular subject, area or
aspect of the business or affairs of the Company, any of its Subsidiaries or the
KSO Unit shall mean in respect of each Selling Shareholder the knowledge of (i)
each of the officers, directors and commissioners of such Selling Shareholder,
(ii) each of the officers, directors and commissioners of the Company or any of
its Subsidiaries, (iii) each individual who held the title of general manager of
the KSO Unit at any time during the period beginning on September 11, 2000 and
ending on the Closing Date and (iv) all knowledge which was or could have been
obtained upon reasonable inquiry by any such person referred to in clause (i),
(ii) or (iii).

"Guarantee" shall have the meaning assigned to such term in the preamble.

"Closing" shall mean the closing referred to in Section 3.1.

"ICC Rules" shall have the meaning assigned to such term in Section 10.8(b).

"Agreement" or "this Agreement" shall mean this Conditional Sale and Purchase
Agreement, together with the Schedules and Exhibits hereto and the Disclosure
Schedule.

"Agency Agreement" shall have the meaning assigned to such term in Section
3.4(c).

"KSO Agreement" shall mean the KSO Agreement

                                       10

<PAGE>

dated October 20, 1995, No. PKS. 222/HK.810/UTA-00/95, by and between Purchaser
and the Company, as amended.

"Interim Management Agreement" shall mean that agreement in respect of interim
management of the KSO Unit annexed hereto as Exhibit C.

"Settlement Agreement" shall mean the settlement and release agreement annexed
hereto as Exhibit H.

"AriaWest Loan Restructuring Agreement" shall mean the agreement, in form and
substance acceptable to Purchaser in its sole and absolute discretion, among
AriaWest International Finance B.V., the other parties to the AriaWest Loan and
Purchaser (in its capacity as guarantor) to restructure the AriaWest Loan.

"Proceeding" shall mean in respect of any Person any action, arbitration, audit,
claim, hearing, litigation, mediation, suit, inquiry, proceeding or
investigation (whether civil, criminal, administrative, investigative or
informal) commenced, brought, conducted or heard by or before, or otherwise
involving any Governmental Entity or arbitral tribunal.

"Arbitration Proceeding" shall mean the arbitration proceeding pending between
Purchaser and the Company before the ICC Court of Arbitration (reference number
11 565/BWD/SPB/JNK).

"Request" shall have the meaning assigned to such term in Section l0.8(b)(iv).

"Company" shall have the meaning assigned to such term in the preamble.

"Required Company Consents" shall have the meaning assigned to such term in
Section 4.9.

"Person" shall mean a natural person, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Entity or other entity or organization.

"Related Person" shall have the meaning assigned to such tarn in Section 4.25.

"Indemnifying Party" shall have the meaning assigned to such term in Section
9.4(a).

                                       11
<PAGE>

"Indemnified Party" shall have the meaning assigned to such term in Section
9.4(a).

"AriaWest Loan" shall mean the loan provided to AriaWest International Finance
B.V. and guaranteed by the Company under the Amendment and Restatement dated as
of May 12, 1999 of the Common Agreement dated as of April 30, 1996 among
AriaWest International Finance B.V., the Company, each of the lenders named
therein and a party thereto, CIBC Asia Ltd., as facility agent and intercreditor
agent, Credit Lyonnais S.A., as technical agent, and the Chase Manhattan Bank,
as collateral agent, the Amendment and Restatement dated as of May 12, 1999 of
the Credit Facility Agreement dated as of April 30, 1996 among AriaWest
International Finance B.V., the Company, each of the banks named therein and a
party thereto, each of the vendors named therein and a party thereto, CIBC Asia
Ltd., as facility agent and intercreditor agent, Credit Lyonnais S.A., as
technical agent, and the Chase Manhattan Bank, as collateral agent, and all
liens, grants of security interest, pledges, commitments, instruments and other
agreements and amendments relating thereto.

"Plan" shall mean, in respect of any Person, each deferred compensation,
incentive compensation, stock purchase, stock option and other equity
compensation plan, program, agreement or arrangement, each severance or
termination pay medical, surgical, hospitalization, life insurance and other
plan, and each profit-sharing, bonus or pension or retirement or annuity plan,
fund or program; in each case, that is or was sponsored, maintained or
contributed to or required to be contributed to by such Person or any of its
Subsidiaries or to which such Person or any of its Subsidiaries is party,
whether written or oral, for the benefit of any past or present director,
officer, commissioner or employee of such Person or any of its Subsidiaries.

"Rupiah" and "Rp." shall mean the lawful currency of the Republic of Indonesia.

"Shares" shall mean all of the ordinary shares of the Company.

"Sale Shares" shall mean 2,704,444 Shares (subject to adjustment to reflect
share splits, reverse share splits, share dividends or other changes to the
capital stock of the Company), representing 100% of the issued and paid-up
Shares on a fully-diluted basis.

                                       12

<PAGE>

"Shareholder Sale Shares" shall mean, with respect to each Selling Shareholder,
the number or Sale Shares set forth opposite such Selling Shareholder's name on
Exhibit K. under the column, "Shareholder Sale Shares."

"Dispute" shall have the meaning assigned to such term in Section 10.8(a).

"Lease" shall mean each lease or agreement or commitment to lease pursuant to
which the Company or any of its Subsidiaries leases or agrees or commits to
lease any real or personal property.

"KSO System" shall have the meaning assigned to such term in the KSO Agreement.

Tax Clearance Letter" shall mean the one or more tax clearance letters (surat
ketetapan pajak) in substance satisfactory to Purchaser in its sole and
absolute discretion evidencing that the Company has available to it Tax Loss
Carryforwards as of December 31, 2001 of no less than Rp.1,710,000,000,000.

"Notes" shall mean the Promissory Notes and the Restricted Notes.

"Promissory Notes" shall mean the promissory notes issued by Telkom to the
Selling Shareholders in the form annexed hereto as Exhibit F.

"Restricted Notes", shall mean the Restricted Notes issued by Purchaser to Aria
Infotek in the form annexed hereto as Exhibit G.

"Fifth Maturity Date" shall have the meaning assigned to such term in Exhibit R.

"Sixth Maturity Date" shall have the meaning assigned to such term in Exhibit R.

"Seventh Maturity Date" shall have the meaning assigned to such term in Exhibit
R.

                                       13

<PAGE>

"Closing Date" shall mean the date on which the Closing actually occurs.

"Transactions" shall mean the purchase by Purchaser and sale by each of the
Selling Shareholders of the Sale Shares, the performance by each of the parties
hereto of their other respective obligations under this Agreement, the AriaWest
Loan Restructuring Agreement, the Interim Management Agreement (including the
promissory notes delivered by the Selling Shareholders to Purchaser pursuant
thereto), the Settlement Agreement, the Mutual Waivers, and any other contract,
agreement, certificate or other document entered into or delivered pursuant to
any of the foregoing or contemplated by any of the foregoing.

"Interconnection Tests" shall have the meaning assigned to such term in the KSO
Agreement.

"Second Anniversary" shall have the meaning assigned to such term in Section
3.5(d).

"KSO Unit" shall have the meaning assigned to such term in the KSO Agreement.

"Relevant Time" shall have the meaning assigned to such term in Section 9.6(c).

Section 1.2 Interpretation.

(a)      When a reference is made in this Agreement to a Section, Article,
         Schedule or Exhibit, such reference shall be to a Section or Article of
         this Agreement or to a Schedule (including the Signing Disclosure
         Schedule and the Closing Disclosure Schedule) or an Exhibit to this
         Agreement unless otherwise clearly indicated to the contrary.

(b)      Whenever the words "include", "includes" or "including" are used in
         this Agreement they shall be deemed to be followed by the words
         "without limitation."

(c)      The words "hereof", "herein" and "herewith" and words of similar import
         shall, unless otherwise stated, be construed to refer to this Agreement
         as a whole and not to any particular provision of this Agreement.

                                       14

<PAGE>

(d)      The meaning assigned to each term defined herein shall be equally
         applicable to both the singular and the plural forms of such term, and
         words denoting any gender shall include all genders, Where a word or
         phrase is defined herein, each of its other grammatical forms shall
         have a corresponding meaning.

(e)      A reference to any party to this Agreement or any other agreement or
         document shall include such party's successors and permitted assigns.

(f)      A reference to any legislation or to any provision of any legislation
         shall include any amendment to, and any modification or re-enactment
         thereof, any legislative provision substituted therefore and all
         regulations and statutory instruments issued thereunder or pursuant
         thereto.

(g)      As used in this Agreement, any reference to a document in agreed form
         means a document in a form annexed hereto.

(h)      The parties have participated jointly in the negotiation and drafting
         of this Agreement. In the event an ambiguity or question of intent or
         interpretation arises, this Agreement shall be construed as if drafted
         jointly by the parties, and no presumption or burden of proof shall
         arise favoring or disfavoring any party by virtue of the authorship of
         any provision of this Agreement.

(i)      The section and paragraph headings contained in this Agreement are for
         reference purposes only and shall not affect in any way the meaning or
         interpretation of this Agreement.

(j)      Except as expressly provided to the contrary herein, the body of this
         Agreement, the Schedules (including the Signing Disclosure Schedule and
         the Closing Disclosure Schedule) and the Exhibits shall be read in the
         following order of priority: (i) the body

                                       15

<PAGE>

         of this Agreement, (ii) the Exhibits and (iii) the Signing Disclosure
         Schedule and the Closing Disclosure Schedule.

(k)      Whenever the word "several" or "severally" is used herein with respect
         to a Selling Shareholder, it shall mean several in proportion to the
         Pro Rata Share applicable to such Selling Shareholder.

(l)      Whenever, in this Agreement (including the Schedules and Exhibits
         hereto), (i) the term "final arbitral award" is used, such term shall
         mean, as applicable, a final and binding arbitral award or final
         non-appealable judgment or opinion of a court or other tribunal; and
         (ii) the phrase "finally determined" is used, such term shall mean, as
         applicable, as finally determined in a final and binding arbitral award
         or final non-appealable judgment or opinion of a court or other
         tribunal, in each case as the context may require.

                                   ARTICLE II
                              PURCHASE AND SALE OF
                                 THE SALE SHARES

Section 2.1       Sale and Transfer of Sale Shares. Subject to the terms
and on the conditions set forth in this Agreement, at the Closing each Selling
Shareholder shall contemporaneously sell, convey, assign, transfer and deliver
to Purchaser the Shareholder Sale Shares of such Selling Shareholder, with full
legal title, free and clear of all Encumbrances whatsoever and with all voting,
distribution and other rights attaching thereto as of and from the Closing Date.

Section 2.2       The Aggregate Purchase Price. Subject to the terms and on
the conditions set forth in this Agreement, in consideration of the aforesaid
sale, conveyance, assignment, transfer and delivery to Purchaser of the Sale
Shares, Purchaser shall pay to each Selling Shareholder such Selling
Shareholder's Pro Rata Share of the Aggregate Purchase Price in accordance with
the provisions of Section 3.4.

                                   ARTICLE III
                             THE CLOSING; PAYMENT OF
                                 PURCHASE PRICE

                                       16
<PAGE>

Section 3.1       The Closing. The Closing of the sale and transfer of the
Sale Shares by Selling Shareholders to Purchaser shall take place at the offices
of Adnan Kelana Haryanto & Hermanto at Chase Plaza, 18th Floor, JI, Jend
Sudirman Kav. 21, Jakarta 12920 at 10:00 a.m., local time three Business Days
after the Conditions to Closing (other than those Conditions to Closing which
are to be satisfied contemporaneously with Closing) have been satisfied, or at
such other place and time as may be agreed by the parties.

Section 3.2       Deliveries by the Selling Shareholders. At the Closing,
each Selling Shareholder shall deliver to Purchaser:

(a)      certificates representing Shareholder Sale Shares of such Selling
         Shareholder, together with (i) all documents necessary to effect the
         transfer of good, valid and marketable title to such Shareholder Sale
         Shares to Purchaser or Purchaser's designee and (ii) the Company's
         register of shareholders naming Purchaser as the holder and owner of
         record of all Sale Shares as of the Closing Date;

(b)      a copy of the resolutions of such Selling Shareholder's (i) Board of
         Commissioners and shareholders (in the case of Aria Infotek), (ii)
         investment committee (in the case of AIF) or (iii) management board (in
         the case of MediaOne) and (iii) evidence of such other corporate
         approvals as such Selling Shareholder is required to obtain under its
         organizational documents, if any, authorizing such Selling
         Shareholder's execution and delivery of this Agreement and the
         consummation of the Transactions and such other documents evidencing
         such authority as Purchaser may reasonably request;

(c)      a copy of each of the Consents with respect to such Selling Shareholder
         referred to in Sections 7.1(e) (including, without limitation, those
         set forth in Schedule 4.4 of the Signing Disclosure Schedule);

                                       17

<PAGE>

(d)      a copy of each of the Required Company Consents;

(e)      a certificate dated as of the Closing Date and executed by such number
         of duly authorized officers of such Selling Shareholder as is required
         for such certificate to be duly authorized under such Selling
         Shareholder's organizational documents or attorney-in-fact of such
         Selling Shareholder for and on behalf of such Selling Shareholder to
         the effect that (i) each of such Selling Shareholder's representations
         and warranties in this Agreement that is qualified as to materiality
         and each of such Selling Shareholder's representations and warranties
         in Sections 4.1, 4.3, 4.6, 4.7, 4.8, 4.11, 4.14, 4.16, 4.26 and 4.28
         are true and complete in all respects (subject, in respect to each of
         such representation and warranty, to only the specific schedule of the
         Closing Disclosure Schedule corresponding to the Section number in
         which such representation and warranty is made), (ii) other than the
         representations and warranties in Sections 4.1, 4.3, 4.6, 4.7, 4.8,
         4.11, 4.14, 4.16, 4.26 and 4.28, each of such Selling Shareholder's
         representations and warranties in this Agreement that is not so
         qualified (considered individually) is, and all such representations
         and warranties that are not so qualified (considered collectively) are,
         true and complete in all material respects, in each case as of the date
         hereof and as of the Closing Date (subject, in respect to each of such
         representation and warranty, to only the specific schedule of the
         Closing Disclosure Schedule corresponding to the Section number in
         which such representation and warranty is made) (iii) there has not
         occurred since the date of execution of this Agreement any Material
         Adverse Effect (subject to Schedule 4.17 of the Closing Disclosure
         Schedule) and (iv) such Selling Shareholder has performed in all
         material respects all obligations required to be performed by it under
         this Agreement on or prior to the Closing Date;

(f)      a certificate setting forth the names of all of the officers, directors
         and commissioners of each of the Company and its Subsidiaries

                                       18

<PAGE>

         with attached letters from each such officer, director and commissioner
         evidencing the resignation and removal of such officer, director and
         commissioner which certificate shall have annexed to it a release
         substantially in the form of the release annexed hereto as Exhibit J
         duly executed and delivered by each such removed officer, director and
         commissioner;

(g)      all of the books and records of the Company, any of its Subsidiaries
         and, to the extent within the possession of the Company, the KSO Unit,
         including such books and records which are in the possession of the
         Selling Shareholders, provided however that the books and records of
         the Company shall be delivered at the offices of the Company;

(h)      copies of all records, including all signature or authorization cards,
         pertaining to the safe deposit boxes, savings, time deposit or checking
         accounts or other accounts of any nature listed in Schedule 4.29 of the
         Closing Disclosure Schedule;

(i)      in the case of the Selling Shareholders, the opinion of Indonesian
         Counsel to the Selling Shareholders dated the Closing Date and
         addressed to Purchaser, in form and substance reasonably satisfactory
         to Purchaser as to the matters set forth in Exhibit K hereto;

(j)      in the case of MediaOne, the opinion of Loyens & Loeff, Netherlands
         Counsel to MediaOne dated the Closing Date and addressed to Purchaser,
         in form and substance reasonably satisfactory to Purchaser as to the
         matters set forth in Exhibit L hereto;

(k)      in the case of MediaOne, the opinion of Delaware counsel to AT&T
         Wireless dated the Closing Date and addressed to Purchaser, in form and
         substance reasonably satisfactory to Purchaser as to the matters set
         forth in Exhibit M and the opinion of the Assistant General Counsel of
         AT&T Wireless dated the Closing Date and addressed to Purchaser, in
         form and substance reasonably satisfactory to Purchaser as to the
         matters set forth in

                                       19

<PAGE>

         Exhibit N;

(l)      in the case of AIF, the opinion of Walkers, Cayman Islands Counsel to
         AIF dated the Closing Date and addressed to Purchaser, in form and
         substance reasonably satisfactory to Purchaser as to the matters set
         forth in Exhibit O hereto (each of the opinions of counsel pursuant to
         Sections 3.2(i), (j), (k) and (l) are collectively referred to as
         "Selling Shareholder Opinions");

(m)      the Settlement Agreement, duly executed and delivered by such Selling
         Shareholder;

(n)      the Mutual Waivers, duly executed and delivered by the Company and such
         Selling Shareholder;

(o)      the Deed of Transfer, duly executed by such Selling Shareholder;

(p)      a written receipt acknowledging receipt of the Shareholder Initial
         Payment paid at Closing to such Selling Shareholder;

(q)      the promissory note having a principal amount of US$1,750,000 to be
         executed by each of the Selling Shareholders and delivered to Purchaser
         pursuant to the Interim Management Agreement;

(r)      the Agency Agreement, duly executed by the Selling Shareholders; and

(s)      all other previously undelivered documents required to be delivered by
         such Selling Shareholder to Purchaser at or prior to the Closing under
         the Transaction Documents.

Any statement contained in any certificate delivered by or on behalf of such
Selling Shareholder at the Closing shall constitute a representation and
warranty by such Selling Shareholder under this

                                       20

<PAGE>

Agreement.

Section 3.3       Deliveries by Purchaser. At the Closing, Purchaser shall
deliver to the Selling Shareholders:

(a)      a copy of the resolutions of Purchaser's Board of Commissioners and the
         minutes of the General Meeting of Shareholders of Purchaser authorizing
         Purchaser's execution and delivery of this Agreement and the
         consummation of the Transactions;

(b)      the opinion of Indonesian counsel to Purchaser, dated as of the Closing
         Date addressed to each of the Selling Shareholders in form and
         substance reasonably satisfactory to the Selling Shareholders, as to
         the matters set forth in Exhibit P;

(c)      the opinion of New York counsel to Purchaser, dated as of the Closing
         Date addressed to each of the Selling Shareholders in form and
         substance reasonably satisfactory to the Selling Shareholders as to the
         matters set forth in Exhibit Q.

(d)      a copy of each of the Consents referred to in Section 7.1(c)
         (including, without limitation, those set forth in Schedule 5.4 of the
         Purchaser Disclosure Schedule);

(e)      the Settlement Agreement, duly executed by Purchaser; and

(f)      the Mutual Waivers, duly executed by Purchaser;

(g)      the Deed of Transfer, duly executed by Purchaser;

(h)      one or more Promissory Notes, each duly executed by Purchaser; and

(i)      the Agency Agreement, duly executed by Purchaser.

Section 3.4       Payment of the Aggregate Purchase Price. Subject to the
other provisions of this Agreement, Purchaser shall pay the Aggregate Purchase
Price in U.S. Dollars to the Selling

                                       21
<PAGE>

Shareholders in accordance with the following provisions:

(a)      At the Closing, Purchaser shall pay to each Selling Shareholder such
         Selling Shareholder's Initial Payment, by wire transfer in immediately
         available funds to such Selling Shareholder's bank account (as
         designated by such Selling Shareholder to Purchaser in writing no later
         than three Business Days prior to the scheduled date of the Closing).
         Upon receipt of its Shareholder Initial Payment, each Selling
         Shareholder shall at the Closing deliver to Purchaser a written
         acknowledgment and receipt thereof.

(b)      At the Closing, Purchaser shall issue (i) to MediaOne Promissory Notes
         in an aggregate amount equal to MediaOne's Shareholder Balance Amount,
         (ii) to AIF Promissory Notes in an aggregate amount equal to AIF's
         Shareholder Balance Amount and (iii) to Aria Infotek (A) Promissory
         Notes in an aggregate amount equal to Aria Infotek's Shareholder
         Balance Amount less US$10,000,000 and (B) the Restricted Notes in an
         aggregate amount equal to US$10,000,000. The form of Promissory Note
         is annexed hereto as Exhibit F and the form of the Restricted Note is
         annexed hereto as Exhibit G. The aggregate amount of all Notes issued
         pursuant to this Agreement shall equal US$120,000,000. The Notes
         shall have the respective maturity dates and aggregate repayment
         amounts on such maturity dates set forth in Exhibit R and each Selling
         Shareholder shall, in respect of each maturity date, be issued one or
         more Notes having an aggregate principal amount equal to such Selling
         Shareholder's Pro Rata Share of the aggregate principal amount of Notes
         having such maturity date.

(c)      The Notes (including payments thereunder) shall be administered by an
         agent (the "Agent") under an agency agreement dated as of the Closing
         Date (the "Agency Agreement") at the sole cost and expense of the
         Selling Shareholders (other than all legal fees of Purchaser, which
         shall be borne by

                                       22
<PAGE>

         Purchaser). Purchaser and the Selling Shareholder shall enter into an
         Agency Agreement (which shall include customary representations and
         warranties of Purchaser) on terms and conditions satisfactory to
         Purchaser and the Selling Shareholders.

(d)      In the event Purchaser is required to deduct or withhold any Indonesian
         Taxes in respect of any payment of any portion of the Purchase Price,
         the Selling Shareholders shall only be entitled to receive from
         Purchaser the amount of such payment less the amount of such deduction
         or withholding, provided however that to the extent a Selling
         Shareholder provides Purchaser with evidence of residency and other
         evidence as may be reasonably required by Purchaser to eliminate
         Purchaser's obligation to deduct or withhold any such Taxes, Purchaser
         shall not deduct or withhold such Taxes. In the event Purchaser makes
         any such deduction or withholding, Purchaser shall provide Selling
         Shareholder with written evidence of payment of such deducted or
         withheld amounts to the relevant Governmental Entity of the Republic of
         Indonesia as soon as reasonably practicable following such payment.

Section 3.5       Restricted Notes.

(a)      Notwithstanding the other provisions of this Agreement, the Notes
         issued to Aria Infotek in an aggregate principal amount of
         US$10,000,000 shall constitute restricted notes (the "Restricted
         Notes"). The Restricted Notes shall comprise US$3,454,545.45 of the
         Notes issued to Aria Infotek having a stated maturity date of the Fifth
         Repayment Date, US$3,454,545.45 of the Notes issued to Aria Infotek
         having a stated maturity date of the Sixth Repayment Date and
         US$3,090,909.10 of the Notes issued to Aria Infotek having a stated
         maturity date of the Seventh Repayment Date. Until the expiration of
         the Restriction Period, (i) Aria Infotek shall not sell, transfer,
         pledge, charge, hypothecate, Encumber or otherwise dispose of any
         Restricted Notes and (ii) Purchaser shall be entitled to set-off and
         deduct from any and all principal or other amounts owing or due under
         the Restricted Notes all or any amount

                                       23
<PAGE>

         owing, due or otherwise payable by Aria Infotek to Purchaser under any
         Transaction Document or otherwise, as evidenced by (A) a written
         instrument executed by and between Purchaser end Aria Infotek; (B) in
         the event Aria Infotek participates in or assumes the defense of a
         third-party claim pursuant to Section 9.4 of this Agreement, the full
         amount for which the Company, any of its Subsidiaries or the
         Indemnified Party is or becomes liable as finally determined in any
         Proceeding or any compromise or settlement relating to such third-party
         claim or (C) a final arbitral award (such amounts which Purchaser shall
         be so entitled to set-off or deduct, are individually and collectively
         referred to herein as "Eligible Amounts"). The Restricted Notes shall
         be deemed satisfied, paid and forever discharged to the extent
         Purchaser sets-off or deducts any Eligible Amounts against such
         Restricted Notes. Neither the exercise nor the failure to exercise a
         right of set-off or deduction shall constitute an election of remedies
         or limit Purchaser in any manner in the enforcement of other remedies
         that may be available to it, whether at law or in equity. If exercised,
         such right of set-off shall be applied to the payment next due under
         the Restricted Notes after such right of set-off is asserted, and, to
         the extent necessary to satisfy such right of set-off, to subsequent
         Restricted Notes, in the chronological order in which such Restricted
         Notes mature and become due.

(b)      During the Restriction Period no payment shall he required to be made
         by Purchaser under the Restricted Notes and Purchaser may withhold and
         shall not be required to pay any and all principal and other amounts
         which (but for Purchaser's rights under this Agreement) would otherwise
         have been payable under the Restricted Notes ("Withheld Amounts").

                                       24
<PAGE>

(c)      On or before the date 10 Business Days following expiration of the
         Restriction Period (such 10th Business Day, the "Remaining Withheld
         Amount Payment Date"), to the extent that there exists any Withheld
         Amounts under a Restricted Note against which Purchaser has not set-off
         or deducted any Eligible Amounts hereunder (a "Remaining Withheld
         Amount), Purchaser shall pay to Aria Infotek, interest on such
         Remaining Withheld Amount from the stated maturity date of such
         Restricted Note through the earlier of (x) the date of payment of such
         interest; and (y) the Remaining Withheld Amount Payment Date, at the
         rate of 5.0% per annum, compounded annually. To the extent any such
         interest has not been paid on or before the Remaining Withheld Amount
         Payment Date (the "Unpaid Interest"), Purchaser shall pay to Aria
         Infotek interest on the Unpaid Interest from the Remaining Withheld
         Amount Payment Date through the date of payment of the Unpaid Interest
         at the rate of 10.5% per annum, compounded annually.

(d)      In the event a notice of claim to Aria Infotek results in the extension
         of the Restriction Period beyond the date which is two years after the
         Closing Date (the "Second Anniversary"), (i) Aria Infotek shall, within
         60 days following the Second Anniversary, be entitled to irrevocably
         and unconditionally surrender for cancellation and destruction
         Restricted Notes outstanding on the date of such surrender, (together
         with all rights and entitlements thereunder or relating thereto), in an
         aggregate principal amount no greater than the amount (if any) by which
         the aggregate amount of Restricted Notes outstanding at such time,
         exceeds two-hundred percent (200%) of the aggregate of all amounts then
         being claimed by Purchaser against Aria Infotek under any and all
         Transaction Documents (such excess, the "Excess Claim Amount"), being
         Restricted Notes

                                       25
<PAGE>

         having the latest stated maturities of all Restricted Notes; and (ii)
         Purchaser shall contemporaneously with such surrender issue one or more
         Promissory Notes having an aggregate principal amount equal to the
         Excess Claim Amount, with each such Promissory Note, having a principle
         amount equal to, and a stated maturity the same as, a Restricted Note
         (or part thereof) so surrendered.

(e)      If, on the date the Restriction Period expires, the aggregate principal
         amount of all of the Restricted Notes outstanding on such date exceeds
         the sum of all Eligible Amounts then owing or due or otherwise payable
         to Purchaser (such excess, the "Excess Security Amount"), (i) Aria
         Infotek shall, within 60 days of the expiration of the Restriction
         Period, be entitled to irrevocably and unconditionally surrender for
         cancellation and destruction Restricted Notes outstanding on such date,
         (together with all rights and entitlements thereunder or relating
         thereto), in an aggregate principal amount no greater than the Excess
         Security Amount, being Restricted Notes having the latest stated
         maturities of all Restricted Notes; and (ii) Purchaser shall
         contemporaneously with such surrender issue one or more Promissory
         Notes having an aggregate principal amount equal to the Excess Security
         Amount, with each such Promissory Note, having a principal amount equal
         to, and a stated maturity the same as, a Restricted Note (or part
         thereof) so surrendered.

(f)      To the extent Purchaser gives Aria Infotek notice of any set-off or
         deduction of any Eligible Amount under this Agreement, Aria Infotek
         shall within 5 Business Days thereof irrevocably and unconditionally
         surrender for cancellation and destruction to Purchaser, any and all
         Restricted Notes against which such set-off or deduction has been made,
         provided however to the extent any such set-off or deduction is made

                                       26
<PAGE>

         against less than the full principal amount of a Restricted Note,
         Purchaser shall issue a replacement Restricted Note for the portion of
         such principal amount not so set-off with the same maturity as such
         Restricted Note.

(g)      All reasonable costs and expenses relating to any exchange of
         Restricted Notes for Promissory Notes as provided in this Section 3.5
         shall be paid exclusively by Aria Infotek.

Section 3.6       Acknowledgement of Payment. Each Selling Shareholder shall,
upon receipt of such Selling Shareholder's Pro Rata Share of US$20,000,000 paid
to such Selling Shareholder by Purchaser as an advance payment of the Purchase
Price under and subject to the terms of the Interim Management Agreement shall
deliver to Purchaser an acknowledgment and receipt thereof.

Section 3.7       Registration of the Sale Shares. At the closing, each Selling
Shareholder shall cause the entry into the Company's register of shareholders
the name of Purchaser as the holder of the Shareholder Sale Shares purchased by
Purchaser from such Selling Shareholder, the number of such Shareholder Sale
Shares so purchased by Purchaser and the date of such purchase.

                                   ARTICLE IV
                        REPRESENTATIONS AND WARRANTIES OF
                            THE SELLING SHAREHOLDERS

Except as specifically set forth in the Signing Disclosure Schedule (but not the
Closing Disclosure Schedule), each Selling Shareholder represents and warrants
to Purchaser that all of the statements contained in Sections 4.1, 4.3, 4.4,
4.6, 4.7, and 4.30 of this Article IV (other than statements which are expressly
made only as of the Closing Date) are true and complete as of the date of this
Agreement or, if made as of a specified date (other than expressly only as of
the Closing Date), are true and complete as of such date.

                                       27
<PAGE>

Except as specifically set forth in the Closing Disclosure Schedule (but not the
Signing Disclosure Schedule), each Selling Shareholder represents and warrants
to Purchaser that all of the statements contained in Sections 4.1, 4.3,
4.4, 4.6, 4.7 and 4.30 of this Article IV (and not to those statements expressly
made only as of a date other than the Closing Date) will be true and complete as
of the Closing date as though made on the Closing Date.

Except as specifically set forth in the Signing Disclosure Schedule (but not the
Closing Disclosure Schedule), each Selling Shareholder, severally and not
jointly, represents and warrants to Purchaser that all of the statements
contained in Section 4.2, 4.5, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15,
4.16, 4.17, 4.18, 4.19, 4.20, 4,21, 4.22, 4.23, 4.24, 4.25, 4.26, 4.27, 4.28,
4.29 and 4.31 of this Article IV (other than statements which are expressly made
only as of the Closing Date) are true and complete as of the date of this
Agreement or, if made as of a specified date (other than expressly only as of
the Closing Date), are true and complete as of such date.

Except as specifically set forth in the Closing Disclosure Schedule (but not the
Signing Disclosure Schedule), each Selling Shareholder, severally and not
jointly, represents and warrants to Purchaser that all of the statements
contained in Section 4.2, 4.5, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15,
4.16, 4.17, 4.18, 4.19, 4.20, 4.21, 4.22, 4.23, 4.24, 4.25, 4.26, 4.27, 4.28,
4.29 and 4.31 of this Article IV (and not to those statements expressly made
only as of a date other than the Closing Date) will be true and complete as of
the Closing date as though made on the Closing Date.

The Selling Shareholders and Purchaser agree that notwithstanding anything to
the contrary contained in this Agreement:

(A)      the exceptions to the representations and warranties set forth in the
         Signing Disclosure Schedule apply only to the representations and
         warranties made as of the date of this Agreement or, if made as of a
         specified date (other than expressly only as of the Closing Date), as
         of such date; and

(B)      the exceptions to the representations and

                                       28
<PAGE>

         warranties set forth in the Closing Disclosure Schedule apply only to
         the representations and warranties made as of the Closing Date as
         though made on the Closing Date (and not to those statements expressly
         made only as of a date other than the Closing Date).

Each exception set forth in the Signing Disclosure Schedule or the Closing
Disclosure Schedule and each other response to this Agreement set forth in the
Signing Disclosure Schedule or Closing Disclosure Schedule is identified by
reference to, or has been grouped under a heading referring to, a specific
individual Section of this Agreement and, except as otherwise specifically
stated with respect to such exception, relates only to such Section. In the
event of any inconsistency between statements in the body of this Agreement and
statements in the Signing Disclosure Schedule or the Closing Disclosure Schedule
(excluding exceptions expressly set forth in the Signing Disclosure Schedule or
the Closing Disclosure Schedule with respect to a specifically identified
Section), the statements in the body of this Agreement shall control.

Section 4.1       Legal Power; Organization; Authorization. Such Selling
Shareholder is a legal entity of the type set forth opposite such Selling
Shareholder's name on Schedule 4.1 of the Signing Disclosure Schedule and
Schedule 4.1 of the Closing Disclosure Schedule, duly organized and validly
existing under the laws of its jurisdiction of organization as set forth in
Schedule 4.1 of the Signing Disclosure Schedule and Schedule 4.1 of the Closing
Disclosure Schedule and has all requisite power and authority to execute and
deliver each of the Transaction Documents, to perform its obligations under each
of the Transaction Documents and to consummate the Transactions. Such Selling
Shareholder has taken all necessary corporate or other action to authorize the
execution and delivery of each of the Transaction Documents, the performance of
its obligations under each of the Transaction Documents and the consummation of
the Transactions.

Section 4.2       Subsidiaries and Affiliates. The Company does not (i) have any
Subsidiaries, (ii) own, directly or indirectly, any capital stock or other
securities, or any Voting Debt, of any Person or (iii) have any other direct or
indirect equity or other ownership interest in any Person other than

                                       29
<PAGE>

AriaWest International Finance B.V., a private limited liability company duly
incorporated and validly existing under the laws of the Netherlands. The
authorized share capital of Aria West International Finance B.V. consists only
of 2,000 shares, of which 400 shares are issued and paid-up as of the date
hereof, and is qualified to do business in the Netherlands. As of the date of
execution of this Agreement (except as set forth in Schedule 4.2 of the
Signing Disclosure Schedule), and as of the Closing Date, all the outstanding
shares of AriaWest International Finance B.V. are owned by the Company free and
clear of all Encumbrances, and are validly issued, fully paid-up and
non-assessable. AriaWest International Finance B.V. has full corporate power and
authority to carry on its business as it is now being conducted and to own or
use the properties and assets it now purports to own and use and is duly
qualified or licensed to conduct business or own property as a corporation in
every jurisdiction in which such qualification is required. True and complete
copies of the deed of incorporation and articles of association of AriaWest
International Finance B.V. as presently in effect have been delivered to
Purchaser by the Selling Shareholders.

Section 4.3       Binding Agreement. Each of the Transaction Documents to which
such Selling Shareholder is a party which are signed by such Selling Shareholder
as of the date of this Agreement has been duly executed and delivered by such
Selling Shareholder and, assuming due and valid authorization, execution and
delivery of such Transaction Document by Purchaser and each other Selling
Shareholder where required, such Transaction Document constitutes a legal,
valid and binding obligation of such Selling Shareholder, enforceable against it
in accordance with its terms and as of the Closing Date, such Selling
Shareholder represents and warrants that each of the Transaction Documents to
which such Selling Shareholder is a party which are signed by such Selling
Shareholder as of the Closing Date has been duly executed and delivered, by each
Selling Shareholder and, in each case, assuming due and valid authorization,
execution and delivery of such Transaction Document by Purchaser and each
Selling Shareholder where required, such Transaction Document constitutes a
legal, valid and binding obligation of such Selling Shareholder, enforceable
against it in accordance with its terms, except as the enforceability thereof
may be limited by (i) bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of Purchaser's rights generally and (ii) general
equitable principles.

                                       30
<PAGE>

Section 4.4       Selling Shareholders' Consents and Approvals: No Conflicts,
Violations or Defaults. Neither the execution and delivery of any Transaction
Document by such Selling Shareholder, nor the consummation by any Selling
Shareholder of the Transactions, will (i) conflict with or result in any
violation or breach of any provision of the organizational documents of such
Selling Shareholder, (ii) as of the date of execution of this Agreement (except
as set forth in Schedule 4.4 of the Signing Disclosure Schedule), and as of the
Closing Date, require that such Selling Shareholder obtain any Consent of any
Governmental Entity or other Person, (iii) as of the date of execution of this
Agreement (except as set forth in Schedule 4.4 of the Signing Disclosure
Schedule), and as of the Closing Date, require any Consent under, or result in
a violation or breach of, or constitute (with or without due notice or the
passage of time or both) a default (or give rise to any right of termination,
amendment, cancellation or acceleration) under, any of the terms, conditions or
provisions of any agreement, loan, lease, license, contract, commitment,
obligation, understanding, undertaking,arrangement or instrument to which such
Selling Shareholder is a party or by which such Selling Shareholder or any of
the properties or assets of such Selling Shareholder is bound or (iv) violate
any binding order, writ, injunction, decree, statute, rule or regulation
applicable to such Selling Shareholder or any of the properties or assets of
such Selling Shareholder. As of the Closing Date (except as set forth in
Schedule 4.4 of the Closing Disclosure Schedule), each Consent of any
Governmental Entity and any other Person required in order for such Selling
Shareholder to consummate the Transactions (including the Consents with respect
to such Selling Shareholder set forth in Schedule 4.4 of the Signing Disclosure
Schedule) has been obtained and remains in full force and effect.

Section 4.5       Legal Proceedings. As of the date of execution of this
Agreement (except as set forth in Schedule 4.5 of the Signing Disclosure
Schedule), and as of the Closing Date (except as set forth in

                                       31
<PAGE>

Schedule 4.5 of the Closing Disclosure Schedule), other than the Arbitration
Proceeding, (i) there is no Proceeding pending or, to the Knowledge of the
Selling Shareholders threatened against, involving or affecting the Company or
any of its Subsidiaries, (ii) to the Knowledge of the Selling Shareholders,
there is no Proceeding pending or threatened against, involving or affecting the
KSO Unit and (iii) to the Knowledge of the Selling Shareholders, no event has
occurred and no circumstances exist which may give rise to or serve as the basis
for the commencement of any such Proceeding. Without limiting the generality of
the foregoing, except for the Arbitration Proceeding, there is no Proceeding
pending or, to the Knowledge of the Selling Shareholders, threatened against,
involving or affecting the Company, any of its Subsidiaries, the KSO Unit or
such Selling Shareholder which questions or challenges the validity of any
Transaction Document or any action taken or to be taken by the Company, any of
its Subsidiaries, the KSO Unit or such Selling Shareholder pursuant to any
Transaction Document or in connection with the Transactions, or which may result
in the issuance of a judgment, order or decree prohibiting or making illegal the
consummation of the Transactions by the Company, any of its Subsidiaries or such
Selling Shareholder, and to the Knowledge of the Selling Shareholders, there is
no valid basis for any such Proceeding. Neither the Company, any of its
Subsidiaries nor such Selling Shareholder is subject to any judgment, order or
decree prohibiting or making illegal or otherwise adversely affecting the
consummation of the Transactions.

Section 4.6       Share Ownership.

(a)      (i)      As of the date of this Agreement, such Selling Shareholder (in
the case of AIF and Aria Infotek only) is the legal owner of, and has legal
title to, the Shareholder Sale Shares of such Selling Shareholder and is
registered for all purposes (legal, corporate and otherwise) as the owner of the
Shareholder Sale Shares of such Selling Shareholder, in each case free and clear
of all Encumbrances whatsoever (other than the lien securing the AriaWest Loan),
(ii) the Shareholder Sale Shares of such Selling Shareholder are now, and will
be at all times between the date hereof and the Closing, owned by such Selling
Shareholder and held by such Selling Shareholder, free and clear of all
Encumbrances whatsoever (other than the lien

                                       32
<PAGE>

securing the AriaWest Loan) and (iii) neither such Selling Shareholder nor any
of its Subsidiaries owns any securities issued by, or other obligations of, the
Company or any of its Subsidiaries other than the Shareholder Sale Shares of
such Selling Shareholder.

(b)      As of the Closing Date, each Selling Shareholder represents and
warrants that (i) such Selling Shareholder is the legal owner of, and has legal
title to the Shareholder Sale Shares of such Selling Shareholder and is
registered for all purposes (legal, corporate and otherwise) as the owner of the
Shareholder Sale Shares of such Selling Shareholder, in each case free and clear
of all Encumbrances whatsoever; and (ii) neither such Selling Shareholder nor
any of its Subsidiaries owns any securities issued by, or other obligations of,
the Company or any of its Subsidiaries other than the Shareholder Sale Shares of
such Selling Shareholder.

Section 4.7       Legal Title Conveyed. As of the Closing Date, the share
certificates, stock powers, endorsements, assignments and other instruments and
documents delivered by such Selling Shareholder to Purchaser at the Closing will
effectively vest in Purchaser good, valid and marketable title to all of the
Shareholder Sale Shares of such Selling Shareholder free and clear of all
Encumbrances whatsoever. As of the Closing Date, such Selling Shareholder has
conveyed to Purchaser good, valid and marketable title to the Shareholder Sale
Shares of such Selling Shareholder, free and clear of all Encumbrances
whatsoever. No Person has made, or threatened to make any claim, asserting that
such Selling Shareholder is not the legal owner of the Shareholder Sale Shares
of such Selling Shareholder or that such Shareholder Sale Shares are not
authorized, validly issued or fully paid-up.

Section 4.8       Organization; Qualification of Company. The Company is a
limited liability company duly organized, validly existing and in good standing
under the laws of the Republic of

                                       33
<PAGE>

Indonesia, with full corporate power and authority to carry on its business as
it is now being conducted and to own or use the properties and assets it now
purports to own and use and is duly qualified or licensed to conduct business or
own property in every jurisdiction in which such qualification is required. True
and complete copies of the deed of establishment as approved by the Ministry of
Justice and Human Rights of the Republic of Indonesia and other organizational
documents and by-laws of the Company as presently in effect have been delivered
to Purchaser by such Selling Shareholder.

Section 4.9       Company's Consents and Approvals; No Conflicts, Violations or
Defaults. As of the date of execution of this Agreement (except as set forth in
Schedule 4.9 of the Signing Disclosure Schedule), and as of the Closing Date,
none of the execution, delivery or performance of any Transaction Document by
such Selling Shareholder, nor the consummation by such Selling Shareholder of
the Transactions, will (i) conflict with or result in any violation or breach of
any provision of any of the organizational documents of the Company or any of
its Subsidiaries or cause any Indebtedness to accelerate or become due or result
in a right on the part of the holder of any Indebtedness (with or without due
notice or lapse of time) to require prepayment, redemption or repurchase
thereof, (ii) require that the Company or any of its Subsidiaries obtain any
Consent of any Governmental Entity or other Person, (iii) require any Consent
under, or result in a violation or breach of, or constitute (with or without due
notice or the passage of time or both) a default (or give rise to any right of
termination, amendment, cancellation or acceleration) under, any of the terms,
conditions or provisions of any Contract (x) to which the Company or any of its
Subsidiaries is a party, or by which the Company or any of its Subsidiaries or
any of the properties or assets of the Company or any of its Subsidiaries is
bound or (y) made or entered into by or on behalf, at the direction, with the
consent or under the authority of (A) any past or present Additional KSO
Employee, (B) the Company, any of its Subsidiaries or any of the Selling
Shareholders or (C) any past or present officer, director, commissioner or
employee of the Company, any of its Subsidiaries or any of the Selling
Shareholders or (iv) violate any binding order, writ, injunction, decree,
statute, rule or regulation applicable to (A) the Company or any of its
Subsidiaries or (B) any of the properties or assets of the Company or any of its
Subsidiaries (any Consents of the types referred to in the clauses (ii), (iii)
and (iv) being referred to herein as the "Required Company Consents"). As of the
Closing

                                       34
<PAGE>

Date, all Required Company Consents (including the Consents set forth in
Schedule 4.9 of the Signing Disclosure Schedule) have been obtained and remain
in full force and effect.

Section 4.10.     Single Purpose Entity. As of the date of execution of this
Agreement (except as set forth in Schedule 4.10 of the Signing Disclosure
Schedule), and as of the Closing Date (except as set forth in Schedule 4.10 of
the Closing Disclosure Schedule),

(a)      Since the date of its formation, the Company has not been engaged in
         any business other than as contemplated by the KSO Agreement.

(b)      Since the date of its formation, AriaWest International Finance B.V.,
         has not been engaged in any business other than the financing of the
         AriaWest Loan.

Section 4.11      Capitalization. The authorized capital stock of the Company
consists only of 2,704,444 Shares of which 2,704,444 Shares are issued and
paid-up as of the date hereof. The Sale Shares of each Selling Shareholder are
duly authorized, validly issued, fully paid-up and non-assessable, and were not
issued in violation of any pre-emptive rights, and (i) there is no Voting Debt
of the Company or any of its Subsidiaries issued and outstanding, (ii) as of the
date of execution of this Agreement (except as set forth in Schedule 4.11 of the
Signing Disclosure Schedule), and as of the Closing Date (except as set forth in
Schedule 4.11 of the Closing Disclosure Schedule), except as identified in the
immediately preceding sentence, there is no share capital of the Company or any
of its Subsidiaries authorized, issued, paid-up or reserved, (iii) as of the
date of execution of this Agreement (except as set forth in Schedule 4.11 of the
Signing Disclosure Schedule), and as of the Closing Date, other than this
Agreement there are no existing options, warrants, calls, pre-emptive rights,
subscriptions or other rights, agreements, contracts.

                                       35
<PAGE>

undertakings, understandings, obligations, arrangements or commitments of any
character, relating to the issued or unissued share capital of the Company or
any of its Subsidiaries, obligating the Company, any of its Subsidiaries or such
Selling Shareholder to issue, transfer or sell, or cause to be issued,
transferred or sold any share capital or Voting Debt of, or other equity or debt
interest in, the Company or any of its Subsidiaries or securities convertible
into or exchangeable for such shares, equity interests, options, warrants,
calls, subscriptions or other rights or Voting Debt, or obligating the Company,
any of its Subsidiaries or such Selling Shareholder to grant, extend or enter
into any such option, warrant, call, subscription or other right, agreement,
contract, undertaking, understanding, obligation, arrangement or commitment and
(iv) as of the date of execution of the Agreement (except as set forth in
Schedule 4.11 of the Signing Disclosure Schedule), and as of the Closing Date,
there are no outstanding contractual obligations of the Company, any of its
Subsidiaries or such Selling Shareholder to repurchase, redeem or otherwise
acquire any Shares or, other capital stock or Voting Debt of the Company or any
share capital or Voting Debt of any of its Subsidiaries or for the Company or
any of its Subsidiaries to provide funds to make any investment (in the form of
a loan, capital contribution or otherwise) in any Person. There are no voting
trust agreements or understandings to which the Company, any of its Subsidiaries
or such Selling Shareholder is a party with respect to the voting of the share
capital of the Company or any of its Subsidiaries.

Section 4.12      Financial Statements. As of the date of the delivery of the
Audited Financial Statements to Purchaser, and as of the Closing Date, true and
complete copies of the Audited Financial Statements, will have been delivered to
Purchaser. As of the date of the delivery of the Audited Financial Statements to
Purchaser (except as set forth in Schedule 4.12 of the Signing Disclosure
Schedule), and as of the Closing Date (except as set

                                       36
<PAGE>

forth in Schedule 4.12 of the Closing Disclosure Schedule), the Audited
Financial Statements will have been prepared from, will be in accordance with,
and accurately reflect, the books and records of the Company and its
Subsidiaries, comply with applicable accounting requirements in all material
respects, will have been prepared in accordance with GAAP applied on a
consistent basis during the periods involved, will fairly present in all
material respects the consolidated financial position and the consolidated
results of operations and cash flows (and changes in financial position, if any)
of the Company and its Subsidiaries as at the times and for the periods referred
to therein. As of the date of the delivery of the Unaudited Financial Statements
to Purchaser, and as of the Closing Date, the Unaudited Financial Statements
will have been delivered to Purchaser. As of the date of delivery of the
Unaudited Financial Statements to Purchaser (except as set forth in Schedule
4.12 of the Signing Disclosure Schedule), and as of the Closing Date (except as
set forth in Schedule 4.12 of the Closing Disclosure Schedule), the Unaudited
Financial Statements will have been prepared from, will be in accordance with
and accurately reflect the books and records of the Company and its
Subsidiaries, comply in all material respects with applicable accounting
requirements except for normal year end adjustments, will have been prepared in
accordance with GAAP applied on a consistent basis during the periods involved,
will fairly present in all material respects the consolidated financial
position and the consolidated results of operations and cash flows (and changes
in financial position, if any) of the Company and its Subsidiaries as at the
times and for the periods referred to therein, subject to normal year-end
adjustments.

Section 4.13      Books and Records. As of the date of execution of this
Agreement (except as disclosed in Schedule 4.13 of the Signing Disclosure
Schedule), and as of the Closing Date, the books of account, minute books,
register of shareholders and other records of the Company and its Subsidiaries
are true and complete in all material respects and have been maintained in
accordance with all applicable legal requirements. As of the Closing Date, true
and complete copies of all minute books and each register of shareholders of the
Company and its Subsidiaries has been delivered to Purchaser by the Selling
Shareholders, provided that, in the case of the minutes of meetings of the
shareholders, Board of Directors or the Board of Commissioners of the Company
dated on or after January 1, 2001,

                                       37
<PAGE>

information therein which would prejudice AriaWest's claims and defenses in the
Arbitration Proceeding (as reasonably determined by the Selling Shareholder) and
which would not be material to a purchaser of the Sale Shares but for the
Arbitration Proceeding, may be redacted by the Company prior to such delivery.

Section 4.14      No Liabilities.

(a)      As of the Closing Date except for (i) the liabilities and obligations
         owed to the KSO Unit or as set forth in Schedule 4.14 of the Closing
         Disclosure Schedule and (ii) the AriaWest Loan as restructured pursuant
         to the AriaWest Loan Restructuring Agreement, neither the Company nor
         any of its Subsidiaries has any liability or obligation of any
         nature, whether or not absolute, accrued, contingent or otherwise.

(b)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.14 of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.14 of the Closing
         Disclosure Schedule), and except for (i) Indebtedness owed to Purchaser
         and (ii) liabilities and obligations incurred at the direction or under
         the authority of any person other than (A) any past or present
         Additional KSO Employee, (B) the Company, any of its Subsidiaries, any
         of the Selling Shareholders or the Affiliates of the Selling
         Shareholders, or (C) any past or present officer, director,
         commissioner or employee of the Company, any of its Subsidiaries, any
         of the Selling Shareholders or the Affiliates of the Selling
         Shareholders, the KSO Unit has no liability or obligation of any
         nature, whether or not absolute, accrued, contingent or otherwise.

(c)      As of the Closing Date, except for Indebtedness owed to Purchaser,
         there are no liabilities or obligations of any nature, whether or not
         absolute, accrued, contingent or otherwise) owed or alleged to be owed
         by the Company, any of its Subsidiaries or the KSO Unit which (A) any
         past or present

                                       38
<PAGE>

         Additional KSO Employee, (B) the Company, any of its Subsidiaries, any
         of the Selling Shareholders or Affiliates of the Selling Shareholders,
         or (C) any past or present officer, director, commissioner or employee
         of the Company, any of its Subsidiaries, any of the Selling
         Shareholders or Affiliates of the Selling Shareholders has disputed or
         determined to dispute or refused to pay.

Section 4.15      Accounts Receivable.

(a)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.15(a) of the Signing Discloser Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.15(a) of the Closing
         Disclosure Schedule), other than the accounts receivable from the KSO
         Unit, the Company and its Subsidiaries have no accounts receivable.

(b)      As of the Closing Date (except as set forth in Schedule 4.15(b) of the
         Closing Disclosure Schedule), neither the Selling Shareholders, the
         Company nor any of its Subsidiaries has assigned, delegated or
         otherwise transferred to any Person all or any interest in, or claim in
         respect of, any receivables or other amounts owing to the Company or
         any of its Subsidiaries from Purchaser or the KSO Unit which are
         outstanding as of the date hereof or any other right of the Company,
         any of its Subsidiaries or any Selling Shareholder relating thereto. As
         of the Closing Date, all assignments, delegations or other transfers,
         including those listed in Schedule 4.15(b) of the Closing Disclosure
         Schedule, shall have been made without recourse and without any
         obligation to the Company whatsoever and the Company Shall have no
         liabilities or obligations in respect of such assignment, delegation or
         other transfer that have not been fully performed or discharged on or
         before the Closing Date.

Section 4.16      AriaWest Loan. As of the Closing Date that any and all
breaches and defaults

                                       39
<PAGE>

(including claims in respect thereof) under the AriaWest Loan have been
irrevocably waived and forever released by all of the parties thereto.

Section 4.17      Absence of Certain Changes. Since December 31, 2001, each of
the Company and its Subsidiaries has as of the date of execution of this
Agreement (except as set forth in Schedule 4.17 of the Signing Disclosure
Schedule), and as of the Closing Date (except as set forth in Schedule 4.17 of
the Closing Disclosure Schedule), conducted its business only in the ordinary
and usual course and consistent with past practice, and neither the Company nor
any of its Subsidiaries has:

(a)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17 of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17 of the Closing
         Disclosure Schedule), suffered any Material Adverse Effect;

(b)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(b) of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17(b) of the Closing
         Disclosure Schedule), incurred any liability or obligation (absolute,
         accrued, contingent or otherwise);

(c)      permitted or allowed any of its property or assets (real, personal or
         mixed, or tangible or intangible) to become subject to any Encumbrance
         whatsoever;

(d)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(d) of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17(d) of the Closing
         Disclosure Schedule), cancelled or written off as uncollectible any
         receivables or waived any claims or rights of substantial value other
         than pursuant to the Transaction Documents;

(e)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(e) of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17(e) of the Closing
         Disclosure Schedule), sold, transferred, or otherwise

                                       40
<PAGE>

         disposed of (i) any of the KSO Unit Installations or (ii) other than in
         the ordinary course of business and consistent with past practice, any
         of its other properties or assets (real, personal or mixed, or tangible
         or intangible), in each case, except to Purchaser or the KSO Unit;

(f)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(f) of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17(f) of the Closing
         Disclosure Schedule), disposed of or permitted to lapse any rights to
         the use of any Intellectual Property, or disposed of or disclosed to
         any Person other than representatives of Purchaser any trade secret,
         formula, process, know-how or other Intellectual Property not
         heretofore a matter of public knowledge;

(g)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(g) of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17(g) of the Closing
         Disclosure Schedule), granted any increase in the compensation of
         officers, directors, commissioners or employees (including any such
         increase pursuant to any bonus, pension, profit sharing or other plan
         or commitment) or any increase in the compensation payable or to become
         payable to any officer, director, commissioner or employee, and no such
         increase is customary on a periodic basis or required by agreement or
         understanding for an amount in excess of US$50,000 (or equivalent in
         any other currency);

(h)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(h) of the Signing Disclosure Schedule), and as of the
         Closing Date, made any capital expenditure or commitment for additions
         to property, plant, equipment or intangible capital assets;

(i)      declared, paid or set aside for payment any dividend or other
         distribution in respect of its share capital or redeemed, purchased or

                                       41
<PAGE>

         otherwise acquired, directly or indirectly, any share capital or other
         securities of the Company or any of its Subsidiaries;

(j)      except as set forth in the Audited Financial Statements, made any
         change in any method of accounting or accounting practice;

(k)      as of the date of execution of this Agreement (except as set forth in
         Schedule 4.17(k) of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.17(k) of the Closing
         Disclosure Schedule), paid, loaned or advanced any amount to, or sold,
         transferred or leased any properties or assets (real, personal or
         mixed, or tangible or intangible) to, or entered into any agreement or
         arrangement with, any of its commissioners, directors or officers or
         any Person controlled (as such term is defined in the definition of
         "Affiliate") by any of its commissioners, directors or officers except
         for commissioners' fees and compensation to directors and officers at
         rates not exceeding the rates set forth in Schedule 4.17(l) of the
         Closing Disclosure Schedule; or

(l)      agreed or committed, whether in writing or otherwise, to take any
         action described in this Section 4.17.

Section 4.18      Insurance. As of the date of execution of this Agreement,
Schedule 4.18 of the Signing Disclosure Schedule, and as of the Closing Date,
Schedule 4.18 of the Closing Disclosure Schedule, sets forth a true and complete
list of all insurance policies, other insurance arrangements and other contracts
or arrangements for the transfer or sharing of insurance risks by the Company or
any of its Subsidiaries in force on the date hereof with respect to the business
or assets of the Company or its Subsidiaries, together with a statement of the
aggregate amount of claims paid out within the last three years, and claims
pending, under each such insurance policy or other arrangement through the date
hereof. As of the date of execution of this Agreement (except as set forth in
Schedule 4.18 of the Signing Disclosure Schedule), and as of the Closing Date
(except as set forth in Schedule 4.18 of the Closing Disclosure Schedule), (a)
all such policies are in full force and effect, all premiums due

                                       42
<PAGE>

thereon have been paid by the Company or its Subsidiaries, and the Company and
its Subsidiaries are otherwise in full compliance with the terms and provisions
of such policies, (b) neither the Company nor any of its Subsidiaries has
received any notice of cancellation or non-renewal of any such policy or
arrangement and to the Knowledge of the Selling Shareholders the termination of
any such policies or arrangements is not threatened, (c) there is no claim
pending under any of such policies or arrangements as to which coverage has been
denied or disputed by the underwriters of such policies or arrangements and (d)
neither the Company nor any of its Subsidiaries has received any notice from any
of its insurance carriers that any insurance premiums will be increased in the
future or that any insurance coverage presently provided for will not be
available to the Company or any of its Subsidiaries in the future on
substantially the same terms as now in effect.

Section 4.19      Properties and Assets.

(a)      Neither the Company nor any of its Subsidiaries has transferred, sold
         or otherwise disposed of or destroyed any KSO Unit Installations. Each
         of the Company and its Subsidiaries has good, valid and marketable
         title to all of (i) the KSO Unit Installations in the possession of or
         under the control of the KSO Unit and (ii) as of the date of execution
         of this Agreement (except as set forth in Schedule 4.19 of the Signing
         Disclosure Schedule), and as of the Closing Date, the properties and
         assets in the possession of the Company and its Subsidiaries, in each
         case free and clear of all Encumbrances whatsoever (collectively, the
         "Assets"), provided however that between the date hereof and the
         Closing Date, the Company intends to sell or transfer to one or more
         third parties the assets listed in Schedule 4.17(e) of the Signing
         Disclosure Schedule. Neither the Company nor any of its Subsidiaries
         owns any land or buildings.

                                       43
<PAGE>

(b)      Except for the Arbitration Proceeding, there is no Proceeding pending,
         or to the Knowledge of the Selling Shareholders, threatened against,
         involving or affecting any of the Assets. Neither the Company nor any
         of its Subsidiaries is a party to any lease, assignment or similar
         arrangement under which the Company or any of its Subsidiaries is a
         lessor or assignor of, or otherwise makes available for use by any
         third-party, any of the Assets.

(c)      Each of the Company and its Subsidiaries has obtained all appropriate
         certificates, licenses, easements and rights of way required to use and
         operate the Assets in the manner in which the Assets are currently
         being used and operated. True and complete copies of all such
         certificates, permits and licenses in respect of any Real Property have
         been furnished to Purchaser by the Selling Shareholders. Each of the
         Company and its Subsidiaries has all approvals, permits and licenses
         necessary to own or operate the Assets as currently owned and operated,
         and no such approvals, permits or licenses will be required, as a
         result of the Transactions, to be issued after the date hereof in order
         to permit each of the Company and its Subsidiaries, following the
         Closing, to continue to own or operate the Assets in the same manner as
         heretofore.

Section 4.20  Leases. As of the date of execution of this Agreement, Schedule
4.20 of the Signing Disclosure Schedule, and as of the Closing Date, Schedule
4.20 of the Closing Disclosure Schedule, contains an accurate and complete list
of all of the Leases in effect. A true and complete copy of each Lease set
forth in Schedule 4.20 of the Signing Disclosure Schedule and Schedule 4.20 of
the Closing Disclosure Schedule has been delivered to Purchaser by the Selling
Shareholders. Each Lease is valid, binding and enforceable in accordance with
its terms and is in full force and effect. The leasehold estate created by each
Lease is free and clear of all Encumbrances whatsoever and has been registered
with the appropriate Governmental Entity of the Republic of Indonesia.

                                       44
<PAGE>

There are no existing defaults under any of the Leases by any of the parties
thereto. No event has occurred that (whether with or without notice, lapse of
time, or the happening or occurrence of any other event) would constitute a
default under any Lease. Such Selling Shareholder has not received written
notice, nor has any other reason to believe, that any lessor under any Lease
will not consent (where such consent is necessary) to the consummation of the
Transactions without requiring any modification of the rights or obligations of
the lessee thereunder.

Section 4.21 Environmental Matters. To the Knowledge of the Selling
Shareholders, each of the Company and its Subsidiaries is in full compliance
with all Environmental Laws. The Company has not received any written
communication, whether from a Governmental Entity of the Republic of Indonesia,
citizens group, employee or otherwise, that alleges that the Company or any of
its Subsidiaries is not in full compliance with any Environmental Laws.

Section 4.22  Contracts and Commitments.

(a)      As of the date of execution of this Agreement, Schedule 4.22(a) of the
         Signing Disclosure Schedule, and as of the Closing Date, Schedule
         4.22(a) of the Closing Disclosure Schedule, contains a complete and
         accurate list of all agreements, contracts, licenses, instruments,
         obligations and commitments of any kind, whether written or oral,
         including all indentures, loans, mortgages leases, notes, installment
         obligations (including finance leases), consulting agreements, services
         agreements and agreements for the sale of goods or provision of
         services, any agreement to acquire any debt obligations of others,
         power of attorney or any obligations or liabilities (whether absolute,
         accrued, contingent or otherwise), as guarantor, surety, co-signer,
         endorser, co-maker, indemnitor or otherwise in respect of the
         obligation of any other Person, corporation, partnership, joint
         venture, association, organization or other entity (collectively, the
         "Contracts") for which any of the following apply: (i) to which the
         Company or any of its Subsidiaries is a party or by which the Company
         or any of its Subsidiaries or any of their properties or assets may be
         bound or (ii) entered into by or on behalf, at the

                                       45
<PAGE>

         direction, with the consent or under the authority of (A) any past or
         present Additional KSO Employee, (B) the Company, any of its
         Subsidiaries or any of the Selling Shareholders, (C) any past or
         present officer, director, commissioner or employee of the Company, any
         of its Subsidiaries or any of the Selling Shareholders or (D) any past
         or present officer, director, commissioner or employee of any Affiliate
         of any Selling Shareholder to which the KSO Unit is a party or by which
         the KSO Unit or any of its properties or assets may be bound.

(b)      Except for the KSO Agreement, each of the Contracts is a legal, valid,
         binding and enforceable obligation of the parties thereto, except as
         the enforceability thereof may be limited by (i) bankruptcy,
         insolvency, reorganization or other similar laws affecting the
         enforcement of Purchaser's rights generally and (ii) general equitable
         principles. Except for the KSO Agreement, neither the Company nor any
         of its Subsidiaries is in default under or in violation of, nor has any
         event occurred that with the giving of notice or lapse of time or both
         would constitute a default or event of default under, nor is there any
         valid basis for any claim of default under or violation of, any
         Contract. To the Knowledge of the Selling Shareholders, the KSO Unit is
         not in default under or in violation of any Contract and no event has
         occurred that with the giving of notice or lapse of time or both would
         constitute a default or event of default under, and there is no basis
         for any claim of default under or violation of, any Contract. To the
         Knowledge of the Selling Shareholders, there has been no default,
         violation or event that with the giving of notice or lapse of time or
         both would constitute a default or event of default on the part of any
         other party to a Contract except for the KSO Agreement. As of the
         Closing Date, each Contract then in effect was entered into in the
         ordinary course of business consistent with past practice.

                                       46
<PAGE>

Section 4.23 Labor; Employee Benefit Plans.

(a)      Each of the Company and its Subsidiaries is and has at all times been,
         in compliance with all applicable laws respecting employment and
         employment practices, terms and conditions of employment, wages, hours
         of work and occupational safety and health, and neither the Company nor
         any of its Subsidiaries is engaged in any unfair labor practices, as
         defined in any applicable laws. As of the date of execution of this
         Agreement Schedule 4.23(a) of the Signing Disclosure Schedule, and as
         of the Closing Date, Schedule 4.23(a) of the Closing Disclosure
         Schedule, lists each employee of the Company.

(b)      There is no Proceeding pending or threatened against the Company or any
         of its Subsidiaries by or on behalf of any past or present Additional
         KSO Employee or any past or present officer, director, commissioner or
         employee of the Company, any of its Subsidiaries or, to the Knowledge
         of the Selling Shareholders, the KSO Unit in respect of the employment
         practices of the Company or any of its Subsidiaries.

(c)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.23 of the Signing Disclosure Schedule), and as of the
         Closing Date, neither the Company nor any of its Subsidiaries has or
         has had any Plans.

Section 4.24 Compliance with Laws. As of the date of execution of this Agreement
(except as set forth in Schedule 4.24 of the Signing Disclosure Schedule), and
as of the Closing Date, each of the Company and its Subsidiaries has complied
with all laws, rules and regulations, judgments, decrees and orders of all
Governmental Entities that affect the business, properties, assets or interests
of the Company or any of its Subsidiaries. Neither the Company nor any of its
Subsidiaries has received any notice, charge, claim, action or assertion
alleging any violation of any laws, rules and regulations, judgments, decrees or
orders of any

                                       47
<PAGE>

Governmental Entity that affect the business, properties, assets or interests of
the Company or any of its Subsidiaries and no such notice, charge, claim, action
or assertion has been filed, commenced or to the Knowledge of the Selling
Shareholders threatened against the Company or any of its Subsidiaries. To the
Knowledge of the Selling Shareholders, the KSO Unit has not received any notice,
charge, claim, action or assertion alleging any violation of any laws, rules and
regulations, judgments, decrees or orders of any Governmental Entity that affect
the business, properties, assets or interests of the KSO Unit and to the
Knowledge of the Selling Shareholders no such notice, charge, claim, action or
assertion has been filed, commenced or threatened against the KSO Unit.

Section 4.25 Insider Interests, Debt and Guarantees. As of the date of execution
of this Agreement (except as set forth in Schedule 4.25 of the Signing
Disclosure Schedule), and as of the Closing Date (except as set forth in
Schedule 4.25 of the Closing Disclosure Schedule), none of the past or present
directors, commissioners, officers, employees, statutory auditors or
shareholders of the Company, any of its Subsidiaries, any of the Selling
Shareholders, or any of the Affiliates of the Company, any of its Subsidiaries
or any of the Selling Shareholders, or any entity in which any such person or
entity has a significant economic or financial interest (other than the Company
and its Subsidiaries), any past or present Additional KSO Employee, (each a
"Related Person") is a party to or has any interest in any contracts or
agreement, arrangement or understanding (whether oral or otherwise) or property
(real or personal, or tangible or intangible), including any Intellectual
Property, used in or pertaining to the business or assets of the Company, any of
its Subsidiaries or the KSO Unit. Neither the Company, any of its Subsidiaries
nor the KSO Unit has any outstanding liabilities, obligations or Indebtedness to
any Related Person, and no Related Person has outstanding any liabilities,
obligations or Indebtedness to the Company, any of its Subsidiaries or the KSO
Unit. Except for the AriaWest Loan, neither the Company, any of its Subsidiaries
nor the KSO Unit has entered into any guarantees, keep-wells or financial
support arrangements or other accommodations to any third-party with respect to
Indebtedness of any Related

                                       48
<PAGE>

Person or with respect to Indebtedness of any of their Affiliates.

Section 4.26 Tax Matters.

(a)      As of the date of this Agreement (except as set forth in Schedule
         4.26(a) of the Signing Disclosure Schedule) and as of the Closing Date
         (except as set forth in Schedule 4.26(a) of the Closing Disclosure
         Schedule), each of the Company and its Subsidiaries has duly filed all
         Tax Returns that are required to be filed and has duly paid or caused
         to be duly paid in full all Taxes for all periods or portions thereof
         ending through the date hereof (whether or not shown on any Tax
         Return). All such Tax Returns are correct and complete and accurately
         reflect all liability for Taxes for the periods covered thereby.

(b)      There are no liens for Taxes upon any property or assets of the Company
         or any of its Subsidiaries.

(c)      As of the date of this Agreement (except as set forth in Schedule
         4.26(c) of the Signing Disclosure Schedule), and as of the Closing Date
         (except as set forth in Schedule 4.26(c) of the Closing Disclosure
         Schedule), each of the Company and its Subsidiaries has complied in all
         respects with all applicable laws, rules and regulations relating to
         the payment and withholding of Taxes and have, within the manner
         prescribed by law, withheld and paid over to the proper taxing
         authorities all amounts required to be so withheld and paid over under
         applicable laws.

(d)      All Tax deficiencies that have been claimed, proposed or asserted
         against the Company or any of its Subsidiaries have been fully paid or
         finally settled, and no issue has been raised in any examination by any
         taxing authority that, by application of similar

                                       49
<PAGE>

         principles, could reasonably be expected to result in the proposal or
         assertion of a Tax deficiency for another taxable period not so
         examined.

(e)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.26 of the Signing Disclosure Schedule), and as of the
         Closing Date, no power of attorney has been granted by or with respect
         to the Company or any of its Subsidiaries with respect to any matter
         relating to Taxes.

(f)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.26 of the Signing Disclosure Schedule), and as of the
         Closing Date, neither the Company nor any of its Subsidiaries is a
         party to, is bound by or has any obligation under any Tax sharing
         agreement, Tax indemnification agreement or similar contract or
         arrangement, and neither the Company nor any of its Subsidiaries has
         any potential liability or obligation to any Person as a result of, or
         pursuant to, any such agreement, contract or arrangement.

(g)      There is no Proceeding pending or threatened concerning any Tax
         liability of the Company.

(h)      Within 20 days of the date of execution of this Agreement, true and
         complete copies of all Tax Returns of each of the Company and its
         Subsidiaries have been delivered to Purchaser by the Selling
         Shareholders (other than Tax Returns that shall not have been required
         to be filed as of such date).

(i)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.26 of the Signing Disclosure Schedule), and as of the
         Closing Date (except as set forth in Schedule 4.26 of the Closing
         Disclosure Schedule), since December 31, 2001, the Company has not
         set-off any taxable income against the Tax Loss Carryforwards.

                                       50
<PAGE>

(j)      Within 20 days of the date of execution of this Agreement, true and
         complete copies of each of (i) all audit reports, letter rulings,
         technical advice memoranda and similar documents issued by a
         Governmental Entity relating to Taxes due from or with respect to the
         Company or any of its Subsidiaries and (ii) all closing agreements
         entered into by the Company or any of its Subsidiaries with any taxing
         authority have been delivered to Purchaser by the Selling Shareholders,
         and as of the Closing Date, no such agreements have been entered into
         by the Company or any of its Subsidiaries between the date of execution
         of this Agreement and the Closing Date.

(k)      As of the date of execution of this Agreement (except as set forth in
         Schedule 4.26 of the Signing Disclosure Schedule), and as of the
         Closing Date, neither the Company nor any of its Subsidiaries has any
         liability with respect to income, franchise or similar Taxes relating
         to the operation of the Company or any of its Subsidiaries prior to
         December 31, 2001 in excess of the amounts that are accrued with
         respect thereto and are reflected in the Financial Statements, and
         since the date of the Financial Statements, none of the Company nor any
         of its Subsidiaries has incurred any liability for Taxes, except with
         respect to operations in the ordinary course of business consistent
         with past practice after December 31, 2001. All Taxes owed and due by
         each of the Company and its Subsidiaries relating to operations of the
         Company and its Subsidiaries for all periods or portions thereof ending
         through the date hereof (whether or not shown on any Tax Return) have
         been duly paid in full.

(l)      Neither the Company nor any of its Subsidiaries has received written
         notice of any claim made by an authority in a jurisdiction where
         neither the Company nor any of its Subsidiaries files Tax Returns, that
         the Company is or may be subject to taxation

                                       51
<PAGE>

         by that jurisdiction.

Section 4.27 Intellectual Property.

(a)      Each of the Company and its Subsidiaries owns or otherwise possesses
         valid and enforceable licenses for all Intellectual Property currently
         used in or necessary for the conduct of the business of the Company and
         its Subsidiaries, and the consummation of the Transactions will not
         alter or impair any such ownership, possession, right or licenses in
         any respect. The Company is in full compliance with the terms and
         conditions of all licenses for all Intellectual Property.

(b)      There is no opposition, cancellation, invalidity, interference or
         re-examination proceeding or other Proceeding presently pending or
         threatened with respect to any Intellectual Property used in the
         business of the Company or any of its Subsidiaries. The conduct of the
         business of the Company and its Subsidiaries and the use by the Company
         and its Subsidiaries of such Intellectual Property does not infringe
         any Intellectual Property right or any other proprietary right of any
         Person.

(c)      To the Knowledge of the Selling Shareholders, there is no opposition,
         cancellation, invalidity, interference or re-examination proceeding or
         other Proceeding presently pending or threatened with respect to any
         Intellectual Property used in the business of the KSO Unit. To the
         Knowledge of the Selling Shareholders, the conduct of the business of
         the KSO Unit and the use by the KSO Unit of such Intellectual Property
         does not infringe any Intellectual Property right or any other
         proprietary right of any Person.

(d)      Neither (A) any past or present Additional KSO Employee, (B) the
         Company, any of its Subsidiaries or any of the Selling Shareholders nor
         (C) any past or present officer, director, commissioner or employee of
         the Company, any of its Subsidiaries or any of the Selling Shareholders
         has received any written notice from any other Person

                                       52
<PAGE>

         pertaining to or challenging the right of the Company, any of its
         Subsidiaries or the KSO Unit to use any of the Intellectual Property
         currently used in the businesses of the Company, any of its
         Subsidiaries or the KSO Unit. Neither the Company nor any of its
         Subsidiaries has made, or has grounds for making, any claim of a
         violation or infringement by any other Person of its rights to or in
         connection with the Intellectual Property used in the business of the
         Company or any of its Subsidiaries.

Section 4.28 License. As of the date of execution of this Agreement (except as
set forth in Schedule 4.28 of the Signing Disclosure Schedule), and as of the
Closing Date (except as set forth in Schedule 4.28 of the Closing Disclosure
Schedule), the License is owned by the Company, is valid and enforceable and has
not been cancelled, terminated, suspended or otherwise altered or impaired in
any way. Prior to July 9, 2001, the Company was not in breach of, and was in
full compliance with, all of the terms and conditions of the License. For the
period on and following July 9, 2001, to the Knowledge of the Selling
Shareholders, the Company has not breached and is in full compliance with, all
of the terms and conditions of the License. For the purposes of the second and
third sentences of this Section 4.28, (but for no other purpose), to the extent
any actual or alleged breach or default by the Company of the KSO Agreement
which is the subject of the Arbitration Proceeding would constitute a breach or
default by the Company of the License, such breach or default shall be deemed to
be properly disclosed to Purchaser in the Signing Disclosure Schedule and the
Closing Disclosure Schedule. The consummation of the Transactions will not alter
or impair the License, any rights of the Company with respect to the License or
the Company's ownership of the License in any respect. There is no opposition,
cancellation, invalidity, interference or re-examination proceeding or other
Proceeding presently pending or threatened relating to or in connection with the
License. Neither (A) any past or present Additional KSO Employee, (B) the
Company, any of its Subsidiaries, or any of the Selling Shareholders or their
respective Affiliates nor (C) any past or present officer, director,
commissioner or employee of the Company, any of its Subsidiaries or any of the
Selling Shareholders has received any written notice from any other Person
pertaining to or challenging the right of the Company, any of its Subsidiaries
or the KSO Unit to use the License.

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<PAGE>

Section 4.29 Bank Accounts. As of the date of execution of this Agreement,
Schedule 4.29 of the Signing Disclosure Schedule, and as of the Closing Date,
Schedule 4.29 of the Closing Disclosure Schedule, sets forth the names and
locations of all banks, and other financial institutions at which the Company,
and its Subsidiaries maintain, or any of the past or present Additional KSO
Employees has signature authority over or rights relating to, safe deposit
boxes, savings, time deposit or checking accounts or other accounts of any
nature and the names of all Persons authorized to draw thereon, make withdrawals
therefrom or have access thereto.

Section 4.30 Brokers or Finders. None of the Company, any of its Subsidiaries or
such Selling Shareholder has entered into any agreement or arrangement entitling
any agent, broker, investment banker, financial advisor or other firm or Person
to any broker's or finder's fee or any other commission or similar fee in
connection with any of the Transactions except Canadian Imperial Bank of
Commerce, Singapore office and Prince Consulting, whose fees and expenses will
be paid or otherwise satisfied in full by the Company prior to Closing in
accordance with the Company's and/or Selling Shareholders, agreements with such
firms.

Section 4.31 Full Disclosure. No representation or warranty by such Selling
Shareholder contained in the Transaction Documents, Signing Disclosure Schedule,
Closing Disclosure Schedule, Audited Financial Statements, Unaudited Financial
Statements, certificates and other documents delivered pursuant to the
Transaction Documents, contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact necessary, in light
of the circumstances under which it was or will be made, to make the statements
herein or therein not misleading.

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<PAGE>
                                   ARTICLE V
                       REPRESENTATIONS AND WARRANTIES OF
                                   PURCHASER


Purchaser represents and warrants to each Selling Shareholder that:

Section 5.1 Organization. Purchaser is a limited liability company duly
organized and validly existing under the laws of the Republic of Indonesia and
has all requisite power and authority to execute and deliver each of the
Transaction Documents, to perform its obligations under each of the Transaction
Documents and to consummate the Transactions.

Section 5.2 Authorization: Validity of Agreement. Purchaser has taken all
corporate or other action necessary to execute and deliver each of the
Transaction Documents and to perform its obligations under each of the
Transaction Documents. The consummation by Purchaser of the Transactions has
been duly authorized by Purchaser's Board of Commissioners and, except for the
approval of the General Meeting of Shareholders of Purchaser, no other corporate
action on the part of Purchaser is necessary to authorize the consummation by
Purchaser of the Transactions. As of the Closing Date, the approval of a General
Meeting of Shareholders of Purchaser of the consummation by Purchaser of the
Transactions has been obtained and remains in full force and effect.

Section 5.3 Binding Agreement. Each of the Transaction Documents which are
signed as of the date of this Agreement has been duly executed and delivered by
Purchaser and, assuming due and valid authorization, execution and delivery of
such Transaction Document by the Selling Shareholders where required, such
Transaction Document constitutes a legal, valid and binding obligation of
Purchaser, enforceable against it in accordance with its terms and as of the
Closing Date, each of the Transaction Documents which are signed as of the
Closing Date has been duly executed and delivered by Purchaser and, in each
case, assuming due and valid authorization, execution and delivery of such
Transaction Document by the Selling Shareholders where required, such
Transaction Document constitutes a legal, valid and binding obligation of
Purchaser, enforceable against it in accordance with its terms, except (i) as
the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of the Selling
Shareholders' rights generally and (ii) general equitable principles.

                                       55
<PAGE>

Section 5.4 Consents and Approvals: No Conflicts, Violations or Defaults. Except
for such Consents as are set forth in Schedule 5.4 of the Purchaser Disclosure
Schedule, neither the execution or delivery of any Transaction Document by
Purchaser nor the consummation by Purchaser of the Transactions will (i)
conflict with or result in any breach of any provision of Purchaser's
organizational documents, (ii) require that Purchaser obtain any Consent of any
Governmental Entity or any other Person, (iii) require any Consent under, or
result in a violation or breach of, or constitute (with or without due notice or
the passage of time or both) a default (or give rise to any right of
termination, amendment, cancellation or acceleration) under, any of the terms,
conditions or provisions of any agreement, loan, lease, license, contract,
commitment, obligation, understanding, undertaking, arrangement or instrument to
which Purchaser is a party or by which Purchaser or any of its properties or
assets is bound or (iv) violate any binding order, writ, injunction, decree,
statute, rule or regulation applicable to Purchaser or any of its properties or
assets. As of the Closing, each Consent of any Governmental Entity and any other
Person required in order for Purchaser to consummate the Transactions
(including, without limitation, the Consents set forth in Schedule 5.4 of the
Purchaser Disclosure Schedule) shall have been obtained and remains in full
force and effect.

Section 5.5 Legal Proceedings. Except for the Arbitration Proceeding, there are
no Proceedings pending against, involving or affecting Purchaser which question
or challenge the validity of any Transaction Document or any action taken or to
be taken by Purchaser pursuant to any Transaction Document or in connection with
the Transactions, or which may result in the issuance of a judgment, order or
decree prohibiting or making illegal the consummation of the Transactions by
Purchase, and to the knowledge of Purchaser, there is no valid basis for any
such Proceeding. Purchaser is not subject to any judgment, order or decree
prohibiting or making illegal or otherwise adversely affecting the consummation
by Purchaser of the Transactions.

Section 5.6 Brokers or Finders. Purchaser has not entered into any agreement or
arrangement entitling any agent, broker, investment banker, financial advisor
or other firm or Person to any

                                       56
<PAGE>

broker's or finder's fee or any other commission or similar fee in connection
with any of the Transactions, except Salomon Smith Barney, whose fees and
expenses will be paid by Purchaser in accordance with Purchaser's agreement with
such firm.

                                   ARTICLE VI
                                   COVENANTS

Section 6.1 Interim Operations of the Company. The Selling Shareholders shall
severally and not jointly cause each of the Company and its Subsidiaries, from
the date hereof to the Closing Date, except (i) as expressly provided in the
Transaction Documents or (ii) as may be agreed in writing by Purchaser:

(a)      (i) to conduct its business diligently and in accordance with all
         applicable laws and regulations, (ii) not to hire any permanent
         employees, (iii) not to take any action or fail to act resulting in the
         cancellation, termination, suspension or other alteration or impairment
         in any way of the License and (iv) not to take any action which would
         impair any existing relations with customers or suppliers of goods or
         services, provided however that none of the Company, its Subsidiaries
         nor the Selling Shareholders shall be prohibited from taking any action
         (even if such action impairs such existing relations) related to the
         settlement of liabilities of the Company as contemplated by this
         Agreement;

(b)      not to (i) amend its organizational documents, (ii) issue, sell,
         transfer, pledge, dispose of or encumber any shares of any class or
         series of its share capital, or securities convertible into or
         exchangeable for, or options, warrants, calls, commitments or rights of
         any kind to acquire, any shares of any class or series of its capital
         stock or any Voting Debt, (iii) declare, set aside or pay any dividend
         or other distribution payable in cash, stock or property with respect
         to any shares of any class or series of its capita] stock, (iv) split,
         combine or reclassify any shares of any class or series of its capital
         stock or (v) redeem, purchase or otherwise acquire, directly or
         indirectly, any shares of any class or series of its capital stock, or
         any instrument or security which consists of or

                                       57
<PAGE>

         includes a right to acquire such shares;

(c)      not to organize any new Subsidiary or acquire any capital stock or
         other equity securities, or equity or ownership interest in the
         business, of any other Person;

(d)      not to modify, amend or terminate any Contract set forth in Schedule
         4.22 of the Closing Disclosure Schedule or waive, release or assign any
         rights or claims thereunder;

(e)      not to (i) incur or assume any Indebtedness (except for Indebtedness to
         shareholders of the Company), (ii) assume, guarantee, endorse or
         otherwise take any action to become liable or responsible (whether
         directly, contingently or otherwise) for the liabilities or obligations
         of any other Person, (iii) except as set forth in Schedule 4.15(b) of
         the Closing Disclosure Schedule, assign, delegate or otherwise transfer
         to any Selling Shareholder or any third-party all or any interest in,
         or claim in respect of, any receivables or other amounts that are owing
         to the Company or any of its Subsidiaries from Purchaser or the KSO
         Unit or any other rights of the Company or any of its Subsidiaries or
         any Selling Shareholder whether in respect of the KSO Unit or
         otherwise, provided however in each case that any such assignment,
         delegation or other transfer shall have been made without recourse and
         without any obligation to the Company whatsoever and the Company shall
         have no liabilities or obligations in respect of such assignment,
         delegation or other transfer that have not been fully performed or
         discharged on or prior to the Closing Date, (iv) dispose of or permit
         to lapse any rights to any Intellectual Property or (v) change any of
         the banking or safe deposit arrangements described or referred to in
         any part of the Signing Disclosure Schedule or the Closing Disclosure
         Schedule or open any new safe deposit boxes, savings, time deposit or
         checking accounts or other accounts of any nature, in each except to
         transfer to the Person designated by Purchaser (to the sole and
         absolute satisfaction of Purchaser) all

                                       58
<PAGE>

         authority, right or interest in such banking or safe deposit
         arrangements;

(f)      except is set forth in Schedule 4.17(e) of the Closing Disclosure
         Schedule, not to sell, lease, license, hypothecate, mortgage, pledge,
         transfer or otherwise encumber or dispose or destroy any assets or
         property except to the KSO Unit;

(g)      except as set forth in Schedule 4.17(g) of the Closing Disclosure
         Schedule or as may otherwise be directly related to payments of
         severance, bonus or success fees (provided however that such the
         aggregate amount of such payments shall not exceed US$6,000,000), not
         to increase the compensation payable or to become payable to any of its
         officers, directors, commissioners, employees, agents or consultants
         (other than Prince Consulting, Canadian Imperial Bank of Commerce,
         Singapore office, Ernst & Young and PriceWaterhouseCoopers) or to
         Persons providing management services including by entering into or
         amending any employment, severance, consulting, termination or other
         agreement with, or employee benefit plan for, by making any loan or
         advance to, any of its officers, directors, commissioners, employees,
         agents or consultants (other than Prince Consulting Canadian Imperial
         Bank of Commerce, Singapore office, Ernst & Young and
         PriceWaterhouseCoopers) or by making any change in its existing
         borrowing or lending arrangements for or on behalf of any of such
         Persons pursuant to an employee benefit plan or otherwise, provided
         however that on and from the closing Date the Company shall have no
         liabilities or obligations in respect of any payments or other actions
         by the Company in respect of any of the matters as contemplated by this
         Section 6.1(g);

(h)      neither the Company nor any of its Subsidiaries shall permit any
         insurance policy in effect as of the date hereof and

                                       59
<PAGE>

         naming it as a beneficiary or a loss payable payee to be canceled or
         terminated;

(i)      not to adopt a plan of complete or partial liquidation, dissolution,
         merger, consolidation, restructuring, recapitalization or other
         reorganization of the Company or any of its Subsidiaries;

(j)      not to (i) change any of the accounting methods used by it unless
         required by GAAP or (ii) except as set forth in Schedule 4.26(j) of the
         Signing Disclosure Schedule, make any election relating to Taxes,
         change any election relating to Taxes already made, adopt any
         accounting method relating to Taxes, change any accounting method
         relating to Taxes unless required by GAAP, enter into any closing
         agreement relating to Taxes, settle or consent to any claim or
         assessment relating to Taxes (except with respect to Taxes listed in
         Schedule 4.26(a) and Schedule 4.26(c) of the Signing Disclosure
         Disclosure) or waive the statute of limitations for any such claim or
         assessment; and

(k)      not to enter into any agreement, contract, commitment or arrangement to
         do any of the foregoing.

Section 6.2 Access; Confidentiality.

(a)      From the date hereof until the Closing Date, each Selling Shareholder,
         severally and not jointly, shall cause the Company to (i) afford
         Purchaser and its authorized representatives reasonable access to all
         books, records, offices and other facilities of the Company, its
         Subsidiaries and (to the extent within the control of any of the
         Company, its Subsidiaries, or such Selling Shareholder or any of its
         Affiliates) the KSO Unit, to the Assets and to personnel and suppliers
         of each of the Company and its Subsidiaries (ii) permit Purchaser to
         make such inspections (including making such reasonable investigations
         and assessments, as Purchaser deems necessary or appropriate in its
         sole and absolute discretion) of the condition of

                                       60
<PAGE>

         such properties or the business conducted there and to make copies of
         such books and records as it may reasonably require and (iii) furnish
         Purchaser with such financial and operating data and other information
         as Purchaser may from time to time reasonably request. Purchaser and
         its authorized representatives shall use reasonable efforts to conduct
         all such inspections in a manner that will minimize disruptions to the
         business and operations of the Company, its Subsidiaries and the KSO
         Unit. Notwithstanding the foregoing, the Company shall not be required
         to disclose to Purchaser any information (i) the disclosure of which
         would prejudice AriaWest's claims and defenses in the Arbitration
         Proceeding (as reasonably determined by the Selling Shareholders) and
         (ii) which would not be material to a purchaser of the Sale Shares but
         for the Arbitration Proceeding.

(b)      From the date hereof and at all times thereafter, except as otherwise
         provided herein, each of the Selling Shareholders and Purchaser shall,
         and shall (in the case of the Selling Shareholder severally and not
         jointly) use its reasonable efforts to cause the consultants, advisors
         and representatives of the Company and its Subsidiaries to, treat the
         terms of the Transaction Documents and all nonpublic, confidential or
         proprietary information concerning the Company, its Subsidiaries and
         the KSO Unit as strictly confidential (except to the extent such
         information is requested to be disclosed by judicial or administrative
         process or, in the reasonable opinion of the disclosing party, by other
         requirements of law), provided that (i) prior to the Closing, Purchaser
         may use and disclose such information in connection with Purchaser's
         evaluation of the Transactions, including evaluation of the acquisition
         of the Sale Shares, negotiation of the Transaction Documents,
         preparation and circulation of any disclosure, notice or other
         materials in connection with Purchaser's meeting of shareholders and
         obtaining any other required Consents and (ii) as and from the Closing
         Date Purchaser shall not be subject to any such limitation. Each of the
         Selling Shareholders shall (as and from the

                                       61
<PAGE>

         Closing Date), and shall (severally and not jointly) use its reasonable
         efforts to cause such Selling Shareholder's consultants, advisors and
         representatives to, refrain from using or disclosing such information,
         except (A) to the extent requested to be disclosed by judicial or
         administrative process or by other requirements of law, (B) as required
         for internal reporting or archival purposes or (C) for use in any
         Proceeding.

Section 6.3 Efforts and Actions to Cause Closing to Occur.

(a)      Prior to the Closing, upon the terms and subject to the conditions of
         this Agreement, each Selling Shareholder and Purchaser shall use, and
         each Selling Shareholder shall (severally and not jointly) cause the
         Company and its Subsidiaries to use, its respective reasonable efforts
         to take, or cause to be taken, all actions, and to do, or cause to be
         done and to cooperate with each other in order to do, all things
         necessary, proper or advisable (subject to any applicable laws) to
         consummate the Closing and the Transactions as promptly as practicable
         but in any event prior to August 30, 2002 (including the preparation
         and filing of all forms, registrations and notices required to be filed
         to consummate the Closing and the Transactions and the taking of such
         actions as are necessary to obtain any requisite Consents of any
         Governmental Entity or any other Person). In addition, no party hereto
         shall take any action after the date hereof that could reasonably be
         expected to materially delay the obtaining of, or result in not
         obtaining, any permission, approval or consent from any Governmental
         Entity or other Person required to be obtained prior to Closing,
         provided that this restriction shall not apply to the date chosen by a
         party hereto for its general meeting of shareholders of that party.
         Nothing in this Agreement shall require a party to hold its general
         meeting of shareholders on or by any

                                       62
<PAGE>

         particular date.

(b)      Prior to the Closing, each party hereto shall promptly consult with the
         other parties hereto with respect to, provide any necessary information
         with respect to, and provide, upon request, the other parties (or their
         respective counsel) with copies of, all filings made by such party with
         any Governmental Entity or any other information supplied by such party
         to a Governmental Entity in connection with this Agreement and the
         Transactions. If any party hereto receives a request for additional
         information or documentary material from any such Governmental Entity
         with respect to any of the Transactions, then such party shall endeavor
         in good faith to make, or cause to be made, as soon as reasonably
         practicable and after consultation with the other parties, an
         appropriate response in compliance with such request.

(c)      Nothing in this Section 6.3 shall require Purchaser (i) to waive, or
         otherwise exercise in a particular manner any discretion it may have
         under, any condition to Closing, (ii) to divest or hold separately any
         assets or agree to limit its future activities, method or place of
         doing business, (iii) to commence any litigation against any entity in
         order to facilitate the consummation of any of the Transactions or (iv)
         to defend against any litigation brought by any Governmental Entity or
         other Person seeking to prevent the consummation of, or impose
         limitations on, any of the Transactions.

(d)      Each of the Selling Shareholders shall vote in favor of all
         resolutions of the Company and any other Person which are necessary to
         consummate the Transactions.

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<PAGE>

Section 6.4 Notification of Certain Matters.

(a)      Each Selling Shareholder shall give notice to Purchaser promptly after
         becoming aware of (i) the occurrence or non-occurrence of any event
         whose occurrence or non-occurrence would be likely to cause either (A)
         (x) any representation or warranty of such Selling Shareholder
         contained in this Agreement or in any certificate of such Selling
         Shareholder delivered in connection herewith that is qualified as to
         materiality or any representation or warranty of such Selling
         Shareholder in Sections 4.1, 4.3, 4.6, 4.7, 4.8, 4.11, 4.14, 4.16, 4.26
         and 4.28 to be untrue or incorrect in any respect and (y) other than
         the representations and warranties in Sections 4.1, 4.3, 4.6, 4.7, 4.8,
         4.11, 4.14, 4.16, 4.26 and 4.28, any representation or warranty of such
         Selling Shareholder contained in this Agreement or in any certificate
         of such Selling Shareholder delivered in connection herewith that is
         not so qualified (considered individually), and all such
         representations and warranties that are not so qualified (considered
         collectively); to be untrue or incorrect in any material respect at any
         time from the date hereof to the Closing Date or (B) any condition set
         forth in Article VII to be unsatisfied in any respect at any time from
         the date hereof to the Closing Date and (ii) any material failure of
         such Selling Shareholder, the Company, any of its Subsidiaries or any
         director, commissioner, employee or agent of such Selling Shareholder,
         the Company or any of its Subsidiaries, to comply with or satisfy any
         covenant, condition or agreement to be complied with or satisfied by it
         hereunder at any time from the date hereof to the Closing, provided
         however, that the delivery of any notice pursuant to this Section 6.4
         shall not limit or otherwise affect the remedies available hereunder to
         Purchaser nor shall any delivery of any notice be deemed, to affect
         amend or supplement any representation and warranty or the Signing
         Disclosure Schedule or the Closing Disclosure Schedule hereunder.

                                       64
<PAGE>

(b)      Purchaser shall give notice to the Selling Shareholders promptly after
         becoming aware of (i) the occurrence or non-accurrence of any event
         whose occurrence or non-occurrence would be likely to cause either (A)
         (x) any representation or warranty of Purchaser contained in this
         Agreement (considered individually), and all such representations and
         warranties (considered collectively), to be untrue or incorrect in any
         material respect at any time from the date hereof to the Closing Date
         or (B) my condition set forth in Sections 7.1, 7.2(a), 7.2(b), 7.2(c),
         7.2(f), 7.2(g), 7.2(b), or 7.2(j) to be unsatisfied in any respect at
         any time from the date hereof to the Closing Date and (ii) any material
         failure of Purchaser or any director, commissioner, employee or agent
         of any Purchaser, to comply with or satisfy any covenant, condition or
         agreement to be complied with or satisfied by it hereunder, provided
         however, that the delivery of any notice pursuant to this Section
         6.4(b) shall not limit or otherwise affect the remedies available
         hereunder to the Selling Shareholders.

Section 6.5 Termination of Employees. On or prior to the Closing Date, each
Selling Shareholder shall (severally and not jointly) cause each of the Company
and its Subsidiaries to (i) terminate the employment of each and every one of
the employees of each of the Company and its Subsidiaries, (ii) obtain from each
such terminated employee a release substantially in the form annexed hereto as
Exhibit J and (iii) pay all costs expenses and liabilities of every kind and
description associated with or related to such employees (including their
termination).

Section 6.6 Further Assurances. If at any time after the Closing Purchaser
considers or is advised that any deeds, bills of sale, instruments of
conveyance, assignments, assurances or any other actions or things are necessary
or desirable (i) to vest, perfect or, confirm ownership (of record or

                                       65
<PAGE>

otherwise) in Purchaser, its right, title or interest in, to or under any or all
of the Sale Shares, (ii) to vest, perfect or confirm ownership (of record or
otherwise) in the Company or any of its Subsidiaries, any of their rights,
properties or assets or (iii) otherwise to carry out this Agreement or the other
Transaction Documents or consummate the Transactions, each of the Selling
Shareholders agrees that it shall, upon written request of Purchaser and at the
sole cost and expense of Purchaser, execute and deliver all deeds, bills of
sale, instruments of conveyance, powers of attorney, assignments and assurances
and take and do all such other reasonable actions and things as may be
reasonably requested by Purchaser in order to vest, perfect or confirm any and
all right, title and interest in, to and under such rights, properties or assets
in Purchaser or the Company or any of its Subsidiaries or otherwise to carry out
this Agreement or the other Transaction Documents, or consummate the
Transactions.

Section 6.7 Public Notice. The initial press release with respect to the
execution of this Agreement shall be a joint press release acceptable to
Purchaser and the Selling Shareholders. On or prior to June 30, 2002 (unless
otherwise agreed to by the parties hereto), each Selling Shareholders shall
(severally and not jointly) cause the Company to publish a notice substantially
in the form annexed hereto as Exhibit S. The parties agree mat the notice shall
be published in one or more newspapers and other publications, and be of such
size, form, style and specification as determined by Purchaser in its sole and
absolute discretion.

Section 6.8 Mail Received After Closing. Following the Closing, (i) Purchaser
may receive and open all mail addressed to the Company, any of its Subsidiaries
or the KSO Unit and deal with the contents thereof in its discretion to the
extent that such mail and the contents thereof relate to the Company, any of its
Subsidiaries or the KSO Unit, and to the extent that such mail and the contents
thereof do not relate to the Company, any of its Subsidiaries or the KSO Unit,
Purchaser shall forward such mail to the applicable Selling

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<PAGE>

Shareholder and (ii) each Selling Shareholder shall forward mail received by it
relating to the Company, say of its Subsidiaries or the KSO Unit to Purchaser.

Section 6.9 Financial Statements. Each Selling Shareholder shall (severally and
not jointly) use its reasonable efforts to cause the Company to provide
Purchaser with true and complete copies of the Audited Financial Statements and
the Unaudited Financial Statements on or prior to May 30, 2002, provided however
that no Selling Shareholder shall be responsible or have any liability for any
delays in finalizing the Audited Financial Statements or Unaudited Financial
Statements as a result of Purchaser, the Company and the KSO Unit failing to
reach mutually acceptable agreement regarding the proper characterization,
recognition, tax and/or accounting treatment of various disputed amounts between
and among such parties.

Section 6.10 Advertisement. On, or within 5 Business Days following, the Closing
Date, Aria Infotek shall unconditionally satisfy in full the requirements of
Indonesia Law. No. 1 1995 (Company Law) to advertise the sale of its Shareholder
Sale Shares in a newspaper circulated in Jakarta, Indonesia.

Section 6.11 Covenants of Purchaser.

(a)      Purchaser agrees from the date hereof until the Closing Date, except
         (i) as expressly provided in the Transaction Documents or (ii) as may
         be agreed in writing by the Selling Shareholders; not to take, or agree
         to or commit to take, any action that would or is reasonably likely to
         result in any of the conditions to the Closing set forth in Sections
         7.1, 7.2(a), 7.2(b), 7.2(c), 7.2(f), 7.2(g), 7.2(h), or 7.2(j) not
         being satisfied or that would or is reasonably likely to impair the
         ability of the Company, Purchaser or the Selling Shareholders to
         consummate the Closing in accordance with the terms hereof or delay
         such consummation.

(b)      If (i) the AriaWest Loan shall have been restructured in form and
         substance

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         acceptable to Purchaser in its sole and absolute discretion pursuant to
         the AriaWest Loan Restructuring Agreement and (ii) any and all breaches
         and defaults (including claims in respect thereof) under the AriaWest
         Loan shall have been irrevocably waived and forever released by all of
         the parties to the AriaWest Loan, Purchaser shall guarantee the
         Company's obligations under the restructured AriaWest Loan pursuant to
         the AriaWest Restructuring Loan Agreement.

(c)      From and after the Closing Date, to the extent the Company after the
         Closing Date receives cash proceeds from any of the receivables listed
         in Schedule 4.15(b) which were assigned to the Selling Shareholders
         prior to the Closing Date, Purchaser shall cause the Company as soon as
         reasonably practicable to remit such proceeds (without interest) to the
         Selling Shareholders, provided that (i) at the Closing the Selling
         Shareholders, acting unanimously as a group, shall have submitted in
         writing to the Company and Purchaser instructions setting forth with
         reasonable specificity the name of the payor of such proceeds, the
         aggregate amount of such proceeds, the pro rata share of such proceeds
         to which each Selling Shareholder is entitled and the details of the
         bank accounts to which such proceeds should be remitted, (ii) the
         Company shall be entitled to deduct, withhold and set-off against such
         payment any and all amounts required to be withheld and deducted on
         account of Taxes and any reasonable costs and expenses incurred by
         Purchaser in remitting such proceeds to the Selling Shareholders, and
         (iii) notwithstanding anything to the contrary contained in this
         Agreement, the Company shall have no liability or obligations under
         this provision unless and only to the extent that the Company was
         grossly negligent in effecting the payment of such proceeds to the
         Selling Shareholders (but in no event shall such liability exceed the
         aggregate amount of all such proceeds not received by any of Selling
         Shareholders).

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Section 6.12 Covenants of Selling Shareholders.

(a)      Each of the Selling Shareholders agrees from the date hereof until the
         Closing Date, except (i) as expressly provided in the Transaction
         Documents or (ii) as may be agreed in writing by the Selling
         Shareholders, not to take, or agree to or commit to take, any action
         that would or is reasonably likely to result in any of the conditions
         to the Closing set forth in Article VII not being satisfied or that
         would or is reasonably likely to impair the ability of the Company,
         Purchaser or the Selling Shareholders to consummate the Closing in
         accordance with the terms hereof or delay such consummation.

(b)      As soon as practicable following the date of this Agreement and in any
         event, prior to the Closing. MediaOne covenants and agrees with
         Purchaser to cause, effect and procure (i) the consummation of the
         transfer to MediaOne of legal ownership of, and legal title to, all of
         the Sale Shares which MediaOne has agreed to sell to Purchaser under
         this Agreement (the "Relevant Shares") and (ii) the registration for
         all purposes (legal, corporate and otherwise) of MediaOne as the owner
         of the Relevant Shares, in each case free of all Encumbrances
         whatsoever (other than the lien securing the AriaWest Loan).

Section 6.13 Agreements Among the Selling Shareholders. As and from the date of
execution of this Agreement until the date of termination of this Agreement, (i)
each of the Selling Shareholders irrevocably waives and releases any and all of
such Selling Shareholder's rights, including any options, warrants, calls, puts,
subscription rights, rights of first refusal and pre-emptive rights, to acquire,
transfer, or sell any or all of the Sale Shares under or pursuant to (A) the
Joint Venture Agreement dated September 27, 1995 among the Selling Shareholders,
as amended and (B) the Articles of Association of the Company, (ii) AIF
irrevocably and unconditionally covenants and agrees not to

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<PAGE>

exercise any or all of its rights to sell, transfer or otherwise dispose any or
all of the Sale Shares under or pursuant to the put option dated November 16,
1995 between Aris Infotek and AIF, the letter agreement dated March 10, 1999
between Aria Infotek and AIF or the letter agreement dated December 10, 2001
between Aria Infotek and AIF, and (iii) each Selling Shareholder accepts and
consents and agrees to such waivers and releases of all such rights and
covenants and other agreements by each of the other Selling Shareholders.

                                  ARTICLE VII
                              CONDITIONS PRECEDENT

Section 7.1 Conditions to Each Party's Obligation to Effect the Closing. The
respective obligation of each party to effect the Closing shall be subject to
the satisfaction at or prior to the Closing Date of each of the following
conditions:

(a)      Statutes; Court Orders. No statute, rule, regulation or decree shall
         have been enacted or promulgated by any Governmental Entity which
         prohibits the consummation of the Closing or the Transactions; and
         there shall be no order, writ or injunction of a court of competent
         jurisdiction in effect precluding consummation of the Closing or the
         Transactions.

(b)      Termination. The Transactions shall not have been terminated or
         abandoned in accordance with the terms of this Agreement.

(c)      Purchaser's Consents. Each of the Consents necessary for the
         consummation of the Transactions by Purchaser (including as set forth
         in Schedule 5.4 of the Purchaser Disclosure Schedule) shall have been
         obtained and shall be in full force and effect.

(d)      Company's Consents. Each of the Required Company Consents (including as
         set forth in Schedule 4.9 of the Signing Disclosure Schedule) shall
         have been obtained and shall be in full force and effect.

(e)      Selling Shareholders' Consents. Each of the

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         Consents necessary for the consummation of the Transactions by each of
         the Selling Shareholders (including as set forth in Schedule 4.4 of the
         Signing Disclosure Schedule) shall have been obtained and shall be in
         full force and effect.

(f)      No Legal Proceedings. Since the date of this Agreement, there shall not
         have been commenced or threatened against Purchaser, any Subsidiary of
         Purchaser, the Company, any of its Subsidiaries, the KSO Unit or any
         Selling Shareholder, any Proceeding (i) involving any challenge to, or
         seeking damages or other relief in connection with, the Transactions or
         (ii) that may have the effect of preventing, delaying, making illegal,
         or otherwise interfering with the Transactions.

(g)      The foregoing conditions are for the benefit of all of the Selling
         Shareholders and Purchaser and may be waived only by all of them. The
         failure by any party at any time to exercise any of the foregoing
         rights shall not be deemed to be a waiver of any such right and each
         such right shall be deemed an ongoing right which may be asserted at
         any time and from time to time.

Section 7.2 Conditions to Obligations of Purchaser to Effect the Closing. The
obligations of Purchaser to consummate the Closing shall be subject to the
satisfaction on or prior to the Closing Date of each of the following
conditions:

(a)      Accuracy of Representations and Warranties of each Selling Shareholder.
         (i) All of the representations and warranties of each of the Selling
         Shareholders in this Agreement or in any certificate delivered in
         connection herewith that are qualified as to materiality and the
         representation and warranties of each Selling Shareholders in Sections
         4.1, 4.3, 4.6, 4.7, 4.8, 4.11, 4.14, 4.16, 4.26 and 4.28 shall have
         been true and complete in all respects and (ii) other than the
         representations and warranties in Sections 4.1, 4.3, 4.6, 4.7, 4.8,
         4.11, 4.14, 4.16, 4.26 and 4.28, each of the representations and
         warranties of each of the Selling Shareholders in this Agreement or in
         any certificate delivered in connection herewith that is not so
         qualified (considered individually), and all such representations and
         warranties that are not so qualified

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<PAGE>

         (considered collectively), shall have been true and complete in all
         material respects, in each case as of the date of this Agreement (or,
         if made as of a specified date, as of such date) and will be true and
         complete as of the Closing Date as though made on the Closing Date.

(b)      Performance by each Selling Shareholders.

         (i)      All of the covenants and obligations that each Selling
                  Shareholder is required to perform or to comply with pursuant
                  to this Agreement and the other Transaction Documents at or
                  prior to the Closing (considered collectively), and each of
                  these covenants and obligations (considered individually),
                  shall have been duly performed and complied with in all
                  material respects.

         (ii)     Each document required to be executed and/or delivered
                  pursuant to Section 3.2 shall have been executed or delivered.

(c)      Material Adverse Effect. There shall not have occurred any Material
         Adverse Effect;

(d)      AriaWest Loan. (i) The AriaWest Loan shall have been restructured in
         form and substance acceptable to Purchaser in its sole and absolute
         discretion pursuant to the AriaWest Loan Restructuring Agreement and
         (ii) any and all breaches and defaults (including claims in respect
         thereof) under the AriaWest Loan shall have been irrevocably waived and
         forever released by all of the parties to the AriaWest Loan in form and
         substance satisfactory to Purchaser in its sole and absolute
         discretion.

(e)      Tax Loss Carryforward. (i) The Company shall have available to it Tax
         Loss Carryforwards of not less than Rp.

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<PAGE>

         1,710,000,000,000 as of December 31, 2001, (ii) the Director General of
         Taxation of the Government of the Republic of Indonesia shall have
         provided the Tax Clearance Letters (surat ketetapan pajak) and (iii) no
         Governmental Entity (including the Taxation authorities of the Republic
         of Indonesia) or any other Person shall have instituted or threatened
         any Proceeding that challenges the validity of any terms of any such
         letter, notification or amount of such Tax Loss Carryforwards.

(f)      License. The License shall be valid and enforceable and shall not have
         been cancelled, terminated, suspended, or otherwise altered or impaired
         in any way. No opposition, cancellation, invalidity, interference or
         re-examination proceeding or other Proceeding shall have been commenced
         or threatened relating to or in connection with the License and there
         shall not have occurred at any time any breach of any of the terms and
         conditions of the License which could reasonably be foreseen to
         adversely affect the validity or enforceability of the License.

(g)      Performance by the Company. All of the covenants and obligations that
         the Company is required to perform or comply with pursuant to the
         Transaction Documents at or prior to the Closing (considered
         collectively), and each of the these covenants and obligations
         (considered individually), shall have been duly performed and complied
         with in all material respects.

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<PAGE>

(h)      Officers, Directors, Commissioners and Employees. Each and every one of
         the officers, directors, commissioners and employees of the Company and
         its Subsidiaries shall have resigned or been terminated by -the Company
         and its Subsidiaries, (ii) each of the releases referred to in Sections
         3.2(f) and 6.5 shall have been delivered to Purchaser and (iii) the
         Company and its Subsidiaries shall have paid all costs expenses and
         liabilities of every kind and description associated with or related to
         such resignations or termination of such officers, directors,
         commissioners and employees.

(i)      Investigations; Etc. Neither any investigations of the Company or any
         of its Subsidiaries by Purchaser nor any certificate of any Selling
         Shareholder or other document delivered to Purchaser as contemplated by
         this Agreement shall have revealed any circumstance, event, change or
         effect which, in the sole and absolute judgment of Purchaser, reflect
         in a material adverse way to the business, operations, prospects,
         assets, condition (financial or otherwise), liabilities (absolute,
         accrued, contingent or otherwise), or results of operations of the
         Company and its Subsidiaries taken as a whole.

(j)      Simultaneous Closings. The sale and purchase of the Sale Shares of not
         less than all of the Selling Shareholders' Shareholder Sale Shares
         shall be consummated at the Closing.

(k)      Forensic Audit Fee. On or before June 30, 2002, any and all liabilities
         of the Company, the KSO Unit and Purchaser and their Affiliates to
         PriceWaterhouseCoopers shall have been fully paid and discharged and
         an irrevocable and unconditional release of the Company, the KSO Unit,
         Purchaser and their Affiliates in form and substance satisfactory to
         Purchaser in its sole and absolute discretion shall have been received
         from PriceWaterhouseCoopers for, any and all claims and demands under
         or in connection with the engagement letter dated September 18, 2000
         and any other agreements related to the forensic audit of the KSO Unit
         by PriceWaterhouseCoopers pursuant to the Good Faith Interim Solutions
         Agreement

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<PAGE>
         dated September 11, 2000.

(l)      Audited Financial Statements and Unaudited Financial Statements. The
         Audited Financial Statements and the Unaudited Financial Statements
         shall have been delivered to Purchaser and such Audited Financial
         Statements and Unaudited Financial Statements shall in substance be
         satisfactory to Purchaser in its sole and absolute discretion, provided
         that for the purpose of this Section 7.2(l) only, the disputed items
         set forth in Annex 4.12 to Schedule 4.12 of the Closing Disclosure
         Schedule will be deemed to be satisfactory to Purchaser.

(m)      Bank Accounts. For any bank accounts over which any past or present
         Additional KSO Employee or any past or present officer, director,
         commissioner or employee of the Company or any of its Subsidiaries has
         signature authority or other rights or interests, such authority, right
         or interest shall have been validly and irrevocably transferred to such
         Person designated by Purchaser to the sole and absolute satisfaction of
         Purchaser.

(n)      Waivers, Releases and Agreements. The Selling Shareholders shall have
         delivered to Purchaser all waivers, releases, agreements, receipts,
         consents, approvals and other documents evidencing the final,
         irrevocable and unconditional settlement and resolution with no
         liability or obligation to the Company of each of the matters listed in
         Schedule 7.2(n) of the Closing Disclosure Schedule in form and
         substance  satisfactory to Purchaser in its sole and absolute
         discretion, including final and binding judgments or rulings of each
         relevant judicial authority evidencing the final and unconditional
         dismissal with prejudice of any Proceeding.

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<PAGE>

(o)      Amendment of KSO Agreement. The Company and Purchaser shall have
         amended the KSO Agreement in form and substance satisfactory to
         Purchaser in its sole and absolute discretion.

(p)      Import Duty and Value Added Taxes. The Company shall have received from
         each of (i) the Director General of Customs and Excise and (ii) the
         Director General of Taxation, in each case of the Government of the
         Republic of Indonesia, one or more rulings satisfactory to Purchaser in
         its sole and absolute discretion establishing that the Company shall
         have no liability or obligation whatsoever to pay import duty or value
         added taxes in respect of the matters disclosed in Schedule 4.14(a) of
         the Closing Disclosure Schedule and no Governmental Entity (including
         the Taxation or Customs and Excise authorities of the Republic of
         Indonesia) or any other Person shall have instituted or threatened any
         Proceeding that challenges the validity of any such ruling.

(q)      Transfer of Title. Each of (i) the transfer to MediaOne of legal
         ownership of, and legal title to, the Relevant Shares and (ii) the
         registration for all purposes (legal, corporate or otherwise) of
         MediaOne as the owner of such Sale Shares, in each case free of all
         Encumbrances whatsoever, shall have been unconditionally and
         irrevocably effected to the satisfaction of Purchaser in its sole and
         absolute discretion, and Purchaser shall have received documentary
         evidence that MediaOne has legal ownership of and legal title to, and
         is registered as the owner of the Relevant Shares, to the satisfaction
         of Purchaser in its sole and absolute discretion.

(r)      Approval of Central Committee for the Settlement of Labor Disputes. On
         or prior to the Closing Date, the Company shall have obtained written
         approval from the Central Committee for the Settlement of Labor
         Disputes (Panitia Penyelesaian Perselisihan Perburuhan Pusat) of the
         Company's plan to conduct a mass termination (PHK Massal) of its
         employees, in form and substance satisfactory to Purchaser in its sole
         and absolute discretion.

The foregoing conditions are for the sole benefit of Purchaser, may be waived by
Purchaser, in whole or

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<PAGE>

in part, at any time and from time to time in the sole discretion of Purchaser.
The failure by Purchaser at any time to exercise any of the foregoing rights
shall not be deemed a waiver of any such right and each such right shall be
deemed an ongoing right which may be asserted at any time and from time to time.

Section 7.3 Conditions to Obligations of the Selling Shareholders to Effect the
Closing. The obligations of each Selling Shareholder to consummate the Closing
shall be subject to the satisfaction on or prior to the Closing Date of each of
the following conditions:

(a)      Accuracy of Representations and Warranties of Purchaser. All of the
         representations and warranties of Purchaser set forth in this Agreement
         or in any certificate delivered in connection herewith that are
         qualified as to materiality shall have been true and complete in all
         respects and each such representation and warranty that is not so
         qualified (considered individually), and all such representations and
         warranties that are not so qualified (considered collectively), shall
         have been true and complete in all material respects as of the Closing
         Date.

(b)      Performance by Purchaser.

         (i)      All of the covenants and obligations that Purchaser is
                  required to perform or to comply with pursuant to the
                  Transaction Documents at or prior to the Closing (considered
                  collectively), and each of the covenants and obligations
                  (considered individually), shall have been duly performed and
                  complied with in all material respects.

         (ii)     Each of the documents required to be delivered by Purchaser
                  pursuant to Section 3.3 shall have been delivered.

         (iii)    Each of the Shareholder Initial Payments shall have been paid
                  by Purchaser to each of the Selling

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                  Shareholders in accordance with Section 3.4(a).

(c)      Release of Pledge. The AsiaWest Loan Restructuring Agreement shall not
         restrict the transfer of the Sale Shares by the Selling Shareholders to
         Purchaser.

(d)      Waiver of Defaults. Any and all breaches and defaults (including claims
         in respect thereof) under the AsiaWest Loan shall have been irrevocably
         waived and forever released by all of the parties to the AsiaWest Loan
         in form and substance satisfactory to each of the Selling Shareholders
         in such Selling Shareholder's sole and absolute discretion.

(e)      Settlement Agreement Payment. Purchaser shall have, contemporaneous
         with Closing, paid to the Company the US$20,000,000 Settlement Amount
         under and in accordance with the terms of the Settlement Agreement.

The foregoing conditions are for the sole benefit of such Selling Shareholder,
may be waived by such Selling Shareholder, in whole or in part, at any time and
from time to time in the sole discretion of such Selling Shareholder. The
failure by such Selling Shareholder at any time to exercise any of the foregoing
rights shall not be deemed a waiver of any such right and each such right shall
be deemed an ongoing right which may be asserted at any time and from time to
time.

                                  ARTICLE VIII
                                   TERMINATION

Section 8.1 Termination. This Agreement may be terminated:

(a)      At any time prior to the Closing Date, by the mutual written consent of
         Purchaser, on the one hand, and each of the Selling Shareholders,
         unanimously acting as a group, on the other hand;

(b)      At any time prior to the Closing Date, by Purchaser or the Selling
         Shareholders, unanimously acting as a group, if any Governmental Entity
         shall have issued an order, decree or ruling or taken any other

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         action (which order, decree, ruling or other action the parties hereto
         shall have used their reasonable efforts to lift), which prohibits the
         acquisition of the Sale Shares by Purchaser and such order, decree,
         ruling or other action shall have become final and non-appealable;

(c)      By the Selling Shareholders, unanimously acting as a group:

         (i)      at any time prior to the Closing Date, if Purchaser shall have
                  breached in any material respect any of its representations,
                  warranties, covenants or other agreements contained in this
                  Agreement which would give rise to the failure of a condition
                  set forth in Article VII and such breach has not been cured
                  (if capable of being cured) within 10 days of the date the
                  Selling Shareholders notified Purchaser of such breach or
                  waived by each of the Selling Shareholders; or

         (ii)     on or after August 30, 2002, if the Closing shall not have
                  theretofore occurred and if the failure of the Closing to
                  occur is not the result of a breach of a covenant by any
                  Selling Shareholder;

         (iii)    at any time prior to the Closing Date, if the Selling
                  Shareholders have not received US$20,000,000 (less any
                  applicable Taxes permitted to be withheld or deducted by
                  Purchaser) in accordance with, Section 1(a)(ii) of the Interim
                  Management Agreement; or

         (iv)     at any time prior to the Closing Date, if Purchaser has
                  breached its

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<PAGE>

                  obligations to lend US$1,750,000 (less any applicable Taxes
                  permitted to be withheld or deducted by Purchaser) to the
                  Selling Shareholders pursuant to, and in accordance with,
                  Section 2(a)(ii) of the Interim Management Agreement.

(d)      By Purchaser:

         (i)      at any time prior to the Closing Date, if any Selling
                  Shareholder shall have breached any representation, warranty,
                  covenant or other agreement contained in this Agreement which
                  would give rise to the failure of a condition set forth in
                  Article VII and such breach has not been cured (if capable of
                  being cured) within 10 days of the date Purchaser notified
                  such Selling Shareholder of such breach or waived by
                  Purchaser; or

         (ii)     on or after August 30, 2002, if the Closing shall not have
                  theretofore occurred and if the failure of the Closing to
                  occur is not the result of a breach of a covenant by
                  Purchaser.

(e)      Prior to May 17, 2002, by AIF if prior to that date AIF shall not have
         received adequate documentation and/or assurances satisfactory to it in
         its sole and absolute discretion as to the transfer, immediately
         following Closing, by Aria Infotek of $15,000,000 of Promissory Notes
         to AIF in full and final satisfaction of Aria Infotek's obligations to
         AIF under the put option agreement dated November 16, 1995 between Aria
         Infotek and AIF.

Section 8.2 Effect of Termination.

(a)      In the event of the termination of this Agreement by Purchaser, the
         Selling Shareholders, (unanimously, acting as a group) or AIF, pursuant
         to the terms of this Agreement, written notice thereof shall forthwith
         be given to the other parties hereto,

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<PAGE>

         specifying the provision hereof pursuant to which such termination is
         made, following termination of this Agreement, there shall be no
         liability or obligation thereafter on the part of Purchaser or any of
         the Selling Shareholders under this Agreement except for (i) fraud or
         breach of covenant or agreement (but not breach of a representation or
         warranty) under this Agreement arising prior to such termination and
         (ii) under Section 6.2, Article IX (other than Sections 9.2(a)(i), (b)
         and (c) and 9.3(a), each of which shall survive and continue in force)
         and Article X.

(b)      In the event of the termination of this Agreement by Purchaser, the
         Selling Shareholders (unanimously, acting as a group) or AIF, pursuant
         to the terms of this Agreement, the terms of this Agreement and the
         other Transaction Documents shall be without prejudice to the claims
         and defenses of the parties in the Arbitration Proceeding and shall not
         be used in any way whatsoever as or otherwise disclosed in the
         Arbitration Proceeding or any other proceeding (other than in any
         proceeding under any Transaction Document). Without limiting the
         foregoing, in such event, the terms of the Transaction Documents shall
         not be deemed, used or construed as evidence of any guilt or an
         admission on the part of any party of any liability or wrongdoing
         whatsoever, or of the truth of any allegations, claims or counterclaims
         asserted in the Arbitration Proceeding.

(c)      To the extent any party has a claim for breach of a representation or
         warranty or for indemnification under any of Sections 9.2(a)(i), (b)
         and (c) or 9.3(a), which claim arises prior to the Closing Date, such
         party agrees not to commence an arbitration proceeding in respect of
         such claim until on or after the Closing Date.

Section 8.3 Waiver of Court Pronouncement. Purchaser and the Selling
Shareholders hereby waive the provisions of Article 1266 of the Indonesian Civil
Code to the extent it requires a court pronouncement in respect of termination
of this Agreement.

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<PAGE>

                                   ARTICLE IX
                                 INDEMNIFICATION

Section 9.1 Survival of Covenants, Representations and Warranties; Effect of
Investigation. Each of the covenants, agreements, representations, warranties
and obligations of the parties in this Agreement, the Schedules and Exhibits
hereto, the Signing Disclosure Schedule, the Closing Disclosure Schedule, any
certificate or other document delivered pursuant to this Agreement or in any
amendment of or supplement to the foregoing shall survive the Closing Date and
shall continue in force (i) indefinitely with respect to each covenant contained
in Sections 6.2(b) and 6.6 and the representations and warranties set forth in
Sections 4.1, 4.2, 4.3, 4.4, 4.6, 4.7, 4.8, 4.9, 4.11, 5.1, 5.2, 5.3 and 5.4,
(ii) until the date which is 60 calendar days after the expiration of all
applicable statutes of limitations (including all extensions, permissive or
automatic) with respect to Section 4.26 and (iii) until the earlier of (x) the
second anniversary of the Closing Date and (y) the date which is forty-five days
following the date the Company receives from the Company's auditors their signed
audit report, together with the Company's audited financial statements for the
fiscal year ending December 31, 2003 with respect to each covenant, agreement,
representation and warranty contained herein other than those described in
clauses (i) or (ii) above, after which it shall be of no force or effect;
provided that the foregoing limitations shall not apply in the event of
fraudulent misrepresentation or fraudulent conduct; and, provided further if
Purchaser shall have notified the Selling Shareholders of one or more claims for
indemnification under this Article IX, such notice setting forth with reasonable
specificity the nature of the claim, the foregoing limitations shall not apply
to such claims until such claims are finally resolved or settled between the
parties hereto or a final arbitral award (or other judgment, if applicable) has
been issued by an arbitral tribunal (or other tribunal with competent
jurisdiction) with respect to such claims. The right to indemnification, payment
of Damages, set-off (as set forth in Sections 3.5 and 10.10 only) or other
remedy based on any representation, warranty, covenant or obligation of a party
hereto contained in or made pursuant to this Agreement shall not be affected by
(A) any investigation conducted with respect to, or (B) any knowledge acquired
(or capable of being acquired) at any time with respect to, or (C) any
notification delivered pursuant to Section 6.4 with respect to, the accuracy or
inaccuracy of or compliance with, any such representation, warranty, covenant or
obligation. The waiver of any condition to consummation of the Transactions,
where such condition is based on the accuracy of any representation or warranty,
or on the performance of or compliance with any covenant or obligation, shall
not affect the right to

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indemnification, payment of Damages, set-off (as set forth in Section 3.5 and
10.10 only) or other remedy based on such representation, warranty, covenant or
obligation.

Section 9.2 Indemnification and Payment of Damages by the Selling Shareholders.
Each Selling Shareholder shall, severally and not jointly, indemnify and bold
harmless Purchaser for and against:

(a)      any and all Damages, arising from or in connection with:

         (i)      any breach of any representation or warranty made by such
                  Selling Shareholder in any Transaction Document or in any
                  certificate or document delivered by such Selling Shareholder
                  in connection with any Transaction Document; or

         (ii)     any breach by such Selling Shareholder of any covenant or
                  obligation of such Selling Shareholder under any Transaction
                  Document;

(b)      any and all Taxes imposed upon the Company on or prior to the Closing
         Date; and

(c)      the amount in Rupiah of any Tax Loss Carryforward as of December 31,
         2001 which as a result of fraud cannot be offset against Indonesian
         taxable income of the Company (the "Denied Amount") but only to the
         extent that (i) (A) (x) the amount of Tax Loss Carryforwards available
         to the Company as of December 31, 2001 as set forth in the Tax
         Clearance Letters minus (y) the Denied Amount, is less than (B)
         Rp.1,710,000,000,000, multiplied by (ii) fifteen percent, provided
         however that the

                                       83
<PAGE>

         Selling Shareholders' maximum liability to Purchaser under this Section
         9.2(c) shall be Rp.51,000,000,000 (excluding reasonable attorney's fees
         and expenses, reasonable, accountant's fees and expenses and other
         reasonable fees and expenses incurred in the investigation or defense
         of any of the same or in asserting, preserving or enforcing any of the
         rights of Purchaser under this Section 9.2).

         Except as expressly set forth in the Transaction Documents, such
         Selling Shareholder is not making any representation, warranty,
         covenant or agreement with respect to the matters contained in the
         Transaction Documents.

Section 9.3 Indemnification and Payment of Damages by Purchaser. Purchaser shall
indemnify and hold harmless each Selling Shareholder for and against any and all
Damages, arising from or in connection with:

(a)      any breach of any representation or warranty made by Purchaser in any
         Transaction Document or in any certificate delivered by Purchaser in
         connection with any Transaction Document; or

(b)      any breach by Purchaser of any covenant or obligation of Purchaser
         under any Transaction Document.

         Except as expressly set forth in the Transaction Documents, Purchaser
         is not making any representation, warranty, covenant or agreement with
         respect to the matters contained in the Transaction Documents.

Section 9.4 Procedure for Indemnification - Third-Party Claims.

(a)      The indemnified party under Sections 9.2 or 9.3 (an "Indemnified
         Party") shall give the indemnifying party under such Section (an
         "Indemnifying Party") prompt notice of any third-party claim that may
         give rise to any indemnification obligation under this Article IX. Such
         notice shall describe with reasonable specificity the nature of such
         claim. Failure to give such notice shall not affect the Indemnifying
         Party's obligations hereunder in the absence of actual and

                                       84
<PAGE>

         material prejudice. A claim for indemnification for any matter not
         involving a third-party claim may be asserted by notice to the party
         from whom indemnification is sought.

(b)      The Indemnified Party shall give each Indemnifying Party prompt notice
         of any third-party claim that may give rise to any indemnification
         obligation under this Article IX and the Indemnifying Party shall have
         the right to participate in or assume the defense (at the Indemnifying
         Party's expense) of any such claim through counsel of the Indemnifying
         Party's own choosing by so notifying the Indemnified Party within 30
         days of the first receipt by any Indemnifying Party of such notice from
         the Indemnified Party, provided however that any such counsel shall be
         reasonably satisfactory to the Indemnified Party. If the Indemnifying
         Party participates in or assumes the defense of a third-party claim,
         (i) it will be conclusively established for the purposes of this
         Agreement and the other Transaction Documents that all of the claims
         and issues presented in such third-party claim are within the scope of
         and subject to indemnification by the Indemnifying Party, (ii) the
         Indemnifying Party will be bound by any final determination made in
         such Proceeding or any compromise or settlement effected by the
         Indemnifying Party of such third-party claim, and (iii) no compromise
         or settlement of any such claim may be effected by the Indemnifying
         Party without the Indemnified Party's prior written consent unless (A)
         there is no finding or admission of any violation of law or regulation
         or any violation of the rights of any Person and no effect on any other
         claims that may be made against the Indemnified Party, the Company or
         any of its Subsidiaries and (B) the sole relief provided is monetary
         damages that are paid in full by the Indemnifying Party. If notice of a
         third-party claim is given to an Indemnifying Party and the
         Indemnifying Party does not, within 30 days after the Indemnified
         Party's written notice is given, give notice to the Indemnified Party
         of its election to assume the defense of such claim, the Indemnifying
         Party shall (i) reasonably cooperate with the Indemnified Party's
         preparation and actual defense of such claim, including by providing
         information, cooperating in

                                       85
<PAGE>
         preparation of pleadings and other submissions and procuring the
         appearance of witnesses (to the extent within its reasonable control),
         all as reasonably requested by Indemnified Party, and (ii) be bound by
         any final determination made in such Proceeding or any compromise or
         settlement effected by the Indemnified Party. The Indemnifying Party
         shall (severally and not jointly if the Selling Shareholders are the
         Indemnifying Parties) be liable for the reasonable fees and expenses of
         counsel employed by the Indemnified Party for any period during which
         the Indemnifying Party has not assumed the defense of any such
         third-party claim (other than during any period in which the
         Indemnified Party will have failed to give notice of the third-party
         claim as provided above). If the Indemnifying Party participates in or
         assumes such defense, the Indemnified Party shall (severally and not
         jointly if the Selling Shareholders are the Indemnifying Parties)
         reasonably cooperate at the Indemnifying Party's sole cost with the
         Indemnifying Party's preparation and actual defense of such claim,
         including by providing information, cooperating in preparation of
         pleadings and other submissions and procuring the appearance of
         witnesses (to the extent within its reasonable control), all as
         reasonably requested by Indemnifying Party and have the right to
         participate in the defense thereof and to employ counsel, at its own
         expense, separate from the counsel employed by the Indemnifying Party,
         it being understood that the Indemnifying Party shall control such
         defense, provided however that if the Indemnified Party determines in
         good faith that a conflict exists between it and the Indemnifying Party
         with respect to any significant issue in respect of such third-party
         claim, the Indemnifying Party shall pay the reasonable fees and
         expenses of such additional counsel as may be required to be retained
         by the Indemnified Party in order to avoid or prevent such conflict.

                                       86
<PAGE>

Section 9.5 Survival of Indemnification Claims. The indemnification obligations
set forth in this Article IX shall survive the Closing and termination
hereunder.

Section 9.6 Limitations on Liability of the Selling Shareholders.

(a)      Subject to Section 9.6(b), a Selling Shareholder shall not be liable
         under this Agreement in respect of any claim unless the aggregate
         amount of all claims for which such Selling Shareholder would otherwise
         be liable hereunder exceeds such Selling Shareholder's Pro Rata Share
         of US$705,000 (or equivalent in any other currency) but if the
         aggregate liability of all such claims exceeds such Selling
         Shareholder's Pro Rata Share of US$705,000 (or equivalent in any other
         currency), then such Selling Shareholder shall be liable for all such
         claims, including such Selling Shareholder's Pro Rata Share of the
         initial US$ 705,000 (or equivalent in any other currency) of claims.

(b)      Section 9.6(a) shall not apply to, and each Selling Shareholder shall
         be immediately liable for, all claims (i) under Sections 9.2(b) and
         9.2(c) and (ii) with respect to any breach of representation and
         warranty under Sections 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9,
         4.10, 4.11, 4.14, 4.16, 4.26 and 4.28.

                                       87
<PAGE>

(c)      Each Selling Shareholder's maximum aggregate liability to Purchaser
         under this Agreement for breaches of representations and warranties,
         covenants or agreements shall be such Selling Shareholder's Pro Rata
         Share of US$184,500,000 (the "Liability Cap") (exclusive of reasonable
         attorney's fees and expenses, reasonable accountant's fees and expenses
         and other reasonable fees and expenses incurred in the investigation or
         defense of any of the same or in asserting, preserving or enforcing any
         of the obligations of such Selling Shareholder under this Agreement),
         provided however that the foregoing limitation shall not apply to (x)
         fraudulent misrepresentation or fraudulent conduct by such Selling
         Shareholder and (y) any interest payable by a Selling Shareholder as
         a result of such Selling Shareholder's breach under Section 1(c) of the
         Interim Management Agreement (together (x) and (y), the "Cap
         Exceptions"). Except where the Cap Exceptions apply, and without
         limiting the Liability Cap but for the purposes of determining the
         timing of payments only, each such Selling Shareholder and Purchaser
         agree that if at any time (the "Relevant Time") Purchaser is entitled
         to recover any amount from such Selling Shareholder under this
         Agreement, the maximum aggregate amount that such Selling Shareholder
         shall be required to pay at the Relevant Time (for each such Relevant
         Time, the "Payment Cap") shall not exceed the sum of (without
         duplication between clauses (ii) and (iii) below): (i) such Selling
         Shareholder's Pro Rata Share of US$64,500,000, (ii) the aggregate
         principal amount of (x) all Promissory Notes originally issued to such
         Selling Shareholder on the Closing Date which have been paid by or on
         behalf of Purchaser up to and including the Relevant Time; and (y) all
         Restricted Notes originally issued to such Selling Shareholder on the
         Closing Date, and (iii) the aggregate principal amount of Promissory
         Notes originally issued to such Selling Shareholder on the Closing Date
         which have not been paid by Purchaser up to and including the Relevant
         Time but which (except to the extent set forth in Section 9.6(d) below)
         have been sold, transferred or otherwise disposed of (including by way
         of pledge or hypothecation in the nature of a sale, transfer or
         disposition) by such Selling Shareholder up to and including the
         Relevant Time, less all amounts previously paid by such Selling
         Shareholder to Purchaser under this Agreement prior to the Relevant
         Time.

                                       88
<PAGE>

         provided however that to the extent an amount for which such Selling
         Shareholder is liable to Purchaser under this Agreement is not payable
         at a Relevant Time due to the foregoing provisions of this Section
         9.6(c), such Selling Shareholder shall not be released from its
         liability to pay such amount but shall remain liable for such amount
         and shall be required to pay to Purchaser such amount at one or more
         later Relevant Times (as necessary) to the extent the applicable
         Payment Cap is not exceeded at each of such later Relevant Times,
         provided further however that in the event such Selling Shareholder or
         a wholly-owned Subsidiary of such Selling Shareholder which holds
         Promissory Notes commences a voluntary case or other Proceeding seeking
         liquidation, reorganization, winding-up or other relief with respect to
         itself or its debts under any bankruptcy, insolvency, reorganization
         or other similar law now or hereinafter in effect or seeking the
         appointment of a trustee, receiver, liquidator, custodian or other
         similar official of it or any substantial part of its property, or
         shall consent to any such relief or to the appointment of or take
         possession by such official in an involuntary case or other proceeding
         commenced against it, or shall make a general assignment for the
         benefit of creditors, or shall take any corporate action to authorize
         any of the foregoing or an involuntary case or other Proceeding shall
         be commenced against such Selling Shareholder or a wholly-owned
         Subsidiary of such Selling Shareholder which holds Promissory Notes
         seeking liquidation, reorganization or other relief with respect to it
         or its debts under any bankruptcy, insolvency, reorganization or other
         similar law now or hereafter in effect or seeking the appointment of a
         trustee, receiver, liquidator, custodian or other similar official of
         it or any substantial part of its property, the Payment Cap applicable
         to such Selling Shareholder shall from and after such time equal such
         Selling Shareholder's Pro Rata Share of US$184,500,000.

                                       89
<PAGE>
(d)      For the purposes of clause (iii) of Section 9.6(c), a sale, transfer
         or other disposition by a Selling Shareholder (other than Aria Infotek)
         to a wholly-owned Subsidiary of such Selling Shareholder, which
         Subsidiary has, prior to my such sale, transfer or other disposition,
         unconditionally guaranteed to Purchaser the full performance and
         satisfaction by such Selling Shareholder of all of its obligations
         under the Transaction Documents pursuant to a duly executed and
         delivered guarantee in substantially the same form and substance as the
         Guarantee, shall not constitute a sale, transfer or other disposition
         of Promissory Notes for the purpose of determining the Payment Cap,
         until (x) any such Promissory Notes are transferred by such
         wholly-owned Subsidiary to a Person other than such Selling
         Shareholder or another wholly-owned Subsidiary of such Selling
         Shareholder that has also provided a guarantee in accordance with the
         foregoing requirements hereunder, (y) any such wholly-owned Subsidiary
         has ceased to be a wholly-owned Subsidiary of such Selling Shareholder
         or (z) such Selling Shareholder fails to provide notice to Purchaser at
         least 7 days prior to any such sale, transfer or other disposition, at
         which time, in each case, any such sale, transfer or other disposition
         shall be deemed to constitute a sale, transfer or other disposition of
         Promissory Notes for the purpose of determining the Payment Cap under
         clause (iii) of Section 9.6(c). Each of AIF and MediaOne covenants and
         agrees to provide, and to cause its wholly-owned subsidiaries to
         provide, Purchaser with advance written notice of each proposed sale,
         transfer or other disposition of Promissory Notes

                                       90
<PAGE>

         originally issued to it at least 7 days prior to such sale, transfer or
         other disposition.

(e)      Subject to Section 10.11, to the extent a Person fully and
         unconditionally performs an obligation of a Selling Shareholder which
         otherwise would have been required to have been performed by such
         Selling Shareholder, such Selling Shareholder shall be discharged from
         performing such obligation to the same extent as such obligation was so
         performed by such Person.

Section 9.7 Limitations on Liability of Purchaser.

(a)      Subject to Section 9.7(b), Purchaser shall not be liable under this
         Agreement in respect of any claim unless the aggregate amount of all
         claims for which Purchaser would otherwise be liable hereunder exceeds
         US$705,000 (or equivalent in any other currency) but if the aggregate
         liability of all such claims exceeds US$705.000 (or equivalent in any
         other currency), then Purchaser shall be liable for all claims
         hereunder, including such initial US$ 705,000 (or equivalent in any
         other currency) of claims.

(b)      Section 9.7(a) shall not apply to, and Purchaser shall be immediately
         liable for, all claims with respect to any breach of representation and
         warranty under Sections 5.1, 5.2, 5.3, 5.4 and 5.5.

(c)      Purchaser's maximum aggregate liability to the Selling Shareholders
         under this Agreement for breaches of representations and warranties,
         covenants or agreements

                                       91
<PAGE>

         shall be US$10,000,000 (exclusive of reasonable attorney's fees and
         expenses, reasonable accountant's fees and expenses and other
         reasonable fees and expenses incurred in the investigation or defense
         of any of the same or in asserting, preserving or enforcing any of the
         obligations of Purchaser under this Agreement), provided however that
         (i) the foregoing limitation, shall not apply to fraudulent
         misrepresentation or fraudulent conduct by Purchaser, and (ii)
         Purchaser's maximum aggregate liability to KSO Unit for breach of
         Sections 1(a) and (c) and Section 2(a) of the Interim Management
         Agreement shall be equal to (x) the amount received by Purchaser under
         Section 1(a) and 1(b) of the Interim Management Agreement minus (y) the
         amount paid by Purchaser to the Selling Shareholders under Sections
         1(a) and 2(a) of the Interim Management Agreement plus (z) any
         interest payable by Purchaser as a result of Purchaser's breach under
         Section 1(c) of the Interim Management Agreement.

Section 9.8 Interest. In the event of any third-party claim that gives rise to a
right to indemnification under this Article IX or in the event of any other
claim for indemnification hereunder, the parties agree that the Indemnifying
Party shall be required to pay the Indemnified Party interest on the amount of
any compromise, settlement or other amount finally determined as payable by the
Indemnifying Party hereunder (i) in the case of a third-party claim that gives
rise to a right to indemnification under this Article IX, from the date any such
third-party claim is finally determined or any compromise or settlement is
effected through the date payment by the Indemnifying Party is actually received
by the Indemnified Party (or in the case of a set-off or deduction under Section
3.5 hereof, through the date such payment obligation is satisfied and paid by
set-off or deduction against the Restricted Notes) and (ii) in the case of a
claim for indemnification between the Indemnifying Party and the Indeminified
Party, from the date such claim is compromised, settled or finally determined
through the date payment is actually received by the Indemnified Party (or in
the case of set-off or deduction under Section 3.5 hereof, through the date such
payment obligation is satisfied by set-off and paid or deduction against the
Restricted Notes).

                                       92
<PAGE>

                                   ARTICLE X
                                 MISCELLANEOUS

Section 10.1 Fees and Expenses; Transfer Taxes. All costs and expenses incurred
in connection with this Agreement and the consummation of the Transactions shall
be paid by the party incurring such expenses, including the fees and expenses of
its legal and financial advisors. The Selling Shareholders (shall be solely
liable for all applicable stamp duties, transfer taxes, fees and expenses
(including any notarial fees and expenses) relating to the transfer of the Sale
Shares from the Selling Shareholders to Purchaser.

Section 10.2 Amendment and Modification. This Agreement may be amended, modified
and supplemented in any and all respects, but only by a written instrument
signed by all of the parties hereto expressly stating that such instrument is
intended to amend, modify or supplement this Agreement.

Section 10.3 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given when mailed, sent by facsimile (which is
confirmed) or sent by overnight courier service to the parties at the following
addresses (or at such other address for a party as shall be specified by such
party by like notice):

If to Purchaser, to:

Perusahaan Perseroan (Persero) PT Telekomunikasi
Indonesia Tbk.
JI. Japati No. 1
Bandung 40133
Indonesia
Attention: President Director
Telephone: (62 22) 452-1510
Facsimile: (62 22) 424-0313

If to Aria Infotek, to:

PT Aria Infotek:
JI. Teluk Betung No. 37
Jakarta Pusat 10230
Indonesia
Attention: Edwin Soeryadjaya
Facsimile: (62 21) 310-6211
Telephone: (62 21) 310-1917

                                       93
<PAGE>

If to MediaOne, to:

c/o AT&T Wireless Services, Inc.
7277 164th Ave. NE, R7CS
Redmond, WA 98073-9761
U.S.A.
Attention: Chief Counsel, International
Facsimile: 1425 580-6303
Telephone: 1425 580-6000

If to AIF, to:

The Asian Infrastructure Fund Limited
c/o AIF Funds Management Limited
2302-03 Nine Queen's Road Central
Hong Kong

Attention: Theresa Chung, Head of Administration
Facsimile: (852) 2845-0786
Telephone: (852) 2912-7888

with a copy to:

The Asian Infrastructure Fund
c/o Caledonian Bank & Trust Ltd.
Caledonian House
69 Jennett Street
P.O. Box 1043 GT
Grand Cayman, Cayman Islands
British West Indies

Section 10.4 Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each of
the parties and delivered to all the other parties.

Section 10.5 Entire Agreement; No Third-Party Beneficiaries. This Agreement and
the other Transaction Documents (a) supersede the Letter Agreement and the
Memorandum of Understanding, dated April 11, 2002, by and among Purchaser, the
Selling Shareholders and the Company (the "MOU"), (b) constitute the entire
agreement and supersede all prior agreements and understandings, both written
and oral, among the parties with respect to the subject matter hereof and
thereof and (c) are not intended to confer any rights or remedies upon any
Person other than parties hereto and thereto.

Section 10.6 Severability. Any term or provision of this Agreement that is held
by a court of competent jurisdiction or other authority to be invalid, void or

                                       94

<PAGE>
unenforceable in any situation in any jurisdiction shall not affect due validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction. If the final judgment of a court of competent
jurisdiction or other authority declares that any term or provision hereof is
invalid, void or unenforceable, the parties agree that the court making such
determination shall have the power to reduce the scope, duration, area or
applicability of the term or provision, to delete specific words or phrases, or
to replace any invalid, void or unenforceable term or provision with a term or
provision that is valid and enforceable and the comes closest to expressing the
intention of the invalid or unenforceable term or provision.

Section 10.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Republic of Indonesia.

Section 10.8 Dispute Resolution.

(a)      Amicable Settlement. Purchaser and the Selling Shareholders agree that
         if any difference, dispute, claim or controversy, arises out of or in
         connection with this Agreement, or any exhibits or schedules hereto, or
         its performance, including without limitation any dispute regarding its
         breach, existence, validity, or termination (a "Dispute"), Purchaser
         and the Selling Shareholders will attempt, for a period of thirty (30)
         days after the receipt by one party of a written notice from the other
         party of the existence of the Dispute, to settle the Dispute by
         settlement discussions between the parties.

(b)      Referral to Arbitration. If the Dispute is not settled for any reason
         within the 30-day period set forth in Section 10.8(a), then at the
         request of any party, the Dispute shall be finally sealed by
         arbitration under the Rules of Arbitration (the "ICC Rules") of the
         International Chamber of Commerce ("ICC") then in effect. The
         arbitration will be conducted and the award will be rendered in the
         English language in London, England. Notwithstanding the provisions of
         Section

                                       95
<PAGE>
         10.3, any request for arbitration, response or other communication
         given to or by a party to the arbitration must be given and deemed
         received as provided in the ICC Rules. In any arbitration brought
         pursuant to this Agreement, the Selling Shareholders who are parties to
         the arbitration shall act and be considered as one party.

         (i)      Arbitral Tribunal. There shall be three arbitrators. One
                  arbitrator will be nominated by Purchaser and one arbitrator
                  will be nominated jointly by the Selling Shareholders who are
                  parties to the arbitration. The third arbitrator, who shall be
                  the chair of the arbitral tribunal, will be nominated by the
                  arbitrators appointed by Purchaser and the Selling
                  Shareholders within thirty (30) days of the confirmation of
                  the appointment of the second arbitrator, in each case in
                  accordance with the ICC Rules. Subject to any extension that
                  may be granted by the ICC Court of Arbitration ("ICC Court"),
                  if any arbitrator is not timely nominated, such arbitrator
                  shall be appointed by the ICC Court in accordance with the ICC
                  Rules.

         (ii)     Provisional Relief. Notwithstanding the parties agreement to
                  arbitrate as set forth herein, the parties agree that any
                  party may apply to any competent judicial authority for
                  interim or conservatory measures in support of the arbitration
                  in accordance with Article 23 of the ICC Rules. Without
                  prejudice to such provisional remedies in aid of arbitration
                  as may be available from any competent judicial authority, the
                  arbitral tribunal shall have full authority to grant
                  provisional remedies in accordance with Article 23 of the ICC
                  Rules.

                                       96

<PAGE>

         (iii)    Arbitral Award. The parties expressly agree that leave to
                  appeal under Section 45 or Section 69 of the English
                  Arbitration Act 1996 may not be sought with respect to any
                  question of law arising in the course of the arbitration or
                  with respect to any award made. In order to further ensure the
                  final and binding nature of the arbitral award, the parties
                  expressly agree to waive any time limits contained in the Law
                  of the Republic of Indonesia No. 30 of 1999. The award shall
                  be final and binding upon the parties as from the date
                  rendered. Judgment upon any award may be entered in any court
                  having jurisdiction thereof.

         (iv)     Consolidation. If any party hereto submits a request for
                  arbitration ("Request") in connection with a Dispute, and an
                  arbitration proceeding under the Transaction Documents is
                  already pending under the ICC Rules, the ICC Court or, if
                  constituted, the arbitral tribunal in the pending arbitration,
                  shall include the claims contained in the Request in the
                  pending proceeding (regardless of whether the Terms of
                  Reference have been signed), if the ICC Court or the arbitral
                  tribunal finds that (i) there are issues of fact or law common
                  to the proceedings so that a consolidated proceeding would be
                  more efficient than separate proceedings, and (ii) no party
                  would be unduly prejudiced as a result of such consolidation
                  through undue delay or otherwise.

                                       97
<PAGE>

         (v)      Agreement in Effect. Save as otherwise provided for herein,
                  this Agreement and the rights and obligations of the parties
                  shall remain in full force and effect pending the award in any
                  arbitration proceeding hereunder.

         (vi)     Binding on Successors. This arbitration agreement set forth in
                  this Section 10.8 shall be binding upon the parties, their
                  successors and assigns.

Section 10.9 Extension; Waiver. At any time prior to the Closing Date, Purchaser
or the Selling Shareholders (unanimously, acting as a group) hereto may, in a
written instrument signed in writing on behalf of such party, (a) extend the
time for the performance of any of the obligations or other acts of any other
party, (b) waive any inaccuracies in the representations and warranties of any
other party contained in this Agreement or in any document delivered pursuant to
this Agreement or (c) waive compliance by any other party with any of the
agreements or conditions contained in this Agreement. The failure of any party
to this Agreement to assert any of its rights under this Agreement or otherwise
shall not constitute a waiver of those rights.

Section 10.10 Set off; Election of Remedies. In the event Purchaser is required
to deduct or withhold any Indonesian Taxes in respect of any payment to be made
under any Transaction Document such payment shall be made after deducting
therefrom the amount of any such deduction or withholding, provided however that
to the extent the payee of any such payment provides Purchaser with evidence of
residency and other evidence as may be required by Purchaser in its reasonable
discretion to eliminate Purchaser's obligation to deduct or withhold any such
Taxes, Purchaser shall not deduct or withhold such Taxes. In the event Purchaser
makes any such deduction or withholding. Purchaser shall provide such payee with
written evidence of payment of such deducted or withheld amounts to the relevant
Governmental Entity of the Republic of Indonesia as soon as reasonably
practicable following such payment. Neither the exercise of nor the failure to
exercise a right of set-off or to give notice of a claim under this Agreement
will constitute an election of remedies or limit Purchaser in any manner in the
enforcement of any other rights or remedies that may be available to it,
whether at law or in equity.

                                       98

<PAGE>
Section 10.11 Assignment. Neither this Agreement nor any of the rights,interests
or obligations hereunder shall be assigned by any of the parties hereto (whether
by operation of law or otherwise) without the prior written consent of the other
parties, except that Purchaser may assign, in its sole discretion, any or all of
its rights and interests hereunder to any direct or indirect wholly-owned
Subsidiary of Purchaser provided that Purchaser shall remain liable for all of
its obligations hereunder. Subject to the preceding sentence, this Agreement
shall be binding upon, inure to the benefit of and be enforceable by the parties
and their respective successors and permitted assigns.

Section 10.12 Language. This Agreement is concluded in both bahasa Indonesia and
English. In the event of any inconsistency or contradiction between the bahasa
Indonesia and English texts, the bahasa Indonesia text shall prevail.

                                       99

<PAGE>

Section 10.13 Immunity. Purchaser hereby expressly waives any and all claims to
sovereign immunity for itself or any of its assets from suit, execution,
attachment or other legal process in any dispute under this Agreement.

                        Signatures on the following page

                                      100

<PAGE>

IN WITNESS WHEREOF, the duly authorized representatives of the parties have
executed this Agreement as of the dated first written above.

PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK.

By: /s/ Mohammad Nazif
    -------------------------
Name:  Mohammad Nazif
Title: President Director

PT ARIA INFOTEK

By: /s/ Edwin Soeryakjaya
    ------------------------
Name:  Edwin Soeryakjaya
Title: President

MEDIAONE INTERNATIONAL I.B.V.

By: /s/ Yong Choe Lee
    -------------------------
Name:  Yong Choe Lee
Title: Representative

THE ASIAN INFRASTRUCTURE FUND

By /s/ Antonio Yeung
   --------------------------
Name: Antonio Yeung
Title: Attorney

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.6
<SEQUENCE>8
<FILENAME>u92256exv4w6.txt
<DESCRIPTION>EX-4.6 CONDITIONAL SALE & PURCHASE AGREEMENT
<TEXT>
<PAGE>
                                                                     Exhibit 4.6


                    CONDITIONAL SALE AND PURCHASE AGREEMENT

                                 BY AND BETWEEN

                        PERUSAHAAN PERSEROAN (PERSERO)

                        PT TELEKOMUNIKASI INDONESIA TBK.

                                   AS SELLER

                                      AND

                        SINGAPORE TELECOM MOBILE PTE LTD

                                  AS PURCHASER

              RELATING TO THE ACQUISITION OF SOME OF THE SHARES IN

                           PT TELEKOMUNIKASI SELULAR

                               DATED 3 APRIL 2002

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                          CONDITIONAL SALE AND PURCHASE
                                    AGREEMENT

         CONDITIONAL SALE AND PURCHASE AGREEMENT, dated 3 April 2002, by and
         between PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA TBK,
         a limited liability public state-owned company organized under the laws
         of the Republic of Indonesia with its office at Jl. Japati No. 1,
         Bandung 40133, Indonesia, as Seller, and SINGAPORE TELECOM MOBILE PTE
         LTD, a company incorporated under the laws of Singapore whose principal
         address is 31 Exeter Road, Comcentre, Singapore 239732, as Purchaser.

         CAPITALIZED TERMS USED IN THIS AGREEMENT HAVE THE MEANINGS ASSIGNED TO
         THEM IN ARTICLE I HEREOF.

         WHEREAS, Seller wishes to sell to Purchaser and Purchaser wishes to
         purchase from Seller 12.72% of the paid up capital or twenty three
         thousand two hundred and twenty three (23,223) ordinary shares of
         nominal value Rp. 1,000,000 per share, of PT Telekomunikasi Selular, a
         limited liability company organized under the laws of the Republic of
         Indonesia;

         NOW, THEREFORE, intending to be legally bound hereby, the parties
         hereto agree as follows:

                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION

         Section 1.1 Definitions For all purposes of this Agreement, except as
         otherwise expressly provided or unless the context clearly requires
         otherwise:

         "AFFILIATE" shall mean in respect of any Person any other Person
         Controlling, Controlled by or under common Control with that Person.

         "SUBSIDIARY" shall mean, with respect to any Person, any corporation or
         other organization, whether incorporated or unincorporated, directly
         or indirectly owned or Controlled by such Person or by any one or more
         of its Subsidiaries, or by such Person and one or more of its
         Subsidiaries.

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         "TELKOM MOBILE ASSETS" means the assets sold or transferred by Seller
         to the Company under the TM Primary Documents (as defined in Section
         4.28).

         "GOVERNMENTAL ENTITY" shall mean a court, arbitral tribunal,
         administrative agency or commission or other governmental or regulatory
         authority or agency of or provincial or local government in the
         Republic of Indonesia or elsewhere in the world.

         "BAPEPAM" shall mean the Capital Market Supervisory Agency of the
         Republic of Indonesia.

         "BKPM" shall mean the Capital Investment Coordination Board of the
         Republic of Indonesia.

         "SPECIAL REGISTER" means the register containing a record of all shares
         owned by each Director and Commissioner of the Company, maintained by
         the Company in accordance with the Indonesian Companies Law No 1 of
         1995.

         "MOIT" shall mean the Ministry of industry and Trade of the Republic of
         Indonesia.

         "MOC" shall mean the Ministry of Communications of the Republic of
         Indonesia.

         "MOJHR" shall mean the Ministry of Justice and Human Rights of the
         Republic of Indonesia.

         "DGT" shall mean the Directorate General of Tax of the Republic of
         Indonesia.

         "U.S. DOLLAR" and "US$" shall mean the lawful currency of the United
         States of America.

         "INTELLECTUAL PROPERTY" shall mean all intellectual property rights
         including but not limited to trade marks, service marks, trade names,
         logos, get-up, patents, inventions, registered and unregistered design
         rights, copyrights, trade secrets, software rights, semi-conductor
         topography rights, database rights and all other similar proprietary
         rights which may subsist in any part of the world (including Know-how)
         including, where such rights are obtained or enhanced by registration,
         any registration of such rights and applications and rights to apply
         for such registrations.

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         "PURCHASE PRICE" shall mean four hundred and twenty nine million U.S.
         Dollars (US$429,000,000).

         "BUSINESS DAY" shall mean any day (other than a Saturday, Sunday or
         public holiday) on which banks in Jakarta and Singapore are required or
         permitted to remain open for the conduct of regular business.

         "REAL PROPERTIES" shall mean all real properties that are owned,
         occupied or used by the Company or that are reflected as an asset of
         the Company on the Balance Sheet and "REAL PROPERTY" shall mean any of
         them.

         "INDONESIAN BANKRUPTCY LAW" shall mean the Bankruptcy Law
         (Failissementveroordening) of 1906, as amended by the Government
         Regulation in Lieu of Law No. 1 Year 1998 regarding Amendments to the
         Bankruptcy Law, and ratified by the Parliament of the Republic of
         Indonesia as Law No. 4 Year 1998.

         "ENVIRONMENTAL LAWS" means the laws and regulations of Indonesia
         (including but not limited to law No. 23 of 1997 and its implementing
         regulations) and all ministerial decrees, instructions and letters
         issued pursuant to such laws and regulations providing for:

         (a)      the protection of, and/or prevention of harm or damage to, the
                  Environment and/or the provision of remedies or compensation
                  for harm or damage to the Environment;

         (b)      health and safety matters (including, without limitation, laws
                  relating to workers and public or consumer health and safety).

         "INDEBTEDNESS" shall mean (i) all indebtedness for borrowed money or
         for the deferred purchase price of property or services (other than
         trade liabilities incurred in the ordinary course of business and
         payable in accordance with its customary practice), (ii) any other
         indebtedness that is evidenced by a note, bond, debenture or similar
         instrument, (iii) all obligations under financing leases, (iv) all
         obligations in respect of bankers acceptances issued or created, (v)
         all liabilities secured by any lien on any property (other than created
         by operation of law) and (vi) all financial guarantee

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         obligations.

         "LICENSES" means the GSM Licenses and Other Licenses defined in Section
         4.8.

         "DCS 1800 LICENSE" shall mean the license issued pursuant to the letter
         from the Minister of Communication No. KP. 242 Year 2001, dated 25
         October 2001, which granted to Seller an operational license to operate
         DCS 1800 national cellular telephone mobile network.

         "FREQUENCY LICENSE" shall mean the license granted to Seller to use the
         DCS 1800 radio frequency band 1765 to 1780 Mhz (uplink) and 1860 to
         1875 Mhz (downlink), pursuant to the letter of the DGPT No. 601/TU/PT.
         208/DITBINFREK/00 dated 13 September 2000.

         "EXCLUSIVITY PERIOD" shall mean the period beginning on the date hereof
         and ending on the earlier of (i) the Closing Date or (ii) the date when
         it is determined that Closing will not occur in accordance with Article
         VIII.

         "CONTROL" shall mean with respect to any Person, the power to direct or
         to cause the direction of the business and affairs of such Person or
         the power to elect or appoint a majority of the board of directors (or
         other body performing similar functions) of such Person, whether
         through the ownership of voting securities, by contract or otherwise
         and "CONTROLLED" and "CONTROLLING" shall be construed accordingly.

         "DAMAGES" of a Person shall mean, collectively, any loss, liability,
         claim damage, expense (including costs of investigation and defence and
         reasonable attorney's fees) or any diminution of value, whether or not
         involving a third party claim, suffered or incurred by that Person and
         for which Seller and Purchaser shall have agreed the amount or for
         which a final determination has been made pursuant to Section 10.8.

         "KNOW-HOW" shall mean confidential industrial and commercial
         information and techniques in any form (including paper, electronically
         or optically stored data, magnetic media, film and microfilm) including
         without limitation drawings, test results, reports,

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         project reports and testing procedures, instruction and training
         manuals, tables of operating conditions, market forecasts, lists and
         particulars of customers and suppliers.

         "DISCLOSURE SCHEDULE" shall mean the Initial Purchaser Disclosure
         Schedule, the Closing Purchaser Disclosure Schedule, the Initial Seller
         Disclosure Schedule and the Closing Seller Disclosure Schedule.

         "INITIAL PURCHASER DISCLOSURE SCHEDULE" shall mean the disclosure
         schedule, of even date herewith, prepared and signed by Purchaser and
         delivered to Seller simultaneously with the execution and delivery
         hereof and, for the avoidance of doubt, shall not include any amendment
         or supplement thereto.

         "INITIAL SELLER DISCLOSURE SCHEDULE" shall mean the disclosure
         schedule, of even date herewith, prepared and signed by Seller and
         delivered to Purchaser simultaneously with the execution and delivery
         hereof and as amended by notice in writing to Purchaser on or before
         the Pre-Closing Date.

         "PURCHASER DISCLOSURE SCHEDULE" shall mean the Initial Purchaser
         Disclosure Schedule and the Closing Purchaser Disclosure Schedule.

         "SELLER DISCLOSURE SCHEDULE" shall mean the Initial Seller Disclosure
         Schedule and the Closing Seller Disclosure Schedule.

         "CLOSING PURCHASER DISCLOSURE SCHEDULE" shall mean the disclosure
         schedule prepared and signed by Purchaser and delivered to Seller at
         the Closing Date.

         "CLOSING SELLER DISCLOSURE SCHEDULE" shall mean the disclosure schedule
         prepared and signed by Seller and delivered to Purchaser at the Closing
         Date.

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         "FINANCIAL STATEMENTS" shall mean the balance sheet of the Company as
         of December 31, 2001 and the profit and loss account for the year ended
         December 31, 2001 together with the related statements of income,
         changes in shareholders' equity and cash flows for the fiscal year then
         ended, including the notes thereto, all audited by Prasetio Ulomo
         (Arthur Andersen), independent certified public accountants, whose
         reports thereon are included therein and copies of which are attached
         to this Agreement as Attachment A.

         "MANAGEMENT REPORTS" shall mean the management reports of the Company
         prepared since the Balance Sheet Date as attached to the Seller
         Disclosure Schedule in the form which has been agreed by Seller and
         Purchaser as of the date hereof (as such form may be changed by
         agreement from time to time).

         "TAX RETURN" shall mean any return, declaration, report, claim for
         refund, or information return or statement relating to Taxes, including
         any such document prepared on a consolidated, combined or unitary basis
         and also including any schedule or attachment thereto, and including
         any amendment thereof.

         "ENVIRONMENT" means a unity of space with all objects, capacities,
         conditions and living creatures, including human beings and their
         behaviour which will affect the sustainability of life and welfare of
         human beings and other living creatures as defined under the Indonesian
         Environmental Law No. 23 of 1997.

         "BALANCE SHEET" shall mean the most recent audited balance sheet of the
         Company included in the Financial Statements.

         "TAX" or "TAXES" shall mean all taxes, charges, fees, deductions,
         withholding, duties, levies, penalties or other assessments imposed,
         levied, collected, withheld or assessed by any Governmental Entity, and
         shall include interest, penalties or additions attributable thereto or
         attributable to any failure to comply with any requirement regarding
         Tax Returns.

         "ENCUMBRANCES" shall mean any and all encumbrances, liens, charges,
         security interests, options, claims, mortgages, fiduciary transfers,
         hak

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         tanggungan, hak gadai, pledges, proxies, voting agreements,
         obligations, understandings or arrangements or other restrictions on
         title or transfer of any nature whatsoever.

         "PURCHASER" shall mean Singapore Telecom Mobile Pte Ltd, a company
         incorporated under the laws of Singapore.

         "KNOWLEDGE" of any Person shall mean the actual knowledge of each of
         the directors and commissioners of such Person and the actual knowledge
         of, in the case of Seller, Mulia Panahatan Tambunan, Yusuf Kurnia and
         Woeryanto Soeradji, being directors of the Company nominated by or on
         behalf of Seller.

         "SELLER" shall mean Perusahaan Perseroan (Persero) PT Telekomunikasi
         Indonesia Tbk, a limited liability public state-owned company organized
         under the laws of the Republic of Indonesia.

         "CLOSING" shall mean the closing of the sale and transfer of the Sale
         Shares by Seller to Purchaser.

         "THIS AGREEMENT" shall mean this Conditional Sale and Purchase
         Agreement, together with the Disclosure Schedule.

         "SHAREHOLDERS AGREEMENT" shall mean that certain shareholders
         agreement, dated the date hereof, by and among the Company, Seller and
         Purchaser.

         "DISPUTE" shall have the meaning assigned to such term in Section
         10.8(a).

         "COMPANY" shall mean PT Telekomunikasi Selular, a limited liability
         company organized under the laws of the Republic of Indonesia.

         "CONSENT" shall mean, with respect to any Governmental Entity or any
         other Person, any approval, consent, ratification, permit, license,
         waiver or other authorization of, filing with or notice to such
         Governmental Entity or other Person, as the case may be.

         "PERSON" shall mean a natural person, partnership, corporation, limited
         liability company, business

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         trust, joint stock company, trust, unincorporated association, joint
         venture, Governmental Entity or other entity or organization.

         "INDEMNIFYING PARTY" shall have the meaning assigned to such term in
         Section 9.5.

         "INDEMNIFIED PARTY" shall have the meaning assigned to such term in
         Section 9.5.

         "VOTING DEBT" shall mean, with respect to any Person, indebtedness
         having the right to vote at a General Meeting of Shareholders of such
         Person and debt convertible into securities having such rights.

         "EMPLOYEE PLAN" shall mean each deferred compensation, incentive
         compensation, stock purchase, stock option and other equity
         compensation or incentive plan, program, agreement or arrangement, each
         severance or termination pay, medical, surgical, hospitalization, life
         insurance and other plan, and each profit-sharing, bonus or pension or
         retirement or annuity plan, fund or program as stipulated under
         Indonesian Manpower law and relevant regulations including but not
         limited to Law No. 3 of 1992 regarding the Employee Social Security
         Program (Jamsostek), Law No. 11 of 1992 regarding Pension Fund, and
         Decree of the Minister of Manpower No. Kep-150/Men/2000 regarding the
         Settlement of Termination of Employment and the Determination of
         Severance Pay, Service Pay and Compensation in a Company; in each case,
         that is sponsored, maintained or contributed to or required to be
         contributed to by the Company or to which the Company is party for the
         benefit of any director, officer, commisioner, employee or former
         employee of the Company.

         "ACQUISITION PROPOSAL" shall mean any proposal or offer made by any
         Person other than Purchaser or any Subsidiary of Purchaser to acquire
         all or a substantial part of the business or properties of the Company
         or the Sale Shares, whether by merger, tender, offer, exchange offer,
         sale of assets or similar transactions involving the Company or any
         division or operating or principal business unit of the Company.

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         "PROCEEDING" shall mean any claim, action, suit, enquiry, proceeding,
         litigation, prosecution, arbitration or investigation by or before any
         Governmental Entity.

         "INDONESIAN GAAP" shall mean generally accepted accounting principles
         in the Republic of Indonesia established by the Indonesian Accounting
         Association as in effect at the relevant time.

         "SHARES" shall mean the ordinary shares of nominal value Rp.1,000,000
         per share of the Company.

         "SALE SHARES" shall mean twenty three thousand two hundred and twenty
         three (23,223) Shares held by Seller representing as at the date hereof
         and at Closing 12.72% of the issued and paid-up Shares.

         "LEASE" shall mean each lease pursuant to which the Company leases any
         property.

         "STI" shall mean Singapore Telecom International Pte Ltd, a limited
         liability company incorporated under the laws of Singapore.

         "BALANCE SHEET DATE" shall mean the date of the Balance Sheet.

         "CLOSING DATE" shall mean the date and time at which the Closing
         occurs.

         "PRO-CLOSING DATE" shall mean the date on which the conditions set
         forth in Sections 7.1, 7.2(a), 7.2(c)(i) and 7.3(b)(i) have been
         satisfied or waived by Seller or Purchaser, as the case may be.

         "TELKOM MOBILE" shall mean the business unit within the Seller formed
         to implement the DCS 1800 License and the Frequency License.

         "TRANSACTION" shall mean the sale and purchase of the Sale Shares and
         the performance by the parties hereto of their other respective
         obligations under this Agreement.

         "EXCLUDED CLAIMS" means any claim, or a group of claims relating to a
         series of connected matters, for Damages by Purchaser against Seller in
         an amount of less than or equal to US$10,000 per individual claim or
         group of such claims.

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         "PERMITTED CLAIMS" means any claim, or a group of claims relating to a
         series of connected matters, for Damages by Purchaser against Seller in
         an amount of more than US$10,000 per individual claim or group of such
         claims.

         "ARBITRATION LAW 30" shall have the meaning assigned to such term in
         Section 10.8(c).

         "U.S. GAAP" shall mean generally accepted accounting principles in the
         United States of America.

         Section 1.2 Interpretation

         (a)      When a reference is made in this Agreement to a Section,
                  Article or Schedule, such reference shall be to a Section or
                  Article of this Agreement or to a Schedule to this Agreement
                  unless otherwise clearly indicated to the contrary.

         (b)      Whenever the words "include", "includes" or "including" are
                  used in this Agreement they shall be deemed to be followed by
                  the words "without limitation".

         (c)      The words "hereof", "herein" and "herewith" and words of
                  similar import shall, unless otherwise stated, be construed to
                  refer to this Agreement as a whole and not to any particular
                  provision of this Agreement.

         (d)      The meaning assigned to each term defined herein shall be
                  equally applicable to both the singular and the plural forms
                  of such term, and words denoting any gender shall include all
                  genders. Where a word or phrase is defined herein, each of its
                  other grammatical forms shall have a corresponding meaning.

         (e)      A reference to any party to this Agreement or any other
                  agreement or document shall include such party's successors
                  and permitted assigns.

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         (f)      A reference to any legislation or to any provision of any
                  legislation shall include any amendment to, and any
                  modification or re-enactment thereof, any legislative
                  provision substituted therefor and all regulations and
                  statutory instruments issued thereunder or pursuant thereto.

         (g)      The parties hereto have participated jointly in the
                  negotiation and drafting of this Agreement. In the event an
                  ambiguity or question of intent or interpretation arises, this
                  Agreement shall be construed as if drafted jointly by the
                  parties hereto, and no presumption or burden of proof shall
                  arise favoring or disfavoring any party by virtue of the
                  authorship of any provisions of this Agreement.

         (h)      Any reference to information means books, records or other
                  information in any form including paper, electronically or
                  optically stored data, magnetic media, film and microfilm.

         (i)      Headings shall be ignored in construing this Agreement.

                                   ARTICLE II
                           PURCHASE AND SALE OF SHARES

         Section 2.1 Sale and Transfer of Sale Shares. Subject to the terms and
         on the conditions set forth in this Agreement, including the
         satisfaction as of the Closing Date of the conditions set forth in
         Sections 7.1, 7.2 and 7.3, or the waiver of such conditions by Seller
         or Purchaser, as the case may be, at the Closing, Seller shall sell,
         convey, assign, transfer and deliver to Purchaser the Sale Shares with
         full title, free and clear of all Encumbrances and all other
         limitations and restrictions (including any restriction on the right to
         vote, sell or otherwise dispose of the Sale Shares but subject to those
         contained in the Shareholders Agreement and articles of association of
         the Company) and Purchaser shall at Closing purchase the Sale Shares
         relying on (amongst other things) the several representations,
         warranties and undertakings by Seller contained in this Agreement.

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         Section 2.2 The Purchase Price. Subject to the terms and on the
         conditions set forth in this Agreement, including the satisfaction as
         of the Closing Date of the conditions set forth in Sections 7.1, 7.2
         and 7.3, or the waiver of such conditions by Seller or Purchaser, as
         the case may be, in consideration of the aforesaid sale, conveyance,
         assignment, transfer and delivery to Purchaser of the Sale Shares and
         together with all rights and advantages now and hereafter attaching
         thereto, Purchaser shall pay to Seller the Purchase Price in accordance
         with the provisions of Section 3.2.

         The parties acknowledge that this transaction is being conducted under
         Article 103(6) of the Indonesian Company Law.

                                   ARTICLE III
                     THE CLOSING; PAYMENT OF PURCHASE PRICE

         Section 3.1 The Closing. The closing of the sale and purchase of the
         Sale Shares by Seller and Purchaser shall take place at the offices of
         PT Telekomunikasi Selular at Graha Surya Internusa, 18th Floor, Jl.
         Hajjah Rangkayo Rasuna Said Kav. X-0, Jakarta 12951 at 10:00 a.m.,
         local time, fifteen (15) Business Days after the satisfaction of the
         conditions set forth in Sections 7.1, 7.2(a), 7.2(c)(i) and 7.3(b)(i),
         or the waiver of such conditions by Seller or Purchaser, as the case
         may be, or, on such earlier date as the parties may agree.

         Section 3.2 Payment of Purchase Price and Delivery of Sale Shares. Upon
         the satisfaction or waiver, as the case may be, of the conditions set
         forth in Sections 7.1 to 7.3 and in connection with the occurrence of
         the Closing: (i) Purchaser shall pay the Purchase Price on the Closing
         Date to a bank account of Seller nominated in writing by Seller at
         least five (5) Business Days prior to the Closing Date; and (ii) Seller
         shall deliver to Purchaser the Sale Shares.

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         Upon receipt of the Purchase Price, Seller shall promptly deliver to
         Purchaser a written acknowledgment thereof and upon receipt of the Sale
         Shares, Purchaser shall promptly deliver to Seller a written
         acknowledgement thereof.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES
                                    OF SELLER

         Except for the matters fully and fairly disclosed in the Seller
         Disclosure Schedule, Seller represents and warrants to Purchaser that
         all of the statements contained in this Article IV are true and correct
         as of the date of this Agreement (save insofar as any such statement is
         expressed to be made only as of the Closing Date) and will be true and
         correct at the Closing Date as if they had been given again at the
         Closing Date. Each exception set forth in the Seller Disclosure
         Schedule is identified by reference to, or has been grouped under a
         heading referring to, a Section of this Agreement. Each such exception
         shall be deemed to be disclosed with respect to each such Section and
         to each other Section to which it reasonably relates. For the avoidance
         of doubt, statements set forth in the Seller Disclosure Schedule do not
         expand the scope of the representations and warranties of Seller in
         this Article IV. Facts, matters or circumstances disclosed in the
         Closing Seller Disclosure Schedule or disclosed by Seller to Purchaser
         from time to time shall not affect the Purchaser's right to terminate
         this Agreement pursuant to Sections 8.1(d)(i) and 8.1(d)(iv).

         Section 4.1 Legal Power; Organization. Seller is a limited liability
         public state-owned company duly organized and validly existing under
         the laws of the Republic of Indonesia, has all requisite power and
         authority to execute and deliver this Agreement and to perform its
         obligations hereunder.

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         Section 4.2 Authorization; Validity of Agreement. Seller has taken all
         corporate action necessary to execute and deliver this Agreement. The
         performance by Seller of its obligations hereunder has been duly
         authorized by the Board of Commissioners of Seller and no other
         corporate action on the part of Seller is necessary to authorize the
         performance by Seller of its obligations hereunder, except for the
         approval of the General Meeting of Shareholders of Seller. At and as of
         the Closing Date, Seller represents and warrants that the approval of
         the General Meeting of Shareholders of Seller of the performance by
         Seller of its obligations hereunder has been obtained and remains in
         full force and effect.

         Section 4.3 Binding Agreement. This Agreement has been duly executed
         and delivered by Seller and this Agreement constitutes a legal, valid
         and binding obligation of Seller, enforceable against Seller in
         accordance with its terms.

         Section 4.4 Seller's Consents and Approvals; No Conflicts, Violations
         or Defaults. Except for the Consents referred to in Sections 7.1 and
         7.2 neither the execution or delivery of this Agreement by Seller nor
         the performance by Seller of its obligations hereunder will:

         (i)      conflict with or result in any breach of any provision of the
                  deed of establishment and articles of association of Seller;

         (ii)     require any Consent of any Governmental Entity;

         (iii)    require any Consent under, or result in a violation or breach
                  of, or constitute (with or without due notice or the passage
                  of time or both) a default (or give rise to any right of
                  termination, amendment, cancellation or acceleration) under,
                  any of the terms, conditions or provisions of any agreement,
                  license, contract, instrument, undertaking or obligation to
                  which Seller is a party or by which Seller or any of its
                  properties or assets is bound;

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         (iv)     violate any binding order, writ or injunction of an Indonesian
                  court or arbitral body; or

         (v)      violate any decree, statute, rule or regulation applicable to
                  Seller or any of its properties or assets.

         excluding from the foregoing clauses (iii) and (v) such violations,
         breaches or defaults which would not, individually or in the aggregate,
         have an adverse effect on the Seller's obligations and its
         representations and warranties under this Agreement, its ability to
         consummate the purchase and sale of the Sale Shares and to transfer
         title to the Sale Shares or the enforceability against Seller or
         validity of this Agreement.

         As of the Closing Date, Seller represents and warrants that each
         Consent referred to in Section 7.1 has been obtained and remains in
         full force and effect.

         Section 4.5 Legal Proceedings. There are no Proceedings pending or, to
         Seller's Knowledge, threatened against, involving or affecting Seller
         which question or challenge the validity of this Agreement or any
         action taken or to be taken by Seller pursuant to this Agreement or in
         connection with the performance by Seller of its obligations hereunder
         or which could be reasonably expected to result in the issuance of a
         judgment, order or decree prohibiting or making illegal the performance
         by Seller of any of its obligations hereunder. Seller is not subject to
         any judgment, order or decree prohibiting or making illegal the
         performance by Seller of any of its obligations hereunder.

         Section 4.6 Share Ownership. Seller is the legal owner of and has full
         title to the Sale Shares. Neither Seller nor any Subsidiary of Seller
         owns securities issued by, or convertible obligations of, the Company
         other than the Sale Shares and 118,677 further shares held by the
         Seller in the issued capital of the Company (constituting 65% of the
         total issued share capital of the Company). The Sale Shares are now,
         and will be at all times

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         between the date hereof and the Closing Date, owned by Seller and held
         by Seller for the sole and exclusive benefit of Seller, free and clear
         of all Encumbrances whatsoever (except for those matters set out in the
         Shareholders Agreement or the articles of association of the Company).

         Section 4.7 Legal Title Conveyed. As of the Closing Date only, Seller
         has conveyed to Purchaser full title to the Sale Shares, free and clear
         of all Encumbrances and all other limitations and restrictions
         (including any restriction on the right to vote, sell or otherwise
         dispose of the Sale Shares (except for those matters set out in the
         Shareholders Agreement or the articles of association of the Company)).

         Section 4.8 Organization; Qualification of Company.

         (a)      The Company is a limited liability company duly organized and
                  validly existing under the laws of the Republic of Indonesia,
                  with full corporate power and authority and is duly licensed
                  to carry on its business as it is now being conducted and to
                  own or use the properties and assets it now purports to own
                  and use.

         (b)      The Company has all licenses, authorizations, approvals and
                  authorities and necessary for operating a nationwide GSM/DCS
                  service using both the 900 Mhz and 1800 Mhz frequencies
                  currently allocated to it (the "GSM Licenses") and has a
                  minimum spectrum allocation of 7.5 Mhz under each of the 900
                  Mhz and 1800 Mhz frequency ranges. The GSM Licenses are in
                  full force and effect and have been and are being complied
                  with. There is no investigation, enquiry or proceeding which
                  has been notified in writing to the Company and is outstanding
                  or which, to Seller's Knowledge, is anticipated which is
                  likely to result in the suspension, cancellation, non-
                  renewal, modification or revocation of any of such GSM
                  Licenses (whether as a result of the entry into or completion
                  of this Agreement or otherwise);

                                       16
<PAGE>

         (c)      All licenses, authorizations, approvals and authorities
                  ("Other Licenses") necessary for the carrying on of the
                  businesses and operations of the Company have been obtained,
                  are in full force and effect and have been and are being
                  complied with in all material respects such as not to have a
                  material adverse impact on the businesses or operations of the
                  Company, and there is no investigation, enquiry or proceeding
                  which has been notified in writing to the Company and is
                  outstanding or which, to Seller's Knowledge, is anticipated
                  which is likely to result in the suspension, cancellation,
                  non-renewal, modification or revocation of any of such Other
                  Licenses (whether as a result of the entry into or completion
                  of this Agreement or otherwise);

         (d)      No order has been made, resolution passed or meeting convened
                  for winding up or liquidation of or written notice received by
                  the Company of any petition for the bankruptcy of the Company
                  or for any suspension of payments or other similar arrangement
                  under the Indonesian Bankruptcy Law. There are no cases or
                  proceedings under any applicable bankruptcy, delay of payment
                  or similar laws in Indonesia concerning the Company nor has
                  any curator or administrator been appointed in respect of the
                  whole or any part of the business or assets of the Company. To
                  Seller's Knowledge, the Company has received no claims or
                  demands which would justify in the cases or proceedings under
                  any applicable bankruptcy, delay of payment or similar laws in
                  Indonesia concerning the Company;

         Section 4.9 Company's Consents and Approvals; No Conflicts, Violations
         or Defaults. Except for the Consents referred to in Sections 7.1 and
         7.2 neither the execution or delivery of this Agreement by Seller nor
         the performance by Seller of its obligations hereunder will:

                                       17
<PAGE>

         (a)      conflict with or result in any breach of any provision of the
                  deed of establishment and articles of association of the
                  Company;

         (b)      require that the Company obtain any Consent of any
                  Governmental Entity;

         (c)      require any Consent under, or result in a violation or breach
                  of, or constitute (with or without due notice or the passage
                  of time or both) a default (or give rise to any right of
                  termination, amendment, cancellation or acceleration) under,
                  any of the terms, conditions or provisions of any agreement,
                  license, contract, instrument, undertaking or obligation to
                  which the Company is a party or by which the Company or any of
                  its properties or assets is bound;

         (d)      violate any binding order, writ or injunction of an Indonesian
                  court or arbitral body;

         (e)      violate any decree, statute, rule or regulation applicable to
                  the Company or any of its properties or assets; or

         (f)      result in the imposition of any lien on any of the properties
                  or assets of the Company,

         excluding from the foregoing clauses (c), (e) and (f) such violations,
         breaches, defaults or impositions which would not, individually or in
         the aggregate, have an adverse effect on the prospects, consolidated
         financial condition, business or results of operations of the Company.

         Section 4.10 Capitalization. The authorized capital stock of the
         Company consists of Six Hundred Fifty Thousand (650,000) Shares of
         which One Hundred Eighty-Two Thousand Five Hundred Seventy (182,570)
         Shares are issued and paid up. The Sale Shares are duly authorized,
         validly issued, fully paid and non-assessable. Except for this
         Agreement:

         (i)      there are no existing options, warrants, calls, pre-emptive
                  rights, subscriptions or

                                       18
<PAGE>

         other rights, agreements, arrangements or commitments of any character,
         relating to the unissued capital stock of the Company or shares held by
         Seller, obligating the Company or Seller to issue, transfer or sell or
         cause to be issued, transferred or sold any such shares or stock or
         Voting Debt of, or other equity or debt interest in, the Company or
         securities convertible into or exchangeable for such shares, equity
         interests, options, warrants, calls, subscriptions or rights, or
         obligating the Company or Seller to grant, extend or enter into any
         such option, warrant, call, subscription or other right, agreement,
         arrangement or commitment; and

         (ii)     there are no outstanding contractual obligations of the
                  Company or of Seller to repurchase, redeem or otherwise
                  acquire any Shares or other capital stock of the Company or to
                  provide funds to make any investment (in the form of a loan,
                  capital contribution or otherwise) in any other entity. There
                  are no voting trust agreements or understandings to which
                  Seller or the Company is a party with respect to the voting of
                  the capital stock of the Company. For the avoidance of doubt
                  there shall be excluded from this clause (ii) any
                  representation or warranty in respect of the existing
                  shareholding of Purchaser in the Company.

         Section 4.11 Brokers or Finders. Seller has not entered into any
         agreement or arrangement entitling any agent, broker, investment
         banker, financial advisor or other firm or Person, to any broker's or
         finder's fee or any other commission or similar fee in connection with
         the Transaction, except Salomon Smith Barney, whose fees and expenses
         will be paid by Seller in accordance with Seller's agreement with such
         firm.

         Section 4.12 Legal Proceedings Against the Company.

         (a)      Since the Balance Sheet Date no claim for

                                       19
<PAGE>

                  damages or otherwise has been made against the Company;

         (b)      there are no Proceedings in which the Company is involved nor
                  are any such Proceedings pending or threatened in writing
                  against the Company nor, to Seller's Knowledge, are there
                  circumstances likely to lead to any such Proceedings.

         Section 4.13 Financial Statements. The Financial Statements have been
         prepared from, are in accordance with and reflect, the books and
         records of the Company, fully comply with the Indonesian Company Law
         and accounting requirements, have been prepared in accordance with
         Indonesian GAAP applied on a consistent basis during the periods
         involved (except as may be stated in the notes thereto), and to the
         extent prepared to be in accordance with US GAAP are in such
         accordance, fairly present in all material respects the financial
         position and the results of operations and cash flows (and changes in
         financial position, if any) of the Company as of the times and for the
         periods referred to therein and:

         (a)      The amounts borrowed by the Company do not exceed any
                  limitation on its borrowings contained in its articles of
                  association;

         (b)      The Company has not factored any of its debts, nor engaged in
                  any financing of a type which would not be required to be
                  shown or reflected in the Financial Statements.

         Section 4.14 Management Reports. The Management Reports for any period
         or drawn up as at any date since the Balance Sheet Date and for the
         month ending on the Balance Sheet Date (the "Relevant Management
         Reports Date") have been properly prepared in accordance with
         accounting policies consistent with those used in preparing the
         Financial Statements. The Management Reports fairly present the state
         of affairs and business of the Company as at the Relevant Management
         Reports Date and the profits or losses for the period concerned.

         Section 4.15 Books and Records. Since 30 September 2000 the accounting
         records of the Company have been maintained in accordance with sound
         business practices and applicable accounting requirements and on a
         consistent basis. All accounting returns and reports required by law

                                       20
<PAGE>

         to be delivered or made to any authority have been duly delivered and,
         in the reasonable view of the Company, have been properly made and to
         the extent that such returns and reports have not been made on time
         there is no and will be no adverse effect on the Company.

         Since 1 June 2001 the minute books and share register of the Company,
         the Special Register and other corporate records contain accurate and
         complete records of all meetings of, and corporate action taken by, the
         shareholders of the Company, the Board of Directors of the Company as a
         whole and Board of Commissioners of the Company. All corporate returns
         required by law to be delivered or made to any authority have been duly
         and correctly delivered or made and to the extent that such returns and
         reports have not been made on time there is no and will be no adverse
         affect on the Company.

         Section 4.16 No Undisclosed Liabilities.

         (a)      Except:

                  (i)      as disclosed in the Financial Statements;

                  (ii)     as disclosed in the Management Reports; and

                  (iii)    for liabilities and obligations incurred in the
                           ordinary course of business and consistent with past
                           practice since the Balance Sheet Date,

                  the Company has no material liability or obligation of any
                  nature.

         (b)      save as disclosed in the Seller Disclosure Schedule, (i) there
                  is no indebtedness for borrowed money or for the deferred
                  purchase price of property or services (other than trade
                  liabilities incurred in the ordinary course of business and
                  payable in accordance with its customary practice) and (ii)
                  there is no indebtedness that is evidenced by a note, bond,
                  debenture or similar instrument.

         Section 4.17 Absence of Certain Changes. Since the Balance Sheet Date,
         the Company has conducted its business only in the ordinary and

                                       21
<PAGE>

         usual course and consistent with past practice so as to maintain the
         same as a going concern, and as regards the Company:

         (a)      it has not cancelled any debts or waived any claims or rights
                  of more than US$100,000 in value except in the ordinary course
                  of business and consistent with past practice;

         (b)      it has not sold, transferred, or otherwise disposed of any of
                  its Real Properties or assets other than in the ordinary
                  course of business;

         (c)      it has not disposed of or permitted to lapse, except where
                  such rights may be in the process of being extended, any
                  rights to the use of any Intellectual Property, or disposed of
                  or disclosed to any Person other than representatives of
                  Purchaser any Know-how or other intellectual Property not a
                  matter of prior public knowledge;

         (d)      it has not except as otherwise disclosed in Schedule 4.17(d)
                  of the Disclosure Schedule, made any single capital
                  expenditure or commitment in excess of US$2,000,000 for
                  additions to property, plant, equipment or capital assets or
                  made aggregate capital expenditures and commitments in excess
                  of US$5,000,000 for additions to property, plant, equipment or
                  capital assets;

         (e)      it has not declared, paid or set aside for payment any
                  dividend or other distribution in respect of its capital stock
                  or redeemed, purchased or otherwise acquired, directly or
                  indirectly, any shares of capital stock or other securities of
                  the Company;

         (f)      it has not made any material change in any method of
                  accounting or accounting practice;

         (g)      it has not entered into any transaction or assumed or incurred
                  any liabilities (including contingent liabilities) otherwise

                                       22

<PAGE>

                  than in the ordinary course of carrying on its business;

         (h)      its profits have not been affected by changes or
                  inconsistencies in accounting treatment, by any non-recurring
                  items of income or expenditure, by transactions entered into
                  otherwise than in the ordinary course of business or entered
                  into on noncommercial terms.

         Section 4.18 Insurance.

         (a)      All material assets of the Company which are capable of being
                  insured are at the date of this Agreement insured to the full
                  replacement value thereof against fire and other risks
                  normally insured against by companies in Indonesia carrying on
                  similar businesses or owning assets of a similar nature and
                  the Company is at the date of this Agreement adequately
                  covered against accident, physical loss or damage, third party
                  liability, environmental liability (to the extent that
                  insurance is reasonably available), and other risks normally
                  covered by insurance by such companies; and

         (b)      in respect of such insurances:

                  (i)      all premiums have been duly paid to date;

                  (ii)     all the policies are in full force and effect and no
                           act, omission, misrepresentation or nondisclosure
                           by or on behalf of the Company has occurred which
                           makes any of the policies voidable, nor, to
                           Seller's Knowledge, have any circumstances arisen
                           which would render any of these policies void or
                           unenforceable, nor, to Seller's Knowledge, has there
                           been any breach of the terms, conditions and
                           warranties of any of the policies that would entitle
                           insurers to decline to pay all or any part of any
                           claim made under the policies;

                                       23
<PAGE>

                  (iii)    to Seller's Knowledge, no circumstances exist,
                           attributable to the Company's act or omission, which
                           are likely to give rise to any increase in premiums;

                  (iv)     no claims, exceeding in aggregate an amount of
                           US$100,000, are outstanding; and

                  (v)      the Company has not waived any rights of a material
                           value under any insurance policy.

         Section 4.19 Title to Properties and Assets; Encumbrances.

         (a)      Subject to the following paragraphs:

                  (i)      (A) the Company had full title at the Balance Sheet
                           Date to all moveable and immovable assets (other than
                           the Real Properties) included in the Financial
                           Statements or which were at the Balance Sheet Date
                           used or held for the purposes of its business and (B)
                           save for those subsequently disposed of or realised
                           in the ordinary course of trading, the Company has
                           full title to all such assets and all assets which
                           have subsequently been acquired and (C) no moveable
                           and immovable asset used or held for the purposes of
                           the Company's business is the subject of any
                           assignment or Encumbrance (excepting only liens
                           arising by operation of law);

                  (ii)     all such moveable and immovable assets are, where
                           capable of possession, in the possession of or under
                           the control of the Company or the Company is entitled
                           to take

                                       24
<PAGE>

                           possession or control of such moveable and immovable
                           assets and such moveable and immovable assets are
                           situated in Indonesia;

                  (iii)    the Company had at the Balance Sheet Date full title
                           to all debts due to the Company included in the
                           Financial Statements and, save for those subsequently
                           disposed of or realised in the ordinary course of
                           trading, has full title to all such debts and all
                           debts which have subsequently arisen;

         (b)      the Company is the sole legal owner of and has full title to,
                  and all rights and interest in and to, each Real Property, has
                  fully paid for all such property, save as otherwise disclosed
                  in Schedule 4.19(b) of the Disclosure Schedule, and, subject
                  to the release of any Encumbrance as disclosed in the Seller
                  Disclosure Schedule, has the right to transfer each Real
                  Property to a third party and/or release title to each Real
                  Property;

         (c)      In respect of the Real Property set out in Schedule 4.19(c) of
                  the Disclosure Schedule, the Company has fully paid for all
                  such property, and save as otherwise disclosed in Schedule
                  4.19 (c) of the Disclosure Schedule: (i) has entered into duly
                  executed and authorized sale and purchase agreements and deeds
                  of relinquishment (akla pelepasan hak) and/or land transfer
                  deeds (akta penyerahan dan penggunaan hak); and (ii) has
                  received from the relevant vendors (or their authorized
                  representatives) powers of attorney/spousal consents and the
                  relevant land certificates in the name of the last individual
                  owner in respect of such property and, there are no grounds or
                  circumstances whereby the Company will

                                       25
<PAGE>

                  be refused the grant of title to such property or on which the
                  Company may not be registered as the owner of such property;

         (d)      each Real Property has the benefit, whether, legally or by
                  custom or by usage, of rights of access over property
                  adjoining the Real Property;

         (e)      no Real Property nor any of its title deeds (as the case may
                  require) is subject to any Encumbrance, nor subject to any
                  power of attorney to sell or to establish a hypotec/hak
                  tanggungan (except as the same may have been given by the
                  Company to its lenders in the ordinary course of obtaining
                  credit facilities from its lenders) nor is any Real Property
                  the subject of any court attachment;

         (f)      there is no person in possession or occupation of, or who has
                  or claims any right or interest of any kind in, any Real
                  Property adversely to the interest of the Company;

         (g)      the Company has duly performed or observed any obligation,
                  condition, restriction, agreement or legal requirement
                  affecting each Real Property, its occupation of such Real
                  Property or the existing use thereof provided that, to the
                  extent of any non-compliance, this will not have a material
                  adverse affect on the business or operations of the Company;

         (h)      no Real Property is subject to any outgoing other than any
                  normal rate of tax or rent or other sum payable under any
                  lease under which it is held by the Company or other payments
                  made for utilities provided to the Real Property;

         (i)      there is no outstanding dispute affecting any Real Property
                  and to Seller's Knowledge none has been threatened;

                                       26
<PAGE>

         (j)      to Seller's knowledge, there is no resolution or proposal for
                  compulsory acquisition of any Real Property by any applicable
                  governmental, local of other authority or body;

         (k)      no Real Property is subject to any lease in favor of a third
                  party;

         (l)      brief details of all Real Properties owned by the Company are
                  set out in Schedule 4.19(i) of the Initial Seller Disclosure
                  Schedule.

         Section 4.20 Contracts and Commitments.

         (a)      Schedule 4.20(a) of the Seller Disclosure Schedule contains a
                  complete and accurate list of each agreement, contract and
                  commitment of any kind (including each indenture, loan,
                  mortgage, note, installment obligation (including finance
                  lease), consulting agreement, services agreement, agreement
                  for the sale of goods or provision of services) which:

                  (i)      is outside the ordinary course of its business;

                  (ii)     involves a material capital commitment in excess of
                           US$5,000,000; or

                  (iii)    is on non-commercial terms.

         (b)      There is no agreement, contract and commitment of any kind
                  which restricts the Company's freedom to carry on its business
                  in any part of Indonesia in such manner as it thinks fit or
                  materially and adversely affects its business.

         (c)      Each contract, lease, tenancy, or agreement having a value
                  exceeding US$5,000,000 (each a "Contract") is a valid, binding
                  and enforceable obligation of the Company. The Company is not
                  in default under or in violation of, nor, to Seller's
                  Knowledge, has any event occurred that with the giving of
                  notice or lapse of time or both would constitute a default or
                  event of default under, nor, to Seller's Knowledge, is there
                  any valid basis for any claim of default under or violation
                  of, any Contract.

                                       27
<PAGE>

         (d)      except as may be disclosed in the Financial Statements and the
                  Management Reports, the Company has not entered into any
                  option, swap, future, warrant, cap, collar, floor or any
                  contract for differences or other derivatives transaction or
                  similar agreement or arrangement.

         Section 4.21 labour; Employee Benefit Plans.

         (a)      the Company is not involved in, and, to Seller's Knowledge,
                  there are no circumstances likely to give rise to, any
                  industrial or trade dispute or any dispute or negotiation
                  regarding a claim of material importance with any trade union
                  or other body representing any of the employees of the
                  Company.

         (b)      other than as described in the Seller Disclosure Schedule
                  there are no Employee Plans.

         (c)      the Employee Plans are currently in compliance both as to form
                  and in operation, with their terms and with all applicable
                  laws, regulations and government taxation or funding
                  requirements.

         (d)      the Company has no outstanding liability (including, without
                  limitation, liability for unpaid benefits, contributions or
                  insurance premiums) with respect to any of the Employee Plans
                  and in particular in respect of the pension plan described in
                  the Seller Disclosure Schedule.

         Section 4.22 Compliance with Laws.

         (a)      The Company has:

                  (i)      complied in a timely manner and in all material
                           respects with all laws, decrees, rules and
                           regulations;

                                       28
<PAGE>

                  (ii)     complied in a timely manner with all judgments, and
                           court orders, applicable to the Company or its
                           business and to Seller's Knowledge, no 'notice,
                           charge, claim, action or assertion has been received
                           by the Company, and no claim or action has been filed
                           or commenced in any court or arbitral body or, to
                           Seller's Knowledge, threatened against the Company
                           alleging any violation of any law, decree,
                           regulation, judgment or court order.

         (b)      Since 1 June 2001 there have not been and are not any breaches
                  by the Company of its deed of establishment and articles of
                  association nor is there any order, decree, decision or
                  judgment of any Governmental Entity outstanding against the
                  Company or any person for whose acts or defaults the Company
                  may be responsible or, to the Seller's Knowledge, any
                  investigation or enquiry in respect of the same.

         Section 4.23 Insider Interests, Debt and Guarantees. (i) None of the
         Company's current directors, commissioners, or shareholders (each a
         "Related Person") has any interest in any Contract, assets or property,
         including any Intellectual Property, used in or pertaining to the
         business of the Company, (ii) there is no outstanding Indebtedness nor
         any indemnity, guarantee or security arrangement between any Related
         Person and the Company and (iii) the Company has not entered into any
         guarantees or financial support arrangements to any third party with
         respect to Indebtedness of any Related Person or with respect to
         indebtedness of any of its Affiliates.

         The Company is not a party to any agreement or, to Seller's Knowledge,
         any arrangement or understanding (whether oral or otherwise), with any

                                       29
<PAGE>

         Related Person (except any employment contracts or Plans between the
         Company and its directors, officers or senior management, in each case
         entered into in the ordinary course of business).

         All contracts between the Company and Seller are listed in the Seller
         Disclosure Schedule.

         Section 4.24 Tax Matters.

         (a)      The Company has:

                  (i)      duly filed within the requisite periods and in
                           accordance with law all Tax Returns that are required
                           to be filed; and

                  (ii)     duly paid, withheld or deducted or caused to be duly
                           paid, withheld or deducted in full or made provision
                           in accordance with Indonesian GAAP in the Financial
                           Statements (or there has been paid or provision has
                           been made on the Company's behalf) for the payment of
                           all Taxes (including provision for deferred taxes)
                           for all periods or portions thereof ending upon the
                           date hereof. All such Tax Returns were, in the
                           reasonable view of the Company, correct and complete
                           and properly made and reflect all liability for Taxes
                           for the periods covered thereby and, to Seller's
                           Knowledge, none of them is the subject of any dispute
                           with the relevant tax authority.

         (b)      There are no liens for Taxes upon any property or assets of
                  the Company, except for liens for Taxes not yet due.

         (c)      The Company has not made any change in accounting methods or
                  received a private ruling from any taxing authority.

         (d)      The Company has complied in all respects

                                       30
<PAGE>

                  with all applicable laws and regulations relating to the
                  payment and withholding of Taxes and has, within the time and
                  the manner prescribed by law, withheld and paid over to the
                  proper taxing authorities all amounts required to be so
                  withheld and paid over under applicable laws.

         (e)      There are no unresolved questions or claims concerning any Tax
                  liability of the Company.

         (f)      The Company has properly charged VAT on goods and services
                  delivered, properly assessed VAT on charges for services from
                  offshore and has claimed credit only for valid input VAT
                  charged by suppliers.

         Section 4.25 Intellectual Property.

         (a)      All Intellectual Property, (whether registered or not) and
                  alI pending applications therefor, which have been, are, or
                  are necessary for the business of the Company are (or, where
                  appropriate in the case of pending applications, will be):

                  (i)      legally owned by the Company or lawfully used with
                           the consent of the owner under a license, brief
                           details of which are set out in Schedule 4.25(a)(i)
                           of the Seller Disclosure Schedule;

                  (ii)     valid and enforceable;

                  (iii)    not being infringed or attacked or opposed by any
                           person;

                  (iv)     not subject to any Encumbrance or any license or
                           authority in favor of another;

                  (v)      in the case of rights in such intellectual Property
                           as are registered or the subject of applications
                           for registration, listed and briefly described in
                           Schedule 4.25(a)(v) of the Seller Disclosure Schedule
                           and all renewal fees which are due and steps which
                           are required for their

                                       31
<PAGE>
                  maintenance and protection have been or are being paid and
                  taken; and

         (vi)     in the case of unregistered trade marks which are likely to be
                  material to the Company, listed and briefly described in
                  Schedule 4.25(a)(vi) of the Seller Disclosure Schedule;

(b)      the processes employed and the products and services dealt in by the
         Company do not use, embody or infringe any rights or interests of third
         parties in Intellectual Property (other than those belonging to or
         licensed to the Company ) and, no written claims of infringement of any
         such rights or interests have been made by any third party.

Section 4.26 Environmental.

(a)      the Company has complied in all material respects with Environmental
         Laws and has obtained all permits, licenses and other authorizations
         required under such Environmental Laws.

(b)      there is no civil, criminal, regulatory or administrative action, claim
         or other proceeding or suit pending or, to Seller's Knowledge,
         threatened against the Company arising from or relating to a breach of
         the Environmental Laws nor has Seller or the Company received written
         notice of any complaint, claim, dispute, investigation or other action
         against the Company arising from or relating to any such matters.

(c)      to Seller's Knowledge, none of the activities of the Company results in
         any environmental damage to any third party nor has Seller or the
         Company received from any third party written notice of any

                                       32
<PAGE>

         complaint, claim, dispute or other action against the Company arising
         from or relating to any environmental damage.

Section 4.27 Full Disclosure. No statement contained in the Seller Disclosure
Schedule or those documents listed in Schedule 4.27 of the Seller Disclosure
Schedule as having been supplied to Purchaser by Seller, contains any untrue
statement of a fact. All information contained in this Agreement and all other
written information as listed in Schedule 4.27 of the Initial Seller Disclosure
Schedule was when given and remains true, complete and accurate in all material
respects and not misleading and Seller does not have any actual knowledge of any
fact or matter or circumstances not disclosed in writing to Purchaser which
renders any such information untrue, misleading or inaccurate.

Section 4.28 TM Injection.

(a)      The Co-operation Agreement dated 3 January 2002 between the Company and
         Seller and the documents listed in Schedule 4.28(d) of the Initial
         Seller Disclosure Schedule (the "TM Primary Documents") have been duly
         executed and delivered by the parties thereto and constitute legal,
         valid and binding obligations on them and are enforceable against them
         in accordance with their terms and each party thereto has all requisite
         power and authority to execute and deliver those agreements and to
         perform its obligations thereunder. The TM Primary Documents are the
         only agreements between Seller and the Company relating to Telkom
         Mobile and no provision of the TM Primary Documents has been amended or
         waived or agreed to be amended or waived.

(b)      Except for the Consents referred to in Schedule 4.28(b) of the Initial
         Seller Disclosure Schedule, the performance by Seller and the Company
         of their obligations

                                       33
<PAGE>


         under the TM Primary Documents will not: (i) conflict with or result in
         any breach of any provision of the deeds of establishment and articles
         of association of Seller or the Company; (ii) require any Consent of
         any Governmental Entity; (iii) require any Consent under, or result in
         a violation or breach of, or constitute (with or without due notice or
         the passage of time or both) a default (or give rise to any right of
         termination, amendment, cancellation or acceleration) under, any of the
         terms, conditions or provisions of any agreement, license, contract,
         instrument, undertaking or obligation to which Seller or the Company is
         a party or by which Seller or the Company or any of their respective
         properties or assets is bound; (iv) violate any binding order, writ,
         injunction of an Indonesian court or arbitral body; or (v) violate any
         decree, law or regulation applicable to Seller or the Company or any
         of their respective properties or assets. As of the Closing Date,
         Seller represents and warrants that each Consent referred to in
         Schedule 4.28(b) of the Closing Seller Disclosure Schedule has been
         obtained and remains in full force and effect.

(c)      There are no Proceedings pending or threatened against, involving or
         affecting Seller or the Company which question or challenge the
         validity of the TM Primary Documents or any action taken or to be taken
         by Seller or the Company pursuant to the TM Primary Documents or in
         connection with the performance by Seller or the Company of their
         obligations under the TM Primary Documents or, to Seller's Knowledge,
         which could be reasonably expected to result in the issuance of a
         judgment, order or decree prohibiting or making illegal the performance
         by Seller or the Company of any of their obligations under the TM
         Primary Documents.

                                       34
<PAGE>


(d)      Schedule 4.28(d) of the Seller Disclosure Schedule contains a complete
         and accurate list of all agreements, contracts and commitments of any
         kind (including all indentures, loans, mortgages, notes, installment
         obligations (including finance leases), consulting agreements, services
         agreements and agreements for the sale of goods or provision of
         services) which have been entered into by Seller in relation to the
         business of Telkom Mobile ("TM Contracts").

(e)      Each of the TM Contracts is a valid, binding and enforceable obligation
         of the parties thereto. Seller is not in default under or in violation
         of, nor has any event occurred that with the giving of notice or lapse
         of time or both would constitute a default or event of default under,
         nor to Seller's Knowledge, is there any valid basis for any claim of
         default under or violation of, any TM Contract.

(f)      Seller has, and the Company will obtain on the closing thereof, full
         title to all properties and assets to be transferred under the TM
         Primary Documents free and clear of all Encumbrances.

(g)      All Licenses necessary for the carrying on of the operations of Telkom
         Mobile have been obtained, are in full force and effect and have been
         and are being complied with in all material respects, and, to the
         Seller's Knowledge, there is no investigation, enquiry or proceeding
         which is likely to result in the suspension, cancellation, modification
         or revocation of any of such Licenses. None of such Licenses has been
         breached or, to Seller's Knowledge, is likely to be suspended,
         cancelled, refused, modified or revoked.

(h)      The DCS 1800 License and Frequency License have been obtained, are in
         full force and effect and have been and are being complied with and
         there is no

                                       35
<PAGE>

         investigation, enquiry or proceeding which is likely to result in the
         suspension, cancellation, modification or revocation of such licenses.
         None of such licenses has been breached or, to Seller's Knowledge, is
         likely to be suspended, cancelled, refused, modified or revoked and
         when transferred or reissued to the Company as contemplated by the TM
         Primary Documents such licenses will remain valid and enforceable.

                                    ARTICLE V
                         REPRESENTATIONS AND WARRANTIES
                                  OF PURCHASER

Except for the disclosures set forth in the Initial Purchaser Disclosure
Schedule (or, with respect to any representation or warranty made as of the
Closing Date, the Closing Purchaser Disclosure Schedule), Purchaser represents
and warrants to Seller that all of the statements contained in this Article V
are true and correct as of the date of this Agreement (save insofar as the
statement is expressed to be made only as of the Closing Date) and as of the
Closing Date. Each exception set forth in the Purchaser Disclosure Schedule and
each other response to this Agreement set forth in the Purchaser Disclosure
Schedule is identified by reference to, or has been grouped under a heading
referring to, a Section of this Agreement. Each such exception shall be deemed
to be disclosed with respect to each such Section and to each other Section to
which it reasonably relates. For the avoidance of doubt, statements set forth in
a Purchaser Disclosure Schedule do not expand the scope of the representations
and warranties of Purchaser in this Article V.

Section 5.1 Organization. Purchaser is a company duly organized and validly
existing under the laws of Singapore and has all requisite power and authority
to execute and deliver this Agreement and to perform its obligations hereunder.

Section 5.2 Authorization; Validity of Agreement. Purchaser has taken all
corporate action necessary to execute and deliver this Agreement. The
performance by Purchaser of its obligations hereunder has been duly authorized
by Purchaser

                                       36
<PAGE>

and no other corporate action on the part of Purchaser is necessary to authorize
the performance by Purchaser of its obligations hereunder.

Section 5.3 Binding Agreement. This Agreement has been duly executed and
delivered by Purchaser, and this Agreement constitutes a legal, valid and
binding obligation of Purchaser, enforceable against Purchaser in accordance
with its terms.

Section 5.4 Consents and Approvals; No Conflicts, Violations or Defaults. Except
for the Consents referred to in Sections 7.1 and 7.3 , neither the execution or
delivery of this Agreement by Purchaser nor the performance by Purchaser of its
obligations hereunder will: (i) conflict with or result in any breach of any
provision of Purchaser's organizational documents; (ii) require any Consent of
any Governmental Entity; (iii) require any Consent under, or result in a
violation or breach of, or constitute (with or without due notice or the passage
of time or both) a default (or give rise to any right of termination, amendment,
cancellation or acceleration) under, any of the terms, conditions or provisions
of any agreement, license, contract, instrument, undertaking or obligation to
which Purchaser is a party or by which Purchaser or any of its properties or
assets is bound; or (iv) violate any binding order, writ, injunction, decree,
statute, rule or regulation applicable to Purchaser or any of its properties or
assets. As of the Closing Date, Purchaser represents and warrants that each
Consent referred to in Section 7.3 has been obtained and remains in full force
and effect.

Section 5.5 Legal Proceedings. There are no Proceedings pending or, to
Purchaser's Knowledge, threatened against, involving or affecting Purchaser
which question or challenge the validity of this Agreement or any action taken
or to be taken by Purchaser pursuant to this Agreement or in connection with the
performance by Purchaser of its obligations hereunder or which could

                                       37
<PAGE>

reasonably be expected to result in the issuance of any judgment, order or
decree prohibiting or making illegal the performance by Purchaser of its
obligations hereunder. Purchaser is not subject to any judgment, order or decree
prohibiting or making illegal the performance by Purchaser of its obligations
hereunder.

Section 5.6 Brokers or Finders. Purchaser has not entered into any agreement or
arrangement entitling any agent, broker, investment banker, financial advisor or
other firm or Person to any broker's or finder's fee or any other commission or
similar fee in connection with the Transaction except Goldman Sachs (Singapore)
Pte., whose fees and expenses will be paid by Purchaser in accordance with
Purchaser's agreement with such firm.

Section 5.7 Knowledge of Breaches. As of the date of this Agreement and as of
the Pre-Closing Date it is not actually aware of any breach by Seller of any
representation and warranty given by Seller in this Agreement save as contained
in the Initial Seller Disclosure Schedule.

                                   ARTICLE VI
                                    COVENANTS

Section 6.1 Confidentiality. Except as otherwise provided herein, each party
shall, and shall use its reasonable efforts to cause its consultants, advisors
and representatives to, treat as strictly confidential and not disclose or use
any information received or obtained as a result of entering into this Agreement
(or any agreement entered into pursuant to this Agreement) which relates to:

(a)      the provisions of this Agreement and any agreement entered into
         pursuant to this Agreement;

(b)      the negotiations relating to this Agreement (and such other
         agreements); or

(c)      the other party's (and in the case of Seller,

                                       38
<PAGE>

         SingTel's) business, financial or other affairs.

Unless (i) disclosure is required by judicial or administrative process or, in
the reasonable opinion of the disclosing party, is otherwise required by law
(including the securities laws and regulations of any Governmental Entity or the
rules of any applicable stock exchange); (ii) such confidential information is
disclosed by a party hereto in connection with any Proceeding or any arbitration
before an arbitration tribunal or mediation service in order to enforce such
party's rights under Section 10.8 or arising in connection with the termination
of this Agreement pursuant to Article VIII; (iii) the disclosure or use is
required to vest the full benefit of this Agreement in Seller, or the Purchaser,
as the case may be; (iv) the disclosure or use is required for the purpose of
any other agreement entered into under or pursuant to this Agreement or the
disclosure is reasonably required to be made to a Taxation authority in
connection with the Taxation affairs of the disclosing party; (v) the disclosure
is made to professional advisers of the Purchaser or Seller on terms that such
professional advisers undertake to comply with the provisions of this Section in
respect of such information as if they were a party to this Agreement; (vi) the
information becomes publicly available (other than by breach of this Agreement);
(vii) the other party has given prior written approval to the disclosure or use;
or (viii) the information is independently developed after Closing, provided
that prior to disclosure or use of any information pursuant to (i), (ii), (iii),
(iv) (except in the case of disclosure to a Taxation authority) or (v), the
party concerned shall promptly notify the other party of such requirement with a
view to providing the other party with the opportunity to contest such
disclosure or use or otherwise to agree the timing and content of such
disclosure or use.

Section 6.2 Efforts and Actions to Cause Closing to Occur.

(a)      Prior to the Closing, upon the terms and subject to the conditions of
         this Agreement, Purchaser and Seller shall use their

                                       39
<PAGE>

         respective reasonable efforts to take, or cause to be taken, all
         actions, and to do, or cause to be done and to cooperate with each
         other in order to do, all things reasonably necessary, proper or
         advisable (subject to any applicable laws) to consummate the Closing at
         the time contemplated in Section 3.1 (including the preparation and
         filing of all forms, registrations and notices required to be filed to
         consummate the Closing and the taking of such actions as are necessary
         to obtain any requisite Consents of any Governmental Entity and any
         other Person and the taking of such other actions and the execution of
         such other documents as may be reasonably necessary to satisfy the
         conditions set forth in Article VII).

(b)      Prior to the Closing, each party shall promptly consult with the other
         party hereto with respect to, provide any necessary information with
         respect to, and provide the other party (or its counsel) with copies
         of, all filings made by such party with any Governmental Entity or any
         other information supplied by such party to a Governmental Entity in
         connection with this Agreement. Each party hereto shall promptly
         provide the other party with copies of any written communication
         received by such party from any Governmental Entity regarding the
         Transaction. If any party hereto receives a request for additional
         information or documentary material from any such Governmental Entity
         with respect to the Transaction, then such party shall endeavor in good
         faith to make, or cause to be made, as soon as reasonably practicable
         and after consultation with the other party, an appropriate response in
         compliance with such request. To the extent that transfers, amendments
         or modifications of permits are required as a result of the execution
         of this Agreement or the performance by the parties of their respective
         obligations hereunder, Seller and Purchaser shall use their reasonable
         efforts to effect such transfers, amendments or modifications and to
         cause the Company to effect such transfers, amendments or
         modifications.

                                       40
<PAGE>

(c)      Each party agrees that it will not undertake any course of action
         inconsistent with the satisfaction of the requirements or conditions
         applicable to it set out in this Agreement and it will use its
         reasonable efforts to do all things and take such action as may be
         appropriate to enable it to comply with its obligations.

(d)      Seller shall pending Closing:

         (i)      procure that Purchaser and its advisers will, upon reasonable
                  notice, be allowed access to, and to take copies of, the books
                  and records of the Company including, without limitation, the
                  share register, minute books, leases, licenses, contracts,
                  details of receivables, Tax records, supplier lists and
                  customer lists in the possession or control of the Company;
                  and

         (ii)     act in good faith and consult with Purchaser in relation to
                  all material matters in which Seller is involved in the
                  running of the Company between the date of this Agreement and
                  the Closing Date; and

         (iii)    procure that the Company preserves its assets (save as may be
                  disposed of in the ordinary course of business).

For the purposes of this Section 6.2 (d), the word "procure" means Seller using
reasonable endeavors and directing that its nominated directors and
commissioners on the boards of the Company to vote, subject to their fiduciary
duties, accordingly.

                                       41
<PAGE>

Section 6.3 Updating of the Seller Disclosure Schedule.

(a)      From time to time prior to the Pre-Closing Date, Seller shall promptly
         supplement or amend the disclosures set forth in the Initial Seller
         Disclosure Schedule (as such disclosures are supplemented or amended
         from time to time in accordance with the terms hereof) with respect to
         any matter arising after the delivery thereof pursuant hereto that, if
         existing at, or occurring on, the date of this Agreement, would have
         been required to be set forth or described in the Initial Seller
         Disclosure Schedule.

(b)      From time to time prior to the Closing. Purchaser shall promptly
         supplement or amend the disclosures set forth in the Initial Purchaser
         Disclosure Schedule (as such disclosures are supplemented or amended
         from time to time in accordance with the terms hereof) with respect to
         any matter arising after the delivery thereof pursuant hereto that, if
         existing at, or occurring on, the date of this Agreement, would have
         been required to be set forth or described in the Initial Purchaser
         Disclosure Schedule.

(c)      Each party shall give notice to the other party promptly after becoming
         aware of (i) any event or matter which results or may result in any of
         the warranties given by it being unfulfilled, untrue, misleading or
         incorrect in any respect at Closing (ii) the occurrence or
         non-occurrence of any event whose occurrence or non-occurrence would be
         likely to cause any condition set forth in Article VII to fail to be
         satisfied at any time from the date hereof to the Closing Date and
         (iii) any material failure of a party or the Company to comply with or
         satisfy any covenant, condition or agreement to be complied with or
         satisfied by it hereunder; provided, however, that (x) the delivery of
         any notice pursuant to this Section shall not limit or otherwise affect
         the remedies available hereunder to the party receiving such notice and
         (y) such notice shall not be required from and after the time the party
         to whom such notice is to be given has knowledge of the information
         required to be included in such notice.

                                       42
<PAGE>

Section 6.4 Exclusive Dealings. During the Exclusivity Period, Seller shall
not, directly or Indirectly: (i) sell or agree to sell any of the Shares other
than through a sale pursuant to the terms of this Agreement; (ii) agree to any
merger or sale of substantial assets of the Company or similar transaction;
(iii) encourage, solicit, initiate, continue or participate in discussions or
negotiations with, or provide any information to, any Person or group (other
than Purchaser, its Subsidiaries or any of their representatives) concerning any
Acquisition Proposal and shall cause its advisors and Subsidiaries to refrain
from taking any action to, directly or indirectly, encourage, solicit, initiate,
continue or participate in such discussions or negotiations; or (iv) enter into
any agreement with respect to any Acquisition Proposal.

Section 6.5 Post-Closing Cooperation. In case at any time after the Closing Date
any further action is reasonably necessary, proper or advisable to carry out the
purposes of this Agreement (including registration of the transfer of the Sale
Shares from Seller to Purchaser in the Company Registry with the Department of
Industry and Trade of the Republic of Indonesia), as soon as reasonably
practicable, each party hereto shall use its reasonable efforts to take, or
cause its directors, commissioners or other representatives to take, all such
reasonably necessary, proper or advisable actions.

Section 6.6 TM Injection. Prior to the Closing, upon the terms and subject to
the conditions of this Agreement, Seller shall use and shall procure that the
Company shall use its reasonable efforts to take, or cause to be taken, all
actions, and to do, or cause to be done and to cooperate with each other in
order to do, all things reasonably necessary,

                                       43
<PAGE>

proper or advisable (subject to any applicable laws) to consummate the
completion of the transaction contemplated by the TM Primary. Documents
(including the preparation and filing of all forms, registrations and notices
required to be filed to consummate the completion and the taking of such actions
as are necessary to obtain any requisite Consents of any Governmental Entity and
any other Person and the taking of such other actions and the execution of such
other documents as may be reasonably necessary to satisfy the conditions set
forth in Section 7.1(c)), subject in all cases to any rights of Purchaser to
prevent the completion of the transactions contemplated by the TM Primary
Documents.

                                   ARTICLE VII
                        CONDITIONS PRECEDENT AND CLOSING

Section 7.1 Conditions to Each Party's Obligation to Effect the Closing. The
respective obligation of each party to consummate the Closing shall be subject
to the satisfaction on or prior to the Closing Date of each of the following
conditions:

(a)      Shareholders' resolutions of the Company having been passed approving
         changes in the composition of shareholdings upon the transfer of the
         Sale Shares to Purchaser,

(b)      BKPM approval having been given for changes in the composition of the
         shareholders of the Company upon the transfer of the Sale Shares to
         Purchaser.

(c)      Completion of the TM Primary Documents in accordance with their terms
         (and without the amendment or waiver of any of their respective terms
         other than as approved in writing by Purchaser) having occurred such
         that the Telkom Mobile Contracts and the Telkom Mobile Assets are
         transferred to the Company, in accordance with those documents;

(d)      notification by the Company to the MOC having been filed, notifying the
         transfer of the Sale Shares by Seller to Purchaser; and

                                       44
<PAGE>

(e)      the approval of the Transaction by the shareholders of Seller in a
         general meeting of the shareholders of Seller.

Section 7.2 Conditions to Obligation of Purchaser to Effect the Closing. The
obligation of Purchaser to consummate the Closing shall be subject to the
satisfaction on or prior to the Closing Date of each of the following conditions
which may be waived by Purchaser, in whole or in part and upon such terms and
conditions, at any time and from time to time as Purchaser may determine in its
sole discretion.

(a)      The Licenses. The DCS 1800 License and the Frequency License having
         been issued to the Company on terms satisfactory to Purchaser and
         copies of such re-issued licenses having been provided to Purchaser.

(b)      Accuracy of Representations and Warranties of Seller. All of the
         representations and warranties of Seller in Article IV of this
         Agreement or in the certificate delivered pursuant to Section
         7.2(c)(ii) in connection herewith shall have been true and correct in
         all respects, in each case as from the Pre-Closing Date and on and as
         of the Closing Date (recognizing as valid disclosures only those
         disclosures made in the Initial Seller Disclosure Schedule).

(c)      Performance by Seller.

         Seller shall have delivered to Purchaser:

         (i)      a copy of the approval of Seller's Board of Commissioners and
                  the minutes of the General Meeting of Shareholders of Seller
                  (or in lieu thereof a statement issued by a civil notary
                  finalizing the minutes confirming that the resolutions have
                  been passed) approving the Transaction provided for in this
                  Agreement;

                                       45
<PAGE>

         (ii)     a certificate executed by a duly authorized representative of
                  Seller, dated the Closing Date, to the effect that each of
                  Seller's representations and warranties in this Agreement is
                  true and correct as of the Closing Date as if made on the
                  Closing Date (recognizing as valid disclosures only those
                  disclosures made in the Seller Disclosure Schedule);

         (iii)    a certified copy of a resolution of shareholders of the
                  Company signed by Seller (i) appointing such person as
                  Purchaser may nominate in accordance with the terms of the
                  Shareholders Agreement as a director of the Company and (ii)
                  adopting the articles of association attached to the
                  Shareholders Agreement;

         (iv)     a duly certified copy of the approval of two members of the
                  board of directors of the Company approving the entry of
                  Purchaser on the share register of the Company as holder of
                  the Sale Shares;

         (v)      certificates representing the Sale Shares;

         (vi)     a Deed of Transfer in respect of the Sale Shares signed by
                  Seller;

         (vii)    the Closing Seller Disclosure Schedule (a substantially final
                  draft of which shall have been delivered to the Purchaser not
                  later than five (5) Business Days prior to Closing), if any;
                  and

         (viii)   a copy of the shareholders' register of the Company duly
                  signed in accordance with the articles of association of the
                  Company evidencing the registration of the

                                       46
<PAGE>

                  Sale Shares in the name of the Purchaser on the Closing Date.

(d)      Opinion of Seller's Counsel. Seller shall have delivered to Purchaser
         at the Closing an opinion of Hadiputranto. Hadinoto & Partners, legal
         counsel to Seller, dated the Closing Date, addressed to Purchaser, in
         the form attached as Schedule 7.2(d); and

(e)      The Licenses. The DCS 1800 License and Frequency License remaining in
         full force and effect and in the name of the Company, on Closing.

Section 7.3 Conditions to Obligation of Seller to Effect the Closing. The
obligation of Seller to consummate the Closing shall be subject to the
satisfaction on or prior to the Closing Date of the following condition which
may be waived by Seller, in whole or in part and upon such terms and conditions,
at any time and from time to time as Seller may determine in its sole
discretion.

(a)      Accuracy of Representations and Warranties of Purchaser. All of the
         representations and warranties of Purchaser set forth in Article V of
         this Agreement or in the certificate delivered pursuant to Section
         7.3(b)(ii) are true and correct in all respects, in each case as of the
         date of this Agreement and on and as of the Closing Date as if made on
         and as of the Closing Date (recognizing as valid disclosures only those
         disclosures made in the Initial Purchaser Disclosure Schedule).

(b)      Performance by Purchaser.

         Purchaser shall have delivered:

         (i)      a copy of the approval of Purchaser's board approving the
                  Transaction provided for in this Agreement;

         (ii)     a certificate executed by a duly authorized representative of
                  Purchaser, dated the Closing Date,

                                       47
<PAGE>

                  to the effect that each of Purchaser's representations and
                  warranties in this Agreement is true and correct as of the
                  Closing Date as if made on the Closing Date (recognizing as
                  valid, disclosures only those disclosures made in the
                  Purchaser Disclosure Schedule);

         (iii)    a Deed of Transfer in respect of the Sale Shares signed by
                  Purchaser;

         (iv)     a certified copy of a resolution of shareholders of the
                  Company signed by Purchaser adopting the articles of
                  association attached to the Shareholders Agreement; and

         (v)      the Closing Purchaser Disclosure Schedule (a substantially
                  final draft of which shall have been delivered to Seller not
                  later than five (5) Business Days prior to Closing), if any.

(c)      Opinion of Purchaser's Counsel. Purchaser shall have delivered to
         Seller at the Closing an opinion of Linklaters Allen & Gledhill, legal
         counsel to Purchaser, dated the Closing Date, and addressed to Seller,
         in the form attached as Schedule 7.3(c).

                                  ARTICLE VIII
                                  TERMINATION

Section 8.1 Termination. This Agreement may be terminated at any time prior to
the Closing Date:

(a)      By the mutual written consent of Purchaser and Seller.

(b)      By Purchaser or Seller if any Governmental Entity shall have issued an
         order, decree or ruling or taken any other action, which prohibits the
         acquisition of the Sale Shares by Purchaser and such order, decree,

                                       48
<PAGE>

         ruling or other action shall have become final and non-appealable.

(c)      By Seller:

         (i)      if Purchaser shall have breached any of its representations,
                  warranties, covenants or other agreements contained in this
                  Agreement, which breach would give rise to the failure of a
                  condition set forth in Article VII and which breach cannot be
                  or has not been cured within 30 calendar days after the giving
                  of written notice by Seller to Purchaser specifying such
                  breach; or

         (ii)     on or after 30 July 2002 if the Closing shall not have
                  occurred and if the failure of the Closing to occur is not the
                  result of a breach of a representation, warranty, covenant or
                  other agreement contained herein by Seller provided that if
                  the DCS 1800 License and the Frequency License have not yet
                  issued in the name of the Company this date shall
                  automatically be extended for an additional period until 21
                  August 2002; or

         (iii)    if any of the provisions of Sections 3.2(i) or 7.3(b) are not
                  fully complied with by Purchaser on the Closing Date provided
                  that if Seller elects not to exercise its rights to terminate
                  it may instead either effect Closing so far as practicable
                  having regard to the defaults which have occurred or fix a
                  new date for Closing (not being more than 20 Business Days
                  after the agreed Closing Date) in which case the provisions of
                  Sections 3.2, 7.2 and 7.3 shall apply to Closing as so
                  deferred but provided such deferral may only occur once.

                                       49
<PAGE>

(d)      By Purchaser:

         (i)      if Seller shall have breached any representation, warranty,
                  covenant or other agreement contained in this Agreement, which
                  breach would give rise to the failure of a condition set forth
                  in Article VII and which breach cannot be or has not been
                  cured within 30 calendar days after the giving of written
                  notice by Purchaser to Seller specifying such breach; or

         (ii)     on or after 30 July 2002 if the Closing shall not have
                  occurred and if the failure of the Closing to occur is not the
                  result of a breach of a representation, warranty or covenant
                  or other agreement contained herein by Purchaser provided that
                  if the DCS 1800 License and the Frequency License have not
                  yet issued in the name of the Company this date shall be
                  automatically extended for an additional period until 21
                  August 2002; or

         (iii)    if any of the provisions of Sections 3.2(ii) or 7.2(c) are not
                  fully complied with by Seller on the Closing Date provided
                  that if Purchaser elects not to exercise its rights to
                  terminate it may instead either effect Closing so far as
                  practicable having regard to the defaults which have occurred
                  or fix a new date for Closing (not being more than 20 Business
                  Days after the agreed Closing Date) in which case the
                  provisions of Sections 3.2, 7.2 and 7.3 shall apply to Closing
                  as so deferred but provided such deferral may only occur
                  once; or

                                       50
<PAGE>

         (iv)     if any amendments made by Seller to the Initial Seller
                  Disclosure Schedule on or prior to the Pre-Closing Date is
                  reasonably considered by Purchaser to be unacceptable.

Section 8.2 Effect of Termination. In the event of the termination of this
Agreement by any party hereto pursuant to the terms of this Agreement, written
notice thereof shall forthwith be given to the other party specifying the
provision hereof pursuant to which such termination of this Agreement is made,
and there shall be no liability or obligation thereafter on the part of
Purchaser or Seller except for fraud or for breach of this Agreement prior to
such termination of this Agreement (which for the avoidance of doubt includes a
breach giving rise to such termination). Amendments made by Seller to the
Initial Seller Disclosure Schedule on or before the Pre-Closing Date shall not
be deemed to be a breach of this Agreement.

Section 8.3 Waiver of Court Pronouncement. Purchaser and Seller hereby waive the
provisions of Article 1266 of the Indonesian Civil Code to the extent it
requires a court pronouncement in respect of termination of this Agreement.

                                       51
<PAGE>

                                   ARTICLE IX
                                 INDEMNIFICATION

Section 9.1 Survival of Representations and Warranties; Effect of Investigation.
Each of the representations and warranties of the parties in this Agreement, the
Schedules hereto, the Disclosure Schedules, any certificate or other document
delivered pursuant to this Agreement or in any amendment of or supplement to the
foregoing shall survive the Closing Date and thereafter shall continue in force
until the date being the earlier of (i) the first day of the offering period
with respect to the initial public offering of the Company's shares and (ii) 9
December 2003 with respect to each other representation and warranty contained
herein, after which it shall be of no force or effect and, for the avoidance of
doubt, all notices claiming any breach of representation or warranty must be
received on or prior to such anniversaries.

Subject to Section 5.7, the right to indemnification under this Section 9.1 or
payment of Damages based on any representation or warranty of a party hereto
contained in or made pursuant to this Agreement shall not be affected by any
investigation conducted with respect to, or any knowledge acquired (or capable
of being acquired) at any time, whether before or after the execution and
delivery of this Agreement or the Closing Date, with respect to the accuracy or
inaccuracy of or compliance with, any such representation, warranty, covenant or
obligation.

Section 9.2 Indemnification and Payment of Damages by Seller. Seller shall
indemnify and hold harmless Purchaser for, and shall pay to Purchaser the amount
of, any and all Damages of Purchaser, arising from or in connection with:

(a)      any breach of any representation or warranty made by Seller in
         Article IV of this Agreement or in the certificate delivered by Seller
         pursuant to Section 7.2(c)(ii);or

(b)      any breach by Seller of any covenant, agreement or obligation of Seller
         under this Agreement.

                                       52
<PAGE>

Section 9.3 Indemnification and Payment of Damages by Purchaser. Purchaser shall
indemnify and hold harmless Seller, and shall pay to Seller the amount of, any
and all Damages of Seller, arising from or in connection with:

(a)      any breach of any representation or warranty made by Purchaser in
         Article V of this Agreement or in the certificate delivered by
         Purchaser pursuant to Section 7.3(b)(ii); or

(b)      any breach by Purchaser of any covenant, agreement or obligation of
         Purchaser under this Agreement.

Section 9.4 Limitations on Liability

(a)      Seller will have no liability (for indemnification, claims or
         otherwise) in respect of any breach of any representation or warranty
         made by Seller in Article IV of this Agreement or in the certificate
         delivered by Seller pursuant to Section 7.2(c)(ii) (other than the
         matters described in Sections 4.1, 4.2, 4.3, 4.6, 4.7, 4.8(b) and
         4.10):

         (i)      for any Excluded Claim; and

         (ii)     unless the total of Permitted Claims equals or exceeds in the
                  aggregate US$7,722,000 (or the equivalent thereof in any other
                  currency), in which case Seller shall be liable for all
                  Permitted Claims; provided that in no event shall Seller's
                  liability for Damages exceed the Purchase Price.

(b)      Notwithstanding the foregoing, the limits on the amount, type and scope
         of liability under this Article IX shall not apply to any fraudulent
         misrepresentation or any breach of the representations and warranties
         set forth in Sections 4.6 and 4.7.

(c)      In no event shall either party be liable to the other party for any
         consequential loss

                                       53
<PAGE>

         (including loss of profits or loss of opportunity) arising from any
         breach of this Agreement provided that, for the avoidance of doubt but
         subject to the provisions of this Section 9, this shall not limit in
         any way the ability of Purchaser to recover from Seller the actual
         diminution in value of the Sale Shares, as a result of or in connection
         with a breach of any representation or warranty given by Seller, below
         the value that the Sale Shares would have had in the absence of such a
         breach.

Section 9.5 Procedure for Indemnification - Third-Party Claims

The Indemnified party under Sections 9.2 or 9.3 (an "Indemnified Party") shall
give the indemnifying party under such Section (an "Indemnifying Party") prompt
notice of any third-party claim against the Indemnified Party that may give rise
to any indemnification obligation under this Article IX. Failure to give such
notice shall not affect the Indemnifying Party's obligations hereunder in the
absence of actual and material prejudice.

Section 9.6 Procedure for Indemnification - Other Claims. A claim for
indemnification for any matter not involving a third-party claim may be asserted
by notice to the party from whom indemnification is sought.

Section 9.7 Survival of Indemnification Claims. The indemnification obligations
set forth in this Article IX shall survive the Closing.

Section 9.8 Exclusive Remedy. The recovery of Damages pursuant to this Article
IX shall be the exclusive monetary remedy available to Purchaser and Seller for
any breaches of the representations and warranties herein other than for
fraudulent misrepresentation or intentional breach.

                                       54
<PAGE>

                                    ARTICLE X
                                  MISCELLANEOUS

Section 10.1 Fees and Expenses. All costs and expenses incurred in connection
with this Agreement and the consummation of the Transaction shall be paid by the
party incurring such expenses, including, without limitation, the fees and
expenses of its legal and financial advisors save for any indemnification
obligation under Article IX.

Section 10.2 Amendment and Modification. This Agreement may be amended, modified
and supplemented in any and all respects, but only by a written instrument
signed by all of the parties hereto expressly stating that such instrument is
intended to amend, modify or supplement this Agreement.

Section 10.3 Notices. Alt notices and other communications hereunder shall be in
writing and shall be deemed given when delivered personally. sent by facsimile
(which is confirmed) or sent by an overnight courier service to the parties at
the following addresses (or at such other address for a party as shall be
specified by such party by like notice):

if to Seller, to:

PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK

JI. Japati No. 1
Bandung 40133
Indonesia
Attention         : President Director
Facsimile         : (62 22)440-313

if to Purchaser, to:

SINGAPORE TELECOM MOBILE PTE LTD
31 Exeter Road, Comcentre,
Singapore 239732
Attention         : Chief Executive Officer
Facsimile         : (65) 6235 4855

Section 10.4 Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each of
the parties and delivered to the other parties.

                                       55
<PAGE>

Section 10.5 Entire Agreement; No Third Party Beneficiaries. This Agreement
(a) constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, between the parties with respect to the
subject matter hereof and (b) is not intended to confer any rights or remedies
upon any Person other than the parties hereto.

Section 10.6 Severability. Any term or provision of this Agreement that is held
by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction. If the final judgment of a court of competent
jurisdiction or other authority declares that any term or provision hereof is
invalid, void or unenforceable, the parties agree that the court making such
determination shall have the power to reduce the scope, duration, area or
applicability of the term or provision, to delete specific words or phrases, or
to replace any invalid, void or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision.

Section 10.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of Indonesia.

Section 10.8 Arbitration

(a)      Amicable Settlement. Purchaser and Seller agree that if any difference,
         dispute, conflict or controversy (a "Dispute"), arises out of or in
         connection with this Agreement or its performance, including without
         limitation any dispute regarding its existence, validity, termination
         of rights or obligations of any party hereto, the Purchaser and Seller
         will use all reasonable efforts for a period of thirty (30) days after
         the receipt by one party of a notice from the other party of the
         existence of the Dispute to settle the Dispute by mutual consultation
         between the parties.

                                       56
<PAGE>

(b)      Referral to Arbitration. If Purchaser and Seller are unable to reach
         agreement to settle the Dispute within the thirty-day period mentioned
         in Section 10.8(a), then either party may submit the Dispute to
         arbitration under the applicable rules of the International Chamber of
         Commerce (the "Rules") as at present in force. The arbitration will be
         conducted in the English language in London. Notwithstanding the
         provisions of Section 10.3, any notice of arbitration, response or
         other communication given to or by a party to the arbitration must be
         given and deemed received as provided in the Rules.

(c)      Procedures. The tribunal shall draw up and submit to the parties for
         signature, the terms of reference within 21 days of receiving the file.
         Each of the parties hereto hereby waives the applicability of Articles
         48(1) and 73(b) of Law No. 30 of 1999 on Arbitration and Alternative
         Dispute Resolution ("Arbitration Law 30") and agrees that the
         arbitration proceedings need not be completed within a specific period
         save as otherwise provided. The Board of Arbitration will consist of
         three arbitrators appointed in accordance with the Rules save that,
         unless the parties agree otherwise:

         (i)      the third arbitrator, who shall act as chairman of the
                  tribunal, shall be chosen by the two arbitrators appointed by
                  or on behalf of the parties. If he is not chosen and nominated
                  to the ICC for appointment within 30 days of the date of
                  confirmation by the ICC of the later of the two
                  party-appointed arbitrators to be confirmed, he shall be
                  chosen by the ICC; and

                                       57
<PAGE>

         (ii)     no arbitrator shall be the same nationality as any party.

(d)      Award a Condition Precedent to Suit. The making of a final award by the
         arbitral tribunal shall constitute a condition precedent to:

         (i)      the existence or the accrual of any right of action of
                  whatsoever nature (capable of being sued out in any manner
                  whatsoever in any court of competent jurisdiction); and

         (ii)     the institution or commencement of any action, suit or other
                  proceeding of whatsoever nature, type or form in any court of
                  competent jurisdiction, (in each such case) upon, or arising
                  out of, in connection with or relating to (in each such case,
                  in any manner whatsoever) this Agreement or any Dispute. No
                  such right of action or cause of action shall arise and no
                  action, suit or other proceedings shall be instituted or
                  commenced in any court of competent jurisdiction unless and
                  until (and only in the event that) a final award shall have
                  been made by the arbitral tribunal and only then for the
                  purposes of the enforcement of the arbitration award.

(e)      Award Binding. The award by the arbitral tribunal shall be final and
         binding on the parties and may be enforced in any court of competent
         jurisdiction including in Indonesia or elsewhere. Each of the parties
         expressly waives any laws and regulations, decrees or policies having
         the force of law which would otherwise give a right to appeal against
         the decision of the arbitral tribunal and agrees that, in accordance
         with Article 60 of Arbitration Law 30, none of the parties shall have
         any right to appeal the arbitration award and none of the parties shall
         otherwise dispute or question the arbitration award or any interim or
         other decision of the arbitrators

                                       58
<PAGE>

         before any judicial authority in the Republic of Indonesia. Each of the
         parties also hereby irrevocably waives the applicability of Articles
         48(1) and 73 paragraph (b) of the Arbitration Law 30 so that the
         mandate of the arbitrators duly constituted in accordance with the
         terms of this Agreement shall remain in effect until a final
         arbitration award has been issued by the arbitrators. Each of the
         parties further expressly agrees that Article 56(1) of the Arbitration
         Law 30 shall apply to the effect that the arbitrators shall be bound by
         strict rules of law in making their decisions and may not pronounce
         judgement on equitable principles and other considerations. The
         arbitral tribunal will be entitled to include in its decision a
         determination as to the payment of the costs and expenses of the
         arbitrators, the administrative costs of the arbitration, the legal
         fees incurred by the Parties, the costs and expenses of witnesses and
         all other costs and expenses necessarily incurred in the opinion of the
         arbitral tribunal in order to properly settle the Dispute.

(f)      Decision. Purchaser and Seller expressly agree (i) that the decisions
         must be made based on majority votes of the arbitrators, (ii) that the
         arbitral tribunal must state the reasons for its decisions in writing
         and must make the decisions entirely on the basis of applicable laws
         and not on the basis of the principle of ex aequo et bono, and (iii)
         that the mandate and jurisdiction of the arbitral tribunal duly
         constituted under this Agreement will remain in effect until a final
         award has been issued (including any corrections or interpretation of
         such award) by the arbitral tribunal.

Section 10.9 Extension; Waiver. At any time prior to the Closing Date, either
party may (a) extend the time for the performance of any of the obligations or
other acts of the other party, (b) waive any breach of the representations and
warranties of the other party contained in this Agreement or (c) waive
compliance by the other party with any of the

                                       59
<PAGE>

agreements or conditions contained in this Agreement. Any agreement on the part
of a party to any such extension or waiver shall be valid only if set forth in
writing signed by such parties. The failure of any party to this Agreement to
assert any of its rights under this Agreement or otherwise shall not constitute
a waiver of those rights.

Section 10.10 Assignment. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by either of the parties
hereto without the prior written consent of the other party, except that
Purchaser may assign, in its sole discretion, any or all of its rights and
interests hereunder to any direct or indirect wholly owned Subsidiary of
Purchaser. Subject to the preceding sentence, this Agreement shall be binding
upon, inure to the benefit of and be enforceable by the parties and their
respective successors and permitted assigns.

Section 10.11 Language. This Agreement is concluded in both Bahasa Indonesia and
English. In the event of any inconsistency or contradiction between the Bahasa
Indonesia and English texts, the Indonesian text shall prevail.

Section 10.12 Announcements. No announcement or circular in connection with the
existence or the subject matter of this Agreement shall be made or issued by or
on behalf of Seller or the Purchaser without the prior written approval of
Seller or the Purchaser (as the case may be). This shall not affect any
announcement or circular required by law or any regulatory body or the rules of
any recognised stock exchange but the party with an obligation to make an
announcement or issue a circular shall consult with the other party insofar as
is reasonably practicable before complying with such an obligation.

                                       60
<PAGE>

IN WITNESS WHEREOF, the duly authorized representatives of Seller and Purchaser
have executed this Agreement as of the date first written above.

PERUSAHAAN PERSEROAN (PERSERO)          SINGAPORE TELECOM MOBILE PTE LIMITED
PT TELEKOMUNIKASI INDONESIA TBK

                                        [STAMP]

BY /s/ Kristiono                        By /s/ Lee Shin Koi
   ------------------------------          ---------------------------------
Name: Kristiono                         Name: Lee Shin Koi
Title: Director                         Title: Attorney-in-Fact
       (Power of Attorney No.                  (Power of Attorney dated 27
       K.TEL.35/HK.510/UTA-00/02,              February 2002)
       dated 2 April 2002)

                                       61

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.7
<SEQUENCE>9
<FILENAME>u92256exv4w7.txt
<DESCRIPTION>EX-4.7 CONDITIONAL SALE & PURCHASE AGREEMENT
<TEXT>
<PAGE>
                                                                     Exhibit 4.7

                     CONDITIONAL SALE AND PURCHASE AGREEMENT

                                  BY AND AMONG

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                                  AS PURCHASER

                                       AND

                           PT PRAMINDO IKAT NUSANTARA

                                 AS THE COMPANY

                                       AND

                            (1) PT ASTRATEL NUSANTARA

                            (2) FRANCE CABLES ET RADIO

                       (3) PERUSAHAAN PERSEROAN (PERSERO)
                     PT INDONESIAN SATELLITE CORPORATION TBK

                            (4) MARUBENI CORPORATION

                      (5) INTERNATIONAL FINANCE CORPORATION

                          (6) NMP SINGAPORE PTE LIMITED

                           AS THE SELLING SHAREHOLDERS

              RELATING TO THE ACQUISITION OF 100% OF THE SHARES OF

                           PT PRAMINDO IKAT NUSANTARA

                           DATED AS OF APRIL 19, 2002

<PAGE>


                     CONDITIONAL SALE AND PURCHASE AGREEMENT

CONDITIONAL SALE AND PURCHASE AGREEMENT (this "AGREEMENT"), dated as of April
19, 2002, by and among PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI
INDONESIA TBK., a limited liability public state-owned company organized under
the laws of the Republic of Indonesia ("Purchaser"), PT ASTRATEL NUSANTARA a
limited liability company organized under the laws of the Republic of Indonesia
("Astraiel"), FRANCE CABLES ET RADIO, a company organized under the laws of
France ("FCR"), PERUSAHAAN PERSEROAN (PERSERO) PT INDONESIAN SATELLITE
CORPORATION TBK., a limited liability public state-owned company organized under
the laws of the Republic of Indonesia ("Indosat"), MARUBENI CORPORATION, a
company organized under the laws of Japan ("Marubeni"), INTERNATIONAL FINANCE
CORPORATION, an international organization established by Articles of Agreement
among its member countries ("IFC"), and NMP SINGAPORE PLE. LIMITED, a company
organized under the laws of Singapore ("NMP") (collectively Astratel, FCR,
Indosat, Marubeni, IFC and NMP, the "Selling Shareholders" and each a "Selling
Shareholder") and PT PRAMINDO IKAT NUSANTARA, a limited liability company
organized under the laws of the Republic of Indonesia (the "Company").

CAPITALIZED TERMS NOT OTHERWISE DEFINED HAVE THE MEANINGS ASSIGNED TO THEM IN
ARTICLE 1.

WHEREAS, the Selling Shareholders wish to sell to Purchaser and Purchaser wishes
to purchase from the Selling Shareholders eleven million four hundred forty six
thousand (11,446,000) Class A shares and three hundred fifty four thousand
(354,000) Class B shares, in aggregate amount eleven million eight hundred
thousand (11,800,000) ordinary shares of nominal value Rp.22,800 (US$10) per
share of the Company, representing 100% of the total issued and paid-up ordinary
shares of the Company, in three separate sale transactions in accordance with
the terms and conditions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, and intending to be legally bound hereby, the
parties hereto agree as follows:

                                        1
<PAGE>

                                   ARTICLE 1.
                         DEFINITIONS AND INTERPRETATION

Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise
expressly provided or unless the context clearly requires otherwise:

"FINANCIAL ESCROW AGENT" shall mean the offshore financial escrow, fiscal and
paying agent or the onshore financial escrow fiscal and paying agent, as
relevant, appointed under the Financial Escrow Agreement.

"INDONESIAN ESCROW AGENT" shall have the meaning assigned to such term in
Section 7.7.

"ACCOUNTANT" shall have the meaning assigned to such term in Section 4.1(b).

"SUBSIDIARY" shall mean, with respect to any Person, any corporation or other
organization, whether incorporated or unincorporated, (a) of which at least a
majority of the securities or other interests having by their terms ordinary
voting power to elect a majority of the Board of Directors or others performing
similar functions with respect to such corporation or other organization is
directly or indirectly owned or Controlled by such Person or by any one or more
of its Subsidiaries or (b) of which such Person or any other Subsidiary of such
Person is a general partner (excluding any such partnership where such Person or
any Subsidiary of such Person does not have a majority of the voting interest in
such partnership).

"DISPUTE AUDITOR" shall have the meaning assigned to such term in Section 4.4.

"GOVERNMENTAL ENTITY" shall mean any court, arbitral tribunal, administrative
agency or commission or other governmental or regulatory authority or agency of
any national, provincial, state or local government or any national, provincial,
state or local government.

"SELLING SHAREHOLDERS' INDEMNITY SHARE" shall mean the percentage basis on which
the Indemnifying Shareholders will indemnify Purchaser for any Damages and/or
Taxes pursuant to Section 10.2B, as follows: FCR 42.133%; Astratel 36.866%;
Indosat 13%; and Marubeni 8%.

                                        2
<PAGE>

"PRO RATA SHARE" shall mean with respect to each Selling Shareholder, the ratio
of the number of Sale Shares owned by such Selling Shareholder to the total
number of Sale Shares owned by all the Selling Shareholders in aggregate, at the
relevant time.

"EXCESS FUNDS" shall have the meaning assigned to such term in Section 7.7(f).

"UNITED STATES DOLLAR" and "US$" shall mean the lawful currency of the United
States of America.

"SHARE PLEDGES" shall mean the share pledges over the Sale Shares of each
Selling Shareholder other than IFC in favour of PT BNP Bank Lippo Indonesia, as
security agent, for the Existing IFC Loans and the irrevocable powers of
attorney to vote and to sell shares related to the share pledges.

"INTELLECTUAL PROPERTY" shall mean all intellectual property rights including
but not limited to trade marks, service marks, trade names, logos, patents,
inventions, registered and unregistered design rights, copyrights, trade
secrets, software rights, semi-conductor topography rights, database rights and
all other similar proprietary rights which may subsist in any part of the world
(including Know-how) including, where such rights are obtained or enhanced by
registration, any registration of such rights and applications and rights to
apply for such registrations.

"PURCHASE PRICE" shall mean the aggregate amount of the following:

(a)      in respect of the thirty (30) percent of the Sale Shares which will be
         sold by the Selling Shareholders on the Initial Closing:

         (i)      each Selling Shareholder's Pro Rata Share of the Initial
                  Payment (such amount for all Selling Shareholders being
                  US$9,263,953); and

         (ii)     the purchase price for each Selling Shareholder's Sale Shares
                  (x) set forth under such Selling Shareholder's name in
                  Schedule 7.6(b) (Series I Notes) opposite the column entitled
                  "Initial Sale Shares: 30%" evidenced by the Series I

                                        3
<PAGE>

                  Notes maturing on December 15, 2002, March 15, 2003 and June
                  15, 2003 (such amount for all Selling Shareholders being the
                  aggregate of US$105,185,711) and (y) in the amounts payable
                  under the Series II Notes issued to such Selling Shareholder
                  described in Schedule 7.6(b) (Series II Notes) and maturing on
                  September 15, 2002, and March 15, 2003, in each case in
                  accordance with their terms; and

(b)      in respect of the fifteen (15) percent of the Sale Shares which will be
         sold by the Selling Shareholders on the Interim Closing, the purchase
         price for each Selling Shareholder's Sale Shares (x) set forth under
         such Selling Shareholder's name in Schedule 7.6(b) (Series I Notes)
         opposite the column entitled "Interim Sale Shares: 15%" evidenced by
         the Series I Notes maturing on June 15, 2003, September 15, 2003 and
         December 15, 2003 (such amount for all Selling Shareholders being the
         aggregate of US$57,224,830), and (y) in the amounts payable under the
         Series II Notes issued to such Selling Shareholder described in
         Schedule 7.6(b) (Series II Notes) and maturing on September 15, 2003
         and March 15, 2004 in each case in accordance with their terms); and

(c)      in respect of the fifty five (55) percent of the Sale Shares which will
         be sold by the Selling Shareholders on the Subsequent Closing, the
         purchase price for each Selling Shareholder's Sale Shares set forth
         under such Selling Shareholder's name in Schedule 7.6(b) (Series I
         Notes) opposite the column entitled "Subsequent Sale Shares: 55%"
         evidenced by Series I Notes maturing on December 15, 2003, March 15,
         2004, June 15, 2004, September 15, 2004 and December 15, 2004 (such
         amount for all Selling Shareholders being the aggregate of
         US$209,824,378), and (y) in the amounts payable under the Series II
         Notes issued to such Selling Shareholder described in Schedule 7.6(b)
         (Series II Notes) and maturing on June 15, 2004, September

                                        4
<PAGE>

         15, 2004 and December 15, 2004 in each case in accordance with their
         terms).

The Purchase Price will be paid in the manner contemplated in Sections 3.8 and
7.6 and in the Financial Escrow Agreement.

"BUSINESS DAY" shall mean any day, other than a Saturday or Sunday, on which
banks in Jakarta are open for business.

"REAL PROPERTIES" shall mean all real properties that are owned, occupied or
used by the Company or that are reflected as an asset of the Company on the
Balance Sheet and "REAL PROPERTY" shall mean any of them.

"ENVIRONMENTAL LAWS" means the laws and regulations of Indonesia (including but
not limited to Law No. 23 of 1997 and its implementing regulations) and all
ministerial decrees, regulation instructions and letters issued pursuant to such
laws and regulations providing for:

(a)      the protection of, and/or prevention of harm or damage to, the
         Environment and/or the provision of remedies or compensation for harm
         or damage to the Environment;

(b)      health and safety matters (including, without limitation, Laws relating
         to workers and public or consumer health and safety).

"INDEBTEDNESS" shall mean (i) all indebtedness for borrowed money or for the
deferred purchase price of property or services (other than trade liabilities
incurred in the ordinary course of business and payable in accordance with
customary practices), (ii) any other indebtedness that is evidenced by a note,
bond, debenture or similar instrument, (iii) all obligations under financing
leases, (iv) all obligations in respect of acceptances issued or created, (v)
all liabilities secured by any lien on any property, (vi) all guarantee,
financial support, keepwell and other similar obligations and (vii) any other
liabilities (actual, contingent or otherwise).

                                        5
<PAGE>

"EXCESS LIABILITIES" shall have the meaning assigned to such term in Section
4.8(b)(ii).

"VOTING DEBT" shall mean with respect to any Person indebtedness having the
right to vote at a General Meeting of Shareholders of such Person or to appoint
or nominate directors and debt convertible into securities having such rights.

"EXCLUSIVITY PERIOD" shall mean the period beginning on the date hereof and
ending on the earlier of the Subsequent Closing and 31 December 2005.

"WHT COLLAR AMOUNT" shall have the meaning assigned to such term in Section
7.6(j).

"MONTHLY AMOUNT" shall have the meaning assigned to such term in Section 7.6(a).

"SHAREHOLDER BALANCE AMOUNT" shall mean, from time to time, with respect to each
Selling Shareholder, such Selling Shareholder's Pro Rata Share of the then
outstanding and unpaid portion of the Purchase Price (excluding such Selling
Shareholder's Pro Rata Share of the Initial Payment and, for the avoidance of
doubt, excluding such Selling Shareholder's Pro Rata Share of the Net Working
Capital Reimbursement), the initial amount of which is the aggregate of (i) the
amount set forth opposite such Selling Shareholder's name in Schedule 2.1 under
the column "Shareholder Balance Amounts", the payment obligation of which will
be evidenced by the Series I Notes, and (ii) the amount payable on the Series II
Notes, in each case in accordance with their respective terms.

"TERMINATED PERSONNEL" shall have the meaning assigned to such term in Section
7.5(a).

"SECONDED FCR PERSONNEL" shall have the meaning assigned to such term in Section
7.5(b).

"FAILURE TO REMEDY A MATERIAL DEFAULT" shall have the meaning assigned to such
term in the Shareholders' Voting Agreement.

"CONTROL" shall mean with respect to any Person, the power to direct or to cause
the direction of the business and affairs of such Person or the power to

                                        6
<PAGE>

elect or appoint a majority of the board of directors (or other body performing
similar functions) of such Person, whether through the ownership of voting
securities, by contract or otherwise.

"DAMAGES" shall mean, collectively, any loss, liability, claim, damage, expense
(including costs of investigation and defense and reasonable attorney's fees) or
diminution of value, whether or not involving a third party claim, actually
suffered or incurred by a Person.

"KNOW-HOW" shall mean confidential industrial and commercial information and
techniques in any form (including paper, electronically or optically stored
data, magnetic media, film and microfilm) including without limitation drawings,
test results, reports, project reports and testing procedures, instruction and
training manuals, tables of operating conditions, market forecasts, lists and
particulars of customers and suppliers.

"CONTRACT CONSULTANTS" shall have the meaning assigned to such term in Section
4.2.

"CONTRACTS" shall have the meaning assigned to such term in Section 5.23(a).

"DISCLOSURE SCHEDULE" shall mean the disclosure schedule to be prepared and
signed by (i) each Selling Shareholder in relation to the disclosures being made
by such Selling Shareholder, (ii) FCR and Astratel on behalf of all Selling
Shareholders (except IFC and NMP) in relation to the disclosures being made by
the Selling Shareholders (except IFC and NMP) with respect to the Company, and
(iii) the Company in relation to the disclosures being made by itself; and
delivered by the Company to Purchaser pursuant to Section 8.2B(i).

"FINANCIAL STATEMENTS" shall mean the balance sheet of the Company as of 31
December 2001 together with the related statements of income, changes in
shareholders' equity and cash flows for the fiscal year then ended, including
the notes thereto, all audited by Siddharta Siddharta & Harsono (a member firm
of KPMG), independent certified public accountants, whose reports thereon are
included therein.

"MANAGEMENT REPORTS" shall mean the management reports of the Company prepared
since the Balance Sheet Date as attached to the Disclosure Schedule.

                                        7
<PAGE>

"TAX RETURN" shall mean any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any such document
prepared on a consolidated, combined or unitary basis, and also including any
schedule or attachment thereto, and including any amendment thereof.

"LIBOR" means:

(a)      the London interbank offer rate per annum (on the basis of a 360-day
         year) shown on the Telerate Page 3750 (or such other page as may
         replace Telerate Page 3750 on such service) as "British Bankers
         Association Interest Settlement Rate" in US Dollars (LIBOR) for three
         months, at 11:00 a.m. (London time) on the due date for payment; or

(b)      in respect of each of the Series II Notes, the London interbank offer
         rate per annum (on the basis of a 360-day year) shown on the Telerate
         Page 3750 (or such other page as may replace Telerate Page 3750 on such
         service) as "British Bankers Association Interest Settlement Rate" in
         US Dollars (LIBOR) for three months or six months, as the case may be,
         at 11:00 a.m. (London time) on the first date of the period in respect
         of which interest is calculated under each such Note.

"ENVIRONMENT" means a unity of space with all objects, capacities, conditions
and living creatures, including human beings and their behaviour, which will
affect the sustainability of life and welfare of human beings and other living
creatures, as defined under the Indonesian Environmental Law No. 23 of 1997.

"THREATENED" shall mean a claim, Proceeding, dispute, action, or other matter
which, if any demand, statement or notice has been made or given in writing or
if any other event has occurred or any other circumstances exist with respect
thereto, would lead a prudent person to conclude that such a claim, Proceeding,
dispute, action, or other matter is likely to be asserted, commenced, taken, or
otherwise pursued in the future.

"WORKING CAPITAL" shall mean with respect to the Company, (1) all of the current
assets of the Company minus (2) all accounts payable and other liabilities

                                        8
<PAGE>

whether absolute, contingent, accrued or otherwise and including any off-balance
sheet liabilities and accrued interest and other amounts (excluding principal)
owing under the Existing IFC Loans but excluding deferred tax liabilities.

"FINAL ADJUSTED WORKING CAPITAL OF THE COMPANY" shall have the meaning assigned
to such term in Section 4.2.

"PROFORMA ADJUSTED WORKING CAPITAL OF THE COMPANY" shall have the meaning
assigned to such term in Section 4.1(d).

"BALANCE SHEET" shall mean the most recent audited balance sheet of the Company
included in the Financial Statements.

"FINAL CLOSING BALANCE SHEET" shall have the meaning assigned to such term in
Section 4.2.

"PROFORMA CLOSING BALANCE SHEET" shall have the meaning assigned to such term in
Section 4.1(b).

"TAX" OR "TAXES" shall mean all taxes, charges, fees, duties, levies, penalties
or other assessments of whatever nature imposed by any Governmental Entity
including income, capital gains, value added, receipts, fringe benefits,
franchise, withholding, employee, payroll, social security, stamp, transfer or
similar taxes, and all interest, fines, charges, penalties or additions with
respect thereto or attributable to any failure to comply with any requirement
regarding Taxes or Tax Returns.

"MAJORITY SHAREHOLDERS" shall mean (i) for the purposes of Article 4 of this
Agreement, Astratel and FCR acting jointly and (ii) for any other provision of
this Agreement those Selling Shareholders holding in aggregate 61% or more of
the Sale Shares held by the Selling Shareholders at the relevant time, acting
jointly.

"INDEMNIFYING SHAREHOLDERS" shall mean each of FCR, Astratel, Indosat and
Marubeni (and shall exclude IFC and NMP).

"DEFAULTING SHAREHOLDER" shall have the meaning assigned to such term in Section
2.9.

"INITIAL PAYMENT" shall mean the sum of US$9,263,953, being an initial payment
of the

                                        9
<PAGE>

Purchase Price to be paid by Purchaser on the Share Pledge Release Date.

"QUARTERLY PAYMENT" shall mean the amount payable on a Payment Date pursuant to
Section 7.6(b).

"ENCUMBRANCES" shall mean any and all encumbrances, liens, fiducia, security
interests, options, claims, mortgages, hak tanggungan, hak gadai, hak agunan,
pledges, proxies, voting agreements, obligations, understandings or arrangements
or other restrictions on title or transfer of any nature whatsoever.

"PURCHASER" shall have the meaning assigned to such term in the preamble.

"SECOND NOTICE" shall have the meaning assigned to such term in Section 4.1(a).

"FIRST NOTICE" shall have the meaning assigned to such term in Section 4.1(a).

"SELLING SHAREHOLDER" shall have the meaning assigned to such term in the
preamble.

"REGISTERED HOLDER" shall have the meaning assigned to such term in Section
3.8(c).

"COUNSEL" means in respect of Indonesian legal counsel, (i) Lubis Ganie
Surowidjojo or Ali Budiardjo, Nugroho, Reksodiputro or (ii) other Indonesian
legal counsel selected by a Selling Shareholder and reasonably satisfactory to
Purchaser and in respect of foreign legal counsel, legal counsel selected by a
Selling Shareholder and reasonably satisfactory to Purchaser.

"PURCHASER OPINION" shall have the meaning assigned to such term in Section
3.3(c).

"SELLING SHAREHOLDER OPINIONS" shall have the meaning assigned to such term in
Section 3.2(h).

"NET WORKING CAPITAL REIMBURSEMENT" shall mean the aggregate amount payable by
Purchaser to the Selling Shareholders, as such term is defined in Section 4.6(a)
as adjusted in accordance with Section 4.8.

"KSO WAIVER" shall have the meaning assigned to such term in Section 3.12(b).

                                       10
<PAGE>

"COMPANY WAIVER" shall have the meaning assigned to such term in Section
3.12(a).

"KNOWLEDGE" of any Selling Shareholder shall mean the knowledge of such Selling
Shareholder, including each of the officers, directors and commissioners of such
Selling Shareholder, which in each case is actually known; and, in addition,
with respect to each Selling Shareholder, "Knowledge" concerning a particular
subject, area or aspect of the Company's business or affairs shall mean the
knowledge of the commissioners and directors of the Company such Selling
Shareholder has nominated under the Joint Venture Agreement.

"CLOSING" shall mean, as the context may require, any one of or all of the
Initial Closing, the Interim Closing and the Subsequent Closing.

"INITIAL CLOSING" shall mean the closing referred to in Section 3.1(a).

"INTERIM CLOSING" shall mean the closing referred to in Section 3.l(b).

"SUBSEQUENT CLOSING" shall mean the closing referred to in Section 3.1(c).

"ICC RULES" shall have the meaning assigned to such term in Section 11.8(b).


"AGREEMENT" shall mean this Conditional Sale and Purchase Agreement, together
with the Schedules and Exhibits hereto and the Disclosure Schedule.

"INDONESIAN ESCROW AGREEMENT" shall mean the document substantially in the form
attached as Exhibit G.

"FINANCIAL ESCROW AGREEMENT" shall mean the document substantially in the form
attached as Exhibit F.

"SECURITY AGREEMENTS" shall mean the Financial Escrow Agreement, the
Shareholders' Voting Agreement, the Indonesian Escrow Agreement and each power
of attorney given by the parties hereto under the Shareholders' Voting
Agreement.

"CONFIDENTIALITY AGREEMENT" shall mean a letter agreement, dated February 21,
2002 between Purchaser and the Company, relating to information to be furnished
by the Company to Purchaser in

                                       11
<PAGE>

connection with the Transactions and attached as Exhibit B.

"KSO AGREEMENT" means the KSO Agreement for the joint operating scheme in the
Regional Division I Sumatera telecommunications operating area, dated October
20, 1995 No. PKS. 221/K.810/UTA.00/95, between Purchaser and the Company and the
"KSO Construction Agreement", as amended, as such term is defined in the KSO
Agreement.

"MATERIAL AGREEMENT" shall mean, with respect to any Person, any material
license, material contract, material agreement or material instrument or
obligation to which such Person is a party or by which such Person or any of
such Person's properties or assets may be bound, and in addition with respect to
the Company, any Indebtedness in the principal amount of US$250,000 or more or
which requires total payments equal to or in excess of such sum, any lease of
real or personal property calling for annual payments in excess of US$250,000
per annum.

"SHAREHOLDERS' VOTING AGREEMENT" shall mean the document substantially in the
form attached as Exhibit E.

"PURCHASER LOAN AGREEMENT" shall mean a document substantially in the form
attached as Exhibit H.

"JOINT VENTURE AGREEMENT" shall have the meaning assigned to such term in
Section 2.7.

"DISPUTE" shall have the meaning assigned to such term in Section 11.8(a).

"COMPANY" shall have the meaning assigned to such term in the preamble.

"CONSENT" shall mean, with respect to any Governmental Entity or any other
Person, any approval, consent, ratification, permit, license, waiver or other
authorization of, filing with, or notice to such Governmental Entity or other
Person, as the case may be.

"REQUIRED COMPANY CONSENTS" shall have the meaning assigned to such term in
Section 5.9.

"PERSON" shall mean a natural person, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, Governmental Entity or other entity or organization.

                                       12
<PAGE>

"RELATED PERSON" shall have the meaning assigned to such term in Section
5.28(a).

"INDEMNIFYING PARTY" shall have the meaning assigned to such term in Section
10.4(a).

"INDEMNIFIED PARTY" shall have the meaning assigned to such term in Section
10.4(a).

"EXISTING IFC LOANS" shall mean the loans made by IFC to the Company on the
terms and conditions set forth with respect to such loans in the IFC Investment
Agreement dated July 29, 1996 between the Company and IFC, the Common Terms
Agreement dated July 29, 1996 among the Company, IFC and certain financial
institutions and any amendments thereto, as more fully described in Schedule
1.1.

"PURCHASER LOAN" shall have the meaning assigned to such term in Section 2.4.

"NON-COLLECTIBLE RECEIVABLES" shall have the meaning assigned to such term in
Section 4.8(d)(i).

"PLAN" shall mean each deferred compensation, incentive compensation, stock
purchase, stock option and other equity compensation plan, program, agreement or
arrangement, each severance or termination pay, medical, surgical,
hospitalization, life insurance and other plan, and each profit-sharing, bonus
or pension or retirement or annuity plan, fund or program as stipulated under
Indonesian Manpower law and relevant regulations including but not limited to
Law No. 3 of 1992 regarding the Employee Social Security Program (Jamsosiek),
Law No. 11 of 1992 regarding Pension Fund, and Decree of the Minister of
Manpower No. Kep-150/Men/2000 regarding the Settlement of Termination of
Employment and the Determination of Severance Pay, Service Pay and Compensation
in a Company; in each case, that is sponsored, maintained or contributed to or
required to be contributed to by the Company or to which the Company is party,
whether written or oral, for the benefit of any director, officer, commissioner,
employee or former employee of the Company.

"ACQUISITION PROPOSAL" shall mean any proposal or offer made by any Person other
than Purchaser or any Subsidiary of Purchaser to acquire all or a substantial
part of the business or properties of the Company or the Sale Shares, whether by
merger, lender offer,

                                       13
<PAGE>

exchange offer, sale of assets or similar transactions involving the Company or
any division or operating or principal business unit of the Company.

"PROCEEDING" shall mean any action, arbitration, audit, hearing, litigation,
suit, inquiry, proceeding or investigation (whether civil, criminal,
administrative, investigative or informal) commenced, brought, conducted or
heard by or before, or otherwise involving, any Governmental Entity or
arbitrator.

"GAAP" shall mean generally accepted accounting principles, applied
consistently, in the Republic of Indonesia established by the Indonesian
Accounting Association as in effect at the relevant time.

"STANDBY ACCOUNT" shall have the meaning assigned to such term in Section
7.6(f).

"FINANCIAL ESCROW ACCOUNT" shall have the meaning assigned to such term in
Section 7.6(a).

"INDONESIAN FINANCIAL ESCROW ACCOUNT" shall have the meaning assigned to such
term in Section 7.7(d).

"INDONESIAN SHARE ESCROW ACCOUNT" shall have the meaning assigned to such term
in Section 7.7(a).

"RUPIAH" and "Rp." shall mean the lawful currency of the Republic of Indonesia.

"EVENT OF REPAYMENT" shall have the meaning assigned to such term in Section
3.11.

"SHARES" shall mean me Class A and Class B ordinary shares of nominal value
Rp.22,800 (US$10) per share of the Company.

"SALE SHARES" shall mean eleven million four hundred forty six thousand
(11,446,000) Class A shares and three hundred fifty four thousand (354,000)
Class B shares, in aggregate amount eleven million eight hundred thousand
(11,800,000) Shares (subject to adjustment to reflect share splits, reverse
share splits, share dividends or equivalent changes to the capital stock of the
Company), representing, in the aggregate, 100% of the issued and paid-up Shares,
the number of Sale Shares set forth opposite such Selling Shareholder's name on
Schedule 2.1 under the column entitled "Total No. of Shares".

                                       14
<PAGE>

"TRANSFER CERTIFICATE" shall have the meaning assigned to such term in Section
3.8(c).

"LEASE" shall mean each lease pursuant to which the Company leases any real or
personal property.

"SPV" has the meaning assigned to such term in Section 2.9(i)(A).

"POWER OF ATTORNEY TO VOTE" shall mean a power of attorney from a party hereto,
as required by and substantially in the form attached to the Shareholders'
Voting Agreement.

"NOTE" shall have the meaning assigned to such term in Section 3.8(c).

"BALANCE SHEET DATE" shall mean the date of the Balance Sheet.

"CLOSING BALANCE SHEET DATE" shall have the meaning assigned to such term in
Section 4.1(b).

"PAYMENT DATE" shall mean each date set out in Schedule 7.6(b) other than any
such date that falls after the date that all obligations of Purchaser to pay the
Purchase Price and the Net Working Capital Reimbursement have been satisfied in
full; provided that, in each case, if such date is not a Business Day, then the
"Payment Date" shall mean the next succeeding Business Day (for the purpose of
this definition a "Business Day" shall have the meaning assigned to such term in
the Financial Escrow Agreement.)

"CALL DATE" shall mean the date on which Purchaser has, pursuant to the
Financial Escrow Agreement, called and paid all outstanding Notes and thereby
extinguished the obligation to pay the Shareholder Balance Amounts.

"RELEASE DATE" shall have the meaning assigned to such term in Section 4.8(a).

"SHARE PLEDGE RELEASE DATE" shall mean the date on which the Share Pledges are
released fully and unconditionally by PT BNP Bank Lippo Indonesia upon repayment
of all amounts of principal, interest and other amounts payable under or in
respect of the IFC Investment Agreement and the Common Terms Agreement -
currently anticipated to be on 15 September 2002.

                                       15
<PAGE>

"INITIAL SALE SHARES TRANSFER DATE" means the date being the earlier of:

(a)      the date of full payment by Purchaser to the Selling Shareholders of
         the Net Working Capital Reimbursement if ninety (90) percent or more of
         the Company's current assets, as at the Initial Closing Date, were
         represented by cash and/or realisable cash equivalents and/or accounts
         receivable from the KSO Unit as certified by Accountant pursuant to
         Article 4; and

(b)      ninety (90) days after the Initial Closing Date if Jess than ninety
         (90) percent of the Company's current assets, as at the Initial Closing
         Date, were represented by cash and/or realisable cash equivalents
         and/or accounts receivable from the KSO Unit as certified by Accountant
         pursuant to Article 4.

"FINAL DISCLOSURE DATE" shall have the meaning assigned to such term in Section
8.2B(i).

"CLOSING DATE" shall mean, as the context may require, any one of or all of the
Initial Closing Date, the Interim Closing Date and the Subsequent Closing Date.

"INITIAL CLOSING DATE" shall mean the date and time at which the Initial Closing
actually occurs.

"INTERIM CLOSING DATE" shall mean the date and time at which the Interim Closing
actually occurs.

"SUBSEQUENT CLOSING DATE" shall mean the date and time at which the Subsequent
Closing actually occurs.

"PERMITTED PREPARATORY ACTIONS" shall mean the actions taken by the Company
prior to the Initial Closing Date to reduce its workforce, dispose of vehicles
and office equipment, terminate certain commercial, residential and other rental
arrangements and otherwise minimize the Company's day to day administrative
activities.

"SBI RATE" means the rate for three (3) month Certificate of Bank Indonesia
(Sertifikat Bank Indonesia-SBI) ("3M SBI") based on the last monthly auction
("3M SBI RATE") which appears on the Reuters Screen at 11 a.m. (Jakarta time) on
the due date for payment.

                                       16
<PAGE>

"TRANSACTIONS" shall mean the purchase by Purchaser and sale and transfer by the
Selling Shareholders of the Sale Shares and the performance by each of the
parties hereto of their other respective obligations under this Agreement, and
the agreements contemplated hereunder, including to the Security Agreements and
the Purchaser Loan Agreement.

"KSO UNIT" shall mean the co-operative organization responsible for the
management and operation of the KSO system for Regional Division I Sumatera
telecommunications operating area pursuant to the KSO Agreement.

Section 1.2 Interpretation.

(a)      When a reference is made in this Agreement to a Section, Article,
         Schedule or Exhibit, such reference shall be to a Section or Article of
         this Agreement or to a Schedule or an Exhibit to this Agreement unless
         otherwise clearly indicated to the contrary.

(b)      Whenever the words "include", "includes" or "including" are used in
         this Agreement they shall be deemed to be followed by the words
         "without limitation".

(c)      The words "hereof", "herein" and "herewith" and words of similar import
         shall, unless otherwise stated, be construed to refer to this Agreement
         as a whole and not to any particular provision of this Agreement.

(d)      The meaning assigned to each term defined herein shall be equally
         applicable to both the singular and the plural forms of such term,
         and words denoting any gender shall include all genders. Where a word
         or phrase is defined herein, each of its other grammatical forms shall
         have a corresponding meaning.

(e)      A reference to any party to this Agreement or any other agreement or
         document shall include such party's successors and permitted assigns.

(f)      A reference to any legislation or to any provision of any legislation
         as of a particular date shall mean as of such date and any

                                       17
<PAGE>
         amendment to, and any modification or re-enactment thereof, any
         legislative provision substituted therefor and all regulations and
         statutory instruments issued thereunder or pursuant hereto.

(g)      As used in this Agreement, any reference to a document in the "agreed
         form" means a document in a form approved and, for the purposes of
         identification, initialed by or on behalf of each party hereto.

(h)      As used in this Agreement, any reference to any event, change or effect
         being material or having a material adverse effect on or with respect
         to any entity (or group of entities taken as a whole) means such event,
         change or effect that is materially adverse 10 (i) the prospects,
         financial condition, businesses or results of operations of such entity
         as a whole (or, if used with respect thereto, of such group of entities
         taken as a whole), or (ii) the ability of such entity (or group) to
         consummate the Transactions.

(i)      Except for IFC, NMP and Indosat, the panics have participated jointly
         in the negotiation of this Agreement. In the event an ambiguity or
         question of intent or interpretation arises, no presumption or burden
         of proof shall arise favoring or disfavoring any parry by virtue of the
         authorship of any provisions of this Agreement.

(j)      The section and paragraph headings contained in this Agreement are for
         reference purposes only and shall not affect in any way the meaning or
         interpretation of this Agreement.

(k)      Unless otherwise specifically provided for, whenever the word
         "several" is used herein with respect to a Selling Shareholder, it
         shall mean several in proportion to the percentage of the total Sale
         Shares applicable to such Selling Shareholder.

                                       18
<PAGE>

                                   ARTICLE 2.
    PURCHASE AND SALE OF THE SALE SHARES AND REPAYMENT OF EXISTING IFC LOANS

Section 2.1 Sale and Transfer of Sale Shares. In consideration of the Purchase
Price and the Net Working Capita] Reimbursement and subject to the terms and on
the conditions set forth in this Agreement:

(a)      at the Initial Closing each Selling Shareholder, other than IFC, shall
         contemporaneously sell, convey, assign, transfer and deliver to
         Purchaser all rights to thirty (30) percent of such Selling
         Shareholder's Sale Shares being that number of Sale Shares set forth
         opposite such Selling Shareholder's name in the column entitled "30%
         Initial Closing/No. of Shares" in Schedule 2.1, and, on the Share
         Pledge Release Date, IFC shall contemporaneously sell, convey, assign,
         transfer and deliver to Purchaser all rights 10 thirty (30) percent of
         IFC's Sale Shares being that number of Sale Shares set forth opposite
         IFC's name in the column entitled "30% Initial Closing/No. of Shares"
         in Schedule 2.1;

(b)      at the Interim Closing each Selling Shareholder shall contemporaneously
         sell, convey, assign, transfer and deliver to Purchaser fifteen (15)
         percent of such Selling Shareholder's Sale Shares being that number of
         Sale Shares set forth opposite such Selling Shareholder's name in the
         column entitled "15% Interim Closing/No. of Shares" in Schedule 2.1;
         and

(c)      at the Subsequent Closing each Selling Shareholder shall
         contemporaneously sell, convey, assign, transfer and deliver to
         Purchaser fifty-five (55) percent of such Selling Shareholder's Sale
         Shares being that number of Sale Shares set forth opposite such Selling
         Shareholder's name in the column entitled "55% Subsequent Closing/No.
         of Shares" in Schedule 2.1,

                                       19
<PAGE>

subject to Sections 2.3 and 3.9 and the articles of association of the Company,
with full legal title, free and clear of all Encumbrances and all other
limitations and restrictions (including any restriction on the right to vote,
sell or otherwise dispose of such Shareholder Sale Shares) and with all voting,
distribution and other rights attaching thereto as of and from each Closing
Date.

Section 2.2 The Purchase Price and Net Working Capital Reimbursement. Subject to
the terms and on the conditions set forth in this Agreement, in consideration of
the aforesaid sale, conveyance, assignment, transfer and delivery to Purchaser
of the Sale Shares, Purchaser shall pay or cause to be paid:

(a)      to each Selling Shareholder its Pro Rala Share of the Initial Payment
         in accordance with Section 3.8(a);

(b)      to each Selling Shareholder its Pro Rata Share of the Net Working
         Capital Reimbursement in accordance with Section 4.8; and

(c)      to each Selling Shareholder, the Shareholder Balance Amount of such
         Selling Shareholder, as evidenced by the Notes issued by the Purchaser
         to such Selling Shareholder (provided that, to the extent such Selling
         Shareholder has transferred some or all of the Notes issued to it by
         Purchaser, the Purchaser shall pay or cause to be paid to each
         Registered Holder of such transferred Notes the Shareholder Balance
         Amount evidenced by such Notes, thereby reducing the Shareholder
         Balance Amount payable to such Selling Shareholder by an amount equal
         to the amount paid against any such Notes (such amount to include
         permitted deductions or withholdings for tax, if any)), in accordance
         with Sections 3.8(b) and 7.6.

Section 2.3 Existing Pledges. The Sale Shares (other than those owned by IFC)
are subject to the Share Pledges and such Share Pledges shall only be released
upon the Share Pledge Release Date.

                                       20
<PAGE>

Section 2.4 Purchaser Loans. Purchaser shall provide to the Company the loans
specified in Section 2.6 on the terms set out in the Purchaser Loan Agreement
("Purchaser Loan") for the express purpose of enabling the Company to prepay the
Existing IFC Loans and to fund Purchaser's obligation to pay the Net Working
Capital Reimbursement.

Section 2.5 Powers of Attorney on Share Pledge Release Date. On the later of (i)
the Initial Sale Shares Transfer Date and (ii) Share Pledge Release Date,
Purchaser shall deliver a Power of Attorney to Vote to each Selling Shareholder
relating to thirty (30) percent of such Selling Shareholder's Sale Shares being
that number of Sale Shares set forth opposite such Selling Shareholder's name in
the column entitled "30% Initial Closing/No, of Shares" in Schedule 2.1, duly
executed and delivered by the Purchaser.

Section 2.6 Repayment of Existing IFC Loans.

(a)      The parties hereto shall take all reasonable steps to ensure that:

         (i)      all principal, interest and other amounts payable under the
                  IFC Investment Agreement and the Common Terms Agreement with
                  respect to the Existing IFC A and B Loans are fully prepaid at
                  the Initial Closing; and

         (ii)     the Share Pledge Release Date occurs no later than September
                  15, 2002,

         and that, subject to paragraph (c) below, all available funds of the
         Company, including for the avoidance of doubt, the Purchaser Loans, and
         other funds of the Company that would otherwise be available for use
         directly or indirectly towards funding Purchaser's obligation to pay
         the Net Working Capital Reimbursement but other than an amount of
         Rupiah 5,000,000,000 (five billion) to meet the Company's liabilities
         accrued on or before the Initial Closing Date and operating expenses,
         shall be made available for the foregoing purposes. The parties hereto
         further agree that if all principal, interest and other amounts payable
         under the IFC Investment Agreement and the Common

                                       21
<PAGE>
         Terms Agreement with respect to such Existing IFC Loans are not fully
         prepaid and paid on such dates, Purchaser shall have no obligation to
         provide any funds in addition to the Purchaser Loans to ensure the
         payment and prepayment of all amounts payable under and in respect of
         the IFC Investment Agreement and the Common Terms Agreement in respect
         of such Existing IFC Loans.

(b)      Pursuant to the Purchaser Loan Agreement, Purchaser shall lend to the
         Company and the Company shall borrow:

         (i)      the sum set out in Part A of Schedule 2.6 on the date set out
                  in Part A of Schedule 2.6 ("Tranche A"); and

         (ii)     the sums set out in Part B of Schedule 2.6 on the date set out
                  in Part B of Schedule 2.6 ("Tranche B"),

         and such sums shall be unsecured obligations of the Company and
         subordinated to the Company's obligations to pay all amounts payable
         under and in respect of the IFC Investment Agreement and the Common
         Terms Agreement with respect to the Existing IFC Loans.

(c)      The Company shall:

         (i)      (A) utilise Tranche A of the Purchaser Loan solely for the
                  purposes of partially paying and prepaying the principal,
                  accrued interest and all other amounts payable under the IFC
                  Investment Agreement and the Common Terms Agreement in respect
                  of the Existing IFC A Loan and Existing IFC B Loan, and (B)
                  ensure that it has sufficient additional funds as may be
                  required to pay and prepay the balance of amounts payable
                  under the IFC Investment Agreement and the Common Terms
                  Agreement in respect of the Existing IFC A Loan and the
                  Existing IFC B Loan, in

                                       22

<PAGE>
                  each case on the Initial Closing Date in accordance with the
                  terms of the IFC Investment Agreement and the Common Terms
                  Agreement; and

         (ii)     utilise Tranche B of the Purchaser Loan prior to any other
                  utilisation thereof, to the extent required to pay and prepay
                  all principal, accrued interest and all other amounts payable
                  under the IFC Investment Agreement and the Common Terms
                  Agreement in respect of the Existing IFC C Loan and to fund
                  the Purchaser's obligation to pay the Net Working Capital
                  Reimbursement no later than September 15, 2002, and otherwise
                  in accordance with the terms of the IFC Investment Agreement
                  and the Common Terms Agreement.

(d)      The Company shall pay interest on and shall repay the Purchaser Loans
         to Purchaser in accordance with the Purchaser Loan Agreement. Payments
         and repayments to Purchaser in respect of the Purchaser Loans shall be
         subordinated to payments and prepayments by the Company in respect of
         the Existing IFC Loans, and such subordination shall be provided for in
         the Purchaser Loan Agreement.

(e)      The parties hereto agree by way of a direction to pay issued by the
         Company to Purchaser, that the amount of the Purchaser Loans required
         to be applied as provided in Sections 2.6(c)(i)(A) and 2.6(c)(ii)
         shall, on drawdown, which shall be no later than the respective dates
         for payment and repayment to IFC specified in Sections 2.6(c)(i) and
         2.6(c)(ii), be paid directly by Purchaser in US Dollars, on behalf of
         the Company to IFC at account no. 10215220300, CHIPS ID 142255, ABA
         026001122, Northern Trust International Banking Corporation, New York,
         New York, USA for payment and

                                       23

<PAGE>

         repayment of the Existing IFC Loans as provided hereinabove in this
         Section 2.6.

Section 2.7 Waiver of Pre-emptive Rights. Each of the Selling Shareholders
hereby irrevocably waives all its rights of first refusal and preemptive rights
under the Company's articles of association, and, in the case of Astratel, FCR,
Indosat, Marubeni and NMP, consents to and waives any and all similar rights
under the joint venture agreement between Astratel, FCR, Indosat, Marubeni and
NMP dated October 17, 1995 (as amended, the "Joint Venture Agreement"), with
respect to the transfer of the Sale Shares contemplated under the Transactions
(and for the avoidance of doubt, Purchaser shall not be required to become a
party to the Joint Venture Agreement).

Section 2.8 Company Law. The parties hereto agree that the Transactions are
being conducted pursuant to Article 103(6) of the, Law No. 1 of 1995 concerning
Limited Liability Company and its implementing regulations (Indonesian Company
Law).

Section 2.9 Insolvency of Selling Shareholder. If after the Initial Closing but
prior to or on the Subsequent Closing any Selling Shareholder (other than IFC
which, by its nature as an international organization, is not susceptible to the
actions and conditions described in Sections 2.9(a), 2.9(b) and 2.9(c)) (the
"Defaulting Shareholder"):

(a)      files a voluntary petition for bankruptcy under any applicable law or
         enters into a suspension of payment, composition with its creditors,
         administration or other arrangement under any applicable law or an
         order for the receivership or bankruptcy of the Defaulting Shareholder
         is made and is not discharged, dismissed or permanently stayed within
         45 days of being made; or

(b)      any curator, receiver or liquidator or similar officer, is appointed
         whether by a competent court or pursuant to a shareholder resolution of
         the Defaulting Shareholder (other than pursuant to a voluntary
         reorganization) in respect of the Defaulting Shareholder or over

                                       24

<PAGE>

         all or substantially all of its assets; or

(c)      any corporate action or other steps are taken by the Defaulting
         Shareholder for the bankruptcy, liquidation, winding-up, or dissolution
         of the Defaulting Shareholder or for the appointment of a curator,
         liquidator or receiver or similar officer of the Defaulting Shareholder
         or over any of its assets or revenues,

then during the term of this Agreement, notwithstanding that any Notes,
evidencing its Shareholder Balance Amount, remain outstanding:

(i)      Purchaser shall be entitled to:

         (A)      demand an immediate transfer of all the Defaulting
                  Shareholder's Sale Shares to a special purpose vehicle
                  established for the purpose of holding such Sale Shares in
                  trust for the benefit of the non-Defaulting Shareholders or to
                  such other entity (including Purchaser) if agreed by all of
                  the non-Defaulting Shareholders or such other arrangement as
                  reasonably agreed by the Purchaser and the non-Defaulting
                  Shareholders (any of such entities or arrangements the "SPV").
                  All decisions relating to such Defaulting Shareholder's Sale
                  Shares shall be made by those non-Defaulting Shareholders
                  holding a simple majority of the aggregate Sale Shares owned
                  by all of the non-Defaulting Shareholders (the "Majority
                  Non-Defaulting Shareholders"). If the transfer occurs prior to
                  the Interim Closing Date, on the Interim Closing Date the
                  Majority Non-Defaulting Shareholders shall use their best
                  efforts to cause the number of Sale Shares set forth opposite
                  such Defaulting Shareholder's name in Schedule 2.1 under
                  the column entitled "15% Interim Closing/No. of Shares" to be
                  transferred to Purchaser, and the remaining Defaulting
                  Shareholder's Sale Shares shall be held under such trust or
                  other arrangement (as agreed by such parties) until all of the
                  Notes,

                                       25

<PAGE>

                  the Initial Payment and the Net Working Capital Reimbursement
                  shall have been paid by Purchaser in accordance with this
                  Agreement and the Financial Escrow Agreement. Upon all such
                  amounts being paid by Purchaser in accordance with this
                  Agreement and the Financial Escrow Agreement the Majority
                  Non-Defaulting Shareholders shall use their best efforts to
                  cause the remaining Defaulting Shareholder's Sale Shares to be
                  transferred to Purchaser;

         (B)      utilize the power of attorney of each Selling Shareholder in
                  article IX of the Indonesian Escrow Agreement to obtain all
                  necessary approvals for and to effect all such transfers of
                  all or a portion of the Defaulting Shareholder's Sale Shares
                  as contemplated in paragraph (A) above; and

         (C)      issue relevant notices to the Indonesian Escrow Agent pursuant
                  to the Indonesian Escrow Agreement to permit the directors and
                  commissioners of the Company to amend the Company's register
                  of shareholders and endorse for transfer or issue share
                  certificates to reflect the transfers of the Defaulting
                  Shareholder's Sale Shares contemplated in paragraph (A) above;
                  and

(ii)     Purchaser shall, in the event of the transfer of the relevant portion
         of the Defaulting Shareholder's Sale Shares on the Interim Closing Date
         to Purchaser (if applicable), issue to the non-Defaulting Shareholders
         a Power of Attorney to Vote in respect of the Defaulting Shareholder's
         Sale Shares

                                       26

<PAGE>

         (conditional or unconditional as the case may be required in accordance
         with the intent of the Shareholders' Voting Agreement);

(iii)    the Majority Non-Defaulting Shareholders shall in the event of the
         transfer of the Defaulting Shareholder's Sale Shares to the SPV prior
         to the issuance of a Notice of Cancellation under (and as defined in)
         the Shareholders' Voting Agreement, cause the SPV to issue to the
         Purchaser a Power of Attorney to Vote in respect of the Defaulting
         Shareholder's Sale Shares held by the SPV in accordance with the intent
         of the Shareholders' Voting Agreement;

(iv)     the other parties hereto shall perform any further acts and execute and
         deliver any further documents and instruments and do or refrain from
         doing all such further acts and things as may from time to time
         reasonably be requested by Purchaser to carry out effectively or better
         evidence or perfect the true spirit, intent, meaning and purpose of
         this Section 2.9;

(v)      all reasonable costs and expenses (including reasonable attorneys fees)
         shall be borne by the Defaulting Shareholder or in the event of the
         failure of the Defaulting Shareholder to pay such fees within 30 days
         after a request therefor each party hereto shall pay its own costs and
         expenses provided that Purchaser shall pay the incorporation fees of
         the SPV, if any.

Section 2.10 Failure of Certain Conditions Precedent. If as a result of the
condition precedent in Section 8.1 (a) not being satisfied prior to or on the
Interim Closing and/or the Subsequent Closing, such Closing cannot occur:

(a)      subject as provided in proviso (ii) in this Section 2.10(a) the Selling
         Shareholder in respect of whose obligations such condition precedent
         was not fulfilled shall nevertheless deliver to Purchaser all
         instruments, deeds, notices, agreements, certificates and other
         documents required to be delivered on such

                                       27

<PAGE>

         Closing, duly executed by such Selling Shareholder and/or any other
         relevant Person provided that (i) Purchaser shall not be entitled to
         execute the deed of transfer (akta pemindahan hak atas saham) of such
         Selling Shareholder's Sale Shares to be transferred at such Closing if
         doing so would result in a breach of any statute, rule or regulation or
         any order, writ or injunction of a court of competent jurisdiction
         prohibiting the consummation of such Closing and (ii) no Selling
         Shareholder shall be required to take any action under this paragraph
         (a) that would in its reasonable opinion result in a breach of any
         statute, rule or regulation or any order, writ or injunction of a court
         of competent jurisdiction;

(b)      Purchaser shall be entitled to deliver a notice to the Indonesian
         Escrow Agent notifying the Indonesian Escrow Agent to hold such Selling
         Shareholder's Sale Shares to be transferred on such Closing for the
         account and at the direction of Purchaser; and

(c)      the Selling Shareholder in respect of whose obligations such condition
         precedent was not fulfilled shall not take any action or do any thing
         that might otherwise affect the rights of Purchaser to such Selling
         Shareholder's Sale Shares to be transferred at such Closing and shall
         do all matters, acts or things reasonably required by Purchaser either
         for Purchaser to obtain title to such Sale Shares and/or for such Sale
         Shares to be transferred to a Person, including any offshore trust,
         designated by Purchaser.

Section 2.11 No Closing. If notwithstanding any action taken to complete a
Closing pursuant to Sections 2.9, 2.10, 3.4 or 3.6, any relevant transfer of
Sale Shares to Purchaser required under this Agreement on either the Interim
Closing or Subsequent Closing has not occurred on or before the date scheduled
for the Subsequent Closing, then:

                                       28

<PAGE>

(x)      provided the Initial Payment, the Net Working Capital Reimbursement and
         the Notes (and any and all accrued and unpaid interest on any of the
         foregoing) shall have been paid by Purchaser in accordance with this
         Agreement, the Indonesian Escrow Agreement, the Financial Escrow
         Agreement and their respective terms (and provided such payments are
         not the subject of an arbitral dispute in accordance with the terms of
         any of such agreements or the Notes); or

(y)      provided the Initial Payment and the Net Working Capital Reimbursement
         (and any and all accrued and unpaid interest on any of the foregoing)
         shall have been paid by Purchaser in accordance with this Agreement and
         the Indonesian Escrow Agreement (and such payments are not the subject
         of an arbitral dispute in accordance with the terms of any of such
         agreements), and all of the then outstanding Notes have been purchased
         and are held by the Company,

Purchaser shall, in its sole discretion, be entitled to amend, effect an early
expiration of or terminate the KSO Agreement pursuant to the terms of the
Shareholders' Voting Agreement to effect the transfer, for Rupiah one hundred
(100), of any and all of the Company's rights, title and interests in all New
Installations (as defined in the KSO Agreement) and all and any other assets and
installations, work in progress, inventories, equipment, materials, plans and
data (whether or not related to Additional New Installations (as defined in the
KSO Agreement)) in respect of the KSO arrangements under the KSO Agreement on
the date of early expiration of or termination of the KSO Agreement to the
Purchaser in the manner and in accordance with terms as if the KSO Agreement had
expired (as such terms may be mutually amended by the Company and the
Purchaser).

Each of the Selling Shareholders that is a shareholder of the Company at that
time and the Company undertakes to cooperate fully and, to the extent permitted
by law, to do all matters, acts and things to give effect to the provisions of
this Section 2.11 and the corresponding provisions under the Shareholders'
Voting Agreement.

                                       29

<PAGE>

Upon the occurrence of all of the following:

(a)      any such Selling Shareholder, or its nominated members to the boards of
         directors and commissioners of the Company, shall in the absence of
         good faith, prevent, hinder or challenge the right of Purchaser to give
         effect in a timely manner to the terms of this Section 2.11 and the
         corresponding provisions under the Shareholders' Voting Agreement;

(b)      such Selling Shareholder's Sale Shares were not transferred to
         Purchaser in accordance with the terms hereof otherwise than as a
         result of a material breach by Purchaser prior to the relevant Closing;
         and

(c)      the KSO Agreement has not been so amended or terminated as a result of
         such prevention, hindrance, or challenge by such Selling Shareholder,

such Selling Shareholder shall upon demand, but in any event within ninety (90)
days pay to Purchaser the amount of the Purchase Price paid to such Selling
Shareholder for such Selling Shareholders' Sale Shares that were not so
transferred.

For the avoidance of doubt such Selling Shareholder shall not be required to pay
such amount to Purchaser in the event the KSO Agreement has been amended,
terminated or has expired in accordance with this Section 2.11 and the
Shareholders' Voting Agreement.

                                   ARTICLE 3.
                       CLOSING; PAYMENT OF PURCHASE PRICE

Section 3.1 The Closing. Each Closing of the sale and transfer of the Sale
Shares by the Selling Shareholders to Purchaser shall take place at the offices
of Hadiputranto, Hadinoto & Partners at The Jakarta Stock Exchange Building,
Tower II, 21st Floor, JI. Jend. Sudirman Kav. 52-53, Jakarta 12190 at 10:00
a.m. local time, or at such other place and time as may be agreed by the parties
hereto. The parties hereto agree that:

                                       30

<PAGE>

(a)      the Initial Closing shall occur on 1 August 2002;

(b)      the Interim Closing shall occur on the earlier of (i) the Call Date and
         (ii) 30 September 2003; and

(c)      the Subsequent Closing shall occur on the earliest of (i) the Call
         Date, (ii) 31 December 2004 and (iii) the date being thirty (30) days
         after the Company acquires all of the then outstanding Notes as
         envisaged in Section 3.13,

in each case if not a Business Day, then the following Business Day, or at such
other dates as may be agreed by the parties hereto, provided that:

(i)      in respect of the Interim Closing which is not the Call Date, Purchaser
         shall have paid the Net Working Capital Reimbursement, the Initial
         Payment and, in accordance with their terms, all Notes evidencing the
         Purchase Price for the Sale Shares to be transferred on the Interim
         Closing which are due and payable on or before the Interim Closing
         (such Notes being the Series I Notes with Payment Dates of June 15,
         2003 and September 15, 2003 and Series II Notes with Payment Date of
         September 15, 2003); and

(ii)     in respect of the Subsequent Closing which is not the Call Date or
         occurs otherwise than as a result of the Company holding all the then
         outstanding Notes, the Purchaser shall have paid the Net Working
         Capital Reimbursement, the Initial Payment and in accordance with their
         terms all Notes evidencing the Purchase Price for the Sale Shares to be
         transferred on (a) the Interim Closing which were due and payable after
         the Interim Closing Date (such Notes being Series I Notes with Payment
         Date of December 15, 2003 and Series II Notes with Payment Date of
         March 15, 2004) and (b) the Subsequent Closing which are due and
         payable on or before the Subsequent Closing (such Notes being the
         Series I Notes with Payment Dates of December 15, 2003, March 15, 2004,
         June 15, 2004, September 15, 2004 and December 15, 2004 and Series II
         Notes with Payment Dates of June 15, 2004, September 15, 2004 and
         December 15, 2004).

                                       31

<PAGE>

Section 3.2 Deliveries by the Selling Shareholders on the Initial Closing. On
the Initial Closing, each Selling Shareholder (or as otherwise provided herein)
shall deliver to Purchaser:

(a)      except in the case of IFC, a deed or other instrument acknowledging the
         completion of the Initial Closing and certifying that all rights to
         such Selling Shareholder's Sale Shares to be transferred on the Initial
         Closing pursuant to Section 2.1(a) available for transfer under and
         subject to the relevant Share Pledges, including all voting rights and
         economic rights, on the Initial Closing have been transferred to
         Purchaser;

(b)      a copy of the resolutions of the Board of Commissioners or the Board of
         Directors, as the case may be, and the minutes of the General Meeting
         of Shareholders of such Selling Shareholder (or, as applicable,
         evidence of such other corporate approvals as are required to be
         obtained by such Selling Shareholder) authorizing such Selling
         Shareholder's execution and delivery of this Agreement and the
         consummation of the Transactions contemplated on or before the
         Subsequent Closing and such other documents evidencing such authority
         as Purchaser may reasonably request;

(c)      a copy of each of the Consents with respect to such Selling Shareholder
         referred to in Section 8.2A(g) (including, without limitation, those
         set forth in Schedule 5.4), if any;

(d)      (to be delivered by FCR and Astratel on behalf of the Selling
         Shareholders) a copy of each of the Required Company Consents;

(e)      a certificate dated the Initial Closing Date and executed by such
         Selling Shareholder to the effect that (i) each of such Selling
         Shareholder's representations and warranties in this Agreement that is
         qualified as to materiality is true and correct in all respects and
         each of such Selling Shareholder's

                                       32

<PAGE>
         representations and warranties that is not so qualified is true and
         correct in all material respects, in each case as of the date such
         representations and warranties are first given and as of the Initial
         Closing Date and (ii) such Selling Shareholder has performed all
         obligations required to be performed by it under this Agreement on or
         prior to the Initial Closing Date;

(f)      except in the case of IFC, a certificate dated the Initial Closing Date
         and executed by such Selling Shareholder to the effect that as of the
         Initial Closing Date the Company has no bank debt except as set forth
         on Schedule 1.1;

(g)      (to be delivered by FCR and Astratel on behalf of the Selling
         Shareholders) a certificate setting forth the names of each of the
         directors and commissioners, nominated and serving as a member of the
         Board of Directors and Board of Commissioners of the Company by the
         Selling Shareholders pursuant to the Joint Venture Agreement, being
         directors and commissioners resigning as of the Initial Closing;

(h)      (A) in the case of FCR, the opinion of Indonesian Counsel to FCR and
         French Counsel to FCR each dated the Initial Closing Date and addressed
         to Purchaser, substantially in the form set forth in Exhibit I.

         (B) in the case of Marubeni, the opinion of Indonesian Counsel to
         Marubeni and Japanese Counsel to Marubeni each dated the Initial
         Closing Date and addressed to Purchaser, substantially in the form set
         forth in Exhibit I.

         (C) in the case of IFC, the opinion of Indonesian Counsel to IFC dated
         the Initial Closing Date and addressed to Purchaser, substantially in
         the form set forth in Exhibit I, and a certificate dated the Initial
         Closing Date signed by IFC's secretary confirming the authority of
         IFC's signatory hereto to sign and thereby bind IFC.

                                       33

<PAGE>


         (D) in the case of NMP, the opinion of Indonesian Counsel to NMP and
         Singaporean Counsel to NMP each dated the Initial Closing Date and
         addressed to Purchaser, substantially in the form set forth in Exhibit
         I.

         (E) in the case of Astratel, the opinion of Indonesian Counsel to
         Astratel, dated the Initial Closing Date and addressed to Purchaser
         substantially in the form set forth in Exhibit I.

         (F) in the case of Indosat, the opinion of Indonesian Counsel to
         Indosat, dated the Initial Closing Date and addressed to Purchaser
         substantially in the form set forth in Exhibit I,

         (each of the aforementioned opinions of counsel are collectively
         referred to as "Selling Shareholder Opinions");

(i)      (to be delivered by FCR and Astratel on behalf of the Selling
         Shareholders) complete and accurate copies of documentation evidencing
         each Existing IFC Loan;

(j)      the KSO Waiver, duly executed and delivered by such Selling
         Shareholder;

(k)      the Company Waiver, duly executed and delivered by the Company and by
         such Selling Shareholder;

(l)      the Shareholders' Voting Agreement, duly executed and delivered by such
         Selling Shareholder and the Company;

(m)      the Financial Escrow Agreement duly executed and delivered by the
         Selling Shareholders and the Financial Escrow Agent;

                                       34

<PAGE>

(n)      the Indonesian Escrow Agreement duly executed and delivered by the
         Selling Shareholders and the Indonesian Escrow Agent;

(o)      (to be delivered by FCR and Astratel on behalf of the Selling
         Shareholders) the Purchaser Loan Agreement duly executed and delivered
         by the Company;

(p)      minutes of a shareholders' meeting or circular resolutions of the
         Company (i) accepting the resignations of the existing members of the
         board of directors and board of commissioners of the Company, (ii)
         appointing such persons as Purchaser may nominate to such boards, (iii)
         adopting a new set of articles of association of the Company
         substantially in the form of Exhibit K and (iv) authorising signatory
         changes to the bank accounts of the Company and approving new
         signatories nominated by Purchaser;

(q)      evidence of the partial or full repayment of the Existing IFC A and B
         Loans by the Company utilising cash on hand (such evidence to be in the
         form of bank transfer instructions, or such other evidence reasonably
         satisfactory to the Purchaser, evidencing the payment of such amounts);

(r)      (to be delivered by FCR and Astratel on behalf of the Selling
         Shareholders) all of the minute books, corporate and financial records
         and files and all other documents, contracts, correspondence, and
         materials related to the Company and all bank statements and check
         books related to any and all bank accounts of the Company (provided
         that if any minutes, correspondence or records contain confidential or
         sensitive information relating to Purchaser and/or the KSO Agreement
         either such materials do not have to be provided or sanitised copies
         thereof may be provided);

(s)      a Power of Attorney to Vote relating to all of such Selling
         Shareholder's Sale Shares not sold on Initial Closing duly executed and
         delivered by such Selling Shareholder provided, however, in the case of
         IFC's Power of Attorney to Vote the attorney shall be entitled to
         attend a meeting but not

                                       35

<PAGE>

         exercise the right to vote; and

(t)      in respect of a Selling Shareholder domiciled outside of Indonesia
         except IFC, such Selling Shareholder shall deliver (i) a certified copy
         of a certificate of domicile from the relevant Government Entity in the
         jurisdiction of its tax domicile and (ii) an original certificate
         signed by such Selling Shareholder certifying that such Selling
         Shareholder has no permanent establishment in Indonesia (as such term
         is interpreted under applicable Indonesian tax laws).

Any statement contained in any certificate delivered by or on behalf of a
Selling Shareholder at the Initial Closing shall constitute a representation and
warranty by such Selling Shareholder under this Agreement.

The foregoing obligations are for the sole benefit of Purchaser, and may be
waived by Purchaser, in whole or in part, at any time or from time to time, in
the sole discretion of Purchaser. The failure by Purchaser to exercise any of
the foregoing rights shall not be deemed a waiver of any such right and each
such right shall be deemed an ongoing right which may be asserted at any time
and from time to time prior to or on the Initial Closing.

Section 3.3 Deliveries by Purchaser on the Initial Closing. On the Initial
Closing, Purchaser shall deliver to each Selling Shareholder:

(a)      a copy of the authorization of Purchaser's Board of Commissioners, if
         required, and the minutes of the General Meeting of Shareholders of
         Purchaser authorizing Purchaser's execution and delivery of this
         Agreement and the Purchaser Loan Agreement and the consummation of the
         Transactions contemplated on or before the Subsequent Closing and such
         other documents evidencing such authority as the Selling Shareholders
         or any of them shall reasonably request;

                                       36

<PAGE>

(b)      a certificate dated the Initial Closing Date and executed by Purchaser
         to the effect that (i) each of Purchaser's representations and
         warranties in this Agreement that is qualified as to materiality is
         true and correct in all respects and each of the Purchaser's
         representations and warranties that is not so qualified is true and
         complete in all material respects, in each case as of the date the
         representations and warranties are first given and as of the Initial
         Closing Date and (ii) Purchaser has performed all obligations required
         to be performed by it under this Agreement on or prior to the Initial
         Closing Date;

(c)      the opinion of Hadiputranto, Hadinoto & Partners, Indonesian legal
         counsel to Purchaser, dated the Initial Closing Date and addressed to
         each of the Selling Shareholders substantially in the form set forth in
         Exhibit J and reasonably satisfactory to the Majority Selling
         Shareholders ("Purchaser Opinion");

(d)      a copy of each of the Consents referred to in Section 8.3(d)
         (including, without limitation, those set forth in Schedule 6.4);

(e)      Notes evidencing Purchaser's obligation to pay each Selling
         Shareholder's Shareholder Balance Amount;

(f)      a KSO Waiver duly executed by Purchaser;

(g)      the Shareholders' Voting Agreement, duly executed and delivered by
         Purchaser;

(h)      the Financial Escrow Agreement duly executed and delivered by Purchaser
         and the Indonesian Escrow Agent and the Financial Escrow Agent;

(i)      the Indonesian Escrow Agreement duly executed and delivered by
         Purchaser and the Indonesian Escrow Agent and the Financial Escrow
         Agent; and

(j)      the Purchaser Loan Agreement duly executed and delivered by Purchaser
         and evidence of

                                       37

<PAGE>

         the advance by Purchaser to the Company of the loan envisaged under
         Section 2.6(b)(i) by way of payment directly to IFC as envisaged under
         Section 2.6(e).

Any statement contained in any certificate delivered by or on behalf of
Purchaser at the Initial Closing shall constitute a representation and warranty
by Purchaser under this Agreement.

The foregoing obligations are for the sole benefit of the Selling Shareholders,
and may be waived by each Selling Shareholder on its behalf in respect of the
sale of its Sale Shares, in whole or in part, at any time or from time to time,
in the sole discretion of each Selling Shareholder. The failure by any Selling
Shareholder to exercise any of the foregoing rights shall not be deemed a waiver
of any such right and each such right shall be deemed an ongoing right which may
be asserted at any time and from time to time on or prior to the Initial
Closing.

Section 3.4 Deliveries by the Selling Shareholders on the Interim Closing. At
the Interim Closing, each Selling Shareholder shall deliver to Purchaser:

(a)      a notice to the Indonesian Escrow Agent as required under the
         Indonesian Escrow Agreement certifying that the Interim Closing has
         occurred and directing that certificates representing such Selling
         Shareholder's Sale Shares being transferred on the Interim Closing be
         held for the account of Purchaser, together with all documents
         necessary: (i) to effect the transfer of title to such Sale Shares to
         Purchaser (including a duly executed deed of share transfer (akta
         pemindahan hak atas saham)) and (ii) to effect registration of such
         Sale Shares in Purchaser's name in the Company's register of
         shareholders;

(b)      to the extent not previously delivered to Purchaser, a copy of each of
         the Consents with respect to such Selling Shareholder referred to in
         Section 8.2A(g) (including, without limitation, those set forth in
         Schedule 5.4), if any and any other Consents required for the Interim
         Closing;

                                       38

<PAGE>

(c)      a certificate dated the Interim Closing Date and executed by such
         Selling Shareholder to the effect that (i) each of such Selling
         Shareholder's representations and warranties in this Agreement
         applicable to the Interim Closing that is qualified as to materiality
         is true and correct in all respects and each of such Selling
         Shareholder's representations and warranties applicable to the Interim
         Closing that is not so qualified is true and correct in all material
         respects as of the Interim Closing Date and (ii) such Selling
         Shareholder has performed all obligations required to be performed by
         it under this Agreement on or prior to the Interim Closing Date;

(d)      a certificate dated the Interim Closing Date and executed by such
         Selling Shareholder confirming that it has received confirmation from
         the Financial Escrow Agent that its Pro Rata Share of the Purchase
         Price payable on or before the Interim Closing has been paid for the
         Sale Shares transferred at the Interim Closing;

(e)      the issuance of updated Selling Shareholder Opinions dated the date of
         the Interim Closing; and

(f)      a Power of Attorney to Vote from each Selling Shareholder to Purchaser
         relating to the remaining Sale Shares owned by such Selling
         Shareholder, duly executed and delivered by each such Selling
         Shareholder provided, however, in the case of IFC's Power of Attorney
         to Vote the attorney shall be entitled to attend a meeting but not
         exercise the right to vote.

Any statement contained in any certificate delivered by or on behalf of such
Selling Shareholder at the Interim Closing shall constitute a representation and
warranty by such Selling Shareholder under this Agreement.

The foregoing obligations are for the sole benefit of Purchaser, and may be
waived by Purchaser, in whole or in part, at any time or from time to time, in
the sole discretion of Purchaser and Purchaser shall be

                                       39

<PAGE>

entitled to utilise the power of attorney granted by the Selling Shareholders in
the Indonesian Escrow Agreement to effect the Interim Closing. The failure by
Purchaser at any time to exercise any of the foregoing rights shall not be
deemed a waiver of any such right and each such right shall be deemed an ongoing
right which may be asserted at any time and from time to time.

Section 3.5 Deliveries by Purchaser on the Interim Closing. At the Interim
Closing, Purchaser shall deliver to each Selling Shareholder:

(a)      a certificate dated the Interim Closing Date and executed by Purchaser
         to the effect that (i) each of Purchaser's representations and
         warranties in this Agreement applicable to the Interim Closing that is
         qualified as to materiality is true and correct in all respects and
         each of Purchaser's representations and warranties applicable to the
         Interim Closing that is not so qualified is true and complete in all
         material respects as of the Interim Closing Date and (ii) Purchaser has
         performed all obligations required to be performed by it under this
         Agreement on or prior to the Interim Closing Date;

(b)      to the extent not previously delivered to the Selling Shareholders, a
         copy of each of the Consents referred to in Section 8.3(d) (including,
         without limitation, those set forth in Schedule 6.4) and any other
         Consents required for the Interim Closing;

(c)      to the extent not previously delivered to the Selling Shareholders, a
         copy of each of the Required Company Consents and any other Consents
         required for the Interim Closing;

(d)      the issuance of an updated Purchaser Opinion dated the date of the
         Interim Closing;

(e)      each Power of Attorney to Vote delivered to Purchaser pursuant to
         Section 3.2(s) on the Initial Closing Date, to the relevant Selling
         Shareholder for cancellation; and

                                       40

<PAGE>

(f)      a Power of Attorney to Vote to each Selling Shareholder relating to
         fifteen (15) percent of such Selling Shareholder's Sale Shares being
         that number of Sale Shares set forth opposite such Selling
         Shareholder's name in the column entitled "15% Interim Closing/No. of
         Shares" in Schedule 2.1, duly executed and delivered by the Purchaser.

Any statement contained in any certificate delivered by or on behalf of
Purchaser at the Interim Closing shall constitute a representation and warranty
by Purchaser under this Agreement.

The foregoing obligations are for the sole benefit of the Selling Shareholders,
and may be waived by each Selling Shareholder in respect of the sale of its Sale
Shares, in whole or in part, at any time or from time to time, in the sole
discretion of such Selling Shareholder prior to or on the Interim Closing. The
failure by any Selling Shareholder to exercise any of the foregoing rights shall
not be deemed a waiver of any such right and each such right shall be deemed an
ongoing right which may be asserted at any time and from time to time prior to
or on the Interim Closing. Notwithstanding the foregoing, if any Selling
Shareholder shall fail to attend (whether by a duly authorised representative or
attorney or otherwise) the Interim Closing to effect the transactions
contemplated on the Interim Closing, the Interim Closing may proceed without
such Selling Shareholder and the deliveries by Purchaser shall be deemed to have
been waived in respect of such Selling Shareholder.

Section 3.6 Deliveries by the Selling Shareholders on the Subsequent Closing. At
the Subsequent Closing, each Selling Shareholder shall deliver to Purchaser:

(a)      a notice to the Indonesian Escrow Agent as required under the
         Indonesian Escrow Agreement certifying that the Subsequent Closing has
         occurred and directing that all certificates representing such Selling
         Shareholder's Sale Shares being transferred on the Subsequent Closing
         and the Company's register of shareholders be released, together with
         all documents necessary: (i) to effect the transfer of title to

                                       41

<PAGE>

         such Sale Shares to Purchaser or Purchaser's designee (including a duly
         executed deed of share transfer (akta pemindahan hak atas saham)) and
         (ii) to effect registration of such Sale Shares in Purchaser's name in
         the Company's register of shareholders; -

(b)      to the extent not previously delivered to Purchaser, a copy of each of
         the Consents with respect to such Selling Shareholder referred to in
         Section 8.2A(g) (including, without limitation, those set forth in
         Schedule 5.4), if any and any other Consents required for the
         Subsequent Closing;

(c)      a certificate dated the Subsequent Closing Date and executed by such
         Selling Shareholder to the effect that (i) each of such Selling
         Shareholder's representations and warranties in this Agreement
         applicable to the Subsequent Closing that is qualified as to
         materiality is true and correct in all respects and each of such
         Selling Shareholder's representations and warranties applicable to the
         Subsequent Closing that is not so qualified is true and correct in all
         material respects, as of the Subsequent Closing Date and (ii) such
         Selling Shareholder has performed all obligations required to be
         performed by it under this Agreement on or prior to the Subsequent
         Closing Date;

(d)      a certificate dated the Subsequent Closing Date and executed by such
         Selling Shareholder confirming that it has received confirmation from
         the Financial Escrow Agent that its Pro Rata Share of the Purchase
         Price payable on or before the Subsequent Closing has been paid for the
         Sale Shares transferred at the Subsequent Closing;

(e)      a termination of the Shareholders' Voting Agreement duly signed and
         delivered by each Selling Shareholder;

(f)      the issuance of updated Selling Shareholder Opinions dated the date of
         the Subsequent Closing;

                                       42

<PAGE>

(g)      a KSO Waiver, duly executed and delivered by such Selling Shareholder;

(h)      the Company Waiver, duly executed and delivered by such Selling
         Shareholder;

(i)      each Power of Attorney to Vote delivered by Purchaser pursuant to
         Section 2.5, the Shareholders' Voting Agreement and/or Section 3.5(f)
         on the Interim Closing Date, to Purchaser for cancellation; and

(j)      any documents relating to the Company not provided to Purchaser on the
         Initial Closing pursuant to Section 3.2(r).

Any statement contained in any certificate delivered by or on behalf of such
Selling Shareholder at the Subsequent Closing shall constitute a representation
and warranty by such Selling Shareholder under this Agreement.

The foregoing obligations are for the sole benefit of Purchaser, and may be
waived by Purchaser, in whole or in part, at any time or from time to time, in
the sole discretion of Purchaser and Purchaser shall be entitled to utilise the
power of attorney granted by the Selling Shareholders in the Indonesian Escrow
Agreement to effect the Subsequent Closing. The failure by Purchaser at any
time to exercise any of the foregoing rights shall not be deemed a waiver of any
such right and each such right shall be deemed an ongoing right which may be
asserted at any time and from time to time.

Section 3.7 Deliveries by Purchaser on the Subsequent Closing. At the Subsequent
Closing, Purchaser shall deliver to each Selling Shareholder:

(a)      a certificate dated the Subsequent Closing Date and executed by
         Purchaser to the effect that (i) each of Purchaser's representations
         and warranties in this Agreement applicable to the Subsequent Closing
         that is qualified as to materiality is true and correct in all respects
         and each of Purchaser's representations and warranties applicable to
         the Subsequent Closing that is not so qualified is true and complete in
         all material respects as of the Subsequent Closing Date and (ii)
         Purchaser has performed all obligations required to be performed by it

                                       43

<PAGE>

         under this Agreement on or prior to the Subsequent Closing Date;

(b)      to the extent not previously delivered to the Selling Shareholders, a
         copy of each of the Consents referred to in Section 8.3(b) (including,
         without limitation, those set forth in Schedule 6.4) and any other
         Consents required for the Subsequent Closing;

(c)      a copy of each of the Required Company Consents and any other Consents
         required for the Subsequent Closing;

(d)      a termination of the Shareholders' Voting Agreement duly signed and
         delivered by Purchaser and the Company;

(e)      the issuance of Purchaser Opinion dated the date of the Subsequent
         Closing;

(f)      a KSO Waiver duly executed by Purchaser;

(g)      the Company Waiver, duly executed by the Company and Purchaser; and

(h)      each Power of Attorney to Vote delivered to the Purchaser pursuant to
         Section 3.4(f) and/or the Shareholders' Voting Agreement on the Interim
         Closing Date, to the respective Selling Shareholder for cancellation.

Any statement contained in any certificate delivered by or on behalf of
Purchaser at the Subsequent Closing shall constitute a representation and
warranty by Purchaser under this Agreement.

The foregoing obligations are for the sole benefit of the Selling Shareholders,
and may be waived by each Selling Shareholder in respect of the sale of its Sale
Shares, in whole or in part, at any time or from time to time, in the sole
discretion of such Selling Shareholder prior to or on the Subsequent Closing.
The failure by any Selling Shareholder to exercise any of the foregoing rights
shall not be deemed a waiver of any such right and each such right shall be
deemed an ongoing right which may be asserted at any time and from time to time
prior to or on the Subsequent Closing. Notwithstanding the foregoing, if any
Selling

                                       44

<PAGE>

Shareholder shall fail to attend (whether by a duly authorised representative or
attorney or otherwise) the Subsequent Closing or on such Closing fails to effect
the transactions contemplated on the Subsequent Closing, the Subsequent Closing
may proceed without such Selling Shareholder and the deliveries by Purchaser
shall be deemed to have been waived in respect of such Selling Shareholder.

Section 3.8 Payment of the Purchase Price. Purchaser shall pay the Initial
Payment and the Shareholder Balance Amount in United States Dollars, by wire
transfer in immediately available funds in accordance with the following
provisions:

(a)      On the Share Pledge Release Date, Purchaser shall pay or cause to be
         paid the Initial Payment to the Selling Shareholders in their
         respective Pro Rata Shares, as set out in Schedule 3.8(a), to each
         Selling Shareholder's bank account nominated in writing to Purchaser at
         least twelve (12) Business Days prior to the Share Pledge Release Date.

(b)      Thereafter, Purchaser shall fund the Financial Escrow Account in United
         States Dollars, by wire transfer in immediately available funds in
         accordance with Section 7.6 hereof, and payments from the Financial
         Escrow Account shall be made by the Financial Escrow Agent (i) to each
         Selling Shareholder representing payments of such Selling Shareholder's
         Shareholder Balance Amount as evidenced by the Notes issued to each
         Selling Shareholder pursuant to Section 3.8(c), or (ii) to the extent
         such Selling Shareholder has transferred some or all of the Notes
         issued to it by Purchaser, to each Registered Holder of such Notes (in
         each case, thereby reducing the Shareholder Balance Amount payable to
         such Selling Shareholder by an amount equal to the amount paid in
         respect of such Notes) in the manner contemplated in Section 7.6
         hereof.

                                       45

<PAGE>

(c)      Purchaser's payment obligations in respect of each Selling
         Shareholder's Shareholder Balance Amount and each Selling Shareholder's
         entitlement to receive payment of such Selling Shareholder's
         Shareholder Balance Amount shall be evidenced by Series I Notes and
         Series II Notes substantially in the form in Exhibits A1 and A2,
         respectively, (each, a "Note" and together, the "Notes") payable to
         such Selling Shareholder in the amounts and on the dates set forth in
         Schedule 7.6(b). The Notes shall, subject to Section 3.8(e), be freely
         transferable in accordance with the terms and conditions of the Notes,
         the relevant transfer certificates for the Notes (substantially in the
         form in Exhibits A1 and A2, respectively, each a "Transfer Certificate"
         and together the "Transfer Certificates"), and the procedures set forth
         in the Financial Escrow Agreement. Each transferee of a Note, upon the
         due execution and delivery of a Transfer Certificate (each such
         transferee, a "Registered Holder"), shall be entitled to the Selling
         Shareholder's (or other transferor's) rights under the Note to receive
         payment of the Shareholder Balance Amount evidenced thereby. In
         addition, a Selling Shareholder may, with the prior written consent of
         Purchaser (such consent not to be unreasonably withheld), on the
         transfer to a third party of all of its Notes also novate all its
         rights and obligations under this Agreement (including for the
         avoidance of doubt delivery of the relevant Sale Shares) and the
         Security Agreements on terms and conditions reasonably required by
         Purchaser to maintain the sanctity of the Transactions so as not to
         prejudice the rights of Purchaser and the obligations of such Selling
         Shareholder provided that any such Selling Shareholder shall remain
         fully liable for the performance under this Agreement and the Security
         Agreements of any such third party.

                                       46
<PAGE>

(d)      Each Selling Shareholder shall be entitled, upon giving prior written
         notice to Purchaser (such notice shall contain sufficient information
         demonstrating that the sanctity of the Transactions and the terms and
         conditions of this Agreement and the Security Agreements are maintained
         so as not to prejudice the rights of Purchaser and the obligations of
         such Selling Shareholder), to sell and assign its rights to, and/or to
         assume the obligations of any other Selling Shareholder under this
         Agreement and the Security Agreements.

(e)      The Selling Shareholder shall not be entitled to sell any Notes until
         after the Share Pledge Release Date and all Notes delivered on the
         Initial Closing shall be placed into escrow until the Share Pledge
         Release Date and shall be dealt with in accordance with the terms of
         the Indonesian Escrow Agreement.

(f)      Each of the parties hereto agrees to sign, execute and deliver a
         Transfer Certificate and any agreement, instrument, deed or other
         document required to effect any transfer of a Note, and/or the
         assignment of any rights and/or the assumption of any obligations
         referred to in this Section 3.8 and shall promptly do any and all acts,
         matters or things necessary to perfect such actions and to maintain the
         sanctity of this Agreement, the Security Agreements and the
         Transactions so as not to prejudice the rights of Purchaser and the
         obligations of such other party.

(g)      Upon the written request of a Selling Shareholder or a Registered
         Holder, Purchaser shall issue replacement Notes in place of Notes that
         have been lost, stolen, mutilated, defaced or destroyed.

                                       47
<PAGE>

(h)      To the extent that Purchaser incurs any reasonable costs, expenses,
         fees (including reasonable attorney fees) in documenting any assignment
         or transfer and/or assumption pursuant to this Section 3.8, all such
         reasonable costs, expenses and fees (including reasonable attorney
         fees) shall be borne by the relevant Selling Shareholder or the
         Registered Holder, as applicable, and shall be payable within thirty
         (30) days of an invoice being issued by Purchaser to such Selling
         Shareholder or Registered Holder, as relevant.

(i)      All payments made by Purchaser under (i) this Agreement, (ii) the
         Indonesian Escrow Agreement, and (iii) subject to Section 7.6(j), the
         Financial Escrow Agreement and the Notes shall be made without setoff,
         counterclaim or deduction except that Purchaser shall be entitled to
         withhold and deduct (with no obligation to gross up) all amounts
         required to be withheld and deducted under applicable Indonesian laws
         and regulations on account of withholding tax.

(j)      Notwithstanding any other provision of this Agreement, it is expressly
         acknowledged and agreed by each party hereto that (i) the Purchaser's
         obligation to pay each Selling Shareholder's Shareholder Balance Amount
         is evidenced by the Notes and (ii) payment under such Notes
         extinguishes the Purchaser's obligation to pay a corresponding amount
         of such Selling Shareholder's Shareholder Balance Amount.

Section 3.9 Title to Sale Shares Sold at Initial Closing. On the later of (i)
the Initial Sale Shares Transfer Date and (ii) the Share Pledge Release Date:
(a) each Selling Shareholder (other than IFC) shall deliver to Purchaser duly
executed deeds of transfer (akta pemindahan hak atas saham) in respect of the
Selling Shareholder's Sale Shares sold to Purchaser on the Initial Closing and
(b) IFC shall deliver to Purchaser duly executed deeds of transfer (akta
pemindahan hak atas saham) in respect of IFC's Sale Shares sold to Purchaser on
the Share Pledge Release Date,

                                       48
<PAGE>

in each case together with all documents necessary (a) to effect the transfer of
title to such Sale Shares sold to Purchaser and (b) to effect registration of
such Sale Shares in Purchaser's name in the Company's register of shareholders.

Section 3.10 Changes in Shareholdings. With the written authorisation of the
Majority Shareholders, the Company and Purchaser jointly delivered to the
Indonesian Escrow Agent, the commissioners and directors of the Company shall be
entitled, in compliance with the escrow arrangements set forth in the Indonesian
Escrow Agreement, to amend the Company's register of shareholders and endorse
for transfer share certificates or to cancel share certificates and issue new
share certificates to reflect the entitlements of Purchaser to any Sale Shares,
subject to Section 3.9, sold by the Selling Shareholders and purchased by
Purchaser on any Closing.

Section 3.11 Default.

(a)      In the event any payment required to be made by Purchaser pursuant to
         Sections 3.8(a), 3.8(b) or 7.6 is not paid when due and any such
         payment remains unpaid for a period of ten (10) Business Days after
         receipt by Purchaser of notice thereof from any Selling Shareholder in
         accordance with Section 11.3; or

(b)      any drawdown payment required to be paid by Purchaser in respect of any
         Purchaser Loan under Section 2.6(b)(ii) is not duly advanced to the
         Company in a timely manner in respect of (i) the Existing IFC C Loan
         and (ii) in respect of the Purchaser's obligation to pay the Net
         Working Capital Reimbursement; or

(c)      Purchaser files a voluntary petition for bankruptcy at the relevant
         Indonesian Commercial Court or enters into a suspension of payment,
         composition or other arrangement under the Indonesian Bankruptcy Law or
         an order for the receivership or bankruptcy of Purchaser is made and is
         not discharged, dismissed or permanently stayed within 45 days of
         service; or

                                       49
<PAGE>

(d)      any curator, receiver or liquidator or similar officer, is appointed
         whether by a competent court or pursuant to a shareholder resolution of
         Purchaser (other than pursuant to a voluntary reorganization) in
         respect of the Purchaser or all or substantially all of its assets; or

(e)      any corporate action or other steps are taken by the Purchaser for the
         bankruptcy, liquidation, winding-up, or dissolution of the Purchaser or
         for the appointment of a curator, liquidator or receiver or similar
         officer of the Purchaser or any of its assets or revenues; or

(f)      there exists a Failure to Remedy a Material Default,

(each, an "Event of Repayment") then,

(i)      notwithstanding any other provision hereof, the Notes evidencing each
         Selling Shareholder's Shareholder Balance Amount shall become
         immediately due and payable by Purchaser (in the face amount with
         respect to the Series I Notes, and in an amount equal to the product of
         the "Base Amount", the "Applicable Period" and the LIBOR rate
         applicable on the last date (preceding the Event of Repayment) on which
         interest was calculated with respect to the Series II Notes as set out
         in Schedule 7.6(b)); and

(ii)     the Selling Shareholders and Registered Holders, as relevant, shall,
         subject to the terms and conditions of the Financial Escrow Agreement,
         be entitled to withdraw and to apply to the payment of the then
         outstanding Selling Shareholder's Shareholder Balance Amount amounts on
         deposit with the Financial Escrow Agent pursuant to the terms of the
         Financial Escrow Agreement to the extent necessary to pay all amounts
         due under Section 3.8(b) and such amounts shall be deemed as payment
         for and a reduction in the then outstanding Selling Shareholders'
         Shareholders Balance Amounts.

                                       50
<PAGE>

Section 3.12 Releases and Waivers.

(a)      At each of the Initial Closing and the Subsequent Closing, each of the
         Selling Shareholders and the Company shall execute and deliver to
         Purchaser a release and waiver of claims in the form of Exhibit C (a
         "Company Waiver").

(b)      At each of the Initial Closing and the Subsequent Closing, each of the
         Selling Shareholders and Purchaser shall execute and deliver a release
         and waiver of claims in the form of Exhibit D (a "KSO Waiver").

The KSO Waivers and the Company Waivers delivered on the Initial Closing shall
be placed into escrow, and shall be released on the Share Pledge Release Date in
accordance with the terms of the Indonesian Escrow Agreement.

Section 3.13 Use of Company Funds. The parties hereto agree that during the
Exclusivity Period, notwithstanding an Event of Repayment, all moneys of the
Company, less certain operating expenses and capita] expenditure as permitted
under the Shareholders' Voting Agreement, shall be used firstly, as relevant, to
fund the payment of the Existing IFC Loans, secondly, to fund the payment of the
Initial Payment, thirdly, to fund the payment of the Net Working Capital
Reimbursement and fourthly, to fund payment on the Notes by Purchaser and/or
purchase of the Notes by the Company and all such moneys shall be deemed to be
either repayments of the Purchaser Loans or loans to Purchaser subordinated in
repayment to all moneys necessary for payment of operating expenses and to fund
payment of the Net Working Capital Reimbursement and the Initial Payment, and
shall be documented accordingly by the Company and Purchaser on commercial arms'
length terms.

                                   ARTICLE 4.
                       NET WORKING CAPITAL REIMBURSEMENT

Section 4.1 Preparation of the Proforma Closing Balance Sheet.

(a)      Thirty (30) days prior to the scheduled Initial Closing Date the
         Selling Shareholders shall cause the Company to publish a notice in one

                                       51
<PAGE>

         leading nationwide Bahasa Indonesia language newspaper and one leading
         nationwide English language newspaper, in a form reasonably agreed by
         Purchaser (the "First Notice"), and in the same manner a second notice
         twenty-five (25) days before the scheduled Initial Closing Date (the
         "Second Notice") stating that the ownership of the Company is being
         transferred and inviting all creditors, potential litigants and other
         Persons who may have a claim against the Company to lodge with the
         Company and Accountant (as defined below) a notice of claim within
         forty five (45) days after the First Notice and within forty (40) days
         after the Second Notice.

(b)      Forty five (45) days prior to the scheduled date for the Initial
         Closing, the Company shall (i) cause the preparation of a proforma
         balance sheet of the Company as of the close of business of the Company
         on the calendar day before the Initial Closing Date (such date, the
         "Closing Balance Sheet Date"); (ii) cause Prasetio Utomo & Co. (an
         affiliated firm of Arthur Andersen) (or any successor thereto) or as
         mutually agreed between Purchaser and the Majority Shareholders, in
         each case an independent firm of accountants ("Accountant"), to audit
         such proforma closing balance sheet and issue an audited proforma
         closing balance sheet (the "Proforma Closing Balance Sheet") no later
         than five (5) Business Days prior to the scheduled date of the Initial
         Closing; and (iii) provide to Accountant all necessary assistance and
         updating of changes in the circumstances of the Company during that
         period. The Proforma Closing Balance Sheet (i) shall be prepared in
         accordance with GAAP, (ii) shall not reflect any revaluation after
         December 31, 2001 of any fixed asset shown on the Financial Statements,
         (iii) shall fairly present in all material respects the proforma
         financial position of the Company as of the Closing Balance Sheet Date,
         and (iv) shall be accompanied by an audit certificate of Accountant to
         that effect.

                                       52
<PAGE>

(c)      Based upon the Proforma Closing Balance Sheet, Accountant shall
         calculate the Working Capital of the Company as of the Closing Balance
         Sheet Date.

(d)      In calculating the Working Capital Accountant shall strictly adhere to
         the working capital instructions set out in Schedule 4.1 and the
         Working Capital so calculated shall be the proforma adjusted working
         capital of the Company (the "Proforma Adjusted Working Capital of the
         Company").

(e)      No later than five (5) Business Days prior to the Initial Closing, a
         copy of the Proforma Closing Balance Sheet shall be delivered by
         Accountant to each of Purchaser, the Company and the Selling
         Shareholders and Accountant shall issue an audit certificate to each of
         Purchaser, the Company and the Selling Shareholders certifying:


         (i)      the Proforma Adjusted Working Capital of the Company;

         (ii)     the extent to which the Proforma Adjusted Working Capital of
                  the Company exceeds or is less than Rupiah 5,000,000,000 (five
                  billion); and

         (iii)    whether or not ninety (90) percent or more of the Company's
                  current assets as defined in Section 4B of Schedule 4.1, as at
                  the Closing Balance Sheet Date, are likely to be represented
                  by cash and/or realisable cash equivalents and/or accounts
                  receivable from the KSO Unit.

Section 4.2 Preparation of Final Closing Balance Sheet. Accountant shall, within
thirty (30) days after the Initial Closing Date, update and finalize, in
accordance with the parameters in Section 4.1 and the working capital
instructions in Schedule 4.1, a balance sheet of the Company as of the Closing
Balance Sheet Date (the "Final Closing Balance Sheet") and its determination of
the Working Capital of the Company strictly in accordance with the working
capital instructions in Schedule 4.1 (the "Final Adjusted Working Capital of the
Company"). A copy of the Final Closing Balance Sheet shall be delivered by
Accountant to each of Purchaser, the Company and

                                       53
<PAGE>

the Selling Shareholders and Accountant shall issue a compilation report to each
of Purchaser, the Company and the Selling Shareholders certifying:

(a)      the Final Adjusted Working Capital of the Company;

(b)      the extent to which the Final Adjusted Working Capital of the Company
         exceeds or is less than Rupiah 5,000,000,000 (five billion);

(c)      the amount of the Net Working Capital Reimbursement; and

(d)      whether or not ninety (90) percent or more of the Company's current
         assets as defined in Section 4B of Schedule 4.1, as at the Closing
         Balance Sheet Date, were represented by cash and/or realisable cash
         equivalents and/or accounts receivable from the KSO Unit.

FCR and Astratel, on behalf of Selling Shareholders, shall use their reasonable
efforts to procure the services of one or more persons who are now employees of
the Company, on a contract basis as needed, to assist Accountant in the audit of
the Final Closing Balance Sheet (the "Contract Consultants"). Purchaser and FCR
and Astratel, as necessary, shall cooperate with Accountant in the preparation
of the Final Closing Balance Sheet.

Section 4.3 Final Closing Balance Sheet Disputes. If either the Majority
Shareholders or Purchaser believes there has been manifest error in preparing
the Final Closing Balance Sheet it may, by giving written notification delivered
to the other parties hereto not more than fourteen (14) calendar days after
receipt of the Final Closing Balance Sheet, dispute the conclusions indicated in
the Final Closing Balance Sheet, including the computation of the Final Adjusted
Working Capital of the Company. During the 25-calendar day period following the
parties' receipt of the Final Closing Balance Sheet, Purchaser's and the
Majority Shareholders' representatives shall be entitled to reasonably access,
review and discuss with Accountant the work records which Accountant prepared in
connection with the preparation of the Proforma Closing Balance Sheet and the
Final Closing Balance Sheet. Any notification delivered by Purchaser or the
Majority Shareholders pursuant to this Section 4.3 shall specify in reasonable
detail the nature of their objection to the conclusions indicated in the Final
Closing Balance Sheet or to the

                                       54
<PAGE>

computation of the Final Adjusted Working Capital of the Company. If no notice
of a dispute has been delivered by either Purchaser or the Majority Shareholders
within the 14-day period under this Section 4.3, then the Final Closing Balance
Sheet and the calculation of the Final Adjusted Working Capital of the Company
shall be final, conclusive and binding on Purchaser and all Selling
Shareholders. In the event either Purchaser or the Majority Shareholders timely
delivers notice of a dispute in accordance with this Section 4.3, then the
Majority Shareholders and Purchaser shall negotiate in good faith to settle such
dispute. Any written agreement, between Purchaser and the Majority Shareholders
settling such dispute, in full or in part, shall be final, binding and
conclusive, as to all matters so agreed, on all the Selling Shareholders and
Purchaser, including, for the avoidance of doubt, any Selling Shareholder that
is not a party to such agreement.

Section 4.4 Dispute Auditor. In the event that no agreement among Purchaser and
the Majority Shareholders is reached which fully settles the dispute raised by
them pursuant to Section 4.3 within twenty-five (25) days following written
notification of a dispute, then either Purchaser or the Majority Shareholders
may submit the items remaining in dispute for resolution to the Indonesian
affiliate of an internationally recognized accounting firm in Jakarta (the
"Dispute Auditor"), which is independent of Purchaser and each of the Majority
Shareholders and which is reasonably acceptable to Purchaser and the Majority
Shareholders. All determinations made by the Dispute Auditor shall be final,
conclusive and binding on all parties hereto with respect to the calculation of
the Final Adjusted Working Capital of the Company; and payments shall be made in
respect thereof in accordance with Section 4.6. If a Dispute Auditor is not
agreed upon by the Majority Shareholders and Purchaser within thirty (30) days
of a request by Purchaser or the Majority Shareholders for agreement on the
identity of a Dispute Auditor to whom one or more items are proposed to be
submitted for resolution, then Purchaser or the Majority Shareholders may
request the Chairman of the Indonesian Accounting Association (Asosiasi Akuntan
Indonesia) to select a Dispute Auditor and such selection of a Dispute Auditor
shall be final and binding on Purchaser and all Selling Shareholders.

                                       55
<PAGE>

Section 4.5 No Stay of Payments in Respect of the Adjusted Working Capital of
the Company. The existence of a dispute with respect to the Final Closing
Balance Sheet or the Final Adjusted Working Capital of the Company contemplated
by Sections 4.3 and 4.4 shall not relieve any party hereto of its obligations to
effect any payment as and when required under Section 4.6 provided that on any
final determination pursuant to Section 4.3 or 4.4 the parties hereto shall
promptly account to each other accordingly.

Section 4.6 Payments in respect of Final Adjusted Working Capital.

(a)      If the Final Adjusted Working Capital of the Company is positive, such
         sum, subject to a cap of Rupiah two hundred and fifty billion (Rp.
         250,000,000,000) (the "Net Working Capital Reimbursement") shall be
         paid in Rupiah (or as instructed by each Selling Shareholder, in any
         other currency, at such Selling Shareholder's cost in an amount
         calculated at the spot exchange rate applicable at the date of payment)
         by Purchaser to the Selling Shareholders in their respective Pro Rata
         Shares in accordance with Section 4.8.

(b)      If the Final Adjusted Working Capital of the Company is negative, then
         as soon as practicable, but in any event no later than thirty (30) days
         from the date of each Selling Shareholder's respective receipt of the
         Final Closing Balance Sheet, each Selling Shareholder shall pay to
         Purchaser, its Pro Rata Share, of an amount equal to the amount by
         which the Final Adjusted Working Capital of the Company is negative, in
         Rupiah by wire transfer in immediately available funds to the bank
         account previously designated in writing by Purchaser.

Section 4.7 Expenses. Each of Purchaser on the one hand and the Selling
Shareholders, in their respective Pro Rata Shares, on the other hand shall be
responsible for one half of any fees and expenses charged by Accountant, one
half of any fees and

                                       56
<PAGE>

expenses charged by the Dispute Auditor and one half of any fees and expenses of
the Contract Consultants.

Section 4.8 Funding and Payment of Net Working Capital Reimbursement.

(a)      Subject to Section 4.8(b) and the retention of moneys required to
         prepay and pay any outstanding or owing amounts under or in respect of
         the IFC Investment Agreement and the Common Terms Agreement in respect
         of the Existing IFC A and B Loans and any interest payable or accrued
         through the Initial Closing Date on the Existing IFC C Loan, all cash
         on hand on the Initial Closing Date and all moneys received by the
         Company on and after the Initial Closing Date until the date being the
         later of (i) the date that the Final Closing Balance Sheet is issued by
         Accountant and (ii) the Share Pledge Release Date (such later date, the
         "Release Date") (excluding the US Dollar components of the Purchaser
         Loans), shall be remitted by the Company to the Indonesian Financial
         Escrow Account on the Initial Closing Date (with respect to the cash on
         hand) and promptly upon receipt thereof, but in any event within five
         (5) Business Days after receipt thereof (with respect to all monies
         received on and after the Initial Closing Date). Notification of the
         Release Date shall be given to the Company and the Indonesian Escrow
         Agent by Purchaser and the Majority Shareholders jointly.

(b)      The Company shall not be required to remit to the Indonesian Financial
         Escrow Account any moneys as required under Section 4.8(a):

         (i)      unless immediately following the Initial Closing it has had or
                  until it has after the Initial Closing Date in its bank
                  accounts at least the sum of Rupiah 5,000,000,000 (five
                  billion) (or its equivalent in any other currency), excluding
                  any payments by the Company of any sort after the Initial
                  Closing Date and then it shall only be required to so remit
                  the excess over such amount; or

                                       57
<PAGE>

         (ii)     if during the ninety (90) day period following the Initial
                  Closing it is required to pay liabilities, accrued on or
                  before the Initial Closing Date, exceeding, in aggregate,
                  Rupiah 5,000,000,000 (five billion) (or its equivalent in any
                  other currency) (such amounts in excess of Rupiah
                  5,000,000,000 (five billion), the "Excess Liabilities") until
                  such time as funds are received to pay the Excess Liabilities.

(c)      The Net Working Capital Reimbursement shall be paid by Purchaser as
         follows:

         (i)      The Company shall issue standing instructions to the
                  Indonesian Escrow Agent under the Indonesian Escrow Agreement
                  to remit within three (3) Business Days after the Release Date
                  to the Selling Shareholders in their respective Pro Rata
                  Shares in Rupiah (or in any other currency as instructed by
                  any Selling Shareholder, at its cost, in an amount calculated
                  at the spot exchange rate applicable on the date of such
                  remittance) all moneys in the Indonesian Financial Escrow
                  Account in an amount not exceeding the Net Working Capital
                  Reimbursement as notified to the Indonesian Escrow Agent by
                  Purchaser or the Majority Shareholders, by delivering a true
                  copy of the Accountant's certificate issued pursuant to
                  Section 4.2; and

         (ii)     if the amount of the Net Working Capital Reimbursement exceeds
                  the amount in the Indonesian Financial Escrow Account, then
                  Purchaser shall pay the balance of the Net Working Capital
                  Reimbursement directly to the Selling Shareholders

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<PAGE>

                  in their respective Pro Rata Shares in Rupiah (or in any other
                  currency as instructed by any Selling Shareholder, at its
                  cost, in an amount calculated at the spot exchange rate
                  applicable on the date of such remittance obtained by
                  Purchaser from Citibank N.A., Jakarta Branch or another
                  remitting bank) as follows: (A) if the Release Date occurs
                  prior to the 7th day of the month then on the fifteenth (15th)
                  calendar day of such month; and (B) if the Release Date occurs
                  on or after the 7th day of such month then on the fifteenth
                  (15th) calendar day of the month following the month in which
                  the Release Date occurs, in either case, all moneys received
                  by the Company after the Release Date (subject to Sections
                  4.8(a) and 4.8(b)) until the Net Working Capital Reimbursement
                  has been paid in full, it being agreed that Purchaser shall
                  pay the Net Working Capital Reimbursement in full by that date
                  which is the earlier of (i) ninety (90) days after the Initial
                  Closing Date, provided that ninety (90) percent or more of the
                  Company's current assets, as at the Closing Balance Sheet
                  Date, were represented by cash and/or realisable cash
                  equivalents and/or accounts receivable from the KSO Unit
                  failing which 180 days after the Initial Closing Date and (ii)
                  the day that the Company is able to provide to Purchaser
                  sufficient funds to pay the Net Working Capital Reimbursement.

(d)      (i)      The Contract Consultants shall be charged by the parties
                  hereto in ensuring that all receivables (including all
                  accounts receivable, interest receivable and security deposits
                  and other refundable deposits) included in the Final Closing
                  Balance Sheet which are not cash, other than receivables from
                  the KSO Unit, are collected within

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<PAGE>

                  ninety (90) days after the Closing Balance Sheet Date. If
                  prior to the final installment payment of the Net Working
                  Capital Reimbursement, receivables (including all accounts
                  receivable, interest receivable and security deposits and
                  other refundable deposits) included in the Final Closing
                  Balance Sheet, other than receivables from the KSO Unit, are
                  not collected, Purchaser shall be entitled to deduct from the
                  Net Working Capital Reimbursement an amount equal to the
                  non-collected receivables (the "Non-collectible Receivables")
                  and each Selling Shareholder's Pro Rata Share of the Net
                  Working Capital Reimbursement shall be adjusted accordingly.

         (ii)     If as a result of the reconciliation made pursuant to Section
                  4.8(d)(i), there are moneys owing to Purchaser each Selling
                  Shareholder shall pay upon written demand by Purchaser, within
                  thirty (30) days, its Pro Rata Share of any deficiency to a
                  bank account of Purchaser nominated in writing.

         (iii)    If there are any Non-collectible Receivables and determined by
                  Accountant, the parties hereto shall discuss in good faith
                  either (A) the assignment of such receivables to the Selling
                  Shareholders, which prior to any assignment will be written
                  down to a zero value in the books of the Company, or (B) a
                  mechanism by which if the Non-collectible Receivables are
                  subsequently paid to the Company, a payment by Purchaser to
                  the Selling Shareholders in their respective Pro Rata Shares
                  of the sum so paid. Any such payment shall be deemed as part
                  of the Net Working Capital Reimbursement. The Majority
                  Shareholders shall have full rights of access to the books and
                  records of the Company for a period of 120

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<PAGE>

                  days after the Initial Closing to verify the
                  non-collectibility of the Non-collectible Receivables.

(e)      The moneys of the Company utilised by Purchaser pursuant to this
         Section 4.8 to pay the Net Working Capital Reimbursement shall
         constitute partial repayment of the Purchaser Loans to the extent of
         such payment.

(f)      The parties hereto acknowledge and agree that the current management of
         the Company may prepare and submit bank transfer instructions to be
         executed on the Initial Closing Date, to give effect to the transfer
         contemplated in Section 4.8(a).

Section 4.9 Interest.

(a)      Any Rupiah payment required to be made by a party to another party
         under Sections 4.8(c)(ii) and 4.8(d)(ii) and not paid as required by
         its due date, shall bear interest from such due date to the date of
         actual payment at an interest rate of SBI Rate plus 4.5% per annum.

(b)      Any US Dollar payment required to be made by any party to any other
         party under this Agreement after the Initial Closing and prior to or on
         31 December 2004, and not paid as required by its due date, shall bear
         interest from such due date to the date of actual payment at an
         interest rate of LIBOR plus 4.5% per annum.

(c)      After 31 December 2004 any US Dollar payment required to be made by any
         party to any other party under this Agreement, and not paid as required
         by its due date, shall bear interest from such due date to the date of
         actual payment at an interest rate of twelve (12) percent per annum
         compounded quarterly.

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<PAGE>

                                   ARTICLE 5.
                        REPRESENTATIONS AND WARRANTIES OF
                            THE SELLING SHAREHOLDERS

Except as specifically and fairly set forth in the Disclosure Schedule
(including any formal amendments thereto) prepared and signed by each of the
Selling Shareholders and annexed hereto, each Selling Shareholder (save as
provided in the penultimate paragraph of this Article 5), severally, represents
and warrants to Purchaser as of the date of this Agreement that those matters
set out in Sections 5.1, 5.2, 5.3, 5.5 and 5.6 with respect to itself are true
and correct, and on the date that the Disclosure Schedule is delivered to
Purchaser by the Company pursuant to Section 8.2B(j) and again as of the Initial
Closing Date that all of the following statements applicable with respect to
itself contained in this Article 5 are true and correct:

Section 5.1 Legal Power; Organization. Such Selling Shareholder is a legal
entity, duly organized and validly existing under the laws of its jurisdiction
of organization (or, in the case of IFC, established under its Articles of
Agreement and existing) and has all requisite power and authority to execute and
deliver this Agreement and to perform its obligations hereunder.

Section 5.2 Authorization. Such Selling Shareholder has taken all necessary
corporate or other action to authorize the execution and delivery of this
Agreement and the consummation by such Selling Shareholder of the Transactions,
except for the approval of the board of directors of each of FCR and Marubeni.
As of the date evidence of each such board of director approval (or a
certificate stating that it has been obtained) is furnished to the Purchaser and
on the Initial Closing Date, each of FCR and Marubeni represents and warrants
that the approval of its board of directors has been obtained and remains in
full force and effect.

Section 5.3 Binding Agreement. This Agreement has been duly executed and
delivered by such Selling Shareholder and, assuming due and valid authorization,
execution and delivery hereof by Purchaser, the Company and each other Selling
Shareholder, this Agreement constitutes a legal, valid and binding obligation of
such Selling Shareholder,

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<PAGE>

and, except with respect to IFC having regard to its immunities, enforceable
against it in accordance with its terms.

Section 5.4 Selling Shareholders' Consents and Approvals: No Conflicts
Violations or Defaults. Except for such Consents as are set forth in Schedule
5.4, neither the execution and delivery of this Agreement by such Selling
Shareholder, nor the consummation by such Selling Shareholder of the
Transactions, will:

(i)      conflict with or result in any breach of any provision of the
         organizational documents of such Selling Shareholder;

(ii)     require any Consent of any Governmental Entity or other Person;

(iii)    require any Consent under, or result in a violation or breach of, or
         constitute (with or without due notice or the passage of time or both)
         a default (or give rise to any right of termination, amendment,
         cancellation or acceleration) under, any of the terms, conditions or
         provisions of any agreement, license, contract, commitment, obligation,
         understanding, undertaking, arrangement or instrument to which such
         Selling Shareholder is a party or by which such Selling Shareholder or
         any of the properties or assets of such Selling Shareholder is bound;

(iv)     violate any binding order, writ, injunction applicable to such Selling
         Shareholder or any of the properties or assets of such Selling
         Shareholder; or

(v)      violate any decree, statute, rule or regulation applicable to such
         Selling Shareholder or any of the properties or assets of such Selling
         Shareholder,

excluding from the foregoing clauses (ii), (iii) and (v) such violations,
breaches or defaults which would not, individually or in the aggregate, have an
adverse effect on such Selling Shareholder's ability to perform its obligations
under this Agreement, its ability to consummate the purchase and sale of its
Selling

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<PAGE>

Shareholder's Sale Shares and to transfer title to its Selling Shareholder's
Sale Shares or the enforceability against such Selling Shareholder or the
validity of this Agreement.

As of the Initial Closing Date, such Selling Shareholder represents and warrants
that each Consent of any Governmental Entity or other Person required in order
for such Selling Shareholder to consummate the Transactions including the
Consents with respect to such Selling Shareholder set forth in Schedule 5.4 has
been obtained and remains in full force and effect.

Section 5.5 Legal Proceedings. Except as disclosed in Schedule 5.5 of the
Disclosure Schedule and other than any Proceedings which may be initiated by
Purchaser or are primarily caused as a result of the actions of Purchaser, there
are no Proceedings pending or Threatened involving or affecting such Selling
Shareholder which question or challenge the validity of this Agreement or any
action taken or to be taken by such Selling Shareholder pursuant to this
Agreement or in connection with the Transactions or which may result in the
issuance of a judgment, order or decree prohibiting or making illegal the
consummation of the Transactions by such Selling Shareholder and, to the
Knowledge of such Selling Shareholder, there is no valid basis for any such
Proceeding. Such Selling Shareholder is not subject to any judgment, order or
decree prohibiting or making illegal the consummation of the Transactions.

Section 5.6 Share Ownership. Such Selling Shareholder is the legal owner of, and
has legal title to, the Sale Shares of such Selling Shareholder set out against
its name in Schedule 2.1. Neither such Selling Shareholder nor any of its
Subsidiaries owns any other securities issued by, or other obligations of, the
Company. The Sale Shares of such Selling Shareholder are now, and will, subject
to the Transactions, be at all times between the date hereof and the Subsequent
Closing owned by such Selling Shareholder and held by such Selling Shareholder,
or by a custodian for the sole and exclusive benefit of such Selling
Shareholder, subject to the Share Pledges, free and clear of all Encumbrances
whatsoever except as disclosed in Schedule 5.6 of the Disclosure Schedule.

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<PAGE>

Section 5.7 Legal Title Conveyed. As of each Closing, such Selling Shareholder
has conveyed to Purchaser good and valid title to the relevant Sale Shares of
such Selling Shareholder to be transferred on a Closing, free and clear of all
Encumbrances and all other limitations and restrictions (including any
restriction on the right to vote, sell or otherwise dispose of such Sale
Shares), provided that on the Initial Closing the Selling Shareholders' Sale
Shares to be transferred to Purchaser shall be subject to the Share Pledges and
good and valid title shall only be transferred upon the later of the Share
Pledge Release Date and the date that the Net Working Capital Reimbursement is
fully paid by Purchaser to the Selling Shareholders.

Section 5.8 Organization; Qualification of Company. The Company is a limited
liability company duly organized and validly existing under the laws of the
Republic of Indonesia, with full corporate power and authority to carry on its
business as it is now being conducted and to own or use the properties and
assets it now purports to own and use.

Section 5.9 Company's Consents and Approvals; No Conflicts, Violations or
Defaults. Except for such Consents as are set forth in Schedule 5.9, neither the
execution and delivery of this Agreement by the Selling Shareholders nor the
consummation by the Selling Shareholders of the Transactions will:

(a)      conflict with or result in any breach of any provision of the
         organizational documents of the Company;

(b)      require that the Company obtain any Consent of any Governmental Entity
         or other Person;

(c)      require any Consent under, or result in a violation or breach of, or
         constitute (with or without due notice or the passage of time or both)
         a default (or give rise to any right of termination, amendment,
         cancellation or acceleration) under, any of the terms, conditions or
         provisions of any agreement, license, contract, commitment, obligation,
         understanding, undertaking, arrangement or instrument to which the
         Company is a party or by which the Company or any of the properties or
         assets is bound;

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<PAGE>

         (any Consents referred to in the clauses (b) and (c) being referred to
         herein as the "Required Company Consents");

(d)      violate any binding order, writ, injunction, applicable to the Company
         or any of the properties or assets of the Company; or

(e)      violate any decree, statute, rule or regulation applicable to the
         Company or any of the properties or assets of the Company;

excluding from the foregoing clauses (c) and (e) such violations, breaches,
defaults or impositions which would not, individually or in the aggregate, have
an adverse effect on the prospects, consolidated financial condition, business
or results of operations of the Company.

As of the Initial Closing Date, such Selling Shareholder represents and warrants
that all Required Company Consents (including the Consents set forth in Schedule
5.9) have been obtained and remain in full force and effect.

Section 5.10 KSO Unit. There have been and are no other businesses conducted by
the Company other than the business contemplated or permitted under the KSO
Agreement.

Section 5.11 Capitalization. The authorized capital stock of the Company
consists of eleven million four hundred forty six thousand (11,446,000) Class A
shares and three hundred fifty four thousand (354,000) Class B shares or in
total eleven million eight hundred thousand (11,800,000) Shares all of which are
issued and paid-up as of the date hereof. The Sale Shares of each Selling
Shareholder are duly authorized, validly issued, fully paid-up and
non-assessable, and not issued in violation of any pre-emptive rights, and

(a)      there is no Voting Debt of the Company issued and outstanding;

(b)      except as set forth above, there are no shares of capital stock of the
         Company authorized, issued or paid-up;

(c)      except for the Transactions, there are no existing options, warrants,
         calls, pre-emptive

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<PAGE>

         rights, subscriptions or other rights, agreements, contracts,
         undertakings, understandings, obligations, arrangements or commitments
         of any character, relating to the issued or capital stock of the
         Company, obligating the Company or such Selling Shareholder to issue,
         transfer or sell or cause to be issued, transferred or sold any shares
         of capital stock or Voting Debt of, or other equity or debt interest
         in, the Company or securities convertible into or exchangeable for such
         shares, equity interests, options, warrants, calls, subscriptions or
         other rights or Voting Debt, or obligating the Company or such Selling
         Shareholder to grant, extend or enter into any such option, warrant,
         call, subscription or other right, agreement, contract, undertaking,
         understanding, obligation, arrangement or commitment; and

(d)      there are no outstanding contractual obligations of the Company or of
         such Selling Shareholder to repurchase, redeem or otherwise acquire any
         Shares or other capital stock of the Company or for the Company to
         provide funds to make any investment (in the form of a loan, capital
         contribution or otherwise) in any other entity.

Except as set out in Schedule 5.11 of the Disclosure Schedule, there are no
voting trust agreements or understandings to which such Selling Shareholder or
the Company is a party with respect to the voting of the capital stock of the
Company.

Section 5.12 Financial Statements. True and complete copies of the Financial
Statements, together with the related auditor's reports, are included in the
Disclosure Schedule. The Financial Statements have been prepared from, are in
accordance with and accurately reflect, the books and records of the Company,
fully comply with applicable accounting requirements, have been prepared in
accordance with GAAP applied on a consistent basis during the periods involved
(except as may be stated in the notes thereto), are true and correct and fairly
present the financial position and the results of operations and cash flows (and
changes in financial position, if any) of the Company as of the times and for
the periods referred to therein.

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<PAGE>

The Management Reports for any period or drawn up as at any date since the
Balance Sheet Date and for any subsequent month (the "Relevant Management
Reports Date") have been properly prepared in accordance with accounting
policies consistent with those used in preparing the Financial Statements. The
Management Reports fairly present the state of affairs and business of the
Company as at the Relevant Management Reports Date and the profits or losses for
the period concerned.

Section 5.13 Books and Records. The books of account are complete and correct in
all material respects and have been maintained in accordance with sound business
practices, including the maintenance of an adequate system of internal controls
and the minute books of (i) the shareholders of the Company, (ii) the Board of
Directors of the Company, and (iii) the Board of Commissioners of the Company
and share register of the Company are complete and correct in all material
respects. The minute books of the Company contain accurate and complete records
of all meetings of, and corporate action taken by, the shareholders of the
Company, the Board of Directors of the Company and Board of Commissioners of the
Company, and no meeting of any of such shareholders. Board of Directors or Board
of Commissioners has been held at which material decisions were made for which
minutes have not been prepared and are not contained in such minute books. True
and complete copies of all minute books and share register of the Company have
heretofore been made available to Purchaser except to the extent that such
minute books contain confidential or sensitive information relating to Purchaser
and the KSO Agreement.

Section 5.14 No Undisclosed Liabilities.

Since the Balance Sheet Date, the Company has incurred no liability or
obligation of any nature, whether or not absolute, accrued, contingent or
otherwise except:

(a)      as disclosed in the Financial Statements; and

(b)      for liabilities and obligations incurred in the ordinary course of
         business and consistent with past practice.

The reserves reflected in the Financial Statements are in accordance with GAAP
and applicable law and have been calculated in a consistent manner in accordance
with GAAP.

Section 5.15 Accounts Receivable. Excluding account receivables of the Company
received from the KSO

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<PAGE>

Unit for the purpose of this Section 5.15, all accounts receivable of the
Company, whether reflected in the Balance Sheet or otherwise, represent sales
and payment for services actually made in the ordinary course of business.

Section 5.16 Disputed Accounts Payable. To the Knowledge of such Selling
Shareholder there are no unpaid invoices or bills representing amounts alleged
to be owed by the Company or other alleged obligations of the Company, which the
Company has disputed or determined to dispute or refused to pay.

Section 5.17 Absence of Certain Changes. Since the Balance Sheet Date, the
Company has conducted its business only in the ordinary and usual course and
consistent with past practice, and the Company has not (except for the Permitted
Preparatory Action and otherwise as expressly permitted elsewhere herein):

(a)      suffered any material adverse change in its Working Capital, financial
         condition, results of operation, assets, liabilities (absolute,
         accrued, contingent or otherwise), reserves, business, operations or
         prospects;

(b)      incurred any liability or obligation (absolute, accrued, contingent or
         otherwise) except items incurred in the ordinary course of business and
         consistent with past practice, none of which exceeds US$500,000
         (counting obligations or liabilities arising from one transaction or a
         series of similar transactions, and all periodic installments or
         payments under any lease or other agreement providing for periodic
         installments or payments, as a single obligation or liability), or
         increased, or experienced any change in any assumptions underlying or
         methods of calculating, any bad debt, contingency or other reserves;

(c)      paid, discharged or satisfied any claim, liability or obligation
         (whether absolute, accrued, contingent or otherwise) other than the
         payment, discharge or satisfaction in the ordinary course of business
         and consistent with past practice of liabilities and obligations
         reflected or reserved against in the Balance Sheet or in the ordinary
         course of business and consistent with past practice

                                       69
<PAGE>

         since the Balance Sheet Date;

(d)      permitted or allowed any of its property or assets (real, personal or
         mixed, tangible or intangible) to be subjected to any Encumbrance of
         any kind, except for liens for current taxes not yet due;

(e)      written down the value of any inventory (including write-downs by
         reason of shrinkage or mark-down) or written off as uncollectible any
         notes or accounts receivable, except for write-downs and write-offs in
         the ordinary course of business and consistent with past practice;

(f)      cancelled any debts or waived any claims or rights of substantial value
         other than pursuant to this Agreement;

(g)      sold, transferred, or otherwise disposed of any of its properties or
         assets (real, personal or mixed, tangible or intangible), except in the
         ordinary course of business and consistent with past practice;

(h)      except as otherwise disclosed in Schedule 5.17(h) of the Disclosure
         Schedule, made any single capital expenditure or commitment in excess
         of US$500,000 for additions to property, plant, equipment or intangible
         capital assets or made aggregate capital expenditures and commitments
         in excess of US$2,000,000 for additions to property, plant, equipment
         or intangible capital assets;

(i)      declared, paid or set aside for payment any dividend or other
         distribution in respect of its capital stock or redeemed, purchased or
         otherwise acquired, directly or indirectly, any shares of capital stock
         or other securities of the Company;

(j)      made any change in any method of accounting or accounting practice;

(k)      except as otherwise disclosed in Schedule 5.17(k) of the Disclosure
         Schedule or as provided in Section 7.5, paid, loaned or

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<PAGE>
         advanced any amount to, or sold, transferred or leased any properties
         or assets (real, personal or mixed, tangible or intangible) to, or
         entered into any agreement or arrangement with, any of its
         commissioners or directors or any Person Controlled by any of its
         commissioners or directors except for commissioners' fees and
         compensation to directors, in each case at rates not exceeding 130% of
         such fees and compensation paid during the year ended 31 December 2001;

(l)      made any loan to or entered into any transaction with any Selling
         Shareholder or any Person related thereto except as disclosed in
         Schedule 5.17(1) of the Disclosure Schedule or as otherwise
         contemplated specifically by this Agreement; or

(m)      agreed, whether in writing or otherwise, to take any action described
         in this Section 5.17 other than pursuant to this Agreement.

Section 5.18 Insurance.

(a)      The Company maintains all policies of fire, liability, workmen's
         compensation and other forms of insurance as required under the
         Existing IFC Loans.

(b)      in respect of such insurances:

         (i)      all premiums have been duly paid to date;

         (ii)     all the policies are in full force and effect and to the
                  Knowledge of such Selling Shareholder, there has been no
                  breach of the terms, conditions and warranties of any of the
                  policies that would entitle insurers to decline to pay all or
                  any part of any claim made under the policies;

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<PAGE>

         (iii)    no claims, exceeding in aggregate an amount of US$20,000, are
                  outstanding; and

         (iv)     the Company has not waived any rights of a material value
                  under any insurance policy.

Section 5.19 Title to Properties; Encumbrances.

(a)      The Company has good and valid title to (i) all the properties and
         assets reflected in the Balance Sheet or books of account (other than
         Real Property) and (ii) all personal properties and assets purchased by
         the Company since the Balance Sheet Date which personal properties and
         assets (other than inventory and short term investments) are listed in
         the Disclosure Schedule and (iii) all Real Property listed in Schedule
         5.20 to the Disclosure Schedule other than Real Property referred to in
         paragraph (b). The rights, properties and other assets presently owned,
         leased or licensed by the Company and described elsewhere in this
         Agreement include all such rights, properties and other assets
         necessary to permit the Company to conduct its business in all material
         respects in the same manner as such businesses have been conducted
         prior to the date hereof;

(b)      In respect of the Real Property set out in Schedule 5.19(b) of the
         Disclosure Schedule, the Company has fully paid for all such property,
         and save as otherwise disclosed in Schedule 5.19(b) of the Disclosure
         Schedule: (i) has entered into duly executed and authorized sale and
         purchase agreements and deeds of relinquishment (akta pelepasan hak)
         and/or land transfer deeds (akta penyerahan dan penggunaan hak atas
         tanah) and/or other land transfer or compensation documents that form
         the basis for applications for land title under the practices of the
         relevant land office; and (ii) has received from the relevant vendors,
         transferors or occupants of the land (or their authorized
         representatives) powers of attorney and spousal consents or comparable
         authorizations and the relevant land certificates or other relevant
         document in the name of the last individual owner in respect of such
         property and there are no grounds or circumstances whereby the Company
         will be refused the grant of title to such property or on which the
         Company may not be registered as the owner of such

                                       72
<PAGE>

         property;

(c)      each Real Property has the benefit, whether, legally or by custom or by
         usage, of rights of access over property adjoining the Real Property;

(d)      no Real Property nor any of its title deeds (as the case may require)
         is subject to any Encumbrance, nor subject to any power of attorney to
         sell or to establish a hypotec/hak tanggungan nor is any Real Property
         the subject of any court attachment;

(e)      except as disclosed in Schedule 5.19(b) to the Disclosure Schedule
         (section F), there is no person in possession or occupation of, or who
         has or claims any right or interest of any kind in, any Real Property
         adversely to the interest of the Company;

(f)      the Company has duly performed or observed any obligation, condition,
         restriction, agreement or legal requirement affecting each Real
         Property, its occupation of such Real Property or the existing use
         thereof provided that, to the extent of any non-compliance, this will
         not have a material adverse affect on the business or operations of the
         Company;

(g)      no Real Property is subject to any outgoing other than any normal rate
         of tax or rent or other sum payable under any lease under which it is
         held by the Company or other payments made for utilities provided to
         the Real Property;

(h)      except as disclosed in Schedule 5.19(b) to the Disclosure Schedule
         (section F) there is no outstanding dispute affecting any Real Property
         and to the Knowledge of such Selling Shareholder none has been
         threatened;

(i)      to the Knowledge of such Selling Shareholder, there is no resolution or
         proposal for compulsory acquisition of any

                                       73
<PAGE>

         Real Property by any applicable governmental, local or other authority
         or body.

Section 5.20 Real Property. Schedule 5.20 of the Disclosure Schedule sets forth
a complete list and the location of all Real Property. True and complete copies
of (i) all sale and purchase deeds, binding commitments to acquire land and/or
buildings, and powers of attorney to sell relating to the Real Property and (ii)
all documents evidencing all Encumbrances upon the Real Property have heretofore
been made available to Purchaser. The Company is not a party to any lease,
assignment or similar arrangement under which the Company is a lessor, assignor
or otherwise makes available for use by any third party any portion of the Real
Property.

Section 5.21 Leases. Schedule 5.21 of the Disclosure Schedule contains an
accurate and complete list of the Leases. A true and complete copy of each Lease
has heretofore been made available to Purchaser.

Section 5.22 Plant and Equipment. All network installation constructed by the
Company have been constructed in compliance with Purchaser's specifications.

Section 5.23 Contracts and Commitments.

(a)      Schedule 5.23(a) of the Disclosure Schedule contains a complete and
         accurate list of all agreements, contracts and commitments of any kind,
         including all indentures, loans, mortgages, notes, installment
         obligations (including finance leases), consulting agreements, services
         agreements, agreements for the sale of goods or provision of services
         under which the Company or such other third party would be liable for
         at least US$10,000 in payments for a single contract or commitment
         ("Contracts").

(b)      Each of the Contracts is a valid, binding and enforceable obligation of
         the parties thereto. The Company is not in default under or in
         violation of, nor has any event occurred that with the giving of notice
         or lapse of time or both would constitute a default or event of default
         under, nor is there any valid basis for any claim of default under or
         violation of, any Contract. Such Selling Shareholder has no Knowledge
         of any such default, violation or event on the part of any other party
         to a Contract.

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(c)      To the Knowledge of such Selling Shareholder, the Company has no
         outstanding (i) agreement to acquire any debt obligations of others or
         (ii) power of attorney or any obligations or liabilities (whether
         absolute, accrued, contingent or otherwise), as guarantor, surety,
         co-signer, endorser, co-maker, indemnitor or otherwise in respect of
         the obligation of any other Person, corporation, partnership, joint
         venture, association, organization or other entity.

(d)      The Company has no other employees or other workers other than those
         numbers of employees and other workers listed in Schedule 7.5(a).

Section 5.24 Suppliers. To the Knowledge of such Selling Shareholder, since
January 1, 2002, no material supplier of the Company has cancelled or otherwise
modified its commercial relationship with the Company and, to the Knowledge of
such Selling Shareholder, no such Person has any intention to do so.

Section 5.25 Labor; Employee Benefit Plans.

(a)      To the Knowledge of such Selling Shareholder, the Company is, and has
         at all times been in compliance, in all material respects, with all
         applicable laws respecting employment and employment practices, terms
         and conditions of employment, wages, hours of work and occupational
         safety and health.

(b)      The Company has no commitments or formal plans, whether legally binding
         or not, to create any additional Plan or modify or change any existing
         Plan that would affect any employee or former employee of the Company.

(c)      Except for routine claims for benefits, and any claims that may arise
         from the termination of employees of the Company pursuant to Section
         7.5(a) (for which it is agreed the Company remains responsible

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         under Section 7.5), there are no pending, or to the Knowledge of such
         Selling Shareholder, threatened in writing or anticipated claims by or
         on behalf of any Plan, by any employee or beneficiary covered under any
         such Plan, or otherwise involving any such Plan.

Section 5.26 Legal Proceedings Against the Company. There are no Proceedings
pending or threatened in writing or, to the Knowledge of such Selling
Shareholder, anticipated against, involving or affecting the Company which could
be reasonably expected to have a material adverse effect on the financial
position, assets, liabilities (absolute, accrued, contingent or otherwise),
reserves, business, results of operations or prospects of the Company or which
may result in the issuance of a judgment, order or decree prohibiting or making
illegal the consummation of the Transactions. The Company is not subject to any
judgment, order or decree prohibiting or making illegal or otherwise affecting
the consummation of the Transactions.

Section 5.27 Compliance with Laws. The Company has complied in a timely manner
and in all material respects with all laws, rules, decrees and regulations, and
in all respects with any judgments and orders of all Governmental Entities that
affect the business, properties or assets of the Company, and no notice, charge,
claim, action or assertion has been received by the Company or has been filed,
commenced or threatened in writing or, to the Knowledge of such Selling
Shareholder, anticipated against the Company alleging any violation of any of
the foregoing.

Section 5.28 Insider Interests, Debt and Guarantees.

(a)      None of the Company's directors, commissioners, senior management,
         auditors, or shareholders, or any of its shareholders' Affiliates, or
         any entity in which any such person or entity has a significant
         economic or financial interest, (each a "Related Person") has any
         interest in any material contracts (except any employment contracts,
         Plans and labor agreements, between the Company and its directors,
         officers or senior management, in each case entered into the ordinary
         course of business), property, real or personal, tangible or
         intangible, including any Intellectual

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         Property, used in or pertaining to the business of the Company or its
         assets;

(b)      the Company has no outstanding indebtedness to any Related Person and
         no Related Person has outstanding any indebtedness to the Company other
         than indebtedness arising in the ordinary course of business and
         consistent with past practice;

(c)      the Company has not entered into any guarantees. keep-wells or
         financial support arrangements or other accommodations to any third
         party with respect to indebtedness of any Related Person or of any of
         its affiliates; and

(d)      Except as disclosed in Schedule 5.28(d) of the Disclosure Schedule, the
         Company does not (i) have any Subsidiaries, (ii) own, directly or
         indirectly, any capital stock or other securities, or any Voting Debt,
         of any corporation or (iii) have any other direct or indirect equity or
         ownership interest in any business, partnership, joint venture,
         association, organization or other entity (other than the KSO Unit
         pursuant to the KSO Agreement).

The Company is not a party to any other agreement, arrangement or understanding
(whether oral or otherwise), with any Related Person and all contracts between
the Company and any of the Selling Shareholders are listed in the Disclosure
Schedule.

Section 5.29 Tax Matters. The Company has duly filed all Tax Returns that are
required to be filed and has duly paid or caused to be duly paid in full or made
provision in accordance with GAAP in the Financial Statements (or there has been
paid or provision has been made on their behalf) for the payment of all Taxes
for all periods or portions thereof ending through the date hereof. All such Tax
Returns are correct and complete and accurately reflect all liability for Taxes
for the periods covered thereby and:

(a)      There are no liens for Taxes upon any property or assets of the
         Company, except for liens for Taxes not yet due;

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(b)      The Company has not made any change in accounting methods, received a
         ruling from any taxing authority (other than tax clearance certificates
         (surat ketetapan pajak)) or signed an agreement with respect thereto or
         signed any closing agreement with respect to any Tax year;

(c)      The Company has complied in all respects with all applicable laws,
         rules and regulations relating to the payment and withholding of Taxes
         and has, within the time and the manner prescribed by law, withheld and
         paid over to the proper taxing authorities all amounts required to be
         so withheld and paid over under applicable laws;

(d)      There are no unresolved questions or claims concerning Tax liability of
         the Company;

(e)      Other than any Tax Returns that have not yet been required to be filed,
         the Company has made available to Purchaser true, correct and complete
         copies of all Tax Returns of the Company;

(f)      The net operating loss and credit carryovers, if any, available to the
         Company, and their expiration dates, is set forth in the Balance Sheet;
         and

(g)      the Company has properly charged VAT on goods and services delivered,
         properly assessed VAT on charges for services from offshore and has
         claimed credit only for valid input VAT charged by suppliers.

Section 5.30 Intellectual Property. To the Knowledge of such Selling
Shareholder, the Company owns, or otherwise possesses licenses for all
Intellectual Property currently used in or necessary for the conduct of the
business of the Company, and the consummation of the Transactions will not alter
or impair such right or ability in any respect. To the Knowledge of such Selling
Shareholder, there are no oppositions, cancellations, invalidity proceedings,
interferences or re-examination proceedings presently pending with respect to
any Intellectual Property used in the business of the Company. To the Knowledge
of such Selling Shareholder, the conduct of the business of the Company and the
use by the Company of such Intellectual Property does not infringe any
Intellectual

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Property rights or any other proprietary right of any Person, and the Company
has not received any written notice from any other Person pertaining to or
challenging the right of the Company to use any of the Intellectual Property
currently used in its business as it is now conducted. The Company has not made
any claim of a violation or infringement by any other Person of its rights to or
in connection with the Intellectual Property currently used in its business as
it is now conducted which is still pending.

Section 5.31 Bank Accounts. Schedule 5.31 of the Disclosure Schedule sets forth
the names and locations of all banks, and other financial institutions at which
the Company maintains safe deposit boxes, checking accounts or other accounts of
any nature and the names of all Persons authorized to draw thereon, make
withdrawals therefrom or have access thereto.

Section 5.32 Brokers or Finders. Such Selling Shareholder has not entered into
any agreement or arrangement entitling any agent, broker, investment banker,
financial advisor or other firm or Person to any broker's or finder's fee or any
other commission or similar fee in connection with any of the Transactions
although the Company has entered into an agreement with JP Morgan Chase, whose
fees and expenses will be paid by the Company in accordance with the Company's
agreement with such firm.

Section 5.33 Environmental.

(a)      The Company has complied in all material respects with Environmental
         Laws and has obtained all permits, licences and other authorisations
         required under such Environmental Laws.

(b)      There is no civil, criminal, regulatory or administrative action, claim
         or other proceeding or suit pending or threatened in writing against
         the Company arising from or relating to a breach of the Environmental
         Laws nor have such Selling Shareholder or the Company received written
         notice of any complaint, claim, dispute, investigation or other action
         against the Company arising from or relating to any such matters;

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(c)      none of the activities of the Company results in any environmental
         damage to any third party nor has such Selling Shareholder or the
         Company received from any third party written notice of any complaint,
         claim, dispute or other action against the Company arising from or
         relating to any environmental damage.

Section 5.34 Full Disclosure. No statement contained in any document (including
Financial Statements and the Disclosure Schedule), certificate or other writing
furnished or to be furnished by the Selling Shareholders or the Company to
Purchaser pursuant to the provisions hereof or in connection with the
Transactions, contains or will contain any untrue statement of a material fact
or omits or will omit to state a material fact necessary in order to make such
statements in light of the circumstances under which such statements were made
not misleading.

Each exception set forth in the Disclosure Schedule and each other response to
this Agreement set forth in the Disclosure Schedule is identified by reference
to, or has been grouped under a heading referring to, a specific individual
Section of this Agreement and relates only to such Section, unless such
exception is fully, fairly and reasonably disclosed in which case it shall
relate to all relevant Sections of Article 5.

The Selling Shareholders undertake to deliver the Disclosure Schedule to
Purchaser within fifteen (15) calendar days of the date of this Agreement. The
Purchaser undertakes to notify each of the Selling Shareholders within fourteen
(14) calendar days of receipt of the Disclosure Schedule or any amendment
thereto whether the Purchaser accepts or rejects such Disclosure Schedule or
amendment thereto.

For the purposes of this Article 5, the only representations and warranties
given by IFC and NMP are Sections 5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.32.

The representations and warranties of each Selling Shareholder in Sections 5.1,
5.2, 5.3, 5.4, 5.5, 5.6,

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5.7, 5.32 and 5.34 (solely in respect of certificates furnished on the relevant
date) shall be repeated on the Interim Closing and on the Subsequent Closing.

                                    ARTICLE 6
                        REPRESENTATIONS AND WARRANTIES OF
                                   PURCHASER

Purchaser represents and warrants to each Selling Shareholder that as of the
date of this Agreement and on the Initial Closing Date all of the following
statements contained in this Article 6 are true and correct:

Section 6.1 Organization. Purchaser is a limited liability public state-owned
company duly organized and validly existing under the laws of the Republic of
Indonesia and has all requisite power and authority to execute and deliver this
Agreement, and to perform its obligations hereunder.

Section 6.2 Authorization; Validity of Agreement. Purchaser has taken all
corporate action necessary to execute and deliver this Agreement and for the
consummation by Purchaser of the Transactions except for the approval of the
General Meeting of Shareholders and board of commissioners of Purchaser. As of
the Initial Closing Date only, Purchaser represents and warrants that the
approval of the General Meeting of Shareholders and board of commissioners of
Purchaser for the consummation by Purchaser of the Transactions has been
obtained and remains in full force and effect.

Section 6.3 Binding Agreement. This Agreement has been duly executed and
delivered by Purchaser, and, assuming due and valid authorization, execution and
delivery hereof by each of the Selling Shareholders, this Agreement constitutes
a legal, valid and binding obligation of Purchaser, enforceable against
Purchaser in accordance with its terms.

Section 6.4 Consents and Approvals; No Conflicts, Violations or Defaults. Except
for such Consents as are set forth in Schedule 6.4, neither the execution or
delivery of this Agreement by Purchaser nor the consummation by Purchaser of the
Transactions will:

(a)      conflict with or result in any breach of any provision of Purchaser's
         organizational documents;

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(b)      require any Consent of any Governmental Entity or any other Person;

(c)      require any Consent under, or result in a violation or breach of, or
         constitute (with or without due notice or the passage of time or both)
         a default (or give rise to any right of termination, amendment,
         cancellation or acceleration) under, any of the terms, conditions or
         provisions of any agreement, license, contract, commitment, obligation,
         understanding, undertaking, arrangement or instrument to which
         Purchaser is a party or by which Purchaser or any of its properties or
         assets is bound;

(d)      violate any binding order, writ or injunction, applicable to Purchaser
         or any of its properties or assets; or

(e)      violate any decree, statute, rule or regulation applicable to Purchaser
         or any of its properties or assets,

excluding from the foregoing clauses (c) and (e) such violations, breaches or
defaults which would not, individually or in the aggregate, have an adverse
effect on Purchaser's ability to perform its obligations under this Agreement,
its ability to consummate the purchase and sale of the Sale Shares and to accept
title to the Sale Shares, make the Purchaser Loans or the enforceability against
Purchaser or the validity of this Agreement.

As of the Initial Closing Date, Purchaser represents and warrants that each
Consent of any Governmental Entity and any other Person required in order for
Purchaser to consummate the Transactions (including, without limitation, the
Consents set forth in Schedule 6.4) have been obtained and remain in full force
and effect.

Section 6.5 Legal Proceedings. Other than any Proceedings which may be initiated
by the Selling Shareholders or are primarily caused as a result of the actions
of the Selling Shareholders, there are no Proceedings pending or threatened or,
to the actual knowledge of Purchaser, anticipated against, involving or
affecting Purchaser which question or challenge the validity of this Agreement
or any action taken or to be taken by Purchaser pursuant to this Agreement or in

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connection with the Transactions or which may result in the issuance of any
judgment, order or decree prohibiting or making illegal the consummation by
Purchaser of the Transactions. Purchaser is not subject to any judgment, order
or decree prohibiting or making illegal the consummation by Purchaser of the
Transactions or which might have a material adverse effect upon the financial
condition or business of Purchaser or the financial condition or business of any
of the Subsidiaries of Purchaser or upon the ability of Purchaser to perform or
comply with any of the obligations expressed to be assumed by it under any of
this Agreement or any Security Agreements to which it is a party.

Section 6.6 Brokers or Finders. Purchaser has not entered into any agreement or
arrangement entitling any agent, broker, investment banker, financial advisor or
other firm or Person to any broker's or finder's fee or any other commission or
similar fee in connection with any of the Transactions, except Salomon Smith
Barney, whose fees and expenses will be paid by Purchaser in accordance with
Purchaser's agreement with such firm.

Section 6.7 No Bankruptcy Action. Purchaser has not taken any corporate action
nor have any other steps been taken or legal proceedings been started or, to the
actual knowledge of Purchaser, threatened against it for its bankruptcy,
liquidation, winding-up, dissolution, administration, judicial management, the
suspension of its debts, composition with its creditors, or reorganisation or
for the appointment of a curator, liquidator or receiver or similar officer of
Purchaser or of a substantial portion of its assets or revenues.

Section 6.8 No Distress or Execution Against Purchaser. No distress, execution
or other process is being levied or enforced upon or sued or, to the actual
knowledge of Purchaser, threatened against the whole or a substantial part of
the business, undertaking or assets of Purchaser which might have a material
adverse effect upon its financial condition or business or upon its ability to
perform or comply with any of the obligations expressed to be assumed by it
under any of this Agreement or the Security Agreements to which it is a party,
the Purchaser Loan Agreement or the Notes.

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Section 6.9 Default. Except as disclosed in Schedule 6.9, Purchaser is not in
breach of or in default under any agreement to which it is a party or which is
binding on it or any of its assets to an extent or in a manner which might have
a material adverse effect on its business or financial condition or upon its
ability to perform or comply with any of the obligations expressed to be assumed
by it under the Notes, this Agreement, the Purchaser Loan Agreement or any of
the Security Agreements to which it is a party.

Section 6.10 Full Disclosure. No statement contained in any document,
certificate or other writing furnished or to be furnished by the Purchaser to
any of the Selling Shareholders pursuant to the provisions hereof or in
connection with the Transactions, contains or will contain any untrue statement
of a material fact or omits or will omit to state a material fact necessary in
order to make such statements in light of the circumstances under which such
statements were made, not misleading.

The representations and warranties of Purchaser in the Sections 6.1, 6.2, 6.3,
6.4, 6.5, 6.6, and 6.10 shall be repeated on the Interim Closing and on the
Subsequent Closing.

                                   ARTICLE 7
                                   COVENANTS

Section 7.1 Interim Operations of the Company. Each Selling Shareholder (other
than IFC and NMP) shall use its reasonable efforts to cause the Company, from
the date hereof to the Initial Closing Date, except (i) as expressly provided in
this Agreement, (ii) as are Permitted Preparatory Actions or (iii) as may be
mutually agreed by Purchaser and the Selling Shareholders:

(a)      to conduct its business in the ordinary course and in accordance with
         all material applicable laws and regulations;

         (i)      so as to keep available the services of its current directors;
                  and

         (ii)     so as to maintain relations with suppliers, creditors,
                  business

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                  partners and others having business dealings with it so that
                  the goodwill and ongoing business of the Company shall be
                  unimpaired at the Initial Closing Date; and other than in each
                  case with a view to winding down its operations in accordance
                  with the Permitted Preparatory Actions;

(b)      not to:

         (i)      amend its organizational documents;

         (ii)     issue, sell, transfer, pledge, dispose of or encumber any
                  shares of any class or series of its capital stock, or
                  securities convertible into or exchangeable for, or options,
                  warrants, calls, commitments or rights of any kind to acquire,
                  any shares of any class or series of its capital stock or any
                  Voting Debt;

         (iii)    declare, set aside or pay any dividend or other distribution
                  payable in cash, stock or property with respect to any shares
                  of any class or series of its capital stock;

         (iv)     split, combine or reclassify any shares of any class or series
                  of its capital stock;

         (v)      redeem, purchase or otherwise acquire, directly or indirectly,
                  any shares of any class or series of its capital stock, or any
                  instrument or security which consists of or includes a right
                  to acquire such shares; or

         (vi)     make any loan to or enter into any transaction with any
                  Selling Shareholder or Person related thereto except as
                  contemplated specifically by this Agreement.

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(c)      not to organize any new Subsidiary or acquire any capital stock or
         other equity securities, or equity or ownership interest in the
         business, of any other Person;

(d)      not to modify, amend or terminate any of its Material Agreements or
         waive, release or assign any material rights or claims, except in the
         ordinary course of business and with a view to winding down its
         operations in accordance with the Permitted Preparatory Actions;

(e)      not to:

         (i)      incur or assume any indebtedness except in the ordinary course
                  of business;

         (ii)     subject to Section 7.9, pay, repay, discharge, purchase,
                  repurchase or satisfy any indebtedness issued or guaranteed by
                  the Company, except as required by the terms thereof;

         (iii)    modify the terms of any indebtedness or other liability, other
                  than modifications of short term debt in the ordinary and
                  usual course of business and consistent with past practice; or

         (iv)     assume, guarantee, endorse or otherwise become liable or
                  responsible (whether directly, contingently or otherwise) for
                  the obligations of any other Person;

(f)      not to sell, lease, license, hypothecate, mortgage, pledge, transfer or
         otherwise encumber or dispose of any assets or property, individually
         or in the aggregate, material to its business, other than in the
         ordinary course of business and with a view to winding down its
         operations in accordance with the Permitted Preparatory Actions;

(g)      except as contemplated by Section 7.5 hereof, not to make any change in
         the compensation payable or to become payable to any of its directors,
         commissioners,

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<PAGE>

         employees, agents or consultants or to Persons providing management
         services, or enter into or amend any employment, severance, consulting,
         termination or other agreement with, or employee benefit plan for, or
         make any loan or advance to, any of its directors, commissioners,
         employees, agents or consultants or make any change in its existing
         borrowing or lending arrangements for or on behalf of any of such
         Persons pursuant to an employee benefit plan or otherwise other than in
         each case with a view to winding down its operations in accordance with
         the Permitted Preparatory Actions;

(h)      except as contemplated by Section 7.5 hereof, not to:

         (i)      pay or make any accrual or arrangement for payment of any
                  pension, retirement allowance or other employee benefit
                  pursuant to any existing plan, agreement or arrangement to any
                  director, commissioner or employee, except to the extent it is
                  unconditionally obligated to do so on the date hereof (except
                  in respect of a change of law) and other than in each case
                  with a view to winding down its operations in accordance with
                  the Permitted Preparatory Actions;

         (ii)     adopt or pay, grant, issue, accelerate or accrue salary or
                  other payments or benefits pursuant to any pension,
                  profit-sharing, bonus, extra compensation, incentive, deferred
                  compensation, stock purchase, stock option, stock appreciation
                  right, group insurance, severance pay, retirement or other
                  employee benefit plan, agreement or arrangement, or any
                  employment or consulting agreement with or for the benefit of
                  any director, employee, agent or consultant, whether past or
                  present, except to the extent the Company is unconditionally
                  obligated to do so on the date hereof (except in respect of a
                  change of law) and other than in

                                       87
<PAGE>

                  each case with a view to winding down its operations in
                  accordance with the Permitted Preparatory Actions; or

         (iii)    amend in any material respect any such existing plan,
                  agreement or arrangement in a manner inconsistent with the
                  foregoing;

(i)      not to enter into any agreement, contract or transaction or make any
         payment under any agreement, contract or transaction entered into on
         other than an arm's length basis, and other than in the ordinary course
         of business and consistent with past practice or in accordance with the
         Permitted Preparatory Actions;

(j)      other than in each case with a view to winding down its operations in
         accordance with the Permitted Preparatory Actions not to pay,
         repurchase, discharge or satisfy any of its claims, liabilities or
         obligations (absolute, accrued, asserted or unasserted, contingent or
         otherwise), other than the payment, discharge or satisfaction of:

         (i)      claims, liabilities or obligations in the ordinary course of
                  business and consistent with past practice; or

         (ii)     claims, liabilities or obligations reflected or reserved
                  against in, or contemplated by, the Financial Statements to
                  the extent so reflected or reserved against; or

         (iii)    payments in respect of the Existing IFC Loans;

(k)      not to:

         (i)      change any of the accounting methods used by it unless
                  required by GAAP; or

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<PAGE>

         (ii)     make any election relating to Taxes, change any election
                  relating to Taxes already made, adopt any accounting method
                  relating to Taxes, change any accounting method relating to
                  Taxes unless required by GAAP, enter into any closing
                  agreement relating to Taxes, settle any claim or assessment
                  relating to Taxes or consent to any claim or assessment
                  relating to Taxes or any waiver of the statute of limitations
                  for any such claim or assessment;

(l)      not to enter into any agreement, contract, commitment or arrangement to
         do any of the foregoing, or authorize, recommend, propose or announce
         an intention to do, any of the foregoing; and

(m)      to cause the delivery to Purchaser at the Initial Closing of letter(s)
         evidencing the resignation and removal of each of the members of the
         Board of Commissioners and Board of Directors of the Company nominated
         by such Selling Shareholder without claims for compensation.

PROVIDED that each of IFC and NMP agrees for the benefit of Purchaser that it
shall not vote in favour of any resolution which may be tabled which would, if
passed, cause any of the above covenants to be contravened.

Section  7.2 Access; Confidentiality.

(a)      From the date hereof until the Initial Closing, the Selling
         Shareholders (other than IFC and NMP) will use their respective
         reasonable efforts to cause the Company to:

         (i)      afford Purchaser and its authorized representatives reasonable
                  access during business hours to all books and records (except
                  to the extent sensitive information is contained therein
                  regarding Purchaser and/or the KSO Agreement), offices and
                  other facilities of the Company and real property owned,
                  leased or used

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<PAGE>

                  by the Company and to personnel and suppliers of the Company;

         (ii)     permit Purchaser to make such reasonable inspections during
                  business hours (including making such investigations and
                  assessments, as Purchaser deems reasonably necessary or
                  appropriate in its sole and absolute discretion), of the
                  environmental condition of such properties or the business
                  conducted there and to make copies of such books and records
                  as it may reasonably require (except to the extent sensitive
                  information is contained therein regarding Purchaser and/or
                  the KSO Agreement); and

         (iii)    furnish Purchaser with such financial and operating data and
                  other information as Purchaser may from time to time
                  reasonably request.

Purchaser and its authorized representatives shall conduct all such inspections
in a manner that will minimize disruptions to the business and operations of the
Company.

In addition, in the event that Purchaser identifies matters in the course of its
due diligence which Purchaser determines, in its sole discretion, are not
satisfactory, Purchaser shall use its reasonable efforts to provide the Selling
Shareholders with a reasonable opportunity to address Purchaser's concerns.

The Company and each of the Selling Shareholders shall continue to afford
Purchaser and its authorized representative, such reasonable access during
business hours, and to permit Purchaser to make such inspections and copies as
Purchaser may reasonably request (except to the extent sensitive information is
contained therein regarding Purchaser and/or the KSO Agreement) to enable it to
satisfactorily address its concerns.

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<PAGE>

(b)      The provisions of the Confidentiality Agreement shall remain binding
         and in full force and effect until the Initial Closing, except that the
         Confidentiality Agreement shall not apply to any documents prepared in
         connection with or filed with, or other disclosure made to, a court,
         arbitration tribunal or mediation service in order to enforce any
         Purchaser's rights arising in connection with the termination of this
         Agreement pursuant to Article 9. The information contained in this
         Agreement or delivered to Purchaser or its authorized representatives
         pursuant hereto shall be subject to the Confidentiality Agreement as
         Confidential Information (as defined and subject to the exceptions
         contained therein) until the Initial Closing and, for that purpose and
         to that extent, the terms of the Confidentiality Agreement are
         incorporated herein by reference. All obligations of Purchaser under
         the Confidentiality Agreement shall terminate simultaneously with the
         Initial Closing.

From the date hereof and at all times thereafter except as otherwise provided
herein, each of the Selling Shareholders and Purchaser shall, and, other than
IFC and NMP, shall cause the Company and its consultants, advisors and
representatives to, treat (unless compelled to disclose by judicial or
administrative process or, in the reasonable opinion of the disclosing party, by
other requirements of law) the terms of this Agreement and the Transactions and
all nonpublic, confidential or proprietary information concerning the Company as
strictly confidential. The Selling Shareholders shall not use (at all times),
and other than IFC and NMP, shall cause the Company (from the date hereof to the
Initial Closing Date) and its consultants, advisors and representatives to
refrain from using, such information to the detriment of the Company or
Purchaser.

Section 7.3 Efforts and Actions to Cause each Closing to Occur.

(a)      Prior to each Closing, each Selling Shareholder, the Company and
         Purchaser shall use its respective reasonable efforts in respect of the
         Initial Closing and its best efforts in respect of the Interim Closing
         and the Subsequent Closing to take, or cause to

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<PAGE>

         be taken, all actions, and to do, or cause to be done and to cooperate
         with each other in order to do, all things necessary, proper or
         advisable (in view of applicable laws and regulations) to consummate
         each Closing and the relevant Transactions upon the terms and subject
         to the conditions of, as applicable, this Agreement, the Security
         Agreements, the Purchaser Loan Agreement and the Notes (including the
         preparation and filing of all forms, registrations and notices required
         to be filed to consummate such Closing and the relevant Transactions
         and the taking of such actions as are necessary to obtain any requisite
         Consents of any Governmental Entity or any other Person).

         In addition, no party hereto shall take any action after the date
         hereof that could reasonably be expected to materially delay the
         obtaining of, or result in the failure to obtain, any Consent from any
         Governmental Entity or other Person required to be obtained prior to a
         Closing, provided that this restriction shall not apply to the date
         chosen by a party for such General Meeting of Shareholders of that
         party. Nothing in this Agreement shall require a party to hold its
         General Meeting of Shareholders on or by any particular date.

(b)      Prior to each Closing, each party hereto shall promptly consult with
         the other parties hereto with respect to, provide any necessary
         information with respect to, and provide, upon request, the other
         parties (or their respective counsel) with copies of, all filings made
         by such party with any Governmental Entity or any other information
         supplied by such party to a Governmental Entity in connection with this
         Agreement and the Transactions. Each party hereto shall promptly
         provide the other parties with copies of any written communication
         received by such party from any Governmental Entity regarding any of
         the Transactions. If any party hereto receives a request for additional
         information or documentary material from any such

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         Governmental Entity with respect to any of the Transactions, then such
         party shall endeavor in good faith to make, or cause to be made, as
         soon as reasonably practicable and after consultation with the other
         parties, an appropriate response in compliance with such request. To
         the extent that transfers, amendments or modifications of permits are
         required as a result of the execution of this Agreement or consummation
         of any of the Transactions, each Selling Shareholder, with respect to
         permits applicable to it, and the Company shall use its respective best
         efforts to effect such transfers, amendments or modifications.

(c)      Nothing in this Section 7.3 shall require any party to waive, or
         otherwise exercise in a particular manner any discretion it may have
         under, any condition to Closing.

(d)      The parties hereto shall (i) procure upon payment and repayment by the
         Company of all amounts payable under the IFC Investment Agreement and
         the Common Terms Agreement with respect to the Existing IFC Loans, in
         accordance with their respective terms, the immediate release of the
         Share Pledges by PT BNP Bank Lippo Indonesia, as security agent, and
         (ii) immediately provide such other consents, notifications and filings
         as are required to consummate the relevant Transactions contemplated by
         this Agreement to be consummated on or around that time.

(e)      The Selling Shareholders shall vote in favor of all resolutions of the
         Company and any other Person which are necessary to consummate the
         Transactions contemplated.

Section 7.4 Notification of Certain Matters.

(a)      Each of the Selling Shareholders shall give notice to Purchaser
         promptly after becoming aware of (i) the occurrence or non-occurrence
         of any event whose occurrence or

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         non-occurrence would be likely to cause either (A) (x) any
         representation or warranty on its part contained in this Agreement or
         in any certificate delivered by it in connection with the Initial
         Closing to be untrue or incorrect in any respect at any time from the
         date the relevant representation and warranty is first given until the
         Initial Closing Date and (y) any representation or warranty on its part
         in Sections 5.1, 5.2, 5.3, 5.4, 5.6, 5.7 and 5.32 to the extent
         required by this Agreement to be true and correct in material respects
         at the date of the relevant Closing, or in connection with any
         certificate delivered by it in connection any other Closing to be
         untrue or incorrect in any material aspect from the Initial Closing
         Date to the relevant subsequent Closing Date or (B) any condition to be
         performed by or otherwise relating to such Selling Shareholder set
         forth in Article 8 to be unsatisfied in any respect at any time from
         the date hereof to any Closing Date and (ii) any material failure of
         such Selling Shareholder, the Company or any director, commissioner,
         employee or agent of such Selling Shareholder or of the Company, to
         comply with or satisfy any covenant, condition or agreement to be
         complied with or satisfied by it hereunder; provided, however, that

         (i)      the delivery of any notice pursuant to this Section 7.4 shall
                  not limit or otherwise affect the remedies available hereunder
                  to the party receiving such notice nor shall any delivery of
                  any notice be deemed to affect any representation and warranty
                  or the Disclosure Schedule hereunder unless such delivery
                  occurs as a formal amendment to the Disclosure Schedule on or
                  before the date being twenty-five (25) calendar days prior to
                  the proposed date of the Initial Closing; and

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         (ii)     notice shall not be required from and after the time the party
                  to whom such notice is to be given has actual knowledge of the
                  information required to be included in such notice.

(b)      Exclusive Dealings. During the Exclusivity Period:

         (A)      save, in the case of IFC, upon enforcement of any Share Pledge
                  prior to the Share Pledge Release Date, no Selling Shareholder
                  shall, directly or indirectly, including, through any of its
                  respective advisors:

                  (i)      sell or agree to sell any of the Sale Shares other
                           than through a sale pursuant to the Transactions;

                  (ii)     encourage, solicit, initiate, continue or participate
                           in discussions or negotiations with, or provide any
                           information to, any Person or group (other than
                           Purchaser, its Subsidiaries or any of their
                           representatives) concerning any Acquisition Proposal;
                           or

                  (iii)    enter into any agreement with respect to any
                           Acquisition Proposal; and

         (B)      Each of the Selling Shareholders shall, and each of the
                  Selling Shareholders (other than IFC and NMP) shall prior to
                  the Initial Closing cause the Company to:

                  (i)      immediately notify Purchaser of the existence of any
                           proposal or inquiry concerning any Acquisition
                           Proposal received by it;

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         (ii)     immediately communicate to Purchaser the terms of any such
                  proposal or inquiry which it may receive (and shall
                  immediately provide to Purchaser copies of any written
                  materials received in connection with such proposal,
                  discussion, negotiation or inquiry) and the identity of the
                  party making such proposal or inquiry; and

(C)      Each of the Selling Shareholders, other than IFC and NMP, shall use its
         reasonable efforts to cause the Company to not enter into any agreement
         with respect to any Acquisition Proposal provided that IFC and NMP
         agree for the benefit of Purchaser that they shall not vote in favour
         of any such proposal.

PROVIDED that if an Event of Repayment has occurred the Selling Shareholders
shall from the date being the latter of (i) the occurrence of an Event of
Repayment and (ii) January 1, 2005, notwithstanding the foregoing provisions of
Section 7.4(b)(A)(ii) and Section 7.4(b)(B), be permitted to encourage, solicit,
initiate or participate or engage in discussions or negotiations with, and enter
into any agreement with, any third party regarding an Acquisition Proposal or
sale of Sale Shares and shall not be required to disclose such proposal or
agreement or any terms thereof to Purchaser. Any such agreement concerning an
Acquisition Proposal or sale of Sale Shares shall be conditional on the
Subsequent Closing not occurring on or before 31 December 2005 solely due to the
breach by Purchaser of its obligations in respect of such Closing.

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Section 7.5 Personnel.

(a)      Personnel Terminated by the Company. On or prior to the Initial Closing
         Date, the Company shall, and each of the Selling Shareholders (other
         than IFC and NMP) shall cause the Company to, terminate the employment
         of each of the employees, directors and commissioners of the Company
         and the General Manager of the KSO Unit identified on Schedule 7.5(a)
         of the Disclosure Schedule (the "Terminated Personnel"). All costs and
         expenses of terminating the employment with the Company of the
         Terminated Personnel shall be borne by the Company.

(b)      Transfer of Seconded FCR Personnel. The names of all employees of FCR
         seconded to the Company as of the date hereof (the "Seconded FCR
         Personnel") are set forth on Schedule 7.5(b) of the Disclosure
         Schedule. On or prior to the Initial Closing Date, the Company and each
         Selling Shareholder (other than IFC and NMP) shall use its reasonable
         efforts to cause the Company to, transfer the Seconded FCR Personnel to
         FCR. FCR hereby acknowledges and agrees to such transfer of the
         Seconded FCR Personnel. All costs and expenses of transferring the
         Seconded FCR Personnel from the Company to FCR shall be borne by FCR.

All of the actions taken with respect to paragraphs (a) and (b) above shall, by
each party responsible for taking such action with respect to the employees,
directors and commissioners, be performed in a manner which is in compliance
with all applicable Indonesian labor and employment laws. Except to the extent
otherwise contemplated in Section 7.5(b), all costs and expenses relating to the
termination of the General Manager of the KSO Unit and any employees, directors
and commissioners of the Company as contemplated hereby, including all severance
and other termination costs and expenses, shall be paid by the Company prior to
the Initial Closing or fully provided for in the Company's balance sheet prior
to the Initial Closing and so taken into account in calculating the Proforma
Adjusted Working Capital and Final Adjusted Working Capital under Article 4. To
the extent any such costs and expenses are not so provided, the Selling
Shareholders shall severally in their respective Pro Rata Shares indemnify and
hold harmless Purchaser with respect

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to all such costs and expenses.

Section 7.6 Financial Escrow Agreement. On or prior to the Initial Closing,
Purchaser and the Selling Shareholders shall enter into the Financial Escrow
Agreement. In the event of and only to the extent of any inconsistency between
on the one hand the provisions of Sections 3.8(b), 3.8(c), 3.8(i), 3.11 and this
Section 7.6 and on the other hand the provisions of the Financial Escrow
Agreement, the provisions of the Financial Escrow Agreement shall control.
Subject to Section 7.6(f) below, all monies deposited with the Financial Escrow
Agent as provided for herein shall be effected in United States Dollars by wire
transfer in immediately available funds. Notwithstanding the occurrence of any
event described in Section 7.6(f) below, Purchaser shall not be relieved of its
obligations to pay the Purchase Price in United States Dollars.

(a)      Funding of the Financial Escrow Account. Purchaser will deposit or
         cause to be deposited into a bank account in Singapore ("Financial
         Escrow Account") under and pursuant to the Financial Escrow Agreement
         such sums as are specified in and at the times set out in Schedule
         7.6(a) (the "Monthly Amount").

(b)      Wire Transfers. On each Payment Date, the Financial Escrow Agent shall
         be required by the terms of the Financial Escrow Agreement to pay out
         of the Financial Escrow Account by wire transfer in immediately
         available funds to the bank account of each Selling Shareholder and
         Registered Holder, as relevant (such bank account details having been
         notified in writing to Purchaser and the Financial Escrow Agent in the
         manner stipulated in the Financial Escrow Agreement), the following
         amounts: (i) to each Selling Shareholder, such Selling Shareholder's
         Shareholder Balance Amount due on such Payment Date as evidenced by the
         Notes issued by Purchaser to such Selling Shareholder, and/or (ii) to
         the extent such Selling Shareholder has transferred some or all of the
         Notes issued to it by Purchaser to each Registered Holder of Notes, the
         Shareholder Balance Amount evidenced thereby due on such Payment Date
         (in each case, thereby reducing the Shareholder Balance Amount of such
         Selling Shareholder by an amount equal to the amount paid

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<PAGE>

         against any such Notes (such amounts to include permitted deductions or
         withholdings for tax, if any)). The amounts payable and the Payment
         Dates for the Notes evidencing the Shareholder Balance Amounts are set
         out in Schedule 7.6(b) hereof ("Quarterly Payments"). Each such payment
         against the Notes shall extinguish a corresponding amount of the
         Shareholder Balance Amount.

(c)      Notice of Shortfall. The Financial Escrow Agreement shall require the
         Financial Escrow Agent to notify Purchaser, at the times and in the
         manner specified in the Financial Escrow Agreement, if there is a delay
         in payment/receipt of a Monthly Amount or if the Financial Escrow Agent
         determines that with respect to any Payment Date, the funds on deposit
         in the Financial Escrow Account will be insufficient to make all
         payments on such Payment Date.

(d)      Payment of Shortfall Amounts. In the event of receipt of notification
         under (c) above, Purchaser shall ensure that amounts are paid into the
         Financial Escrow Account so that the Financial Escrow Agent has
         sufficient funds to make such payments.

(e)      Financial Escrow Account. Subject to (f) below, the Financial Escrow
         Account shall be a U.S. dollar-denominated account at a Singapore
         branch of a bank agreed between the parties, and shall be so held
         subject to the terms of the Financial Escrow Agreement. Any moneys
         available in the Financial Escrow Account after payment by the
         Purchaser of the Notes in accordance with their terms evidencing
         Purchaser's obligations to pay Shareholder Balance Amounts shall be
         paid to Purchaser.

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(f)      Standby Account. Upon a change in law prohibiting Purchaser from
         converting Rupiah into United States Dollars or remitting funds outside
         of the Republic of Indonesia, an escrow account shall be promptly
         opened (the "Standby Account") in the name of Purchaser with the
         Financial Escrow Agent in Jakarta denominated (to the extent permitted
         under applicable Indonesian laws and regulations) in United States
         Dollars, failing which in Rupiah.

(g)      Payments into Standby Account. After delivery of the Notice of Standby
         Account (as defined in the Financial Escrow Agreement) by Purchaser in
         accordance with the provisions of the Financial Escrow Agreement,
         Purchaser shall pay into the Standby Account the full amounts (at the
         times specified in this Section 7.6 and as provided for in the
         Financial Escrow Agreement) that it would otherwise have paid into the
         Financial Escrow Account pursuant to Section 7.6(b). Payments into the
         Standby Account shall be in United States Dollars to the extent
         permitted under applicable Indonesian laws and regulations, failing
         which, the Rupiah equivalent (at the time of deposit) of the relevant
         United States Dollar amount using the spot rate of exchange quoted by
         the Financial Escrow Agent at the time of deposit or, if not available,
         the exchange rate quoted by the Financial Escrow Agent last available
         for such currencies.

(h)      Conversion. If amounts are paid into the Standby Account in Rupiah and
         subsequently the Rupiah is able to be converted into United States
         Dollars and/or funds can be transferred outside Indonesia, Purchaser
         shall promptly cause the Financial Escrow Agent to effect conversion of
         such amounts and/or transfer of those amounts to the Financial Escrow
         Account.

(i)      Call Notes. Purchaser shall be entitled to call all (and not part only)
         of the outstanding Notes (other than those Notes that, notwithstanding
         such call, mature and are payable on the Call Date) evidencing the
         corresponding Shareholder Balance Amounts

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<PAGE>
         on a Call Date by giving notice in accordance with the Financial Escrow
         Agreement and paying in exchange for cancellation of such Notes the
         call amount per Note as set out in part one of Schedule 7.6(i),
         thereby, subject to redemption of all Notes that, notwithstanding such
         call, mature and are payable on the Call Date reducing each Selling
         Shareholder's Shareholder Balance Amount to zero (0).

(j)      Indonesian Withholding Tax. All payments contemplated to be made by or
         on behalf of Purchaser pursuant to the Financial Escrow Agreement in
         respect of the Series I Notes shall be made without set off,
         counterclaim or other deduction provided that Purchaser shall be
         entitled to withhold and deduct, or to have withheld and deducted by
         the Financial Escrow Agent, (with no obligation to gross up) all
         amounts (that are less than or equal to the WHT Collar Amount, as
         defined below) required to be withheld or deducted under applicable
         Indonesian laws and regulations on account of withholding tax. In the
         event that such amount required to be withheld and deducted is greater
         than the amount equivalent to the withholding tax payable in relation
         to the discount or interest component of such payment under the
         Financial Escrow Agreement or with respect to a Series I Note in either
         case calculated at a deemed effective discount or interest rate of
         8.85% per annum, compounded quarterly and at the applicable tax treaty
         rate (the "WHT Collar Amount"), Purchaser shall only be entitled to
         withhold and deduct or have withheld or deducted an amount equal to (or
         less than) the WHT Collar Amount in relation to the interest component
         of such payment and Purchaser shall be solely responsible for the
         payment of any withholding tax payable on the interest component of
         such payment which is greater than the WHT Collar Amount. Any amount
         that is less than or equal to the WHT Collar Amount that is withheld or
         deducted with respect to a payment under a Series I Note shall
         correspondingly reduce the amount of such Selling Shareholder's
         Shareholder Balance Amount owing by Purchaser and shall extinguish a
         corresponding amount outstanding under that Series I Note evidencing
         such Selling Shareholder's

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<PAGE>

Shareholder Balance Amount (and so shall reduce the amount payable to such
Registered Holder by the Financial Escrow Agent under the Financial Escrow
Agreement).

All payments contemplated to be made by or on behalf of Purchaser pursuant the
Financial Escrow Agreement in respect of the Series II Notes, shall be made
without set off, counterclaim or other deduction, provided that Purchaser shall
be entitled to withhold and deduct, or to have withheld and deducted by the
Financial Escrow Agent, (with no obligation to gross up) all amounts required to
be withheld or deducted under applicable Indonesian laws and regulations on
account of withholding tax, subject to the applicable tax treaty, if any. Any
amount withheld or deducted with respect to a payment under a Series II Note
shall correspondingly reduce the amount of such Selling Shareholder's
Shareholder Balance Amount owing by Purchaser and shall extinguish a
corresponding amount outstanding under that Series II Note evidencing such
Selling Shareholder's Shareholder Balance Amount (and so, for the avoidance of
doubt, shall reduce the amount payable to such Registered Holder by the
Financial Escrow Agent under the Financial Escrow Agreement).

Any and all receipts and other evidence of amounts withheld or deducted and paid
to the relevant Indonesian tax authorities in respect of the Notes shall be
promptly delivered to the relevant Registered Holders pursuant to the terms of
the Financial Escrow Agreement.

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(k)      Transfer Notes. A Selling Shareholder or, where relevant, a Registered
         Holder may transfer its Notes in accordance with the following
         procedures. The Transferor shall endorse the Note in favor of and
         deliver the Note to the transferee. Contemporaneously, the transferor
         and transferee shall execute a Transfer Certificate in the form set out
         in Exhibit A1 (in the case of a Series I Note) and in Exhibit A2 (in
         the case of a Series II Note) and deliver it, in accordance with its
         terms, to Purchaser and Financial Escrow Agent. The parties hereto
         agree that the Financial Escrow Agent, upon receipt of a duly executed
         Transfer Certificate, shall record the transfer of the Note in the
         register of Notes kept by the Financial Escrow Agent and the Financial
         Escrow Agent shall be authorized and instructed to and shall
         countersign the Transfer Certificate on behalf of Purchaser and the
         other parties to the Financial Escrow Agreement and thereby cause the
         transferee to (i) become party to the Financial Escrow Agreement and
         (ii) be subject to and bound by the terms and conditions thereof.

Section 7.7 Indonesian Escrow Account. On or prior to the Initial Closing,
Purchaser and the Selling Shareholders will enter into the Indonesian Escrow
Agreement with an Indonesian escrow agent (the "Indonesian Escrow Agent"). In
the event of and only to the extent of any inconsistency between on the one hand
the provisions of Sections 4.8(a), 4.8(b), 4.8(c)(i) and this Section 7.7 and on
the other hand the provisions of the Indonesian Escrow Agreement, the provisions
of the Indonesian Escrow Agreement shall prevail.

(a)      On:

(i)      the Share Pledge Release Date:

         (A)      the Selling Shareholders (other than IFC) shall, and Purchaser
                  shall (to the extent that it has control or the ability to
                  control the delivery of the Sale Shares), procure that all of
                  the

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<PAGE>

                  share certificates representing their Sale Shares shall be
                  deposited with the Indonesian Escrow Agent and IFC shall
                  deliver certificates representing its Sale Shares to the
                  Indonesian Escrow Agent, and all such Sale Shares, being in
                  aggregate all of the Sale Shares, which shall be placed in a
                  share escrow account (the "Indonesian Share Escrow Account");
                  and

         (B)      the Company shall delete the notation of the Share Pledges and
                  shall deliver the Company's register of shareholders to the
                  Indonesian Escrow Agent which likewise will be delivered into
                  the Indonesian Share Escrow Account,

         pursuant to Section 3.9, such share certificates shall be endorsed for
         transfer or new certificates issued and the Company's register of
         shareholders updated to reflect the transactions on the Initial
         Closing. If, as a result of the Net Working Capital Reimbursement not
         being paid prior to the Share Pledge Release Date, the share
         certificates are not able to be endorsed for transfer or new
         certificates issued to reflect the transactions on the Initial Closing,
         the Majority Shareholders, Purchaser and the Company shall upon payment
         of the Net Working Capital Reimbursement promptly issue a written
         authorisation pursuant to Section 3.10 to permit the directors and
         commissioners to amend the Company's register of shareholders and
         endorse for transfer or issue share certificates to reflect the
         transactions on the Initial Closing.

(ii)     the Initial Closing the parties hereto shall deposit with the
         Indonesian Escrow Agent all the KSO Waivers, the Company Waivers and
         all the Notes delivered on the Initial Closing, which shall be placed
         in the Indonesian Share Escrow Account.

(b)      If Purchaser defaults under the terms of the Financial Escrow
         Agreement, the entitlements of the parties hereto to the Sale Shares
         shall be solely determined by the occurrence of any Closing hereunder
         and not by the amount of the Purchase Price already paid to the Selling
         Shareholders as provided

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         for in the Financial Escrow Agreement (including moneys to be
         transferred to the Selling Shareholders by the Financial Escrow Agent
         on a default under the Financial Escrow Agreement).

(c)      All Sale Shares shall be released from the Indonesian Share Escrow
         Account in accordance with the terms of the Indonesian Escrow
         Agreement.

(d)      The Indonesian Escrow Agreement shall also contain provisions for the
         setting up of a financial escrow account (the "Indonesian Financial
         Escrow Account").

(e)      All interest paid on funds in the Indonesian Financial Escrow Account
         to be lent to Purchaser for the purposes of funding the Net Working
         Capital Reimbursement in accordance with Section 4.8 will be paid, in
         addition to the principal amount of the Net Working Capital
         Reimbursement, to the Selling Shareholders from the Indonesian
         Financial Escrow Account pursuant to Section 4.8(c).

(f)      If any amount remains in the Indonesian Financial Escrow Account after
         satisfaction of the payments under Section 4.8 ("Excess Funds"), the
         Excess Funds and any accrued interest thereon shall be paid by the
         Indonesian Escrow Agent to the Company. After distribution of all
         moneys in the Indonesian Financial Escrow Account, the Indonesian
         Escrow Agent shall close such account on the joint written instruction
         of the Company and Purchaser.

(g)      Upon payment of the Notes evidencing the corresponding Shareholder
         Balance Amounts in accordance with their terms, Purchaser shall be
         entitled to utilize a power of attorney in its favor from each Selling
         Shareholder, contained in article IX of the Indonesian Escrow
         Agreement, to effect the transfer to Purchaser or its designatee of any
         remaining Sale Shares not in the name of Purchaser or its designee.

Section 7.8 Meeting to Appoint Board of Directors and Board of Commissioners.
Each of the Selling Shareholders and Purchaser shall cause a General Meeting of
Shareholders of the Company, whether in person or by circular resolution of all
Selling Shareholders, to be held on the Initial Closing Date

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for the purpose of electing each of the persons nominated by Purchaser to the
Board of Directors of the Company and the Board of Commissioners of the Company
with effect on Initial Closing.

7.9 Funding of Financial Escrow Accounts and other Payments. Subject to Section
2.6, after the Initial Closing but prior to the Subsequent Closing the Company
shall first (a) repay the Purchaser Loans and (b) after full repayment of the
Purchaser Loans, advance funds to Purchaser, in each case for the purpose of
funding:

(i)      Purchaser's obligations in respect of paying the Net Working Capital
         Reimbursement;

(ii)     Purchaser's obligations in respect of the Monthly Amounts and the Notes
         evidencing the Shareholder Balance Amounts;

(iii)    any capital expenditures by Purchaser on its own network in the area of
         the KSO Unit, provided that the Company may only provide funds to the
         Purchaser under this Section 7.9(iii) to the extent:

         (a)      the Net Working Capital Reimbursement has been paid in full;
                  and

         (b)      the Monthly Amount for that month has been funded.

Any funds advanced by the Company to Purchaser pursuant to this Section 7.9
shall initially be used to repay the Purchaser Loans and thereafter shall be
recorded as loans to Purchaser and shall be repayable by Purchaser to the
Company on arms length terms and conditions to be agreed between the Company and
Purchaser.

Section 7.10 Finalisation of Agreements. The parties hereto acknowledge and
agree that the agreements in Exhibits E, F, G and H are still subject to
negotiation and need to be discussed and agreed with the counter-parties to
those agreements which are not parties to this Agreement. Consequently, although
the intention is to enter into such agreements substantially in accordance with
their respective terms in such Exhibits, amendments prior to execution of such
agreements may be required to reflect the comments of the counter-parties to
such agreements and to reflect the agreed arrangements for the Transactions. The
parties hereto agree to finalize in good faith such

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<PAGE>

agreements as soon as possible after the date of this Agreement.

Section 7.11 Approvals. Each of FCR and Marubeni shall use its reasonable
endeavours to deliver to Purchaser on or prior to the date of the Purchaser's
annual general meeting scheduled for 2002, evidence of or a certificate stating
that the approval of its board of directors for this Agreement and the
consummation by it of the Transactions, has been obtained. Purchaser shall use
its reasonable endeavours to deliver to each Selling Shareholder on or prior to
the date of the Purchaser's annual general meeting scheduled for 2002, evidence
of or a certificate stating that the approval of its board of commissioners for
this Agreement and the consummation by it of the Transactions has been obtained.

Section 7.12 Disclosure Schedule. Each Selling Shareholder agrees that the
Disclosure Schedule (and any amendments thereto) signed by the Selling
Shareholders and delivered by the Company shall be valid, binding and
enforceable against it (except in the case of each of IFC and NMP, in respect
only of those representations and warranties not being given by it in Article
5).

Section 7.13 Tax Clearance Certificate 2001. The Selling Shareholders (other
than IFC and NMP) shall use their reasonable endeavors to cause the Company to
obtain a tax clearance certificate (surat ketetapan pajak) for the Company for
the financial year 2001 prior to the date being ninety (90) days after the
Initial Closing Date.

Section 7.14 Limitation. For the purposes of this Article 7, the only covenants
given by IFC and NMP are those in Sections 7.1 (the last paragraph), 7.3, 7.4
(excluding sub-sections 7.4(b)(B) and (C)), 7.6, 7.7, 7.10 and 7.12.

                                    ARTICLE 8
                              CONDITIONS PRECEDENT

Section 8.1 Conditions to Each Party's Obligation to Effect Each Closing. The
respective obligation of each party hereto to effect a Closing shall, in
addition to the satisfaction of the requirements relevant to such Closing
specified in Article 3, be subject to the

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satisfaction (or non-occurrence in respect of paragraphs (a) and (b)) at or
prior to the relevant Closing Date specified below of each of the following
conditions:

(a)      Statutes; Court Orders. In respect of any Closing, no statute, rule or
         regulation shall have been enacted or promulgated by any Governmental
         Entity which prohibits the consummation of the Transactions; and there
         shall be no order, writ or injunction of a court of competent
         jurisdiction actually precluding consummation of the Transactions.

(b)      Termination. In respect of the Initial Closing only, none of the
         Transactions shall have been terminated or abandoned in accordance with
         the terms of the relevant agreements.

(c)      Certain Selling Shareholders' Consents. In respect of the Initial
         Closing only, each of the Consents necessary for the consummation of
         the Transactions by each of FCR, Indosat and Marubeni (including, those
         set forth in Schedule 5.4) shall have been obtained and shall be in
         full force and effect.

(d)      Purchaser's Consents. In respect of the Initial Closing only, each of
         the Consents necessary for the consummation of the Transaction by
         Purchaser (including those set forth in Schedule 6.4) shall have been
         obtained and shall be in full force and effect.

(e)      IFC Approval. In respect of the Initial Closing only, approval by IFC
         for the prepayment of the Existing IFC Loans as contemplated herein
         and, to the extent required, a waiver by IFC under the agreements and
         other documents relating to the Existing IFC Loans as necessary to
         enable the Selling Shareholders and the Company to consummate the
         Transactions contemplated hereunder shall have been obtained and shall
         be in full force and effect.

(f)      Bapepam Documents. In respect of the Initial Closing only, copies of
         statements from each of the respective boards of each of Indosat and
         Purchaser submitted to the Indonesian Capital Markets Supervisory

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         Board (Bapepam) certifying that each member of the respective boards of
         each of Indosat and Purchaser does not have an economic interest in
         respect of the Transactions for the purposes of Bapepam Regulation
         NO.KEP-32/PM/2000, dated 22 August 2000.

(g)      Simultaneous Closing. In respect of the Initial Closing only, any sale
         and purchase of the Sale Shares relating to the Initial Closing shall
         be for not less than all of the Selling Shareholders' Sale Shares for
         the Initial Closing (excluding IFC as envisaged under Sections 2.1(a)
         and 3.2(a)).

The foregoing conditions are for the benefit of all of the Selling Shareholders
and Purchaser and may be waived only by all of them. The failure by any party at
any time to exercise any of the foregoing rights shall not be deemed to be a
waiver of any such right and each such right shall be deemed an ongoing right
which may be asserted at any time and from time to time.

Section 8.2 Conditions to Obligations of Purchaser to Effect Each Closing. The
obligations of Purchaser to consummate the Closing shall be subject to the
satisfaction on or prior to the Closing Date of each of the following
conditions:

A.       In respect of any Closing:

(a)      Accuracy of Representations and Warranties of the Selling Shareholders.
         All of the representations and warranties of each of the Selling
         Shareholders in this Agreement relevant to each Closing or in any
         certificate delivered in connection herewith in respect of (i) those
         qualified as to materiality shall have been true and correct in all
         respects and (ii) those not so qualified shall have been true and
         complete in all material respects, as of such Closing.

(b)      Performance by the Selling Shareholders.

         (i)      All of the covenants and obligations that each Selling
                  Shareholder is required to perform or to comply with pursuant
                  to this Agreement at or prior to a Closing (considered

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                  collectively), and each of these covenants and obligations
                  (considered individually), shall have been duly performed and
                  complied with in all material respects.

         (ii)     Each document required to be delivered pursuant to the
                  relevant provisions of Article 3 shall have been delivered.

(c)      Additional Documents. The Selling Shareholders shall have delivered
         such other documents as Purchaser may reasonably request for the
         purpose of evidencing the satisfaction of any condition referred to in
         Sections 8.2A(b)(i), 8.2B(a), (k), (l) and (m) (as appropriate).

(d)      Opinion of the Selling Shareholders' Counsel. The Selling Shareholders
         shall have delivered to Purchaser at the relevant Closing the Selling
         Shareholder Opinions, dated the relevant Closing Date.

(e)      Simultaneous Closings. In respect of the Interim Closing and the
         Subsequent Closing, any sale and purchase of the Sale Shares of not
         less than all of the Selling Shareholders for a Closing shall be
         consummated at such Closing.

(f)      Company's Consents. Each of the Required Company Consents (including,
         without limitation, those set forth in Schedule 5.9) shall have been
         obtained and shall be in full force and effect.

(g)      Selling Shareholders' Consents. Each of the Consents necessary for the
         consummation of the Transactions by each of the Selling Shareholders
         (including, those set forth in Schedule 5.4, if any) shall have been
         obtained and shall be in full force and effect.

The foregoing conditions in this Section 8.2A are for the sole benefit of
Purchaser, and may be waived by Purchaser, in whole or in part, at any time and
from time to time in the sole discretion of Purchaser and Purchaser shall be
entitled to utilise the power of attorney granted by the Selling Shareholders in
the Indonesian Escrow Agreement to effect the Interim Closing and the Subsequent
Closing. The failure by

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Purchaser at any time to exercise any of the foregoing rights shall not be
deemed a waiver of any such right and each such right shall be deemed an ongoing
right which may be asserted at any time and from time to time.

B.       In respect of the Initial Closing only:

(a)      Borrowings. The Company shall have no indebtedness except as set forth
         in Schedule 1.1 and the terms and conditions of all such indebtedness
         conforms in all material respects to the descriptions thereof in
         Schedule 1.1.

(b)      Existing IFC Loans. Unless otherwise mutually agreed, Purchaser shall
         have received the documentation for each of the Existing IFC Loans.

(c)      Personnel. Purchaser shall have determined in its sole discretion, that
         after the Initial Closing, the Company shall have no liability in
         respect of the employees of the Company transferred to FCR pursuant to
         Section 7.5(b) or in respect of the employees, directors and
         commissioners whose employment with the Company was terminated pursuant
         to Section 7.5(a).

(d)      Boards/Articles of Association/Bank Accounts. Purchaser shall have
         received valid and binding minutes of a shareholders' meeting or
         circular resolutions of the Company (i) accepting the resignations of
         the existing members of the Board of Directors and Board of
         Commissioners of the Company, (ii) appointing such persons as Purchaser
         may nominate to such boards, (iii) adopting a new set of articles of
         association of the Company and substantially in the form of Exhibit K,
         and (iv) authorising signatory changes to the bank accounts of the
         Company and appointing new signatories nominated by Purchaser.

(e)      Technical Agreement. The Technology Transfer Agreement dated October
         30, 1996 between the Company and FCR shall have been terminated.

(f)      Resignations. Each of the members of the Board of Commissioners and the
         Board of Directors of the Company nominated by each of the Selling
         Shareholders shall have

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         resigned from such office without compensation claims and each Selling
         Shareholder shall have delivered to Purchaser at the Initial Closing
         copies of the letters evidencing such resignations without compensation
         claims.

(g)      Investigations; Etc. Neither any investigations of the Company by
         Purchaser nor any certificate of any Selling Shareholder or other
         document delivered to Purchaser as contemplated by this Agreement,
         shall have revealed any facts or circumstances which, in the sole and
         exclusive judgment of Purchaser, reflect in a material adverse way on
         the financial condition, assets, liabilities (absolute, accrued,
         contingent or otherwise), reserves, business, operations or prospects
         of the Company.

(h)      Tax Clearances. Purchaser shall have received, to its reasonable
         satisfaction, tax clearance certificates (surat ketetapan pajak) for
         the Company for each financial year since its incorporation up to and
         including the 2000 financial year.

(i)      Disclosure Schedule. Purchaser shall have received in substance
         satisfactory to it a Disclosure Schedule within fifteen (15) calendar
         days of the date of this Agreement and any formal amendments thereto on
         or prior to twenty-five (25) calendar days prior to the proposed date
         of the Initial Closing (the "Final Disclosure Date").

(j)      Existing IFC Loan. The prepayment in full of all amounts of principal,
         interest and other amounts payable under the IFC Investment Agreement
         and the Common Terms Agreement in respect of the Existing IFC A and B
         Loans on or before the Initial Closing utilising Tranche A of the
         Purchaser Loan and any cash on hand.

(k)      Performance by the Company. All of the covenants and obligations that
         the Company is required to perform or comply with pursuant to this
         Agreement at or prior to the Initial Closing (considered collectively),
         and each of the these covenants and obligations (considered
         individually), shall have been duly performed and completed in all
         material respects.

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(l)      No Legal Proceedings. Since the date of this Agreement, there shall not
         have been commenced or Threatened against Purchaser or the Company, any
         Proceeding (i) involving any challenge to, or seeking damages or other
         relief in connection with, the Transactions, or (ii) that may have the
         effect of preventing, delaying, making illegal, or otherwise
         interfering with the Transactions.

(m)      No Claim Regarding Stock Ownership. There must not have been made or
         Threatened by any Person any claim asserting that any of the Selling
         Shareholders is not the legal owner of Sale Shares of such Selling
         Shareholder or that any of the Sale Shares are not authorized, validly
         issued or fully paid.

The foregoing conditions in this Section 8.2B are for the sole benefit of
Purchaser, and may be waived by Purchaser, in whole or in part, at any time and
from time to time on or prior to the Initial Closing in the sole discretion of
Purchaser. The failure by Purchaser at any time to exercise any of the foregoing
rights shall not be deemed a waiver of any such right and each such right shall
be deemed an ongoing right which may be asserted at any time and from time to
time on or prior to the Initial Closing.

Section 8.3 Conditions to Obligations of the Selling Shareholders to Effect Each
Closing. The obligations of each Selling Shareholder to consummate the relevant
Closing shall be subject to the satisfaction on or prior to the relevant Closing
Date of each of the following conditions:

(a)      Accuracy of Representations and Warranties of Purchaser. In respect of
         the Initial Closing and the Interim Closing only, all of the
         representations and warranties of Purchaser set forth in this Agreement
         relevant to each Closing or in any certificate delivered in connection
         herewith (i) in respect of those qualified as to its materiality shall
         have been true and correct in all respects and (ii) those not so
         qualified shall have been true and correct in all material respects.

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(b)      Performance by Purchaser.

         (A)      In respect of the Initial Closing and the Interim Closing
                  only, all of the covenants and obligations that Purchaser is
                  required to perform or to comply with pursuant to this
                  Agreement at or prior to the relevant Closing (considered
                  collectively), and each of the covenants and obligations
                  (considered individually), shall have been duly performed and
                  complied with in all material respects.

         (B)      In respect of the Initial Closing and the Interim Closing
                  only, each of the documents required to be delivered by
                  Purchaser pursuant to Article 3 shall have been delivered.

(c)      Opinion of Purchaser's Counsel. In respect of the Initial
         Closing and the Interim Closing only, Purchaser shall have
         delivered to the Selling Shareholders at the relevant Closing
         the Purchaser Opinion, dated the relevant Closing Date.

(d)      Purchaser's Consents. In respect of the Initial Closing and
         the Interim Closing only, each of the Consents necessary for
         the consummation of the Transactions by Purchaser (including
         those set forth in Schedule 6.4) shall have been obtained and
         shall be in full force and effect.

(e)      No Legal Proceedings. In respect of the Initial Closing only,
         since the date of this Agreement, there shall not have been
         commenced or Threatened against such Selling Shareholder or
         the Company, any Proceeding (i) involving any challenge to, or
         seeking damages or other relief in connection with, the
         Transactions, or (ii) that may have the effect of preventing,
         delaying, making illegal, or otherwise interfering with the
         Transactions.

(f)      Company's Consents. In respect of the Initial Closing and the
         Interim Closing only, each of the Required Company Consents
         (including, without limitation, those set forth in Schedule
         5.9) shall have been obtained and shall be in

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         full force and effect.

The foregoing conditions are for the sole benefit of the Selling Shareholders,
and may be waived by each Selling Shareholder in respect of the sale of its Sale
Shares, in whole or in part, at any time or from time to time, in the sole
discretion of each Selling Shareholder prior to or on the relevant Closing. The
failure by any Selling Shareholder to exercise any of the foregoing rights shall
not be deemed a waiver of any such right and each such right shall be deemed an
ongoing right which may be asserted at any time and from time to time prior to
or on the relevant Closing. Notwithstanding the foregoing, if any Selling
Shareholder shall fail to attend (whether by a duly authorised representative or
attorney or otherwise) the Interim Closing and/or the Subsequent Closing or on
such Closing fails to effect the transactions contemplated on such Closing, such
Closing may proceed without such Selling Shareholder and the deliveries by
Purchaser in Article 3 and the above condition precedent shall be deemed to have
been waived in respect of such Selling Shareholder.

                                    ARTICLE 9
                                   TERMINATION

Section 9.1 Termination. This Agreement may be terminated:

(a)      by the mutual written consent of Purchaser and each of the Selling
         Shareholders at any time prior to the Subsequent Closing, provided that
         there is an agreed reconciliation between the partial payment by
         Purchaser of the Purchase Price and the Net Working Capital
         Reimbursement, where relevant, and the Sale Shares held by the parties
         hereto;

(b)      by the Majority Shareholders:

         (i)      prior to Initial Closing, if Purchaser shall have breached any
                  of its representations, warranties, covenants or other
                  agreements contained in this Agreement, which breach would
                  give rise to the failure of a condition set forth in Article 8

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                  in respect of the Initial Closing and which breach cannot be
                  or has not been cured within 30 days after the giving of
                  written notice by the Majority Shareholders to Purchaser
                  specifying such breach and such breach has not been waived by
                  the Majority Shareholders; or

         (ii)     on or after September 30, 2002, if the Initial Closing shall
                  not have theretofore occurred; or

         (iii)    at any time a final non-appealable court order in Indonesia
                  has been made for the bankruptcy of Purchaser; or

         (iv)     at any time after Purchaser expressly repudiates its payment
                  obligations under the Notes by challenging the validity or
                  enforceability of the Notes; or

         (v)      the Subsequent Closing has not occurred on or before December
                  31, 2005 solely as a result of the default of Purchaser under
                  this Agreement or any Security Agreement (or such other date
                  as the Majority Shareholders and Purchaser may otherwise agree
                  in writing).

(c)      by Purchaser:

         (i)      prior to Initial Closing, if any Selling Shareholder shall
                  have breached any representation, warranty, covenant or other
                  agreement contained in this Agreement which would give rise to
                  the failure of a condition set forth in Article 8 in respect
                  of the Initial Closing and which breach cannot be or has not
                  been cured within 30 days after the giving of written notice
                  by Purchaser to the Majority Shareholders specifying such
                  breach and such breach has not been waived by Purchaser; or

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<PAGE>

         (ii)     on or after 30 September 2002, if the Initial Closing shall
                  not have theretofore occurred; or

         (iii)    within fourteen (14) days after the date being fourteen (14)
                  days after receipt by Purchaser of the Disclosure Schedule or
                  any amendment thereto if Purchaser is not satisfied as to the
                  contents of the Disclosure Schedule or any amendment thereto
                  or the measures to be adopted by the Selling Shareholders to
                  rectify matters in the Disclosure Schedule or any amendment
                  thereto which are not to Purchaser's satisfaction; or

         (iv)     the Share Pledge Release Date has not occurred, other than
                  solely as a result of Purchaser breaching this Agreement, any
                  Security Agreement or the Purchaser Loan Agreement, on or
                  prior to 30 November 2002 (or such other date as the Majority
                  Shareholders and Purchaser may otherwise agree in writing).

Section 9.2 Effect of Termination.

(a)      In the event of termination of this Agreement by Purchaser or the
         Majority Shareholders pursuant to the terms of this Agreement, written
         notice thereof shall forthwith be given to the Selling Shareholders or
         Purchaser (with a copy to all Selling Shareholders), as the case may
         be, specifying the provision hereof pursuant to which such termination
         is made, and, except as provided specifically hereunder or under any
         Security Agreement, there shall be no liability or obligation
         thereafter on the part of Purchaser or any of the Selling Shareholders
         except for fraud or breach of, or other obligation under, this
         Agreement or any Security Agreement arising prior to such termination.

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(b)      The parties hereto acknowledge and agree that, if Purchaser has paid
         any Monthly Amounts to the Financial Escrow Agent and an Event of
         Repayment occurs, the amounts paid by Purchaser, to the extent not yet
         paid as Quarterly Payments to the Selling Shareholders and on deposit
         with the Financial Escrow Agreement shall be applied to the payment of
         the then outstanding Notes evidencing the Shareholder Balance Amounts
         in the manner contemplated in Section 3.11(ii).

(c)      In case of a termination pursuant to Section 9.1(c)(iv) Purchaser shall
         be entitled, without penalty or liability, to immediately cancel all of
         the Notes by providing written notice thereof to the Financial Escrow
         Agent and each of the other parties hereto; whereupon the parties
         hereto shall take all actions to terminate the Transactions including:

         (i)      any and all rights to any of the Sale Shares which were
                  conveyed, assigned, transferred, and/or delivered by each
                  Selling Shareholder to Purchaser on the Initial Closing
                  pursuant to Section 2.1(a) or otherwise shall be deemed to be
                  reconveyed, reassigned, retransferred, and/or redelivered to
                  each such Selling Shareholder;

         (ii)     the Majority Shareholders, the Company and Purchaser shall
                  discuss in good faith procedures for the prompt repayment of
                  the Purchaser Loans to Purchaser and failing a resolution
                  within a period of sixty (60) days the parties hereto shall
                  resolve the matter pursuant to Section 11.8 provided that
                  until such time as a resolution is reached the Company shall
                  be required to comply with the terms of the Purchaser Loan
                  Agreement;

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         (iii)    the Purchaser and the Majority Shareholders shall issue
                  instructions to the Indonesian Escrow Agent to transfer to the
                  Company any and all funds which have been remitted to the
                  Indonesian Financial Escrow Account;

         (iv)     the Purchaser and the Majority Shareholders shall issue
                  instructions to the Indonesian Escrow Agent to deliver:

                  (A)      all of the share certificates relating to the Sale
                           Shares, if any are held in escrow, and the Company's
                           register of shareholders to the Company;

                  (B)      the KSO Waivers and the Company Waivers to the
                           Selling Shareholders; and

                  (C)      all the Notes to Purchaser,

                  such KSO Waivers, the Company Waivers and Notes shall be
                  deemed as of the date of termination to be null and void and
                  of no effect;

         (v)      the Purchaser and the Majority Shareholders shall issue
                  instructions to the Financial Escrow Agent to transfer to the
                  Purchaser any and all funds which have been remitted to the
                  Financial Escrow Account;

         (vi)     the parties hereto shall take all actions necessary to close
                  the Indonesian Share Escrow Account, the Indonesian Financial
                  Escrow Account and the Financial Escrow Account and to
                  terminate the Indonesian Escrow Agreement the Financial Escrow
                  Agreement and all of the other Security Agreements; and

         (vii)    The return of all deliveries made by any party hereto prior to
                  the date of termination to the party which delivered such
                  deliveries.

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(d)      In respect of any termination pursuant to this Article 9 after the
         Share Pledge Release Date, without limiting the contractual rights of
         the parties hereto provided under Indonesian law, the proceeds of any
         sale by any Selling Shareholder of any Sale Shares to a third party
         after the date that this Agreement terminates shall, for the avoidance
         of doubt, be deemed to be a mitigation of any damages that such Selling
         Shareholder may otherwise claim against Purchaser.

Section 9.3 Waiver of Court Pronouncement. Purchaser and the Selling
Shareholders hereby waive the provisions of Article 1266 of the Indonesian Civil
Code to the extent it requires a court pronouncement in respect of termination
of this Agreement.

                                   ARTICLE 10
                                 INDEMNIFICATION

Section 10.1 Scope of Indemnification; Effect of Investigation. Damages in
accordance with the provisions of this Article 10 arise if the party seeking
indemnification notifies each party from whom it seeks indemnification of any
claim prior to the second anniversary of the relevant Closing Date on which the
representations and warranties or covenants on which the claim is based were
made except (i) for representations under Sections 5.1, 5.2, 5.3, 5.6, 5.7, 5.8
and 5.29 and 6.1, 6.2, 6.3 and 6.4 for which indemnification may be sought until
thirty (30) days after the expiration of applicable statutes of limitations, and
(ii) in the event of fraudulent representation or intentional breach. No Damages
for events described in Sections 10.2 and 10.3 shall be paid by a party hereto
to another except in accordance with the provisions of this Article 10, and
indemnification for any such event described in Sections 10.2 and 10.3 shall be
limited to the payment of Damages, after giving effect to the reduction in
Taxes, if any, for the Company or the party (or parties) seeking indemnification
which will result from such Damages. The right to indemnification for Damages
based on any representation, warranty, covenant or obligation of a party hereto
contained in or made pursuant to this Agreement shall not be affected by any
investigation conducted with respect to, or any knowledge acquired (or capable
of being acquired) at any time, and any notification delivered pursuant to
Section 7.4 with respect to, the accuracy or inaccuracy of or compliance with,
any such representation, warranty or obligation provided, however, Purchaser
shall have no right to be

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indemnified for Damages arising in relation to any representation, warranty,
covenant or obligation of a party hereto modified or amended after the date
hereof but before the Final Disclosure Date (as such term is defined in Section
8.2B(i)), by inclusion in the Disclosure Schedule and formal amendments thereto
prior to such Final Disclosure Date. The waiver of any condition to consummation
of the Transactions, where such condition is based on the accuracy of any
representation or warranty, or on the performance of or compliance with any
covenant or obligation, shall not affect the right to indemnification for
Damages or other remedy based on such representation, warranty or obligation.

Section 10.2A Indemnification and Payment of Damages by the Selling
Shareholders. Subject to Section 10.7, each Selling Shareholder shall:

(a)      severally but not jointly, indemnify and hold harmless Purchaser for,
         and shall pay to Purchaser the amount of any and all Damages, arising
         from or in connection with:

         (A)      any breach of any representation or warranty under Sections
                  5.1, 5.2, 5.3, 5.4, 5.5, 5.6, 5.7 and 5.34 made by such
                  Selling Shareholder or in any certificate or document
                  delivered by such Selling Shareholder in connection with this
                  Agreement, or

         (B)      any breach by such Selling Shareholder of any covenant or
                  obligation of such Selling Shareholder under this Agreement;

(b)      severally on the basis of its Pro Rata Share as of the Initial Closing,
         and not jointly, indemnify and hold harmless Purchaser for, and shall
         pay to Purchaser the amount of any  and all Taxes imposed upon the
         Company on or prior to the Initial Closing Date (other than any amount
         for Taxes specifically identified and reflected as a liability for
         unpaid Taxes in the Final Closing Balance Sheet).

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Section 10.2B Indemnification and Payment of Damages by the Indemnifying
Shareholders. Subject to Section 10.7, each Indemnifying Shareholder shall,
severally on the basis of the Selling Shareholders' Indemnity Share, indemnify
and hold harmless Purchaser for, and shall pay to Purchaser any and all Damages,
arising from or in connection with any breach of any representation or warranty
made by an Indemnifying Shareholder in this Agreement (other than those stated
in Section 10.2A(a)(A)) or in any certificate or document delivered by such
Indemnifying Shareholder in connection with this Agreement.

Section 10.3 Indemnification for Damages by Purchaser. Purchaser shall indemnify
and hold harmless each Selling Shareholder, and shall pay to each Selling
Shareholder the amount of, any and all Damages arising from or in connection
with:

(a)      any breach of any representation or warranty made by Purchaser in this
         Agreement or in any certificate delivered by Purchaser in connection
         with this Agreement; or

(b)      any breach by Purchaser of any covenant or obligation of Purchaser
         under this Agreement.

Section 10.4 Procedure for Indemnification - Third-Party Claims.

(a)      (i)      The party seeking indemnification under Sections 10.2 or 10.3
                  (an "Indemnified Party") shall give the party from whom it
                  seeks indemnification under such Section (an "Indemnifying
                  Party") notice of any third-party claim that may give rise to
                  any indemnification obligation under this Article 10. Such
                  notice shall be given as soon as possible after the
                  Indemnified Party becomes aware of such third party claim and
                  shall refer to the provision(s) of this Agreement that the
                  Indemnified Party claims to be breached, and shall contain a
                  copy of any and all documents related to

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                  such third party claim.

         (ii)     Notwithstanding the foregoing, if any tax assessment, claim or
                  demand that may give rise to any indemnification under this
                  Article 10 is received by the Company from the Indonesian tax
                  authorities in respect of which Purchaser seeks to make a
                  claim against the Selling Shareholders, Purchaser shall
                  promptly in the circumstances, but in any event within ten
                  (10) Business Days after receipt of any such claim by the
                  Company, give to the Selling Shareholders notice of such claim
                  along with a copy of any and all documents related to such
                  claim.

         Failure to give both such notice and documents as described in Sections
         10.4(a)(i) and (ii) above, within forty-five (45) days, shall deprive
         the Indemnified Party of any payment of Damages or other remedy.

(b)      The Indemnifying Party shall have the right either to participate in or
         to assume the defense (at the Indemnifying Party's option and expense)
         of any such claim through counsel of the Indemnifying Party's own
         choosing by so notifying the Indemnified Party within fifteen (15) days
         of its receipt of notice of such claim from the Indemnified Party;
         provided, however, that any such counsel shall be reasonably
         satisfactory to the Indemnified Party. In such event, the Indemnifying
         Party and its counsel shall have full access to any and all information
         relating to the third-party and its claim or otherwise useful to defend
         such third-party's claim, including by way of counter-claim. Such
         information shall include, but not be limited to, access to any and all
         documents, premises and personnel of the Company. If the Indemnifying
         Party assumes the defense of a third-party claim, no compromise or
         settlement of such claims may be effected by the Indemnifying Party
         without the Indemnified Party's consent unless (A) there

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         is no finding or admission of any violation of law or regulation or any
         violation of the rights of any Person and no effect on any other claims
         that may be made against the Indemnified Party and (B) the sole relief
         provided is monetary damages that are paid in full by the Indemnifying
         Party. If notice of a third-party claim is given to an Indemnifying
         Party and the Indemnifying Party does not, within fifteen (15) days
         after receipt of the Indemnified Party's written notice is given, give
         notice to the Indemnified Party of its election to participate in or
         assume the defense of such claim, the Indemnifying Party will be bound
         by any final determination made in such Proceeding or any compromise or
         settlement effected by the Indemnified Party. The Indemnifying Party
         shall be liable for the fees and expenses of counsel employed by the
         Indemnified Party for any period during which the Indemnifying Party
         has not assumed the defense of any such third-party claim (other than
         during any period in which the Indemnified Party will have failed to
         give notice of the third-party claim as provided above). If the
         Indemnified Party determines in good faith that a conflict exists
         between it and the Indemnifying Party with respect to any significant
         issue in respect of such third-party claim, the Indemnifying Party (if
         applicable, in their respective Pro Rata Shares) and the Indemnified
         Party shall pay, in two equal shares, the reasonable fees and expenses
         of such additional counsel as may be required to be retained by the
         Indemnified Party in order to resolve such conflict.

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(c)      In the event of a third-party claim, the Purchaser shall and, to the
         extent it has control over the Company pursuant to the Shareholders'
         Voting Agreement, shall cause the Company to use its reasonable efforts
         to cause the Company to mitigate any and all Damages.

(d)      Notwithstanding any provision to the contrary, no claim by the
         Purchaser against the Company, in particular, but not limited to, in
         connection with the KSO Agreement, may be considered as a third-party
         claim and the Purchaser may not seek payment of Damages or any other
         remedy in connection with any claim that it may have against the
         Company.


Section 10.5 Procedure for Indemnification - Other Claims.

(a)      A claim for indemnification for any matter not involving a third-party
         claim may be asserted by notice to the party from whom indemnification
         is sought. Such notice shall be sent by the Indemnified Party as soon
         as possible after such party becomes aware of the grounds for such
         claim and shall fairly refer to the provision(s) of this Agreement that
         the Indemnified Party claims to be breached. Failure to give such
         notice within forty-five (45) days shall deprive the Indemnified Party
         of any payment of Damages or other remedy.

(b)      Notwithstanding anything in this Agreement to the contrary, none of the
         parties hereto shall be obliged to indemnify any other party for any
         Damages that arise from the enactment subsequent to the Subsequent
         Closing of any laws, rules, statutes or regulations not in effect on or
         prior to the Subsequent Closing Date or from changes subsequent to the
         Subsequent Closing Date of requirements or interpretations of any laws,
         rules, statutes or regulations existing on or prior to the Subsequent
         Closing Date.

                                      125
<PAGE>

Section 10.6 Survival of Indemnification Claims. The indemnification obligations
set forth in this Article 10 shall survive each Closing and termination
hereunder.

Section 10.7 Basket.

(a)      Subject to Section 10.7(b) the Selling Shareholders shall not be liable
         under this Article 10 in respect of any claim unless the aggregate
         amount of all claims for which the Selling Shareholders would otherwise
         be liable hereunder exceeds US$705,000 (or equivalent) but if the
         aggregate liability of all such claims exceeds US$705,000, then the
         Selling Shareholders shall be liable for all claims hereunder,
         including such initial US$705,000 of claims provided that in no event
         shall a Selling Shareholder's liability exceed its Pro Rata Share of
         the Purchase Price and the Net Working Capital Reimbursement.

(b)      Section 10.7(a) shall not apply to, and the Selling Shareholders, as
         relevant, shall be immediately liable to the extent of their several
         liability provided for herein for all claims (i) under Section
         10.2A(b), (ii) with respect to any breach of representation and
         warranty under Sections 5.1, 5.2, 5.3, 5.5, 5.6, 5.7, 5.8, 5.9, 5.11
         and 5.29 and (iii) with respect to any fraudulent misrepresentation.

Section 10.8 No Set-Off. The parties hereto expressly agree that any amount
which may have to be paid by one party to another pursuant to this Article 10
shall not be set off against the Purchase Price and the Net Working Capital
Reimbursement and that no claim for indemnification of Damages shall entitle
Purchaser to delay payment of the Purchase Price or the Net Working Capital
Reimbursement.

Section 10.9 Tax Effect of Indemnification Payments. All indemnity payments made
by any Selling Shareholder to Purchaser or by Purchaser to any Selling
Shareholder, pursuant to this Agreement shall be treated for all Tax purposes as
adjustments to the Purchase Price paid with respect to the Sale Shares.

                                      126
<PAGE>

                                   ARTICLE 11
                                  MISCELLANEOUS

Section 11.1 Fees and Expenses. Save as expressly provided for herein and in the
Security Agreements all costs and expenses incurred in connection with this
Agreement and the consummation of the Transactions shall be paid by the party
incurring such expenses, including the fees and expenses of its legal and
financial advisors.

Section 11.2 Amendment and Modification. This Agreement may be amended, modified
and supplemented in any and all respects, but only by a written instrument
signed by all of the parties hereto expressly stating that such instrument is
intended to amend, modify or supplement this Agreement.

Section 11.3 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given five days after being sent by courier service
and shall be deemed given when sent by facsimile (which is confirmed) or
hand-delivered, in each case to the parties at the following addresses (or at
such other address for a party as shall be specified by such party by like
notice):

If to the Company, to:
PT Pramindo Ikat Nusantara
Setiabudi Atrium Building, 6th Floor, Suite 610
Jl. H.R. Rasuna Said, Kav. 62
Jakarta 12920, Indonesia

Attention : President Director
Telephone : (6221) 521-0751
Facsimile : (6221) 521-0753

If to Purchaser, to:
Perusahaan Perseroan (Persero) PT Telekomunikasi
Indonesia Tbk.
Jl. Japati No. 1
Bandung 40133
Indonesia
Attention : President Director
Telephone : (62) 22 432 6100
Facsimile : (62) 22 424 0313

                                      127
<PAGE>

If to Astratel, to:
PT Astratel Nusantara
Setiabudi Atrium Building, 3th Floor, Suite 303
Setiabudi Office Park
Jl. H.R. Rasuna Said, Kav. 62
Jakarta 12920, Indonesia

Attention : President Director
Telephone : (6221) 521-0440
Facsimile : (6221) 521-0443

If to FCR, to:
France Cables et Radio
124, rue Reamur 75002
Paris, France

Attention : President
Telephone : (331) 4221-7171
Facsimile : (331) 4221-7776

with a copy to:
General Counsel International
Legal Operations
Branche Ressource-
Direction Juridique Internationale
6, place d' Alleray
75505 Paris Cedex 15, France

Telephone : 33-1-4444-9806
Facsimile : 33-1-4444-8600

If to Indosat, to:
Perusahaan Perseroan (Persero) PT Indonesian
Satellite Corporation Tbk
Jalan Medan Merdeka Barat 21
Jakarta 10110, Indonesia

Attention : Executive Vice President for Corporate Development
Telephone : (6221) 386-9108
Facsimile : (6221) 344-0484

If to Marubeni, to:
Marubeni Corporation
4-2, Ohtemachi 1-Chome
Chiyoda-Ku, Tokyo
Japan

Attention : General Manager, Telecommunication
            Infrastructure Project Department
Telephone : (813) 3282-3533
Facsimile : (813) 3282-3522

                                      128
<PAGE>

If to IFC, to:
International Finance Corporation
2121 Pennsylvania Avenue
Washington DC 20433
USA

Attention : Director, Infrastructure Department
Telephone : (1-202) 473-9774
Facsimile : (1-202) 974-4310

If to NMP, to:
NMP Singapore Pte Limited
c/o Nichimen Corporation
Tokyo Head Office
1-23, Shiba 4-Chome,
Minato-ku, Tokyo 108-8405
Japan

Attention : Director
Telephone : (813) 5446-1415
Facsimile : (813) 5446-1518

Section 11.4 Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when two or more counterparts have been signed by each of
the parties and delivered to the other parties hereto.

Section 11.5 Entire Agreement; No Third Party Beneficiaries. This Agreement and
the Confidentiality Agreement (a) supersede and replace the Memorandum of
Understanding, dated February 20, 2002, among Purchaser, the Selling
Shareholders and the Company, (b) constitute the entire agreement and supersede
and replace all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof and thereof and (c)
are not intended to confer any rights or remedies upon any Person other than
parties hereto and thereto and, in respect of the Company Waiver and KSO Waiver
only, the Government of the Republic of Indonesia.

Section 11.6 Severability. Any term or provision of this Agreement that is held
by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof in that
jurisdiction or any other jurisdiction or the validity or enforceability of the
offending term or provision in any other situation or in any other jurisdiction.
If the final judgment of a court of competent jurisdiction or other authority
declares that any term or provision hereof is invalid, void or unenforceable,
the parties agree that the court making such determination shall have the power
to reduce the scope, duration, area or applicability of the term or provision,
to delete

                                      129
<PAGE>

specific words or phrases, or to replace any invalid, void or unenforceable term
or provision with a term or provision that is valid and enforceable and that
comes closest to expressing the intention of the invalid or unenforceable term
or provision.

Section 11.7 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Republic of Indonesia.

Section 11.8 Arbitration.

(a)      Amicable Settlement. Purchaser and the Selling Shareholders agree that
         if any difference, dispute, conflict or controversy (a "Dispute"),
         arises out of or in connection with this Agreement or its performance,
         including without limitation any dispute regarding its existence,
         validity, termination of rights or obligations of any party hereto,
         Purchaser and the Selling Shareholders will attempt, for a period of
         thirty (30) days after the receipt by one party of a written notice
         from the other party of the existence of the Dispute, to settle the
         Dispute by amicable settlement between the parties.

(b)      Referral to Arbitration. If Purchaser and the Selling Shareholders are
         unable to reach agreement to settle the Dispute within the 30-day
         period set forth in Section 11.8(a), then at the request of any party,
         the Dispute shall be submitted to a Board of Arbitration under the
         Rules of Arbitration of the International Chamber of Commerce (the "ICC
         Rules"). The arbitration will be conducted and the award will be
         rendered in the English language in Geneva, Switzerland.
         Notwithstanding the provisions of Section 11.3, any notice of
         arbitration, response or other communication given to or by a party to
         the arbitration must be given and deemed received as provided in the
         ICC Rules. For the purpose of any arbitration brought pursuant to this
         Agreement, the Selling Shareholders shall act and be considered as one
         party.

                                      130
<PAGE>

(c)      Appointments. The Board of Arbitration will consist of three
         arbitrators. One arbitrator will be nominated by Purchaser, one
         arbitrator will be nominated by the Selling Shareholders, and one
         arbitrator will be nominated by the arbitrators appointed by Purchaser
         and the Selling Shareholders, in each case in accordance with the ICC
         Rules. If any arbitrator is not timely nominated, at the request of any
         party, such arbitrator shall be appointed by the ICC Court of
         Arbitration in accordance with the ICC Rules.

(d)      Procedures. The Board of Arbitration appointed must conduct the
         arbitration in accordance with this Agreement, the ICC Rules and the
         prevailing laws and regulations relating to arbitration of the place of
         arbitration. The parties shall use their reasonable efforts to ensure
         that a hearing on the merits shall be commenced no later than nine (9)
         months after the appointment of the third arbitrator, unless the
         parties agree on an extension of time or the tribunal extends such time
         for good cause shown.

(e)      Arbitration Exclusive Remedy. Neither Purchaser nor the Selling
         Shareholders will be entitled to commence or file any action in a court
         of law relating to any Dispute until the matter will have been
         determined by the Board of Arbitration as provided in this Section 11.8
         and then only for the enforcement of this arbitration agreement or the
         arbitration award.

(f)      Award Binding. Any decision of the Board of Arbitration will be final,
         binding and incontestable and may be used as a basis for enforcement
         thereon in the Republic of Indonesia or elsewhere. The parties hereby
         waive any application or appeal to any court of competent jurisdiction
         to the fullest extent permitted by law in connection with any question
         of law arising during the course of the arbitration or any award made.
         The Board of Arbitration will be entitled to include in its decision a
         determination as to the payment of the cost and expenses of the
         arbitrators, the administrative costs of the arbitration, the
         reasonable legal fees incurred by the parties, the cost and expenses of
         witnesses and all other costs and expenses necessarily incurred in the
         opinion of the Board of Arbitration in order to properly settle the
         Dispute.

                                      131
<PAGE>

(g)      Decision. Purchaser and the Selling Shareholders expressly agree (i)
         that the decisions of the Board of Arbitration must be made based on
         majority votes of the arbitrators, (ii) that the Board of Arbitration
         must state the reasons for its decisions in writing and must make the
         decisions entirely on the basis of applicable laws and not on the basis
         of the principle of ex aequo et bono, and (iii) that the mandate of the
         Board of Arbitration duly constituted in this Agreement will remain in
         effect until a final arbitration award has been issued by the Board of
         Arbitration.

PROVIDED that the provisions in this Section 11.8 shall not prevent any Selling
Shareholder from participating in any bankruptcy or similar proceedings
initiated against Purchaser by any third Person but, for the avoidance of doubt,
not initiated by any Selling Shareholder.

Section 11.9 Extension; Waiver. At any time prior to any Closing Date, the
Majority Shareholders, on the one hand, and Purchaser, on the other hand, may
(a) extend the time for the performance of any of the obligations or other acts
of Purchaser (in the case of the Majority Shareholders) and the Majority
Shareholders (in the case of Purchaser), (b) waive any inaccuracies in the
representations and warranties of the other parry contained in this Agreement or
in any document delivered pursuant to this Agreement or (c) waive compliance by
the other party with any of the agreements or conditions contained in this
Agreement.

Any agreement on the part of a party to any such extension or waiver shall be
valid only if set forth in an instrument in writing signed on behalf of such
party. The failure of any party to this Agreement to assert any of its rights
under this Agreement or otherwise shall not constitute a waiver of those rights.

Section 11.10 Assignment. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto (whether by operation of law or otherwise) without the prior written
consent of the other parties, except that: (a) Purchaser may assign, in its sole
discretion, any or all of its rights and interests hereunder to any direct or
indirect wholly owned Subsidiary of Purchaser provided that Purchaser shall
remain liable for all of its obligations hereunder; (b) each Selling Shareholder
may assign, in its sole discretion, any or all of its rights and interests
hereunder to any direct or indirect wholly owned Subsidiary of such Selling
Shareholder or to any other

                                      132
<PAGE>

Selling Shareholder pursuant to Section 3.8(d) provided that such Selling
Shareholder shall remain liable for all of its obligations hereunder and (c) any
Selling Shareholder or Registered Holder may transfer the Notes in accordance
with the terms hereof, the Transfer Certificates and the Financial Escrow
Agreement.

Subject to the preceding sentence, this Agreement shall be binding upon, inure
to the benefit of and be enforceable by the parties and their respective
successors and permitted assigns.

Section 11.11 Language. This Agreement is concluded in both Bahasa Indonesia and
English. In the event of any inconsistency or contradiction between the Bahasa
Indonesia and English texts, the Bahasa Indonesia text shall prevail.

Section 11.12 Further Assurance. Each party hereto agrees from time to time to
perform any further acts and execute and deliver any further documents and
instruments and do or refrain from doing all such further acts as may from time
to time reasonably be requested by the other parties hereto to carry out
effectively or better evidence or perfect the true spirit, intent, meaning and
purpose of this Agreement and the Transactions.

Section 11.13 Immunity. Purchaser hereby expressly waives any and all claims to
sovereign immunity for itself or any of its assets from suit, execution,
attachment or other legal process in any proceedings taken in relation to this
Agreement. Indosat hereby expressly waives any and all claims to sovereign
immunity for itself or any of its assets from suit, execution, attachment or
other legal process in any proceedings taken in relation to this Agreement.

                                      133
<PAGE>

IN WITNESS WHEREOF, the duly authorized representative of each party has
executed this Agreement as of 19th day of April 2002.

PERUSAHAAN PERSEROAN (PERSERO)               PT ASTRATEL NUSANTARA
PT TELEKOMUNIKASI INDONESIA TBK.

By    /s/ Muhammand Nazif                    By    /s/ Thomas B Subijanto
      ---------------------------                  -----------------------------
Name : MUHAMMAND NAZIF                       Name : THOMAS B SUBIGANTO
Title: PRESIDENT DIRECTOR                    Title: PRESIDENT DIRECTOR

FRANCE CABLES ET RADIO                       By    /s/ Angky U Tisnadisastor
                                                   -----------------------------
By    /s/ Godiniaux                          Name : ANGKY U TISNADISASTRA
      ---------------------------            Title: VICE PRESIDENT DIRECTOR
Name : GODINIAUX
Title: UNDER POWER OF ATTORNEY               PERUSAHAAN PERSEROAN (PERSERO)
                                             PT INDONESIAN SATELLITE CORPORATION
MARUBENI CORPORATION                         TBK

By    /s/ Hajime Sasagaki                    By    /s/ Bambang Priantono
      ---------------------------                  -----------------------------
Name : HAJIME SASAGAKI                       Name : BAMBANG PRIANTONO
Title: UNDER PROXY                           Title: EM DIVESTASI ANAK PERUSAHAAN

NMP SINGAPORE PTE. LIMITED                   INTERNATIONAL FINANCE CORPORATION

By    /s/ Seiichi Micue                      By    /s/ Amitava Banerjee
      ---------------------------                  -----------------------------
Name : SEIICHI MICUE                         Name : AMITAVA BANERJEE
Title: UNDER DELEGATION OF AUTHORITY         Title: MANAGER & REGIONAL
                                                       REPRESENTATIVE



<PAGE>

PT PRAMINDO IKAT NUSANTARA

By    /s/ J M Gauthier
      --------------------
Name : J M GAUTHIER
Title: Managing Director

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.8
<SEQUENCE>10
<FILENAME>u92256exv4w8.txt
<DESCRIPTION>EX-4.8 COOPERATION AGREEMENT,DATED SEPT.3, 2002
<TEXT>
<PAGE>
                                                                     Exhibit 4.8



                              COOPERATION AGREEMENT
                                       ON
             THE INTERCONNECTION BETWEEN TELKOM'S FIXED NETWORK AND
                          INDOSAT'S LOCAL FIXED NETWORK
               AND THE SETTLEMENT OF THE INTERCONNECTION FINANCIAL
                             RIGHTS AND OBLIGATIONS

                       NUMBER: PKS.162/HK810/OPSAR-00/2002

                             NUMBER: 26/DNI/HK720/02

                                [LOGO OF TELKOM]

                                     BETWEEN

                   PT TELEKOMUNIKASI INDONESIA (PERSERO), TBK

                                       AND

                            PT INDOSAT (PERSERO), TBK

<PAGE>

                              COOPERATION AGREEMENT

                                     BETWEEN

                   PT TELEKOMUNIKASI INDONESIA (PERSERO), TBK

                                       AND

                            PT INDOSAT (PERSERO), TBK

                                       ON

             THE INTERCONNECTION BETWEEN TELKOM'S FIXED NETWORK AND
                          INDOSAT'S LOCAL FIXED NETWORK
               AND THE SETTLEMENT OF THE INTERCONNECTION FINANCIAL
                             RIGHTS AND OBLIGATIONS

                       NUMBER: PKS.162/HK810/OPSAR-00/2002

                             NUMBER: 26/DNI/HK720/02

This Agreement is made in Jakarta on TUESDAY, the THIRD DAY of SEPTEMBER two
thousand two, by and between:

I.       PT TELEKOMUNIKASI INDONESIA (PERSERO), TBK, a company operating
         domestic telecommunications network and services, whose Articles of
         Association were published in the State Gazette of the Republic of
         Indonesia Number 5 of 17 January 1992, Supplement Number 210, as
         amended and published most recently in State Gazette of the Republic of
         Indonesia No. 45 of 4 May 2002, Supplement Number 5495, domiciled on
         Jalan Japati No. 1, Bandung 40133, in this legal action duly
         represented by KRISTIONO, its PRESIDENT DIRECTOR, hereinafter referred
         to as "TELKOM",

II.      PT INDOSAT (PERSERO), TBK, established pursuant to the Deed of the
         Notary MS Tadjoedin No. 55 of 10 November 1967, as amended several
         times and most recently by the Deed of the Notary Poerbaningsih Adi
         Warsito, Sarjana Hukum No. 33 of 10 May 2001, domiciled on Jalan Medan
         Merdeka Barat No. 21, Jakarta 10110, in this legal action duly
         represented by WIDYA PURNAMA, its PRESIDENT DIRECTOR, hereinafter
         referred to as "INDOSAT".

In this Agreement, TELKOM and INDOSAT are individually referred to as the
"Party", and collectively as the "Parties".

<PAGE>

BACKGROUND:

a.       Under the prevailing regulations, TELKOM and INDOSAT are the operators
         of telecommunication networks and services in Indonesia;

b.       Pursuant to the Minister of Transportation's Letter Number PT.003/8/22
         Phb-2002 of 25 July 2002 regarding the Confirmation of the Principle
         License For Provision of Telecommunication Networks, INDOSAT's
         Principle License for the Provision of Local Basic Telecommunication
         Services on the basis of Minister of Transportation and
         Telecommunications' Letter Number PT.003/6/2 Phb-2002 of 7 September
         2000, that would be applicable as the Principle License for the
         Provision of Local Fixed Networks;

c.       Pursuant to the Minister of Transportation's Letter Number PT.003/9/2
         Phb-2002 of 1 August 2002 regarding Operational License For Provision
         Of Local Basic Telecommunications Services, INDOSAT has obtained an
         Operational License for the Provision of Local Fixed Network;

d.       Pursuant to the Director General of Post and Telecommunications' Letter
         Number 822/DITTEL/IV/2002 of 26 April 2002 regarding the Numbers for
         Customers of Local Fixed Network, INDOSAT has obtained a license to use
         a range of numbers for Customers in providing its services;

e.       Pursuant to paragraph 6 of the Minister of Transportation and
         Telecommunications' Letter Number PT.003/6/2 Phb-2000 of 7 September
         2000, the Press Release of Coordinating Minister for Economy of 31 July
         2002 and Minister of Transportation's letter No. PT.003/9/2 Phb-2002 of
         1 August 2002, the compensation for early termination of the exclusive
         right for operating local basic telecommunications services shall be
         the obligation of the Government, which form and value shall be based
         upon valuation by an independent appraiser and shall have the prior
         approval of TELKOM's GMS;

f.       In order to provide local fixed network and basic telephony services,
         INDOSAT has performed the Interconnection Test, the implementation of
         which is set forth in the Cooperation Agreement on the Interconnection
         Test for Local Fixed Networks of INDOSAT

                  Number: PKS.136/HK.840/NISJASTEL-00/2002

                  Number: 16/DNI/HK.720/02                      of 15 July 2002,

         and needs to cooperate with TELKOM to make an interconnection between
         TELKOM's Fixed Network and INDOSAT's Local Fixed Network.

NOW, THEREFORE, the Parties agree to enter into this Cooperation Agreement on
Interconnection Between TELKOM's Fixed Network And INDOSAT's Local Fixed

<PAGE>

Network and Settlement of Interconnection Financial Rights and Obligations,
hereinafter referred to as the "Agreement", subject to terms and conditions as
follows:

                                    CHAPTER I
                               GENERAL PROVISIONS

                                    ARTICLE 1
                                   DEFINITIONS

Unless the context requires otherwise, the Parties agree to define the following
terms:

1.       "SERVICE AREA" means a territory identified as one service unit in a
         numbering territory which is determined as a local coverage with the
         point of charging.

2.       "INTERCONNECTION FEE" means the financial compensation for
         Interconnection services, which must be paid by the original network
         operator to the receiving network operator.

3.       "MINUTES OF RECONCILIATION" means the minutes concerning the outcome of
         reconciliation used as the basis for the final settlement of
         Interconnection rights and obligations of the Parties in a certain
         period.

4.       "MINUTES OF SETTLEMENT" means the minutes concerning settlement of data
         considered true and used as a basis for settlement of Interconnection
         rights and obligations of the Parties.

5.       "MINUTES OF INTERIM SETTLEMENT" means the minutes concerning settlement
         of which the data is considered to be not yet true and is subject to
         further examination and used as a basis for the interim payment of
         Interconnection rights and obligations.

6.       "TERMINATION FEE" means all the Interconnection Fees that shall be the
         responsibility of, and payable by, the original Network Operator for
         the transmission of the transit traffic terminated to operators other
         than the Parties to this agreement.

7.       "BILL PERIOD CLOSURE" means the provision which states that traffic
         data which is unlikely to be settled in reconciliation will be closed
         and not be changed after the lapse of an agreed certain period.

8.       "INTERCONNECTION BILLING" means the billing among the
         telecommunications network operators and used as a basis for the
         calculation of payment of Interconnection rights and obligations which
         is the outcome of the incoming call

<PAGE>

         CDR rating that contains the number of calls, duration and the sum of
         money in Rupiah in a certain period.

9.       "CALL SCENARIO" means any type of Interconnection Calls serviceable by
         the Exchange Gate, whether the type is a direct call or transit call.

10.      "CDR" (Call Data Record) means the data record of Interconnection Calls
         from TELKOM's Fixed Network to INDOSAT's Local Fixed Network and vice
         versa necessary for the financial calculation of Interconnection.

11.      "INTERCONNECTION DIMENSION" means the number/capacity of
         circuits/canals between TELKOM's Gate Exchange and INDOSAT's Gate
         Exchange used for the transmission of Interconnection calls traffic.

12.      "DIRECTOR GENERAL" means the Director General whose scope of work and
         responsibility covers the telecommunications sector.

13.      "DIVNET" (Network Division) means TELKOM's management unit of Long
         Distance Telecommunications Network covering the telecommunications
         network from the sides of the Secondary Toll Exchange to the Tertiary
         Toll Exchange.

14.      "DIVRE" (Regional Division) means TELKOM's management unit of
         telecommunications services in the region covering the
         telecommunications network from the Border Terminal Box (KTB) to the
         Primary Toll Exchange.

15.      "CORRECTION FACTOR" means a formula for the financial calculation of
         Interconnection which data cannot be obtained in full from the calls
         recording source or any other data sources.

16.      "CONTROL FILES" means files containing the standard data parameter
         utilized as the true and valid reference data as the basic standard for
         the application of telecommunications services tariff.

17.      "INTERCONNECTION" means the connection between TELKOM's Fixed Network
         and INDOSAT's Local Fixed Network.

18.      "TELKOM'S LONG DISTANCE NETWORK" means a network among different area
         code controlled and/or managed by TELKOM for the provision of domestic
         long distance telecommunications services.

19.      "TELECOMMUNICATIONS NETWORK" means a set of telecommunications devices
         and any part thereof used for the purpose of telecommunications.

20.      "INDOSAT'S LOCAL FIXED NETWORK" means the Local Fixed Network used to
         provide INDOSAT's basic telephony services in accordance with the
         exclusive right of the Parties.

<PAGE>

21.      "TELECOMMUNICATION SERVICES" means telecommunications services that
         meet telecommunication needs by using the telecommunications network.

22.      "INTERCONNECTION OBLIGATION" means the financial obligation payable by
         one Party to the other Party in connection with the Interconnection
         Calls.

23.      "INTERCONNECTION LINK" means the link used for the purpose of the
         transmission of Interconnection traffic which connects TELKOM's Gate
         Exchange and INDOSAT's Gate Exchange.

24.      "MINISTER" means the Minister whose scope of work and responsibility
         covers telecommunications sector.

25.      "MSC" (Mobile Switching Center) means the Central Exchange of STBS
         services and functions as the STBS Exchange Gate which is a gate to the
         STBS network and which directly connects to TELKOM's exchange gate
         through the point of interconnection .

26.      "NON PSTN" means one of, or a combination of, the provisions of local
         fixed network, long distance call fixed network and international call
         fixed network or any other networks, including basic telephony
         services, value added services and any other services provided through
         such networks without any switching.

27.      "NPK" (Financial Calculation Memorandum) means the list made monthly
         setting forth the calculation of rights and obligations of each Party
         arising from the Interconnection Call.

28.      "INTERCONNECTION CALL" means any type of telecommunications connected
         through the Point of Interconnection.

29.      "CONSUMER" means any individual, legal entity, Government institutions,
         or any other entities, which utilize telecommunication services based
         upon a contract or agreement with the Telecommunication Services
         Operator.

30.      "INTERCONNECTION SERVICES" means any services rendered by a network to
         another network which enables the transmission of telecommunications
         traffic from one network to another network.

31.      "CUSTOMER" means any individual, legal entity, Government institution
         which utilizes telecommunications network and/or services, the
         utilization of which is not based upon a contract or agreement.

32.      "USER" means both Consumer and Customer.

<PAGE>

33.      "FINANCIAL CALCULATION OF INTERCONNECTION" means the calculation
         arising as a result of the Interconnection Call or the use of network,
         which shall be the right of one Party and the obligation of another
         Party.

34.      "AGREEMENT" means the Cooperation Agreement on The Interconnection
         Between TELKOM's Fixed Network And INDOSAT's Local Fixed Network,
         Including The Settlement of The Interconnection Financial Rights and
         Obligations, as stated in this document, including any schedules and
         amendments.

35.      "POC" (Point of Charging) means one of the local exchanges or a certain
         location selected to represent another exchange or location as a point
         where the call tariff is commenced, which is a coordinate point to
         determine the air distance of a category of the use of
         telecommunications services which shall be a basis to set the tariff.

36.      "POI" (Point of Interconnection) means a point or physical location
         where Interconnection occurs, which borders part of one network from
         part of another network at the Interconnection in question. The Point
         Of Interconnection is also a border point of rights and obligations
         concerning the provision, management and maintenance of the network.

37.      "POTI" (Point Of Termination for Interconnection) means the
         distribution frame of the physical location of the Point Of
         Interconnection.

38.      "POTSI" (Point Of Terminating Signalling Interconnection) means the
         point of terminating signaling interconnection CCS#7.

39.      "PSTN" (Public Switched Telephone Network) means one of, or a
         combination of, the provisions of local fixed network, long distance
         call fixed network and international call fixed network or any other
         networks, including basic telephony services and value added services
         provided through such networks.

40.      "RATING" means the process of determining costs of the Interconnection
         Call based on the Interconnection tariff as set forth in the decree of
         the Minister and/or the Parties' agreement.

41.      "RECONCILIATION" means the process of verification and examination of
         the settlement which is the renewal of the data of the Parties pursuant
         to call data or any other Interconnection data held in a certain period
         of time.

42.      "RETAIL BILLING" means billing of the use of call traffic invoiced to
         the Consumer.

43.      "ROUTING" means the process of determining and using a route based on a
         certain rule to transmit a message or to make a connection.

<PAGE>

44.      "GATE EXCHANGE" means any exchange owned by one Party in one network
         which is a gate to another network and directly connects to the network
         gate of another Party through the Point Of Interconnection.

45.      "LOCAL EXCHANGE" means any exchange equipped with suitable facilities,
         capability and interface to serve the Consumer.

46.      "SETTLEMENT" means the outcome of the process of exchanging the
         Interconnection billing and the acknowledgement of the Interconnection
         right in a certain monthly period and is an obligation to be performed
         by one Party to another Party.

47.      "SGI" (International Gate Exchange) means the international
         telecommunications network gate exchange which is a gate to the
         telecommunications network of another countries and directly connects
         to the national telecommunications network exchange thorough the Point
         Of Interconnection.

48.      "SPLIT ACCOUNT" means a separated account to save the collection of
         TELKOM's Long Distance Telecommunications Services receivables.

49.      "BASIC TRAFFIC" means the traffic used to make a long-term plan, in
         which the figure shall be the average of the traffic charges within the
         busiest 30-days during one year.

50.      "TELKOM'S WORKING UNIT" means DIVNET, DIVRE and any other relevant
         Working Unit.

                                    ARTICLE 2
                           STRUCTURE OF THE AGREEMENT

(1)      This Agreement consists of two parts, which are:

         a.       Articles of the Agreement.

         b.       All Schedules, including the List of Schedules.

(2)      All Schedules listed in the List of Schedules shall constitute an
         integral part of this Agreement and shall have the same legal effect as
         the Articles of this Agreement.

(3)      In the event of any inconsistency between the provisions of this
         Agreement, the following order shall prevail:

         a.       Articles of the Agreement.

         b.       Schedules.

<PAGE>

                                    ARTICLE 3
                             SCOPE OF THE AGREEMENT

(1)      TELKOM and INDOSAT agree to make the Interconnection between TELKOM's
         Fixed Network and INDOSAT's Local Fixed Network, so that:

         a.       any User of TELKOM's Fixed Network may give or receive the
                  Interconnection Call to or from any User of INDOSAT's Local
                  Fixed Network.

         b.       any Telecommunications Services provided by TELKOM and/or in
                  cooperation with another operator may make the Interconnection
                  Call to and receive the Interconnection Call from the User of
                  INDOSAT's Local Fixed Network.

(2)      This Agreement covers any cooperation in respect of the settlement of
         Interconnection financial rights and obligations between the Parties.

(3)      This Agreement shall constitute a basis for the making of the
         Cooperation Agreement on Use of Facilities and Resources as well as the
         Operational Cooperation Agreement between TELKOM c/q any relevant
         Working Unit/ Division and INDOSAT.

                                    ARTICLE 4
                               GENERAL CONDITIONS

In carrying out this Agreement, TELKOM and INDOSAT shall comply with the
prevailing regulations and their amendments, if any, including without
limitation the following regulations:

a.       Law No. 36 of 1999 on Telecommunications.

b.       Government Regulation No. 52 of 2000 on the Operation of
         Telecommunications.

c.       Decree of Minister of Transportation and Telecommunications Number KM.4
         Year 2001 dated 16 January 2001 on the National Fundamental Technical
         Plan of 2000.

d.       Decree of Minister of Transportation Number KM.20 of 2000 on the
         Operation of Telecommunications Network.

e.       Decree of Minister of Transportation Number KM.21 of 2000 on the
         Operation of Telecommunications Services.

f.       Any other relevant regulations enacted by the Government.

<PAGE>

                                   CHAPTER II
                           INTERCONNECTION COOPERATION

                                    ARTICLE 5
                              NETWORK CONFIGURATION

Configuration of INDOSAT's Local Fixed Network shall be as set forth in SCHEDULE
I.

                                    ARTICLE 6
                             TECHNICAL REQUIREMENTS

Technical requirements for the Gate Exchange, POI, Signalling, Interconnection
Link, Interface Junctor and so forth shall be determined in accordance with the
applicable Fundamental Technical Plan and/or in accordance with the written
agreement of the Parties.

                                    ARTICLE 7
                        TYPE AND POINT OF INTERCONNECTION

(1)      The Point of Interconnection between TELKOM's Fixed Network and
         INDOSAT's Local Fixed Network shall be at TELKOM's POTI Gate Exchange
         for voice and TELKOM's POTSI STP for signal.

(2)      INDOSAT's Local Fixed Network which is directly interconnected to
         TELKOM's Gate Exchange as referred to in paragraph (1) shall be
         INDOSAT's Gate Exchange.

(3)      Technical configuration of the Point Of Interconnection as referred to
         in paragraphs (1) and (2) is set forth in Schedule II.

                                    ARTICLE 8
                              ROUTING REQUIREMENTS

(1)      Implementation of the routing of the Parties shall be governed in
         accordance with the applicable Fundamental Technical Plan, the
         configuration of which is set forth in Schedule III.

(2)      Routing of the Interconnection Call at TELKOM's Fixed Network shall be
         governed by, and the responsibility of, TELKOM.

(3)      Routing of the Interconnection Call at INDOSAT's Local Fixed Network
         shall be governed by, and the responsibility of, INDOSAT.

<PAGE>

(4)      Routing of the Interconnection Call between the User of INDOSAT's Local
         Fixed Network and STBS of other operators may be made through TELKOM's
         Fixed Network.

(5)      To the extent INDOSAT does not yet have the operational license for
         Long Distance Call Network and TELKOM's exclusive right for the
         provision of long distance call network and services is not yet
         terminated, the routing of all the long distance call from the User of
         INDOSAT's Local Fixed Network shall be made through TELKOM's long
         distance network.

(6)      Routing of an International Call of the Consumer of INDOSAT's Local
         Fixed Network may be made through TELKOM's Fixed Network.

(7)      The Parties agree not to terminate the traffic of non-PSTN to the
         network of another Party before the Parties have entered into a written
         agreement in respect thereof.

(8)      Further provisions concerning routing, the overflow of traffic and its
         operational implementation shall be set forth in the Operational
         Cooperation Agreement between the relevant Working Units of TELKOM and
         INDOSAT.

                                    ARTICLE 9
                     REGULATION OF INTERCONNECTION DIMENSION

(1)      The Interconnection dimension plan at the Point of Interconnection
         shall be calculated based upon the basic traffic for the period of the
         forthcoming three years and for each Interconnection route as set forth
         in the Operational Cooperation Agreement.

(2)      Implementation of the Interconnection dimension plan as referred to in
         paragraph (1) shall be made quarterly or at the consent of the Parties
         by taking into account the need for telecommunications traffic and the
         rate of successful call with the Grade of Service of 1%.

(3)      Amendment to the Interconnection dimension plan as referred to in
         paragraph (1) may be made annually or in any other period with the
         consent of the Parties.

(4)      The Parties shall coordinate the preparation of the initial
         requirements for the interconnection link.

<PAGE>

                                   ARTICLE 10
                      PROVISION OF INTERCONNECTION DEVICES

(1)      Provision of Interconnection devices in the forms of junctor,
         Interconnection link and interface devices in accordance with the
         agreed Interconnection dimension, shall be the responsibility of
         INDOSAT when the implementation of the Interconnection begins.

(2)      Provision of chambers and additional Interconnection devices relating
         to addition of the Interconnection dimension in accordance with the
         size of the Interconnection dimension at each side to the Point of
         Interconnection shall be the responsibility of each Party.

(3)      The Parties shall procure the provision of Interconnection devices as
         referred to in paragraph (2) for the following three months.

(4)      Any expenses arising as a result of the provision or addition of
         Interconnection resources shall be borne by each Party in accordance
         with its responsibility.

                                   ARTICLE 11
                                NUMBERING SYSTEM

(1)      The numbering system used by the Parties shall be in compliance with
         the provisions set forth in the National Fundamental Technical Plan and
         its amendments.

(2)      The access code and the numbering system used are set forth in
         principle in Schedule IV and will be set forth in detail in the
         Operational Cooperation Agreement.

(3)      Each Party shall procure such circumstances aimed at achieving the
         conformity of the numbering system of the Parties.

                                   ARTICLE 12
                           CHARGING OF INTERCONNECTION

(1)      The Interconnection charging system used by the Parties shall be in
         compliance with the provisions set forth in the National Fundamental
         Technical Plan, any other regulations concerning the Interconnection
         and/or the agreement of the Parties.

(2)      The charging of the Interconnection used shall be based upon a
         reasonable cost calculation.

(3)      Each Party shall procure such circumstances aimed at achieving the
         conformity of the charging system of the Parties.

(4)      The Parties agree that the charging of the Interconnection shall be
         made on any successful Interconnection Call.

<PAGE>

                                   ARTICLE 13
               TECHNICAL STANDARDS AND THE UTILIZATION OF SIGNALS

(1)      The signaling system used by the Parties shall be in compliance with
         the provisions set forth in the National Fundamental Technical Plan.

(2)      The signaling system used in principle is CCS-7 with R2 as an
         alternative for TELKOM's Gate Exchange not yet using CCS-7 as set forth
         in Schedule IV and will be set forth in detail in the Operational
         Cooperation Agreement.

(3)      Each Party shall procure such circumstances aimed at achieving the
         conformity of the signaling system of the Parties.

(4)      The use of the signaling system of one Party by another Party may be
         made based on the agreed costs.

                                   ARTICLE 14
                           INTERCONNECTION CAPABILITY

(1)      In compliance with the provisions set forth in the National Fundamental
         Technical Plan, Interconnection between TELKOM's Fixed Network and
         INDOSAT's Local Fixed Network may provide types of the International
         Call as follows:

         a.       End to end calls of INDOSAT's Local Fixed Network with
                  TELKOM's Fixed Network.

         b.       End to end calls of INDOSAT's Local Fixed Network with the
                  User of transit STBS, STLR, BBT of TELKOM's Fixed Network.

(2)      Interconnection may also provide services of any other call than those
         set forth in paragraph (1) to the extent technically and financially
         feasible.

(3)      Types of the Interconnection Call (call scenario) as referred to in
         paragraph (1) shall be as set forth in Schedule VIII. Any other call
         scenario shall be further regulated in the Operational Cooperation
         Agreement (TELKOM cq DIVNET or DIVRE).

(4)      Interconnection must be able to furnish the data of all types of the
         Interconnection Call as referred to in paragraph (3) to enable both
         TELKOM and INDOSAT to calculate Interconnection rights and obligations
         that must be received and paid by each Party.

<PAGE>

                                   ARTICLE 15
                            OPERATION AND MAINTENANCE
                           OF INTERCONNECTION DEVICES

(1)      Physical border responsibilities for operation and maintenance of
         Interconnection devices of each Party shall be POTI, where POTI shall
         be the full responsibility of TELKOM.

(2)      Each Party shall, to the best of its ability, warrant and improve the
         quality of the Interconnection Call transmission by conducting
         operation and maintenance activities as best as possible by:

         a.       providing information and data on the traffic measurement of
                  the Interconnection Link between TELKOM's Gate Exchange and
                  INDOSAT's Local Gate Exchange.

         b.       determining a technical parameter for the Interconnection Link
                  precisely and periodically in accordance with the agreed
                  condition.

(3)      The Parties agree to conduct a joint operation and maintenance in
         handling emergency disturbances and/or force majeure so that the
         Interconnection Call may always be transmitted, which is to be further
         regulated in the Operational Cooperation Agreement.

                                   ARTICLE 16
                         MODIFICATION OF SYSTEM/DEVICES

(1)      In the event one Party makes an amendment or modification to its system
         or subsystem in such a way as to require the amendment or modification
         of the system or subsystem of the other Party, the amending Party shall
         notify the other Party in writing no later than four weeks before the
         amendment or modification is made.

(2)      Further provisions as to the system and procedures for the modification
         of its system or subsystem as referred to in paragraph (1) and the
         decision as to which Party should bear any arising costs shall be set
         forth in an agreed agreement.

(3)      Any costs for the amendment or modification of its system or subsystem
         arising as a result of any governmental regulations shall be the
         responsibility of each Party.

(4)      Any Party planning to make an amendment to the numbering system,
         signaling system or POC shall notify such plan within three months
         before the date of the amendment and shall coordinate to ensure the
         smoothness of its implementation and to reduce any disturbance risks
         arising as a result thereof.

<PAGE>

                                   ARTICLE 17
                         USE OF FACILITIES AND RESOURCES

(1)      For the purpose of this Agreement, INDOSAT may use facilities and
         resources of TELKOM, and TELKOM may use facilities and resources of
         INDOSAT.

(2)      Unless determined by the prevailing regulations as the responsibility
         of each Party, the use of facilities and/or resources of TELKOM by
         INDOSAT or vice versa as referred to in paragraph (1) shall be charged
         with a usage fee in accordance with the prevailing regulations or the
         agreement of the Parties in the case of the absence of such
         regulations.

(3)      Types of facilities and resources of TELKOM which may be used by
         INDOSAT, and types of facilities and resources of INDOSAT which may be
         used by TELKOM shall be as set forth in Schedule V.

(4)      Further terms and conditions concerning the use of facilities and
         resources shall be governed and agreed jointly in the Cooperation
         Agreement On Use Of Facilities And Resources between the relevant
         Working Units of TELKOM and INDOSAT.

                                   ARTICLE 18
                            INTERCONNECTION SERVICES

(1)      The Parties agree that each Party shall give the right to its Customer
         to be able to use telecommunications services provided by the other
         Party, provided that there is an Operational License from the
         Government and a written agreement in respect of the provision of such
         services.

(2)      Each Party shall, to the best of its ability, warrant and improve the
         quality of the Interconnection Call transmission by exchanging
         information and data concerning the measurement of the Interconnection
         traffic.

(3)      The Parties agree to determine a technical parameter and network access
         services for the Interconnection Call precisely and periodically in
         accordance with the agreed condition.

(4)      The Parties agree to provide Interconnection services for
         telecommunications services as set forth in Schedule VI.

(5)      In case types of telecommunications services referred to in paragraph
         (4) are new and not known yet by the public or the Customer, the Party
         providing such services shall socialize them to the public or Customer
         of the Parties.

<PAGE>

                                   CHAPTER III
             CALCULATION AND FINANCIAL SETTLEMENT OF INTERCONNECTION

                                   ARTICLE 19
           CONDITIONS FOR THE FINANCIAL CALCULATION OF INTERCONNECTION

The Financial Calculation Of Interconnection is conducted based on the
prevailing laws and regulations and the mutual consent of the Parties regarding
the format of the Call Scenario, the parameter and the format of CDR, the
Interconnection Tariff, the formula of the Correction Factor, the Rating
parameter and the calculation formula.

                                   ARTICLE 20
                              CALL SCENARIO FORMAT

The format of the Call Scenario which is one of the basis for the Financial
Calculation of Interconnection contains information, regarding, among other
things, the description of the calls/services, access codes, the billings to the
Customers, and the income calculations and Interconnection Fee as mentioned in
the Schedule VII or its amendment as approved by the Parties.

                                   ARTICLE 21
                    PARAMETER AND FORMAT OF CALL DATA RECORD

(1)      In order to ease the verification of the CDR, which is one of the basis
         for the calculation of the Financial Calculation Of Interconnection,
         the Parties agree to use only the CDR parameter that covers, but is not
         limited to, the following:

         a.       Recording the delay time between the originating central and
                  the destination interconnection central.

         b.       Time synchronization is determined based on the operational
                  consent, the accuracy of which is to be checked on a regular
                  basis.

         c.       Service indicator code (features).

         d.       Identification of Originating (A number) and Terminating (B
                  number).

         e.       Identification of trunk group or Final Switch Identification.

         f.       Date of the calling.

         g.       Time of commencement and termination of the calling.

         h.       The duration of the calling.

(2)      The format of the parameter as mentioned in the paragraph (1) is as per
         Schedule IX.

(3)      The parameter and the format that has not yet been determined, and in
         the event any of the Parties is unable to submit the parameter as
         mentioned in paragraph (1) of this Article, will be determined based on
         the mutual consent of the Parties and will be made in a minutes which
         will be signed by the Task Forces of TELKOM and INDOSAT.

<PAGE>

                                   ARTICLE 22
                            CORRECTION FACTOR FORMULA

The financial calculation for an Interconnection Call, the data of which is
incomplete is to be made based on the Factor Correction formula that must be
approved by the Parties and will be made in the minutes which will be signed by
each of TELKOM's and INDOSAT's Task Forces.

                                   ARTICLE 23
                                PARAMETER RATING

(1)      In order to ease the verification of the Interconnection Billing, the
         Parties agreed to use the parameter that covers but is not limited to
         the following:

         a.       Interconnection Tariff as mentioned in the Ministerial Decree
                  and/or as approved by the Parties.

         b.       Correction Factor.

         c.       Rating Method that refers to start time.

         d.       Control File to charging point.

         e.       Time Band.

(2)      The parameter and the format that has not yet been determined, and in
         the event that any of the Parties is unable to submit the parameter as
         mentioned in the paragraph (1) of this Article, will be determined
         based on the mutual consent of the Parties and will be made in the
         minutes which will be signed by the Task Forces of TELKOM and INDOSAT.

                                   ARTICLE 24
                               CALCULATION FORMULA

(1)      The Parties agreed to calculate the Interconnection Fee using the
         following formula:

         a.       The Interconnection Fee of a call is calculated based on the
                  successful connection/call made by the actual duration between
                  Customers.

         b.       The amendment of the above paragraph (1) a will be made by way
                  of a written arrangement made between the Parties.

<PAGE>

(2)      The calculation of the Interconnection Fee for the call as mentioned in
         the previous paragraph (1) a of this Article:

         a.       For each call, the duration of the actual call is to be made
                  using a second as a unit, and will not apply to any round up.

         b.       The amount of the duration as mentioned in the above point a
                  is to be divided by a factor of 60, then to be multiplied by
                  the tariff for each minute, in accordance with the time
                  differentiation and relevant zone.

         c.       For any call that elapses after more than 1 (one) time
                  differentiation, the calculation is to be made based on each
                  of the time differentiation.

         d.       In order to avoid rating differences due to the different time
                  divisions in Indonesia as grouped into WIB, WITA and WIT, the
                  Parties agree to use the incoming call data, the time of which
                  is adjusted with the time applied to that of the originating
                  call .

         e.       In the event the calculation as mentioned in point b has a
                  fraction, the round up would be as follows:

                  1)       The fraction that equals or is more than Rp. 0,50
                           (fifty cents Rupiah) is to be round up into Rp. 1
                           (one Rupiah).

                  2)       The fraction that is less than Rp. 0,50 (fifty cent
                           Rupiah) shall be disregarded.

                                   ARTICLE 25
                     SOURCES OF INTERCONNECTION BILLING DATA

(1)      The calculation of the Interconnection fee received by each Party shall
         be made based on the incoming traffic data of Interconnection Call
         recorded in the data record instrument located in each Party's Gate
         Exchange.

(2)      The source of the incoming data, the right of which belongs to TELKOM,
         is to be taken from the CDR located in TELKOM's Gate Exchange, and the
         source of the incoming data, the right of which belongs to INDOSAT, is
         to be taken from the CDR located in INDOSAT's Local Gate Exchange.

(3)      The source of the outgoing call data that gives rise to TELKOM's rights
         and obligations is to be taken from the CDR located in TELKOM's Gate
         Exchange, and the source of the outgoing call data that becomes
         INDOSAT's obligation is to be taken from the CDR located in the
         INDOSAT's Local Gate Exchange. The data of the outgoing call is only to
         be used as reference data in the framework of Interconnection data
         reconciliation.

<PAGE>

(4)      In the event a Party can not record the incoming call traffic data, the
         relevant Party may use the data recorded in the data recording
         instrument of the other Party, by paying the cost approved by the
         Parties, and to be made in the minutes signed by the Task Forces of
         TELKOM and INDOSAT, in accordance with the following conditions:

         a.       The application of the incoming traffic data is to be made to
                  the other Party at the latest at the fifth day of month n+1
                  for the traffic of the month n.

         b.       The application for the usage of the data to the other Party
                  shall be subject to a cost of Rp. 82 per record, in which the
                  above measure may be changed subject to the consent of both
                  Parties.

         c.       The format of the Interconnection data is to be determined by
                  the Party filing the application or in accordance with the
                  Format of the data as mentioned in the Schedule XVII.

(5)      The calculation of the Interconnection Fee for toll free call (Service
         800), collect call through operator's desk, Direct Operator Domestic
         Call and other services based on IN (Intelligent Network) which are
         conducted by TELKOM, shall use the data recorded in TELKOM's data
         recording instrument, by observing the data recorded in INDOSAT's data
         recording instrument.

(6)      The calculation of the Interconnection Fee for toll free call, collect
         call through operator's desk, Direct Operator Domestic Call and other
         services based on IN (Intelligent Network) which conducted by INDOSAT,
         shall use the shall use the data recorded in INDOSAT's data recording
         instrument, without neglecting the data recorded in TELKOM's data
         recording instrument.

(7)      The data as mentioned in the above paragraph (4) of this Article shall
         be used as the basis to charge the customers, using the mechanism which
         will be separately regulated between the relevant division of TELKOM
         and INDOSAT.

<PAGE>

                                   ARTICLE 26
                             INTERCONNECTION TARIFF

The Interconnection Tariff is to be determined based on the consent of both
Parties, by observing the prevailing Government regulations, as mentioned in
Schedule VII, which will be reviewed every 3 (three) months.

                                   ARTICLE 27
          THE CALCULATION OF THE RIGHTS AND OBLIGATIONS OF THE PARTIES

(1)      The Interconnection Rights are to be calculated based on the
         accumulation of the Interconnection Traffic Call in one month.

(2)      The calculation of Interconnection Rights and Obligations is conducted
         based on the type of Interconnection Call (Call Scenario) as explained
         in Schedule VIII.

(3)      The rights of a Party using the facility and resources which become the
         obligation of the other Party, should be calculated based on the total
         and the duration of use in one month.

                                   ARTICLE 28
                         INTERCONNECTION BILLING PROCESS

(1)      Interconnection Billing Process is conducted based on the type of call
         scenario as mentioned in Article 20 of this Agreement and the
         calculation formula as agreed upon in Article 24.

(2)      A Party may observe the Interconnection Billing process of the other
         Party, in accordance with the agreed procedure.

(3)      Interconnection Billing process and the collection of Interconnection
         Rights and Obligations is conducted bilaterally between TELKOM and
         INDOSAT.

                                   ARTICLE 29
                              FINANCIAL SETTLEMENT

(1)      The procedure of financial settlement covers, among other things, the
         provision of Interconnection Call data, reconciliation, settlement,
         financial calculation, transfer, outstanding settlement, expenses of
         facility and resources use, restitution, Interconnection tax, late
         payment charges, penalty and other provisions.

(2)      For the purpose of the calculation and settlement of Interconnection
         Rights and Obligations, each Party has to deliver the Interconnection
         billing data from the Interconnection Call traffic monthly and to
         perform the settlement.

(3)      The reconciliation of financial calculation between TELKOM and INDOSAT
         and other Partner of Telecommunications Services is conducted within,
         at the latest, every 3 (three) month.

(4)      Financial Calculation Memorandum (NPK) for a period of Interconnection
         Call and the transfer from one Party to another Party is conducted
         monthly.

<PAGE>

                                   ARTICLE 30
                                   SETTLEMENT

(1)      The Parties agree to use the incoming call data of each Party as the
         basis of the acknowledgment of the Interconnection rights.

(2)      The Parties agree to swap the Interconnection Billing and to deliver
         the said data in Article 25 paragraph (1), at the latest, on the 15th
         day of each month for the call period of the previous month, with the
         provisions:

         a.       Specifically for the swap of the Interconnection Billing data
                  at the end of each quarter (N month), such swap is conducted
                  at the latest on the 12th of N + 1, where the swapped data is
                  considered as the last updated data and does not accommodate
                  the possibility of any additional new volume from the amount
                  that has been sent.

         b.       In the event the collecting Party is not able to deliver the
                  incoming data on the agreed date of swap in this Article, the
                  said Party may acknowledge the Interconnection rights in
                  accordance with the outgoing data of the collected Party by
                  paying the compensation pursuant to the determined amount.

         c.       Specifically for the traffic of n month and n + 1 month, the
                  Interconnection billing swap may be conducted on the date
                  agreed by the Parties if there is a written notification from
                  the collecting Party regarding a delay in the Interconnection
                  Billing process.

(3)      The acknowledgment of the right mentioned in paragraph (2) of this
         Article is to be used as the basis of the monthly financial settlement
         mentioned in the Settlement Form of incoming calls as set forth in
         Schedule X.

(4)      Verification upon the accuracy of Financial Calculation Of
         Interconnection owned by each Party may be conducted upon the request
         of one Party to the other Party.

                                   ARTICLE 31
                                 RECONCILIATION

(1)      In the event there is a discrepancy in the calculation of the
         Interconnection Billing between one Party and the other Party, then the
         Parties agree to conduct a Reconciliation at least once within a 3
         (three) month period. In the performance, the incoming call and the
         outgoing call data is grouped per DIVRE per month.

<PAGE>

(2)      Data Reconciliation is agreed to be as follows:

         a.       If the difference of the duration and the Rupiah data is less
                  or equal to 1% (one percent), then the data is considered as
                  correct and the financial calculation settlement is conducted
                  by using the incoming call data, and further is to be drawn in
                  the Minutes of Settlement as set forth in Schedule XI, at the
                  latest on the 18th day of n + 1 month.

         b.       If the difference of the duration and the Rupiah data is more
                  than 1% (one percent), then the settlement of the Financial
                  Calculation Of Interconnection should use the incoming data
                  call. Further, the Parties agree to draw the Minutes of
                  Interim as set forth in Schedule XII at the latest on the 18th
                  day of n + 1 month, with the total payment pursuant to the
                  calculation as mentioned in Article 33 paragraph (2), and by
                  further observing the cause of such data difference.

         c.       The percentage amount of the data difference as mentioned in
                  points a and b of this paragraph may be amended, pursuant to
                  the agreement of the Parties which is drawn up in the Minutes
                  signed by the Working Units of TELKOM and INDOSAT.

         d.       For the purpose of the examination of the data difference, the
                  Parties agree to deliver to each other, the revised data of
                  the incoming and the outgoing calls and all the other data, if
                  any, at once on the 20th day of each month for the call period
                  of the previous month, except for n + 2 month.

         e.       The examination of the call data difference is to be settled,
                  at the latest, on the 10th day of n + 2 month and is to be
                  conducted through the compare volume lane, where the Party
                  submitting a claim is obligated to deliver the outgoing data
                  in order to determine the claimed difference. For further
                  examination, the said outgoing data should be disclosed as
                  along with the incoming data it is to be compared with.

         f.       The mechanism of the Volume Compare performance is as follows:

                  1)       Stage I: Compare Summary of Data per Area Code, per
                           POC, per month, with the mechanism as explained in
                           Schedule XVI, which covers: Summary of Call, Summary
                           of Duration, Summary of Operator Rights, Summary of
                           Rupiah Air Time, and Summary of TELKOM Rights.

                           The Forms of Summary of Incoming Data Per Area Code
                           and Summary of Incoming Data Per POC are as mentioned
                           in Schedule XVII A and Schedule XVII B.

                  2)       Stage II: Compare Detail of Data, with the mechanism
                           as explained in Schedule XVIII, based on the agreed
                           sample which covers details A Number, B Number,
                           Duration, Date, Time, Zoning, Rupiah Air Time,
                           Incoming Operator, and Incoming TELKOM.

<PAGE>

         g.       The amount of excess or deficit of payment pursuant to the
                  result of the examination mentioned in point e of this
                  paragraph is drawn up in the Minutes of Reconciliation as set
                  forth in Schedule XIII.

         h.       If the settlement on the existing data difference cannot be
                  reached within 6 (six) months after the signing of the Minutes
                  of Interim the Parties agree to use the last revised incoming
                  data as the basis of the invoice.

(3)      The percentage amount of the data difference as mentioned in points a
         and by of paragraph (2) of this Article may be amended from time to
         time upon the agreement of the Parties and drawn in the minutes signed
         by the Working Units of TELKOM and INDOSAT .

(4)      The Parties agree that the Bill Period Closure is to be conducted on N
         Quarterly Reconciliation for the data of call of period Quarterly N -
         2, by using the latest Minutes of Reconciliation.

                                   ARTICLE 32
                               QUALITY IMPROVEMENT
                   OF FINANCIAL CALCULATION OF INTERCONNECTION

(1)      The Parties agree to improve the quality of the financial calculation
         of Interconnection to be more precise and efficient.

(2)      The Parties agree to establish a cooperation to create an effective and
         efficient financial calculation system of Interconnection by, among
         other things, preventing process duplication.

(3)      The Parties agree to provide information concerning amendment or
         modification of the financial calculation of Interconnection that may
         effect each other for the purpose of preventing any difference in the
         financial calculation of Interconnection.

                                   ARTICLE 33
                      PROCEDURES FOR COLLECTION AND PAYMENT
                         OF INTERCONNECTION OBLIGATIONS

(1)      The collection and payment of Interconnection obligations shall be made
         by way of offsetting the rights pursuant to the Settlement of each
         Party (netting), and shall be equipped with the gross data of each
         Party for the purposes of administration and taxation.

<PAGE>

(2)      In case the disparity of the financial data of Interconnection of each
         Party exceeds a certain amount mutually agreed in the Minutes as
         referred to in Article 31 paragraph (2) points a and b, the financial
         obligation shall be settled as follows:

         Incoming + Outgoing = interim payment amount
         -------------------
                  2

(3)      The Party receiving more disparity based upon the netting value as
         referred to in paragraph (1) of this Article shall make NPK as set
         forth in Schedule XIV, with the provisions as follows:

         a.       Quarterly NPK (Schedule XIV B) for payment of financial
                  obligation of month N (month n, n+1 & n+2) shall be made at
                  the latest by the 20th day of month (N+1) based on the Minutes
                  of the monthly Settlement as referred to in Article 31
                  paragraph (2) point a, or Interim Minutes as referred to in
                  Article 31 paragraph (2) point b, and Reconciliation Minutes
                  as referred to in Article 31 paragraph (2) point g.

         b.       Monthly NPK (Schedule XIV A), in case the payment of
                  Interconnection rights and obligations may be made monthly,
                  which initial implementation will be agreed to in a Side
                  Letter, then the collection and payment of Interconnection
                  obligations shall be made as follows:

                  1)       monthly NPK for payment of the monthly financial
                           obligation shall be made at the latest by the 20th
                           day of month (n+1) based on Minutes of the monthly
                           Settlement as referred to in Article 31 paragraph (2)
                           point a, or Interim Minutes as referred to in Article
                           32 paragraph (2) point b.

                  2)       Reconciliation NPK for payment of financial
                           obligation of the outcome of reconciliation shall be
                           made at the latest by the 15th day of month (n+2)
                           based on Minutes of Reconciliation as referred to in
                           Article 31 paragraph (2) point g.

(4)      NPK as referred to in paragraph (3) of this Article shall be used as a
         basis for the collection of rights or payment of Interconnection
         financial obligations, with the following mechanism and schedules:

         a.       The delivery of NPK as referred to in paragraph (3) point a
                  and its invoice, quarterly invoice for tax purpose, Tax
                  Invoice and Evidence of Tax Payment shall be made at the
                  latest by the 22nd of month N+1, and must have been received
                  by the 25th day of month N+1.

         b.       For monthly NPK as referred to in paragraph (3) point b of
                  this Article, it shall be made as follows:

<PAGE>

                  1)       The delivery of NPK as referred to in paragraph (3)
                           point b 1) and its invoice, monthly invoice for tax
                           purpose, Tax Invoice and Evidence of Tax Payment
                           shall be made at the latest by the 22nd of month
                           (n+1), and must have been received by the 25th day of
                           month (n+1).

                  2)       The delivery of NPK as referred to in paragraph (3)
                           point b 2) and its invoice, invoice for tax purpose,
                           Tax Invoice and Evidence of Tax Payment shall be made
                           at the latest by the 22nd of month (n+2), and must
                           have been received by the 25th day of month (n+2).

         c.       For tax purpose, INDOSAT shall give invoice + Tax Invoice +
                  Evidence of Tax Payment for the incoming traffic of INDOSAT's
                  Local Fixed Network to TELKOM cq. DIVRE, and for incoming
                  traffic of TELKOM's Fixed Network the delivery of tax invoice
                  shall be made between INDOSAT and TELKOM cq. DIVNET.

         d.       For tax purpose, TELKOM cq. DIVRE shall give invoice + Tax
                  Invoice + Evidence of Tax Payment for incoming traffic of
                  INDOSAT's Local Fixed Network to INDOSAT.

(5)      Payment of financial obligation shall be made as follows:

         a.       For NPK as referred to in point a paragraph (3) of this
                  Article shall be made by the 10th day of month (N+2) at the
                  latest for the call period of month (N), which is transferred
                  to the bank account designated by each Party.

         b.       For NPK as referred to in point b 1) paragraph (3) of this
                  Article shall be made at the latest by the 10th day of month
                  (n+2) for the call period of month (n), which is transferred
                  to the bank account designated by each Party.

(6)      Payment of the financial obligation of the outcome of reconciliation
         based on NPK as referred to in point b 2) paragraph (3) of this Article
         shall be made by the 10th day of month (n+3) at the latest for the call
         period of month (n), which is transferred to the bank account
         designated by each Party.

(7)      Interim payment as referred to in paragraph (2) shall be compensated to
         the total payment which is the obligation of one Party to the other
         Party in accordance with the outcome of reconciliation, which
         implementation shall be made at the next payment period.

<PAGE>

                                   ARTICLE 34
                                    SANCTIONS

(1)      If the obligated Party has not yet paid its obligation when due as
         referred to in Article 33 paragraphs (5) and (6), the Parties agree to
         impose a penalty for any delay. The penalty is calculated per day in
         the amount of the average of interest rate of a one-month time deposit
         at state-owned banks, in relation to the Interconnection obligation
         that is not yet paid.

(2)      If the obligated Party continues to fail to pay its obligation along
         with any late penalty as referred to in paragraph (1) of this Article,
         the Party having the Interconnection rights shall have the right to
         blockade any call from the obligated Party. The call blockade shall be
         made by reducing the Interconnection dimension of part of, or all, POI
         with the provisions as follows:

         a. A 25% reduction as of the 1st day of month (n+5).

         b. A 50% reduction as of the 1st day of month (n+6).

         c. A 60% reduction as of the 1st day of month (n+7).

(3)      Before the blockade is made, the Party having the Interconnection
         rights shall first send a notice, by the 16th day of month (n+4) at the
         latest.

(4)      If the obligated Party does not respond until the end of month (n+4),
         the dimension reduction shall be made in accordance with paragraph (2)
         of this Article.

(5)      If the obligated Party responds in the form of an application for
         suspension of payment, and it does not make any payment until the end
         of month (n+5), the blockade shall be made with the amount of the
         Interconnection dimension reduction in accordance with paragraph (2)
         point b of this Article.

(6)      Revocation of the blockade referred to in paragraph (2) of this Article
         may only be made after the obligated Party has already paid all the
         obligations and applicable penalties.

<PAGE>

                                   CHAPTER IV
                    BILLING OF TELKOM'S DIRECT LONG DISTANCE
                  INTERCONNECTION SERVICE TO INDOSAT CUSTOMERS

                                   ARTICLE 35
                               RECEIPT OF INVOICE

(1)      The Parties agree that the process of issuing receipts of the long
         distance call service billing and the collecting of TELKOM long
         distance telecommunication service used by INDOSAT Consumers may be
         conducted by INDOSAT, with the rate of Rp. 82 per outgoing call record
         and 1% of the actual invoiced amount.

(2)      The processing of the billing data as mentioned in paragraph (1) is
         conducted as follows:

         a.       TELKOM prepares and assigns the billing data to INDOSAT
                  Billing Center in a way that the billed amount of the
                  telecommunications service held by TELKOM and used by INDOSAT
                  Consumer may be determined.

         b.       The assignment of the billing data from TELKOM to INDOSAT
                  should be drawn up in the Minutes of Assignment of Billing
                  Data.

         c.       The media and format of the data mentioned in point a above
                  are agreed to be delivered in a way that the processing of the
                  billing data into the receipt may be efficiently and
                  effectively conducted.

         d.       For the purpose of rechecking the accuracy of the billing data
                  of TELKOM service, INDOSAT Billing Center shall deliver
                  periodical information to TELKOM in relation to the amount of
                  billing which has been processed into the receipt, and other
                  information necessary in the event there is a discrepancy
                  between the billing data processed into the receipt and the
                  amount stated in the receipt.

         e.       INDOSAT Billing Center should deliver to TELKOM the
                  Recapitulation of the Billed Amount which, among other things,
                  contains the numbers of the Consumers, Names and Addresses of
                  the Consumers and the duration of the use of service held by
                  TELKOM. Such information may be delivered via e-mail, post or
                  through electronic access (on-line system).

(3)      INDOSAT Billing Center should calculate and deliver the calculation of
         the billing data processing fee as mentioned in this Article to TELKOM
         in the form of NPK Schedule.

                                   ARTICLE 36
                           BILLING WITH SPLIT ACCOUNT

INDOSAT is willing to expand its billing performance through a Split Account
that may reach all INDOSAT Regional Divisions, the performance of which shall be
adjusted by considering INDOSAT's ability and billing efficiency.

<PAGE>

                                   ARTICLE 37
                        DELIVERY OF RECEIPT TO CONSUMERS

(1)      The bill for using the long distance telecommunications service which
         has been processed into the receipt, is delivered to the Consumer,
         whether through electronic ways or by physical transfer in accordance
         with the system and procedure applied by INDOSAT.

(2)      Upon the delivery of the receipt mentioned in this Article, INDOSAT
         delivers the list of all the receipts of TELKOM telecommunications
         services that has already been paid by INDOSAT Consumers.

(3)      In the event the collection to the Consumer is performed through a
         cooperation between INDOSAT and a Collecting Agent, TELKOM, in
         accordance with this Agreement, is granted the full right to accept the
         billing recapitulation of TELKOM telecommunications service, which
         payment has been accepted by the Collecting Agent.

(4)      The implementation of the provision concerning the collection to the
         Consumer as regulated in this Agreement will be further detailed in a
         written agreement between TELKOM and each INDOSAT Regional Division.

                                   ARTICLE 38
                          ASSIGNMENT OF COLLECTED BILL

(1)      In the event INDOSAT conducts direct billing to the Consumer or through
         the Collecting Agent without using the split account system, all the
         payment of the Consumer's billing is delivered to TELKOM through the
         Bank account as has been determined by TELKOM on every 20th day of the
         following billing month, after calculating and considering the
         Interconnection Fee, which, pursuant to this Agreement, becomes
         TELKOM's obligation.

(2)      The calculation of the amount of money which has to be transferred to
         the Bank account as determined by TELKOM should be drawn in a Financial
         Calculation Memorandum of Consumer Billing (NPK Billing) as set forth
         in Schedule XX without the necessity to have a prior invoice letter
         from TELKOM.

(3)      TELKOM is entitled to obtain the information concerning the calculation
         in the NPK Billing as mentioned in paragraph (2) of this Article.

(4)      In the event INDOSAT conducts the billing through cooperation with the
         Collecting Agent and using the split account, TELKOM is directly
         entitled to accept the collection from the Collecting Agent.

(5)      In the event there is a discrepancy between the billed amount according
         to the Recapitulation of the Acceptance of Billing Invoice Payment and
         the amount of billing according to the income recapitulation, the
         Parties agree to promptly conduct a reconciliation, the performance of
         which is handed over to the Working Unit of each Party.

<PAGE>

                                   ARTICLE 39
                             TREATMENT TO CONSUMERS
                          WHO HAVE NOT SETTLED THE BILL

INDOSAT Consumers who do not settle the Billing Receipt of TELKOM
Telecommunications Service should be treated by INDOSAT in the same manner as it
treats its Consumers who have an outstanding invoice over the services held by
INDOSAT.

                                   ARTICLE 40
                           RECEIVABLES ADMINISTRATION

INDOSAT is obliged to make and deliver the list of Billing Invoices of TELKOM
services that have not been paid by INDOSAT Consumers, along with the
information of the treatment status against such Consumers, in the agreed form
in both hard and soft copies.

                                   ARTICLE 41
                                  TAX AND DUTY

(1)      All taxes and duties that may occur as the result of the payment of
         Interconnection Rights and Obligations should be the obligation and
         liability of each Party in accordance with the prevailing tax
         regulations.

(2)      The Parties agree to assist each other so that the taxation treatment
         concerning income and Interconnection Fee may be adjusted in accordance
         with the prevailing tax regulations.

(3)      With the connection to Value Added Tax (VAT/PPN) and Income Tax (PPh)
         imposed to the application of the Interconnection, the Parties agree
         that the calculation of the Interconnection VAT is made pursuant to the
         incoming traffic of each Party in accordance with the result of the
         Interconnection settlement.

(4)      The Parties agree that the VAT and PPh should be paid after the
         settlement of the Interconnection Rights and Obligations and should be
         paid to the Tax Office, at the latest, on every 15th day of (n+2)
         month, while payment based on Reconciliation NPK should be paid on
         every 15th day of (n+3) month. The Tax Payment Letter (Surat Setoran
         Pajak/SSP) should be resent, at the latest, on every 25th day of (n+2)
         month, while for payment based on the Reconciliation NPK should be
         resent, at the latest, on every 25th day of (n+3) month. The mechanism
         of Interconnection VAT payment is conducted pursuant to the Settlement
         pattern and the Interconnection financial settlement as described in
         Schedules XV A, B, C, D and E.

(5)      In the event there is any change in tax and duty regulations, the
         settlement of taxes and duties should be conducted with the
         consideration of the mentioned regulations.

<PAGE>

                                    CHAPTER V
                                  MISCELLANEOUS

                                   ARTICLE 42
                                 CONFIDENTIALITY

The Parties agree that all the content of this Agreement, any information
related to this Agreement and the implementation of this Agreement are
confidential by nature and should not be forwarded to any third party without
prior written consent of the Parties, including all the information delivered
before the effective date of this Agreement, unless such is obligated by
regulation or conducted for the implementation of this Agreement.

                                   ARTICLE 43
                                  FORCE MAJEURE

(1)      Force Majeure is any condition which, although with the best action and
         effort, is unpredictable and cannot be overcome and is fully deemed as
         a risk and obligation of the Party experiencing such a condition,
         including but not limited to:

         a.       natural disaster, epidemic disease;

         b.       revolution, riot, war; and

         c.       fire, sabotage, public strike.

(2)      The non application or the halted of the implementation of this
         Agreement, in part or in whole, is not considered as a breach against
         the content of this Agreement if such occurs as a result of a force
         majeure and is notified in writing to the other Party within 15
         (fifteen) calendar days at the latest from the occurrence of the said
         force majeure.

(3)      In the event of a force majeure that has been ongoing for over 6 (six)
         months, each Party is entitled to unilaterally terminate this Agreement
         by delivering a written notification to the other Party.

<PAGE>

                                   ARTICLE 44
                               PERIOD OF AGREEMENT

(1)      This Agreement prevails for a period of 3 (three) years from the date
         of signing, and may be reviewed and renewed upon written agreement of
         the Parties.

(2)      In the event there is no Party who wishes to amend or terminate this
         Agreement, then this Agreement shall automatically be valid for the
         following 3 (three) year period.

(3)      A unilaterally termination of the Agreement for the reasons, including,
         any breach of any provision of the Agreement or prevailing regulation,
         the Parties agree to waive the provisions of Article 1266 and Article
         1267 of the Indonesian Civil Code and release the party of any rights,
         if any, occurring therefrom. The said unilateral termination of this
         Agreement by any of the Parties can be validly conducted by delivering
         a written notice, at the latest within 3 (three) months before the
         intended termination date of the Agreement, without having to obtain a
         Judge's Decision.

                                   ARTICLE 45
                                   AMENDMENTS

(1)      Any amendment and or addendum of this Agreement and their Schedules
         should only prevail and bind the Parties and be an inseparable part of
         this Agreement if made in writing and signed by authorized
         representatives of each Party.

(2)      In the event there is a change in the laws and regulations and/or the
         Parties acknowledge the obligation to amend a part or the whole of this
         Agreement, the Parties agree to discuss the matter to make the
         amendment with mutual consent.

(3)      If in the future a Government Regulation/Minister Decision is issued
         that this Agreement should be adjusted/amended, then the Parties agree
         to make such adjustment in the form of an Amendment or a Side Letter to
         this Agreement.

                                   ARTICLE 46
                                   ASSIGNMENT

This Agreement prevails and binds the Parties signing it, their successors and
those who receive benefit hereto. No Party will sell, transfer or assign this
Agreement, in part or in whole, to any third party, unless with written consents
from the Parties.

                                   ARTICLE 47
                                     RELEASE

(1)      The failure of one of the Parties to perform one or more provisions of
         this Agreement will not affect the other Party's authority to enforce
         the said provisions.

(2)      The lack of claim by one of the Parties against a breach of a provision
         of this Agreement that is conducted by the other Party, is not a
         release from implementing the said provision.

<PAGE>

                                   ARTICLE 48
                                  SEVERABILITY

(1)      If a part of this Agreement or a part of its Schedule, by any reason
         should no longer prevail or not be enforceable, then such provision
         should not cancel or affect the validity of the rest of the provisions.

(2)      If the non-prevailing or unenforceable provision as mentioned in
         paragraph (1) arises, the Parties agree to revoke the said provision.

(3)      The failure to reach an agreement to replace the said provision
         mentioned in paragraph (2) should not affect the rest of the provisions
         of the Agreement.

                                   ARTICLE 49
                              LIABILITY OVER FAULTS

(1)      Each Party is liable for any negligence that directly causes damage to
         the other Party's equipment and leads to a loss suffered by the other
         Party.

(2)      The liability in the form of indemnity over the negligence as mentioned
         in paragraph (1) is limited only to the damage of goods or equipments
         that will be replaced in full by the neglected Party.

(3)      No condition/action will give rise to liability to the Parties for
         damage or indirect loss, whatever the nature is, including the loss or
         profit or business loss.

(4)      The release of liability as mentioned in paragraph (1), (2) and (3)
         does not prevail if the damage or loss experienced by a Party occurs as
         the result of deliberateness of the other Party.

                                   ARTICLE 50
                              SETTLEMENT OF DISPUTE

(1)      Any disputes that arise in relation to the content, interpretation or
         implementation of this Agreement, shall, to the best of the Parties'
         ability, be mutually settled by the Parties.

(2)      If the settlement mentioned in paragraph (1) of this Article cannot be
         reached within 60 (sixty) days, the Parties agree to bring all the
         existing dispute to Badan Arbitrase Nasional Indonesia (BANI), to be
         settled at the first and final level pursuant to BANI regulation and
         procedure and Law No. 30 of 1999 concerning Arbitration and
         Alternatives of Dispute Settlement.

(3)      As long as the dispute settlement is in process, the Parties are still
         obligated to perform all provisions of this Agreement.

<PAGE>

                                   ARTICLE 51
                         CONSULTATION/COORDINATION FORUM

(1)      The Parties agree to establish a Consultation/Coordination Forum which
         will periodically meet to settle various problems arising with relation
         to this Agreement, the members of which shall be the representatives of
         each Party.

(2)      Any fee arising as the result of the establishment of the
         consultation/coordination forum, including meeting expenses, shall be a
         mutual obligation of the Parties.

                                   ARTICLE 52
                          REPRESENTATIVE OF THE PARTIES

For the implementation of this Agreement, TELKOM and INDOSAT agree to appoint
the following representatives to function as a "Contact Person" for each Party:

TELKOM                     :        VP Tarif & Interkoneksi
Telephone & Fax Numbers    :        Telephone: 022-4528411
                                    Fax: 022-7200043
Address                    :        GKP Telkom, 8th Fl.
                                    Jl. Japati No.1, Bandung 40133

INDOSAT                    :        GM Hubisdagri
Telephone & Fax Numbers:            Telephone: 021-3869782
                                    Fax: 021-3810155
Address                    :        Jl. Medan Merdeka Barat 21, Jakarta 10110.

                                   CHAPTER VI
                               CLOSING PROVISIONS

                                   ARTICLE 53
                                  MISCELLANEOUS

(1)      Matters which have not been sufficiently regulated in this Agreement
         shall be settled through negotiations between TELKOM and INDOSAT, the
         result of which shall be drawn in writing and become an inseparable
         part of this Agreement and therefore shall have the same legal
         enforcement as this Agreement.

(2)      This Agreement is drawn up in 2 (two) original copies, each with the
         same contents, duly stamped and has the same legal power after signed
         and stamped with the Company seal of each Party.

IN WITNESS WHEREOF, this Agreement is drawn up with good intentions and to be
enforced by the Parties.

         TELKOM                                         INDOSAT

         [signature]                                    [signature + stamp duty]

         KRISTIONO                                      WIDYA PURNAMA
         ------------------                             ------------------
         President Director                             President Director

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.11
<SEQUENCE>11
<FILENAME>u92256exv4w11.txt
<DESCRIPTION>EX-4.11 MASTER PROCUREMENT PARTNERSHIP AGREEMENT
<TEXT>
<PAGE>
                                                                    EXHIBIT 4.11



                    MASTER PROCUREMENT PARTNERSHIP AGREEMENT

                       NO. K. TEL.217/HK.910/UTA-00/2002

                            DATED DECEMBER 23, 2002

                                    BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                       AND

                               SAMSUNG CONSORTIUM
                        - SAMSUNG ELECTRONICS CO., LTD.
                             - PT MITRAGUNA INTIKOM

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>               <C>                                                                              <C>
CHAPTER 1.        GENERAL TERMS AND CONDITIONS...................................................   6

ARTICLE 1.        DEFINITIONS....................................................................   6

ARTICLE 2.        COMMENCEMENT AND DURATION OF AGREEMENT.........................................  15

ARTICLE 3.        PROJECT DESCRIPTION............................................................  16

ARTICLE 4.        SCOPE OF WORK AND DELIVERABLES.................................................  17

ARTICLE 5.        PROCUREMENT PARTNERING COVENANTS...............................................  20

ARTICLE 6.        IMPORTATION; LOCAL FACILITIES; COMPLIANCE WITH LICENSES AND PERMITS............  22

ARTICLE 7.        DELIVERY PROCEDURES............................................................  24

ARTICLE 8.        INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS....................................  26

ARTICLE 9.        FORCE MAJEURE..................................................................  32

ARTICLE 10.       TRANSFER OF RISK AND TITLE.....................................................  33

ARTICLE 11.       INDEMNIFICATION................................................................  33

ARTICLE 12.       EQUIPMENT MAINTENANCE AND SUPPORT..............................................  35

ARTICLE 13.       LIQUIDATED DAMAGES FOR DELAY...................................................  36

ARTICLE 14.       TERMINATION OF THE AGREEMENT...................................................  38

ARTICLE 15.       GOVERNING LAW..................................................................  41

ARTICLE 16.       SETTLEMENT OF DISPUTES.........................................................  41

ARTICLE 17.       LANGUAGE.......................................................................  44

ARTICLE 18.       CORPORATE REPRESENTATIONS AND WARRANTIES.......................................  44

ARTICLE 19.       CONFIDENTIAL INFORMATION.......................................................  45

ARTICLE 20.       NOTICE.........................................................................  45

ARTICLE 21.       GENERAL PROVISIONS.............................................................  47

CHAPTER 2.        COMMERCIAL TERMS AND CONDITIONS................................................  48

ARTICLE 22.       CONTRACT VALUE.................................................................  48

ARTICLE 23.       PRICES AND FEES................................................................  49

ARTICLE 24.       TAXES AND DUTIES...............................................................  50

ARTICLE 25.       INSURANCE AND SAFETY...........................................................  50
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>               <C>                                                                              <C>
CHAPTER 3.        FINANCIAL TERMS AND PAYG.......................................................  52

ARTICLE 26.       JOINT PLANNING SESSIONS, DESIGN REVIEW MEETINGS AND MONTHLY MEETINGS...........  52

ARTICLE 27.       INSTALLED LINE PROCUREMENTS....................................................  60

ARTICLE 28.       PURCHASE ORDERS AND PROCEDURES.................................................  61

ARTICLE 29.       PERFORMANCE BOND...............................................................  64

ARTICLE 30.       TERMINATION OF PURCHASE ORDERS.................................................  65

ARTICLE 31.       TERMS OF PAYMENT...............................................................  69

ARTICLE 32.       PAYG PAYMENTS..................................................................  71

ARTICLE 33.       GENERAL SERVICES PAYMENTS......................................................  75

ARTICLE 34.       INVOICING......................................................................  75

ARTICLE 35.       FINANCING OF TELKOM'S PAYMENT OBLIGATIONS......................................  76

ARTICLE 36.       CHANGE REQUEST PROCEDURES......................................................  77

ARTICLE 37.       RELOCATION OF EQUIPMENT........................................................  79

ARTICLE 38.       DETAILS OF PARTNER'S BANK ACCOUNTS.............................................  80

CHAPTER 4.        CONSORTIUM ORGANIZATIONAL MATTERS..............................................  80

ARTICLE 39.       CONSORTIUM MEMBERSHIP CRITERIA.................................................  80

ARTICLE 40.       ASSIGNMENT AND SUBCONTRACTING..................................................  80

ARTICLE 41.       INVOLVEMENT OF LOCAL ENTITIES..................................................  82

ARTICLE 42.       LOGISTICS......................................................................  83

ARTICLE 43.       INVENTORY......................................................................  84

ARTICLE 44.       LOCAL SUPPORT INFRASTRUCTURE...................................................  85

ARTICLE 45.       PROJECT MANAGEMENT.............................................................  86

ARTICLE 46.       RESEARCH AND DEVELOPMENT.......................................................  89

ARTICLE 47.       TRAINING, TRANSFER OF KNOW HOW AND DEVELOPMENT OF INTELLECTUAL PROPERTY........  90

ARTICLE 48.       MANAGEMENT FORUM...............................................................  93

ARTICLE 49.       DEVELOPMENT OF INDONESIAN INDUSTRY.............................................  93

CHAPTER 5.        TECHNICAL PROVISIONS...........................................................  94

ARTICLE 50.       GENERAL REQUIREMENT FOR EQUIPMENT..............................................  94
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>               <C>                                                                              <C>
ARTICLE 51.       QUALITY ASSURANCE..............................................................   95

ARTICLE 52.       SURVEY, DESIGN, AND PLANNING...................................................   95

ARTICLE 53.       SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS.......................   97

ARTICLE 54.       INSTALLATION PROCEDURES AND STANDARDS..........................................   99

ARTICLE 55.       TESTING AND COMMISSIONING......................................................  101

ARTICLE 56.       INTEGRATION, INTEROPERABILITY AND COMPATIBILITY................................  111

ARTICLE 57.       CUT OVER PROCEDURES............................................................  113

ARTICLE 58.       COMPLIANCE WITH ENVIRONMENTAL STANDARDS........................................  114

ARTICLE 59.       DEVELOPMENT OF MEDIATION DEVICE................................................  115

ARTICLE 60.       DOCUMENTATION..................................................................  115

CHAPTER 6.        SERVICE LEVEL AGREEMENTS.......................................................  118

ARTICLE 61.       SERVICE LEVEL AGREEMENTS.......................................................  118

CHAPTER 7.        INTER-OPERABILITY AND CO-ORDINATION REQUIREMENTS FOR PACKAGE 1 AND PACKAGE 2...  119

ARTICLE 62.       GENERAL........................................................................  119

ARTICLE 63.       JPS, DRMs AND MONTHLY MEETINGS.................................................  120

ARTICLE 64.       COMMISSIONING TESTS............................................................  122
</TABLE>

APPENDICES

<TABLE>
<S>               <C>
Appendix 1        Details of Consortium Members
Appendix 2        Consortium Agreement
Appendix 3        Scope of Work
Appendix 4        Price Schedule
Appendix 5        Technical Specifications
Appendix 6        Demand Forecast
Appendix 7        Deployment Plan
Appendix 8        Project Management Plan
Appendix 9        Implementation Schedule
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>               <C>
Appendix 10       Local Infrastructure
Appendix 11       Pay as you Grow (PAYG)
Appendix 12       Purchase Orders
Appendix 13       Bill of Quantities
Appendix 14       Technical and Engineering Norms
Appendix 15       Financing Arrangements
Appendix 16       Project Schematic
Appendix 17       Quality Assurance Guidelines/Acceptance Test Procedures
Appendix 18       Change Request
Appendix 19       Training
Appendix 20       Service Level Agreement
Appendix 21       Inter-operability Commitment Agreement
Appendix 22       Documentation
Appendix 23       Technical Terms
Appendix 24       Non-Disclosure Agreement
Appendix 25       Performance Bond
</TABLE>

                                       iv
<PAGE>

                         MASTER PROCUREMENT PARTNERSHIP
                                   AGREEMENT

                        NO. K.TEL.217/HK.910/UTA-00/2002
                                23 DECEMBER 2002


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

BETWEEN:

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

and

2.       SAMSUNG CONSORTIUM, established based on Consortium Agreement dated 11
         December 2002, comprised of SAMSUNG ELECTRONICS CO., LTD, as leader of
         the consortium having its legal domicile in Seoul, Korea, for the
         purpose of signing of this Agreement being duly represented by Soon Ho
         Hong, in his capacity as Senior Vice President and General Manager,
         Telecommunication Systems Division, and PT MITRAGUNA INTIKOM, as a
         member of the Consortium, having its legal domicile in Jakarta,
         Indonesia, for the purpose of signing of this Agreement being duly
         represented by Budi F. Japadermawan, in his capacity as Director,
         hereinafter jointly referred to as "PARTNER".

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

WHEREAS

                                       5
<PAGE>

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

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

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

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

CHAPTER 1. GENERAL TERMS AND CONDITIONS

Article 1. Definitions

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

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

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

                                       6
<PAGE>

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

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

"CONSORTIUM" means the consortium consisting of a foreign company (Samsung
Electronics Co., Ltd) and one or more Indonesian companies including PT
Mitraguna Intikom, whose details are listed in Appendix 1 which have entered
into a consortium agreement dated 11 December 2002 as attached in Appendix 2;

"CONTRACT VALUE" means with respect to the overall value of the procurement
contract contemplated by this Agreement, the sum of all of the Purchase Orders
and with respect to each Purchase Order, the total payment (in USD and IDR as
the case may be) to be made by TELKOM to PARTNER under each Purchase Order for
all Deliverables to be supplied under the said Purchase Order(s) and for the
full and diligent performance by PARTNER of all of its obligations and covenants
under this Agreement, including all amounts payable to PARTNER for ownership or
license rights to inventions, patents, copyrights, trade secrets, registered
designs and any other Intellectual Property Rights embodied in or relating to
the Deliverables, and for costs of insurance, freight and all other costs
specified by this Agreement, subject to any variations expressly permitted under
this Agreement or the respective Purchase Order(s);

                                       7
<PAGE>

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

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

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

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

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

"DIVRE" means a TELKOM Regional Division;

"DOCUMENTATION" means the documentation listed in Appendix 22;

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

"FIRST PURCHASE ORDER" means the CDMA2000-1X Initial Purchase Order Contract No.
K.TEL. 180/HK.940/UTA-00/2002 made between the Parties on 9th October 2002;

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

                                       8
<PAGE>

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

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

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

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

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

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

                                       9
<PAGE>
"IOP AGREEMENT" means the Interoperability Commitment Agreement attached as
Appendix 21;

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

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

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

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

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

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

"PACKAGE 1" means as the context requires BSS procurement for DIVRE II;

"PACKAGE 2" means as the context requires, either (i) the nationwide package of
NSS procurement for TELKOM's Regional Divisions, excluding DIVRE III, or (ii)
the regional package of BSS procurement for DIVRE IV, V, VI and VII;

                                       10
<PAGE>

"PACKAGE LEVEL" means as the context requires, either (i) the nationwide package
of NSS procurement for TELKOM's Regional Divisions, excluding DIVRE III, or (ii)
the regional package of BSS procurement for DIVRE IV, V, VI and VII;

"PACKAGE LEVEL REQUIREMENT" means the constituent requirements of each Package
Level;

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

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

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

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

                                       11
<PAGE>

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

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

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

"PROJECT" means the work to be undertaken by PARTNER for Package 2 of the T-21
Program pursuant to this Agreement for (i) either the nationwide package of NSS
procurement for TELKOM's Regional Divisions excluding DIVRE III, or (ii) the
regional package of BSS procurement for DIVRE IV, V, VI and VII;

"PURCHASE ORDER" means a document issued by TELKOM from time to time pursuant to
Article 28 and acknowledged by PARTNER for the supply and Commissioning by
PARTNER of all or parts of the Network and/or for the provision of services. Any
attachments or appendices to a Purchase Order and any amendments to a Purchase
Order in accordance with Article 36 shall form an integral part of the Purchase
Order

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

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

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

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

"SECOND PURCHASE ORDER" means the first Purchase Order to be issued by TELKOM
under this Agreement following issuance of the First Purchase Order;

                                       12
<PAGE>

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

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

"SUBSCRIBER TARGET" means the number of lines to be deployed in the
DIVRE/Location for the relevant Quarter based on the Deployment Plan as updated
and determined at the related DRM;

"SUB-SYSTEM" means an MSC, IWF, SMSC, WAP Gateway, WAP Server, WIN, VMS, HLR,
VLR, Authentication Center, NSS NEM (equipment grouped as NSS); BSC, BTS,
transmission equipment BSS NEM (equipment grouped as BSS); PDSN, AAA, HA, DNS,
Fire wall, PDN's NEM (equipment grouped as PDN), and other similar or related
equipment, including all associated software and components;

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

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

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

"TERRITORY" means TELKOM's Regional Divisions (DIVRE) IV, V, VI and VII covered
by BSS Package 2, whereas in the case of the NSS package, the Territory shall
comprise TELKOM's Regional Divisions excluding DIVRE III;

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

                                       13
<PAGE>

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

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

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

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

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

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

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

                                       14
<PAGE>

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

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

1.11     Appendices

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

Article 2.11   Commencement and Duration of Agreement

2.1      This Agreement shall become effective upon the latest to occur of (i)
         signing of this Agreement, and (ii) signing of the Service Level
         Agreement, and shall continue in effect until PARTNER and TELKOM have
         fully performed their respective obligations under this Agreement,
         unless earlier terminated in accordance with Article 14.

                                       15
<PAGE>

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

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

2.4      The initial term of the SLA to be entered into by the Parties pursuant
         to Article 61 shall be for a period expiring three (3) years from
         January 1, 2003, unless earlier terminated in accordance with the SLA,
         it being understood that the equipment supplied under the First
         Purchase Order under Contract No: K.TEL.180/NK.940/UTA-00/2002, dated
         9 October 2002, shall be covered under warranty until the SLA becomes
         effective.

2.5      The First Purchase Order is superceded by this Agreement and the
         quantities covered by the First Purchase Order, together with all terms
         and conditions of payment, including the PAYG payment methodology set
         forth in Article 32, are hereby deemed to be part of this Agreement.
         The First Purchase Order shall hereafter be deemed as having been
         issued pursuant to this Agreement.

Article 3.        Project Description

3.1      This Agreement is an umbrella contract covering the various steps
         involved in the T-21 Program, from demand forecasting, Network design,
         issuance of Purchase Orders, shipping and receiving, installation and
         commissioning, operation and maintenance support, customer utilization
         of the equipment, to the Pay As You Grow payment scheme as illustrated
         in the schematic in Appendix 16 (Project Schematic). Subject to
         agreement of the Parties on procurement requirements for Installed Line
         procurements in

                                       16
<PAGE>

         accordance with any adjustments agreed under the flexible procurement
         methodology contemplated for each JPS and DRM as set forth in Article
         26, PARTNER shall be obligated to undertake and be jointly responsible
         for the demand forecast and solely responsible for the survey, design,
         development, manufacture, delivery, supply, installation, integration
         and Commissioning of the Network, including all project management,
         training and other related services, on a turnkey basis.

3.2      "TURNKEY BASIS" means that pursuant to the Scope of Work once PARTNER
         receives a Purchase Order, PARTNER shall be jointly responsible for the
         demand forecast and solely responsible for the survey, design,
         development, manufacture, delivery, supply, installation, integration
         and Commissioning of the Network, and the remedying of any defects, so
         as to make the Network ready for service. PARTNER shall also do
         everything necessary as reasonably may be inferred from this Agreement
         as being required of PARTNER to perform all of its obligations under
         this Agreement. PARTNER shall provide all personnel, goods, consumables
         and other things and services, whether of a temporary or permanent
         nature, required in and for the design, execution, completion of the
         Network and the remedying of defects. TELKOM shall cooperate with
         PARTNER as it performs its obligations under this Agreement on a
         turnkey basis.

Article 4.        Scope of Work and Deliverables

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

4.2      PARTNER agrees and undertakes to:

4.2.1    carry out the Scope of Work in a good and workmanlike manner in
         accordance with the Technical Specifications using materials necessary
         for the completion of

                                       17
<PAGE>

         the said works which are of the quality and standards specified in
         Appendix 5 (Technical Specifications);

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

4.2.3    provide the equipment, components, software, and Documentation as
         specified in Appendix 3 (Scope of Work), Appendix 5 (Technical
         Specifications) and Appendix 4 (Price Schedule) and all cables,
         connectors and other miscellaneous materials required for completion of
         the Network in accordance with the terms of this Agreement. All such
         equipment, components, software and Documentation shall conform in all
         respects with the technical, capacity, functionality, design features
         and performance specifications set out in Appendix 5 (Technical
         Specifications);

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

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

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

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

4.2.8    provide services to TELKOM upon request from TELKOM by the issue of a
         Purchase Order in accordance with the

                                       18
<PAGE>

         unit prices stated in Appendix 4 (Price Schedule);

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

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

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

4.3      PARTNER shall ensure the proper interworking, interfacing and
         integration of the Network with the equipment and software of any third
         party vendor or other licensed operators in Indonesia which are
         connected to Network equipment, software, and systems specified in
         Appendix 3 (Scope of Work) and Appendix 5 (Technical Specifications) or
         if not so specified, then in accordance with best practice industry
         standards as agreed by the Parties.

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

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

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

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

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

                                       19
<PAGE>

Article 5.        Procurement Partnering Covenants

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

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

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

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

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

5.1.5    The Parties agree to inform each other as fully as possible of any
         circumstance relevant to the Deliverables affecting the
         telecommunication networks of TELKOM,

                                       20
<PAGE>

         so as to enable one another to respond quickly to technology or
         commercial developments. PARTNER shall grant TELKOM a right of first
         refusal with respect to future equipment purchases for use in Package 2
         exercisable within ninety (90) days of PARTNER's notification to TELKOM
         of its estimated prices in relation to any new telecommunications
         technology adaptable to Indonesia which has been developed by Samsung
         Electronics Co. Ltd. or by its affiliated companies, before such
         technology is offered to other telecommunications operators in
         Indonesia. With respect to equipment for use in Package 1, PARTNER
         shall offer equipment for use in Package 1 to TELKOM at least at the
         same time (if not earlier) as it offers the equipment to other
         telecommunications operators in Indonesia.

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

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

5.1.8    One of TELKOM's key objectives in the T-21 Program is the purchase of
         equipment and services that conform to international standards while
         minimizing

                                       21
<PAGE>

         major capital expenditures. PARTNER shall work with TELKOM to bring its
         know-how and expertise to bear in meeting this objective. This means,
         for instance, that PARTNER must use its best endeavours to analyse and
         take into account the financial and technical consequences of
         introducing its technology developments for TELKOM, especially in
         relation to hardware and software delivered by PARTNER versus that
         which is already in place in the telecommunication networks of TELKOM.

5.1.9    PARTNER shall take all reasonable measures necessary to communicate to
         TELKOM the advantages and disadvantages of new technology developments,
         including the newest tested technology offered by Samsung Electronics
         Co. Ltd. or by its affiliated companies. PARTNER shall agree from time
         to time with TELKOM on additions or improvements to the "road map" of
         technological development and evolution contemplated for the Project
         which can be implemented during the course of the Project in a timely
         manner.

5.1.10   PARTNER has agreed that it shall not have exclusive rights in its
         Package 1 (NSS) and Package 2 (NSS and BSS) area to install, deploy
         equipment and/or provide services over the duration of the T-21
         Program, in consideration of which TELKOM has agreed to procure from
         PARTNER at least the minimum Installed Line Procurements as provided in
         Chapter 3.

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

6.1      Except as may otherwise be agreed between the Parties, Deliverables
         which are imported into Indonesian shall be imported in the name of
         TELKOM but under the physical arrangement and management of PARTNER.
         All importation of Deliverables under this Agreement shall be
         calculated on a cost

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<PAGE>

         at Location/Site basis and shall be delivered at the agreed time and
         place and in accordance with applicable Indonesian regulations and this
         Agreement. PARTNER shall initially fund the payment of any import VAT,
         sales tax on luxury goods, if applicable, prepayment of income tax
         (Article 22) on imports, import or customs duties and all clearance
         costs in relation to all imports. PARTNER shall at its own cost obtain
         all required Indonesian import permits and approvals necessary to
         import any equipment, components, spare parts and software into
         Indonesia in the name of TELKOM. TELKOM shall cooperate with PARTNER in
         this process and provide PARTNER with all documents reasonably
         requested by PARTNER in connection with any import application required
         to include TELKOM's name for purposes of importation. TELKOM shall
         ensure prompt signature and delivery of documents required by the
         competent authorities for such purposes.

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

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

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<PAGE>

         due to any act, default or omission of PARTNER in breach of this
         provision shall be borne by PARTNER.

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

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

Article 7.        Delivery Procedures

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

7.1.1    Name and registered office of PARTNER;

7.1.2    Purchase Order number;

7.1.3    Date of shipment and delivery;

7.1.4    Quantities included; and

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

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

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

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<PAGE>

7.4      PARTNER shall be responsible for delivery of the equipment, components
         and software from the country of origin to the point of landing in
         Indonesia, and from the point of landing to the intended Location/Site
         as specified in the applicable Purchase Order in accordance with
         Appendix 9 (Implementation Schedule). PARTNER shall be responsible for
         all inland transportation shipping costs to the intended Location/Site.

7.5      PARTNER represents and warrants that all equipment and components
         delivered are type-approved by the relevant authorities in Indonesia
         and have passed quality assurance by TELKOM in accordance with the
         quality assurance guidelines set forth in Appendix 7 (Quality Assurance
         Guidelines / Acceptance Test Procedures).

7.6      PARTNER shall be responsible for the provision and cost of any of the
         following facilities, equipment and services that may be required by
         PARTNER and its staff;

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

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

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

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

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

7.6.6    security, warehousing, storage and office facilities; and

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<PAGE>

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

Article 8.        Intellectual and Industrial Property Rights

8.1      PARTNER warrants:

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

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

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

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

                                       26
<PAGE>

PARTNER's own cost any or all such claims or demands, provided TELKOM:

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

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

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

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

This indemnity shall not apply where the liability arises:

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

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

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

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

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<PAGE>

8.4      TELKOM agrees that it shall use the applicable software procured
         pursuant to this Agreement only for its business purposes, and shall
         not market or otherwise commercialize it. The software license so
         granted shall authorize TELKOM to undertake all activities related to
         and/or as reasonably required for the intended use of the relevant
         equipment. The software license shall become effective at the latest
         upon TELKOM's issuance of the Integrated System Acceptance Test
         Certificate related to the applicable software and shall be limited to
         the right to use the software to operate the related equipment. TELKOM
         shall not assign, transfer or sub-license such software without the
         prior written consent of PARTNER, which consent shall not unreasonably
         be withheld or delayed.

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

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

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<PAGE>

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

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

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

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

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

8.9      All new Intellectual Property Rights jointly created or developed by
         the Parties during the term of this Agreement ("Joint New Rights") will
         belong to the Parties

                                       29
<PAGE>

         jointly. Each Party agrees to sign and execute all such forms and
         documents as may be necessary or desirable to effect ownership of the
         Joint New Rights or to procure, effect or maintain registration of any
         Joint New Right by the Parties jointly and each Party shall procure
         that all its employees renounce all rights or title to any invention
         including any demand for compensation. The Parties shall agree on how
         any royalties are to be shared from the licensing of such Joint New
         Rights to third parties prior to commercialisation.

8.10     Each Party will be entitled to use and exploit Customized Software (as
         defined in Article 8.12), without reference to the other Party and
         without obligation to account to the other Party for any profit of that
         exploitation, provided that neither Party will assign, charge,
         otherwise transfer any of its rights in the Customized Software whether
         in whole or in part without the prior written consent of the other
         Party, whose consent will not be unreasonably withheld or delayed. Each
         Party hereby agrees that it shall give the other Party notification in
         writing prior to commencing any action, suit or claim, whether civil or
         criminal, against any third party to enforce their rights under the
         Customized Software. If necessary, the other Party agrees to be joined
         as a co-plaintiff or co-complainant, and the initiating Party shall
         bear all the costs of litigation and shall receive all the benefits of
         any judgement or damages awarded, unless the other Party agrees to
         share the costs of the litigation, in which case each Party shall
         receive a share of all the benefits of any judgement or damages awarded
         in proportion to that Party's contribution to the costs of instituting
         the litigation.

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<PAGE>

8.11     If either Party is of the view that the Joint New Rights or Customized
         Software are patentable or otherwise protectable by registration, it
         will promptly communicate this to the other Party and the Parties will
         liase to decide whether to seek patent or other registration or
         protection (the "Protective Application"). The Parties shall agree
         regarding which countries to seek and maintain the Protective
         Application, related matters as to the scope and maintenance of claims
         and other issues concerned with the prosecutions of the Protective
         Application and whether to pay renewal fees. If the Parties cannot
         agree, the decision will be in favour of seeking and maintaining the
         Protective Application, except that either Party may choose at any time
         to assign its rights to the Protective Application to the other Party
         if it wishes and if the other Party accepts. The costs and expenses of
         seeking and maintaining the Protective Application will be borne
         equally between the Parties unless one Party has decided to assign all
         its rights to the Protective Application to the other Party in which
         case the other Party will bear the full costs and expenses.

8.12     All Intellectual Property Rights in Customized Software shall be owned
         jointly by TELKOM and PARTNER. The Parties agree to execute or have
         executed any Documentation reasonably required or desirable to effect
         such joint ownership of rights, and/or their registration. "Customized
         Software" under this Article 8 means any software and its associated
         source code, related specifications, engineering drawings, notes,
         processes, designs, software documentation, and all other information
         and documents specially written for TELKOM as part of the performance
         of this Agreement. Customized Software includes newly created modules
         to be interfaced with software which is proprietary to PARTNER at the
         date of this Agreement, unless specifically provided otherwise. PARTNER
         shall provide TELKOM with a full copy of the

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<PAGE>

         software and the related materials referred to above (including its
         source code) when the Customized Software is installed or updated.

Article 9.        Force Majeure

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

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

9.3      In the event that due to Force Majeure the implementation of this
         Agreement or relevant agreement, acceptance test, integration, drive
         test or other matters

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<PAGE>

         provided for in this Agreement are suspended, the implementation period
         shall be extended by the numbers of days equal to the duration of such
         suspended implementation.

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

Article 10.       Transfer of Risk and Title

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

10.2     Legal title and other rights to the relevant Deliverables shall only
         pass to or vest in TELKOM at the time the Integrated System Acceptance
         Test Certificate is issued, and PARTNER's approval of the escrow
         arrangement contemplated in Appendix 15 (Financing Arrangements).

Article 11.       Indemnification

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

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

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

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

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<PAGE>

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

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

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

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

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

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

         Provided that TELKOM:

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

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

                                       34
<PAGE>

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

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

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

Article 12.       Equipment Maintenance and Support

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

12.2     PARTNER warrants that all equipment and Network Systems and Sub-systems
         to be delivered to TELKOM are 100% (one hundred per cent) new, having
         no hidden defect and shall not have originated through unlawful
         procurement or manufacturing practices. PARTNER shall further undertake
         that all equipment (both hardware and software) delivered to TELKOM
         under this Agreement shall have a product life of at least ten (10)
         years from the date of issuance of the respective Integrated System
         Acceptance Test Certificate, or from the time the equipment is used
         commercially by TELKOM, whichever occurs first, provided that TELKOM
         has:

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

                                       35
<PAGE>

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

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

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

Article 13.       Liquidated Damages for Delay


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

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

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<PAGE>

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

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

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

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<PAGE>

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

Article 14.      Termination of the Agreement

14.1     If PARTNER is in material breach of any of its obligations under this
         Agreement, which failure is not capable of being cured, or if it can be
         cured, and PARTNER shall have failed to cure such default within thirty
         (30) days or an agreed lapse of time after written notice requiring
         that such default be made good (given either under this Article 14.1 or
         pursuant to Article 13.1 and 13.2), then TELKOM shall have the right,
         at its election and without prejudice to other rights and remedies
         provided in this Agreement to terminate this Agreement and recover
         damages from PARTNER.

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

14.2.1   PARTNER's breach of the interoperability Commitment Agreement;

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<PAGE>

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

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

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

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

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

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

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<PAGE>

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

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

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

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

                                       40
<PAGE>

         upon by TELKOM and PARTNER for the manufacturing materials delivered to
         TELKOM by PARTNER, and for the protection and preservation of property
         in which TELKOM have an interest.

14.7     If this Agreement is terminated in accordance with Article 14.2, TELKOM
         may elect to take over and to complete the work. In such event,
         PARTNER, shall, without prejudice to any other rights or remedies of
         TELKOM hereunder, be liable to TELKOM for all costs so incurred by them
         in excess of the Contract Value, taking into account any sums due under
         this Agreement to PARTNER for work commenced, partly executed or
         completed and accepted by TELKOM or materials, plant, machinery, tools
         and implements and other things purchased, used or to be used in
         connection with the work.

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

Article 15.      Governing Law

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

Article 16.      Settlement of Disputes

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

                                       41
<PAGE>

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

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

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

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

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

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<PAGE>

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

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

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

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

16.9     No Party or person involved in any way in the creation, coordination or
         operation of the arbitration of any Dispute may

                                       43
<PAGE>

         disclose the existence, content or results of the Dispute or any
         arbitration conducted under this Agreement in relation to that Dispute,
         in each case subject to those disclosures permitted by Article 19.

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

Article 17.    Language

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

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

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

Article 18.    Corporate Representations and Warranties

18.1     Each Party (including each constituent member of PARTNER) represents
         and warrants that (i) it has obtained all necessary approvals, consents
         and authorizations of third parties and governmental authorities to
         enter into this Agreement and to perform and carry out its obligations
         under it; (ii) the persons executing the Agreement on its behalf have
         express authority to do so, and, in doing so, to bind the party to it;
         (iii) the execution,

                                       44
<PAGE>

         delivery, and performance of this Agreement does not violate any
         provision of any bylaw, charter, regulation, or any other corporate
         governing authority of the Party; (iv) the execution, delivery and
         performance of the Agreement has been duly authorized by all necessary
         corporate action; (v) the execution, delivery and performance by it of
         this Agreement constitute private and commercial acts rather than
         public or governmental acts; and (vi) the obligations of the Parties
         under the Agreement are valid and binding obligations of such Party,
         enforceable in accordance with its terms.

Article 19.    Confidential Information

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

Article 20.    Notice

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

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

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

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<PAGE>

         To PARTNER:
         Samsung Electronics Co. Ltd
         18th IT Center
         Maeton-3 dong, Paldal-gu, Suwon-si,
         Gyeonggi-do, Korea 442-742
         Attention: Ig Kyu Choi
         Fax     : (82-31)279-3899
         Email   : ik.choi@samsung.co.kr

         with copy to:
         PT Mitraguna Intikom
         Jl. Kemang Utara IX/9 Blok A 1-2
         Jakarta 12760, Indonesia
         Attention: President Director
         Fax     : (021)790 2566
         Email   : bufejap@nexcom.co.id

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

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

         PARTNER's Point of Contact:
         Project Manager
         Plaza Mashill Lt. 23
         Jl. Jend. Sudirman Kav. 25
         Jakarta 12920, Indonesia

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<PAGE>

         Tel.   :(021) 522-5522
         Fax    :(021) 522-5511
         E-mail : jay.lee@Samsung.com

         Mobile : 0812-1834222

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

         Mobile : 0811-965500

Article 21.    General Provisions

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

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

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<PAGE>

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

21.4     This Agreement embodies all the terms and conditions agreed upon
         between the Parties as to the subject matter of this Agreement, and
         supersedes all prior representations, arrangements, understandings and
         agreements between the Parties whether written or oral (including
         without limitation, the RfP, except as provided otherwise under this
         Agreement).

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

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

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

CHAPTER 2. COMMERCIAL TERMS AND CONDITIONS

Article 22.    Contract Value

22.1     Based on the unit prices referred to Article 23.3, the initial Contract
         Value

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<PAGE>

         (excluding VAT) for execution of the Project under this Agreement is
         US$ 123,965,591 (primarily for goods and services purchased outside
         Indonesia) and IDR 286,537,360,586 (primarily for goods and services
         procured within Indonesia). This Contract Value may be adjusted from
         time to time in accordance with mechanism provided in Article 27.

Article 23.    Prices and Fees

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

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

23.3     Unit prices quoted in Appendix 4 (Price Schedule) are firm fixed prices
         and shall not be varied except as permitted under this Agreement. Unit
         prices for equipment

                                       49
<PAGE>

         are deemed to include payments by PARTNER for all costs of freight,
         insurance, customs and import duties, clearance at the port of entry,
         inland transportation, warehousing and delivery to the Location/Site
         where the equipment is to be installed. Unit prices for equipment
         related services shall include survey, planning, design, permits,
         rights of way, installation, integration, project management, insurance
         up to transfer of title, testing and commissioning costs, services
         related to land acquisition, frequency licence application services and
         all related materials and expenses to complete the Project on a turnkey
         basis as contemplated in Article 3. Import or custom duties are
         included in the unit prices set out in Appendix 4 (Price Schedule) and
         shall remain fixed. Variations in unit price shall only be subject to
         change if specifically agreed upon by the Parties pursuant to a Change
         Request.

Article 24.    Taxes and Duties

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

Article 25.    Insurance and Safety

25.1     PARTNER shall at its own expense take out an all risk insurance policy
         ("All Risk Policy") to cover any works to be carried out pursuant to
         any Purchase Order. The insurance shall cover all risks against losses,
         damages (including accidents caused by the work performed by PARTNER
         its employees, agents or sub-contractors) at a minimum until the
         transfer of title to the relevant

                                       50
<PAGE>

         Deliverables pursuant to Article 10.2. The All Risk Policy shall also
         cover any plant, machinery, tools, goods, vehicles or property
         belonging to PARTNER, its employees, agents or sub-contractors which
         have been placed at any relevant Location/Site where any works are
         being executed, all risks during transportation, warehousing, storage,
         delivery, installation and testing, whether by fire, theft,
         earthquake/flood, natural disaster, consequence of fault in
         construction, or otherwise, and legal liability to third parties during
         construction, installation and operation periods including loss of
         revenue insurance and damage to surrounding property. PARTNER shall
         provide evidence of this All Risk Policy to TELKOM upon request.

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

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

25.4     PARTNER shall take full responsibility for the adequacy, stability and
         safety of all works carried out at the relevant Locations/Sites in
         accordance with the provisions of any law, order, regulation, decree,
         directive or standards now or hereinafter in force in Indonesia.
         PARTNER shall ensure that all equipment, tools, facilities and other
         items used by PARTNER or its sub-contractor in the execution of the
         works shall be safe, sound, in good working condition which shall, at a
         minimum, conform to acceptable standards in the

                                       51
<PAGE>


         industry. PARTNER shall at its own expense provide the necessary safety
         equipment, protective clothing, footwear and such other appliances as
         may be necessary or required by law or regulation for proper and safe
         execution of the works. PARTNER shall ensure that all personnel
         provided are fully trained and qualified and properly certified by the
         relevant authorities or bodies if such certification is required under
         the applicable laws, rules or regulations or directive of any
         governmental body.

CHAPTER 3. FINANCIAL TERMS AND PAYG

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

26.1     Joint Planning Session or JPS

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

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

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

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

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<PAGE>

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

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

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

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

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

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

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

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

26.1.5   The Parties shall produce minutes of the JPS meetings in which any
         substantive agreements shall be recorded as

                                       53
<PAGE>

         agreements of the Parties, as evidenced by signature of the minutes (or
         the applicable sections thereof) by the authorized representative of
         each Party.

26.1.6   At each JPS, TELKOM shall be entitled to make the final decisions on
         such matters as revision of the Deployment Plan and adjustments to the
         calculation of Installed Lines Procurements, after taking into account
         PARTNER's inputs concerning, among others, demand forecasts, market
         outlook and take-up of the capacity deployed.

26.2     Design Review Meeting or DRM

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

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

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

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

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

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

         (d)      develop a detailed resource plan;

                                       54
<PAGE>

         (e)      develop a detailed training plan; and

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

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

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

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

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

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

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

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

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

26.2.6   With respect to the quarterly DRM which coincides with a JPS each
         fiscal year, the DRM shall be convened immediately after the completion
         of such JPS, with an agenda which is designed not to repeat or
         duplicate JPS activities in such DRM, unless necessary.

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<PAGE>

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

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

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

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

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

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

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

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

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

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

                                       56
<PAGE>

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

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

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

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

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

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

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

26.2.11  The following additional agreements apply to the DRMs:

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

                                       57
<PAGE>

         and Engineering Norms);

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

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

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

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

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

(g)      TELKOM and PARTNER agree

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<PAGE>


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

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

26.3     Monthly Meetings

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

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

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

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

26.4     Representation at JPS, DRM and Monthly Meetings

26.4.1   TELKOM and PARTNER shall notify

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

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

Article 27.    Installed Line Procurements

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

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

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

27.3     The Percentage Index shall be 0% for the first Quarter. For subsequent
         Quarters, TELKOM may at its sole discretion vary the Percentage Index
         by a maximum of 15%, up or down, from the Percentage Index adopted for
         the previous Quarter, i.e., the Percentage Index = Percentage Index for
         the previous Quarter +/- 15% provided that over the term of this
         Agreement, the minimum Installed Line Procurements shall be 60% of the
         total cumulative Base Line.

27.4     The Parties may also agree to change

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

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

Article 28.      Purchase Orders and Procedures

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

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

28.3     A Purchase Order will be valid only if made in writing in the form set
         out in Appendix 12 (Purchase Orders), and signed by the TELKOM Project
         Manager or his designated representative. Each Purchase Order shall
         include necessary and appropriate attachments to clearly describe:

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

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

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28.3.3   Local Content items and value;

28.3.4   Project Locations/ Site;

28.3.5   Detailed Network Design;

28.3.6   Detailed BoQ; and

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

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

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

28.6     Within five (5) Business Days from receipt of a Purchase Order, PARTNER
         through its authorized representative shall acknowledge the Purchase
         Order by countersigning on the space provided on the Purchase Order or
         a copy thereof and returning the same to TELKOM by way of facsimile,
         followed by mail or hand delivery or by courier. Countersigning of the
         Purchase Order by authorized representatives of PARTNER shall be deemed
         to constitute acceptance of the Purchase Order without conditions by
         PARTNER and any terms and conditions accompanying such acceptance shall
         be null and void.

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

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

28.9     TELKOM may issue one or more new Purchase Orders for general services
         or combine them with Purchase Orders for

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         Installed Line Procurement with a separate breakdown for the general
         services component.

28.10    The T-21 Program includes elements which may be covered by Build
         Operate and Transfer ("BOT") arrangements between TELKOM and other
         local entities (each an "Investor"). The procurement volumes under
         these BOT arrangements are included within the overall T-21 procurement
         volumes and are to be planned as part of the JPS and DRM meetings, but
         will not be paid in accordance with the PAYG payment method set forth
         in Article 32, but shall be paid 100% on Commissioning or as otherwise
         agreed.

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

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

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28.13    A three year Service Level Agreement in form and substance as set forth
         in Appendix 20 (Service Level Agreement) shall apply to the equipment
         procured under the BOT arrangement, provided the BOT arrangement is
         within the original scope. The equipment will be operated by TELKOM on
         behalf of the Investor during the term of the BOT arrangement, and
         TELKOM shall work together with PARTNER as if the BOT equipment were
         part of TELKOM's network.

28.14    Chapters 1 and 5 of this Agreement shall apply mutatis mutandis to the
         contract between PARTNER and the Investor, unless otherwise agreed.

Article 29.      Performance Bond

29.1     As security for the performance of the work to be undertaken by PARTNER
         for Package 2 of the T-21 Program, within ten (10) Business Days
         following TELKOM's issuance and PARTNER'S acceptance of the Second
         Purchase Order, PARTNER shall deliver to TELKOM a performance bond in
         favor of TELKOM in the amount of 5% of the total value of the Second
         Purchase Order, in form and substance as appears in Appendix 25
         (Performance Bond). The Parties agree that it is a condition precedent
         to the Second Purchase Order and any subsequent Purchase Orders
         becoming a binding contract between the Parties that the Performance
         Bond covering the work to be performed under the relevant Purchase
         Order(s) is in full force and effect.

29.2     As each new Purchase Order following the Second Purchase Order is
         issued and accepted, the value of the then existing Performance Bond
         shall be adjusted to reflect the aggregate value of: (i) 5% of the
         total value of that Purchase Order; plus (ii) 5% of the total value of
         that portion of the previous Purchase Order(s) relating to equipment,
         software and components not yet Commissioned as of that date. This
         process of adjustment may only be made at the end of each Quarter at
         the relevant DRM so

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         as to ensure that as each new Purchase Order is issued and accepted,
         PARTNER will adjust the value of the Performance Bond to the
         appropriate level, taking into account the value of all equipment,
         software and components not yet Commissioned at that time under the
         relevant Purchase Orders (new or prior). PARTNER shall maintain the
         Performance Bond at the appropriate value levels for a period
         terminating on a date which is six (6) months from the issuance of the
         first Integrated System Acceptance Test Certificate by TELKOM pursuant
         to this Agreement.

Article 30.      Termination of Purchase Orders

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

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

30.2.1   stop work under the Purchase Order on the date and to the extent
         specified in the Notice of P.O. Termination;

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

30.2.3   use reasonable efforts to terminate all

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         orders and contracts to the extent that they relate to the performance
         of work terminated by the Notice of P.O. Termination;

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

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

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

30.2.7   use reasonable efforts to sell, in the manner, at the time, to the
         extent and at the price or prices directed or authorized by TELKOM, any
         property of the types referred to above, provided, however, that
         PARTNER; (i) shall not be required to extend credit to any buyer; and
         (ii) may acquire any such property under the conditions prescribed by
         and at a price approved by TELKOM; and provided further that the
         proceeds of any such

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         transfer or disposal shall be applied in reduction of any payments to
         be made by TELKOM to PARTNER under this Agreement or paid in such other
         manner as TELKOM may direct;

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

30.2.9   take such action as may be necessary, or which TELKOM may direct, for
         the protection and preservation of the property related to the Purchase
         Order which is in PARTNER's possession and in which TELKOM have or may
         acquire an interest.

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

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

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

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

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

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

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

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

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         Article 30.4, nor shall PARTNER be entitled to require any waiver or
         variation of the Agreement by reason of such termination. TELKOM shall
         not be liable to PARTNER in the event of such termination for any loss
         of profit or consequential damages whatsoever.

30.6     In arriving at the amount due to PARTNER under this Article 30, there
         shall be deducted from all monies paid or due to be paid to PARTNER,
         any liabilities which PARTNER may have to TELKOM and the agreed price
         for or the proceeds of sale of any materials, supplies or other things
         acquired by PARTNER or sold, pursuant to the provisions of this
         Article, and not otherwise recovered by or credited to TELKOM. If this
         results in PARTNER having a net liability towards TELKOM, such sum
         shall be payable by PARTNER to TELKOM on demand.

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

Article 31.     Terms of Payment

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

31.2     TELKOM will pay 10% of the value of a

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         particular Purchase Order upon delivery of the Deliverable (and
         equipment related services but not including general services for
         operation and maintenance, spare parts, software upgrades,
         Documentation and training) to the Location specified in the Purchase
         Order. This amount shall be due upon delivery to TELKOM of an invoice
         for the agreed sum, accompanied by the following documents, or such
         additional documents as may reasonably be required by TELKOM:

31.2.1   Invoice covering letter;

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

31.2.3   Packing list for equipment;

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

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

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

31.2.7   Simple receipt ("Kuitansi").

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

31.3.1   Invoice covering letter;

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

31.3.3   As-built drawings;

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

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

31.3.6   Simple receipt ("Kuitansi").

31.4     The remaining value of each Purchase Order (the "PAYG Value"),
         constituting 75% of the total value of a particular Purchase Order,
         shall be payable only upon issuance of the associated Integrated System
         Acceptance Test Certificate(s) (and not Partial Integrated System
         Acceptance Test Certificates) in accordance with the PAYG provisions of
         Article 32, provided PARTNER shall have delivered to TELKOM an invoice
         for the agreed sum of each PAYG payment, accompanied by the following
         documents, or such additional documents as may reasonably be required
         by TELKOM:

31.4.1   Invoice covering letter;

31.4.2   Tax invoice ("Faktor Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak");

31.4.3   Simple receipt ("Kuitansi");

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

31.4.5   Calculation of the cumulative value of PAYG payments due under that
         invoice; and

31.4.6   Calculation of the cumulative value of previous PAYG payments and the
         remaining value of the Purchase Orders.

Article 32.     PAYG Payments

32.1     For the purposes of implementing the Pay as You Grow (PAYG) concept
         contemplated in the T-21 Program, all Purchase Orders relating to all
         or any part of the Deliverables that have been Commissioned (excluding
         those in relation to general services for operation and maintenance,
         spare parts, software upgrades, Documentation and training) in

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         the same Quarter shall be grouped together on a DIVRE level basis,
         provided also that a group of Purchase Orders may be segmented by types
         of equipment, software, components and scope of services, if necessary.
         For the purposes of administration, each Purchase Order shall at the
         end of the relevant Quarter be treated as if comprised of two parts as
         appropriate, one part comprising all Commissioned Deliverables and one
         part comprising the Deliverables not yet Commissioned.

32.2     After the unpaid parts of the Deliverables Commissioned in previous
         Quarters are paid off fully, PAYG payments for that part of each
         Purchase Order comprising Commissioned Deliverables in each DIVRE shall
         become due at the end of each Quarter based on the net increase in
         subscribers in the DIVRE at the end of each Quarter as stated in the
         Subscriber Recorder, and shall be calculated as follows:

Total number of T-21
Program CDMA
subscribers in that DIVRE
at the end of that Quarter
minus the total number of
T-21 Program CDMA
subscribers in that DIVRE                     Total PAYG
at the end of previous                        value of all
Quarter                                       Deliverables
- ---------------------- X                      Commissioned
Total Subscriber Target                       in that Quarter
number attributable to the
Deliverables that have been
Commissioned in that DIVRE in that Quarter

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

32.3     Where only part of the equipment (e.g., a

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

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

32.5     Purchase Orders (or amended Purchase Orders) signed by TELKOM will
         be paid off sequentially commencing with the earliest in time.
         Non-Commissioned Deliverables in a Purchase Order issued in a
         particular Quarter will be carried forward into the Purchase Order(s)
         aggregated in the following Quarter, until Commissioned, and if
         Commissioned in that Quarter, will be accounted for in the calculation
         of the PAYG payment in that Quarter. To facilitate this calculation,
         the particular Purchase Order from which non-Commissioned
         Deliverables has been carried forward into the following Quarter shall
         be deemed amended by mutual agreement of the Parties by way of
         inclusion of such non-Commissioned Deliverables in a subsequent
         Purchase Order issued in that following Quarter. Thereafter, without
         further action of the Parties, such Purchase Order previously comprised
         of both Commissioned and non-Commissioned Deliverables shall be deemed
         to be comprised only of Commissioned Deliverables and, as such, become
         payable under the PAYG payment mechanism set out in this Article 32.
         Adjustments, if any, that are required to be made to the

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         Implementation Schedule and/or Deployment Plan as a result of this
         carry-forward exercise shall be discussed and decided at the relevant
         DRM.

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

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

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

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

Article 33.     General Services Payments

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

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

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

Article 34.     Invoicing

34.1     Payments by TELKOM shall be made to PARTNER based on the issuance and

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         delivering of invoices to TELKOM.

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

         Head of Fixed Wireless Division (as
         Project Manager)
         Jalan Kebon Sirih, Kav. 12
         Jakarta
         Indonesia

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

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

Article 35.     Financing of TELKOM'S Payment Obligations

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35.1     PARTNER has agreed to seek and arrange financing from Korean EXIM Bank
         and TELKOM and PARTNER have entered into discussions in relation to a
         financing proposal for the financing of TELKOM's payment obligations
         under this Agreement. The general concept of the financing proposal and
         payment mechanism is set out in Appendix 15 (Financing Arrangements).
         The Parties intend to conclude the financing arrangements as soon as
         possible following execution of this Agreement but in any event at the
         latest six (6) months following such execution. In the event that the
         Parties cannot agree on acceptable financing terms with the relevant
         financial institution(s) by the end of such six (6) month period, or as
         such period may be extended by mutual written agreement of the Parties,
         TELKOM reserves the right to terminate the Agreement in accordance with
         the provisions of Article 14.

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

Article 36.     Change Request Procedures

36.1     During implementation of the Scope of Work, a Party may request at any
         time that a change be made to (without limitation) the Deliverables,
         Purchase Orders, the Installed Line Procurements, the Implementation
         Schedule, the Deployment Plan or other Appendix to this Agreement, as
         the case may be. Such request shall be made in the form of a "Change
         Request" and must be in writing.

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

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

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

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

36.6     At the same time as giving the Change. Request, the requesting Party
         shall provide the other Party such information as may reasonably be
         required to assess the impact of the Change Request on the overall
         Scope of Work. If there is a reasonable possibility that there will
         need to be a material amount of time and effort spent in dealing with a
         Change Request, additional payment or payment reduction, as
         appropriate, for that time and effort may be negotiated, but
         compensation for any work to deal with the Change Request shall be
         contingent on prior written agreement between TELKOM and PARTNER.

36.7     PARTNER shall make such changes and implement the Change Request only
         upon execution by the Parties of a written document specifying the
         agreed changes, the scope of the changes, the

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         adjustments to the Implementation Schedule, if any, the
         additional/costs or reduction of costs, if any, and which Party,
         jointly or severally, is entitled to the Intellectual Property Rights,
         if any.

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

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

Article 37.     Relocation of Equipment

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

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

37.3     PARTNER shall bear the costs for the relocation of modular equipment
         such as sub-racks and cards which the Parties have agreed do not entail
         substantial

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         costs. In all other cases, TELKOM and PARTNER shall conduct a cost
         benefit analysis prior to any relocation. All reasonable costs
         associated with the relocation of all other equipment shall be borne by
         TELKOM. Any relocation of equipment conducted by TELKOM shall be
         supervised by PARTNER. PARTNER shall bear the costs of providing the
         supervision service. TELKOM shall bear the costs of any additional
         equipment required.

Article 38.     Details of PARTNER's Bank accounts

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

         USD a/c : Samsung Electronics Co.Ltd. 060-084489-42-105 (BIC Code:
         HVBKKRSE):

         IDR a/c:
         [to be supplied by PARTNER in writing, which written notification shall
         become an inseparable part of this Agreement].

CHAPTER 4.      CONSORTIUM ORGANIZATIONAL MATTERS

Article 39.     Consortium Membership Criteria

39.1     The Consortium of which PARTNER is a part shall have at least one
         Indonesian-owned business entity.

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

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

Article 40.     Assignment and Subcontracting

40.1     PARTNER shall not, without the prior written consent of TELKOM, assign
         this

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         Agreement, or assign or encumber any of the moneys due or becoming due
         under it. TELKOM reserves the right to assign this Agreement, without
         prior approval of PARTNER to an Investor, as contemplated in Articles
         28.10 - 28.14 provided the Investor gives PARTNER satisfactory payment
         assurances under Article 28.12 of this Agreement.

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

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

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

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

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Article 41.     Involvement of Local Entities

41.1     PARTNER shall use all reasonable efforts to maximize involvement of
         entities in Indonesia in its provision of Deliverables, the objective
         being to maximize financial benefits as well as transfer of knowledge
         and learning in Indonesia and thereby reduce TELKOM'S exposure to
         foreign exchange risk. In this connection, "all reasonable efforts"
         will be defined by reference to a minimum threshold level of local
         Indonesian involvement in executing the Project, comprising a
         percentage of the total contract value of the Project, which is minimum
         20% of the Contract Value of Package 2.

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

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

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41.4     The undertaking required by TELKOM shall state that PARTNER will, over
         the duration of the Project, procure certain materials and services
         within Indonesia (stating all categories of materials and services) to
         support the local operations of the overseas companies in the
         Consortium. Further, that all such procurements will be in accordance
         with the requirements stated either explicitly or implied by TELKOM in
         the RfP for the T-21 Program.

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

Article 42.     Logistics

42.1     PARTNER shall provide all logistical requirements from the point of
         origin of the any equipment, components or other Project goods to the
         applicable Project Location/Site, inclusive of all charges, such as
         transport and transit, demurrage, storage, insurance, fees, levies,
         taxes, etc. In addition PARTNER shall quote the cost of all equipment
         related services (covering survey, design, planning, permits, right of
         way, services related to land acquisition, installation, integration,
         project management, insurance up to transfer of title, testing and
         commissioning, frequency licence acquisition and all related materials
         and expenses) for both imported and local goods.

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

42.3     PARTNER shall provide all warehousing requirements and explain the
         locations of the facilities to be used for this purpose. PARTNER will
         also be required to arrange for warehousing and storage facilities at
         installation sites to ensure proper storage and protection of all

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         equipment, components or other Project goods. PARTNER shall ensure that
         all equipment is adequately packaged and stored to avoid any damage.
         While in such warehousing, the equipment and material will be the sole
         responsibility of PARTNER.

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

Article 43.     Inventory

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

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

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

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

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

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

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

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

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

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

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

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

Article 44.     Local Support Infrastructure

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

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Article 45.     Project Management

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

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

45.2.1   Scope of Work;

45.2.2   Project organization and personnel;

45.2.3   Project activity plan and schedule by Location;

45.2.4   Reporting of progress and issues.

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

45.4     The identity and qualifications of all Project personnel proposed by
         PARTNER to work on the Project, including the Project Manager as
         described in the PMP shall be notified in writing by PARTNER to TELKOM
         before appointment. The Project Manager shall only be appointed with
         TELKOM's prior approval. For all other Project personnel, TELKOM shall
         inform PARTNER of any objections within ten (10) Business Days of
         notification and any Project personnel to whom TELKOM objects shall not
         be appointed. Replacements must be equally well qualified and
         appropriate for the Project.

45.5     At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom PARTNER Project personnel shall maintain close cooperation
         and communication at all times. TELKOM

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

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

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

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

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

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

         (a)      Deployment Status Update;

         (b)      Updated Issues Log;

         (c)      Shipment Tracking Report.

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

45.11.1  Commencement of implementation of each Location;

45.11.2  Commencement of the detailed survey for each Location;

45.11.3  Completion of installation, construction designs, drawings associated
         with the Project;

45.11.4  Readiness dates for interim inspections, PARTNER own tests, and
         Commissioning tests for each Location/Site;

45.11.5  Manufacturing and transportation schedules of materials for each Sub-
         system per each Location including the times of factory performance
         tests.

45.12    Delivery of equipment, components, software and services by PARTNER,
         shall be in conformity with the provisions of this Agreement and/or the
         respective Purchase Order, including the time schedule and milestones
         set forth in Appendix 9 (Implementation Schedule).

45.13    Each alteration to the Implementation Schedule shall be upon mutual
         agreement of the Parties and valid only if executed as a Change Request
         signed by the authorized representative of each of the Parties.

45.14    PARTNER shall perform (without limitation) the following tasks with
         regards to the general business administration of the Project, i.e.:

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45.14.1  Invoicing and recordation of TELKOM payments;

45.14.2  personnel management;

45.14.3  Taxes; and

45.14.4  Insurance.

45.15    PARTNER shall report on the Project's progress, including any
         significant difficulties encountered, to TELKOM at monthly meetings in
         accordance with Article 26.3.

45.16    PARTNER shall liase with TELKOM in each DIVRE for deployment
         coordination and with regional authorities, public utilities and third
         parties in the areas for permits and Network roll-out. The liaison
         shall be arranged during regular monthly meetings with TELKOM and the
         following parties during Network roll-out: (i) TELKOM in the Regional
         Division area; (ii) other TELKOM contracting parties; and (iii)
         subcontractors.

45.17    In addition, the Parties shall arrange adhoc meetings as required on
         reasonable notice to deal with co-ordination and implementation related
         issues.

Article 46.     Research and Development

46.1     PARTNER shall from time to time at TELKOM's request consider
         participating in joint development efforts in the field of software and
         services enhancement. Any such joint development activities shall be
         mutually agreed upon as to the scope, responsibilities of each Party,
         allocation of costs and other mutually agreed items. TELKOM employees
         shall be actively involved in such development efforts and all
         Intellectual Property Rights developed shall be jointly owned.

46.2     Pursuant to Article 5.1.9, PARTNER shall provide timely notice to
         TELKOM of its newest tested technologies and any improvements it deems
         advantageous to TELKOM in the current Project "road map" of technology
         development.

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<PAGE>

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

47.1     PARTNER shall provide training in accordance with this Article 47 and
         the detailed training requirements and schedule specified in Appendix
         19 (Training). TELKOM shall provide qualified engineers for training
         programs provided by PARTNER under this Agreement.

47.2     Training shall be conducted in two (2) parts, one in PARTNER's training
         center in Korea and the other in Indonesia. For both training
         locations, PARTNER shall provide class-room training ('Class') and
         On-the-job training ('Job'). PARTNER shall propose detailed schedules
         for both types of training based on TELKOM's requirements.

47.3     The training course shall cover 3 (three) areas of expertise, i.e.:

         (a)      SYSTEM ENGINEERING

                  PARTNER shall conduct training in an efficient manner to
                  produce well trained proficient personnel capable of
                  engineering. The course is intended to train personnel to have
                  basic knowledge of CDMA network planning and system design
                  engineering.

         (b)      OPERATION AND MAINTENANCE

                  The course is intended to train personnel to have basic
                  knowledge of system's operation and maintenance and who shall
                  be required to provide guidance and instruction, necessary to
                  the entire operation team after completion.

         (c)      BUSINESS DEVELOPMENT AND MARKETING

                  The course is intended to train

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                  personnel to have basic knowledge on how to develop the CDMA
                  FWA business and will include training on product knowledge
                  and marketing.

47.4     Overseas Training

47.4.1   The overseas training requirement for NSS and BSS is summarized below:

<TABLE>
<CAPTION>
                                                     NUMBER OF TRAINEES PER TRAINING
                                              -------------------------------------------
                                                     BSS PARTNER
                                              ---------------------------        NSS
                                                              PACKAGE 2        PARTNER
                        NUMBER OF             -------------------------------------------
                        TRAINING    DURATION               CLASS      JOB    CLASS    JOB
- -----------------------------------------------------------------------------------------
<S>                     <C>         <C>       <C>    <C>   <C>        <C>    <C>      <C>
System Engineering      2 times     2 weeks                  10       N/A      10     N/A
- -----------------------------------------------------------------------------------------
Operation and
Maintenance             2 times     2 weeks                  10        10      10      10
- -----------------------------------------------------------------------------------------
Business
Development and
Marketing               2 times     2 weeks                  10       N/A     N/A     N/A
- -----------------------------------------------------------------------------------------
</TABLE>

47.4.2   For overseas training, the following costs are included in the unit
         price:

         (a)      Daily allowance for accommodation and meals of $200 per
                  trainee including Saturday and Sunday and 2 days for travel
                  (arrival and departure)

         (b)      Airport tax, excess baggage and fiscal $500 per person

         (c)      Insurance, $50 per person

         (d)      Tuition fee (including training materials)

         (e)      Roundtrip airfares from Indonesia to PARTNER's Main Training
                  Center, according to the following rates:

                  (i) Europe          : $3,500/PAX

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                  (ii) United States  : $3,500/ PAX

                  (iii) Asia          : $1,500/PAX

                  (iv) Australia      : $2,000/PAX

47.5     In-Country Training

47.5.1   The in-country training requirement for NSS and BSS is summarized
         below:

<TABLE>
<CAPTION>
                                                     NUMBER OF TRAINEES PER TRAINING
                                              -------------------------------------------
                                                      BSS PARTNER
                                              ---------------------------        NSS
                                                              PACKAGE 2        PARTNER
                        NUMBER OF             -------------------------------------------
                        TRAINING    DURATION               CLASS      JOB    CLASS    JOB
- -----------------------------------------------------------------------------------------
<S>                     <C>         <C>       <C>    <C>   <C>        <C>    <C>      <C>
System Engineering      2 times     2 weeks                  10       N/A      10     N/A
- -----------------------------------------------------------------------------------------
Operation and
Maintenance             2 times     2 weeks                  10        10      10      10
- -----------------------------------------------------------------------------------------
Business
Development and
Marketing               2 times     2 weeks                  10       N/A     N/A     N/A
- -----------------------------------------------------------------------------------------
</TABLE>

47.5.2   For local training, the following costs per trainee are included in the
         unit price:

         (a)      Divlat (TELKOM's training center) fee: $350 per week for
                  accommodation, meals and training venue (not required for
                  on-the-job training)

         (b)      Tuition Fee (including training materials)

47.6     Training Materials and Tools

47.6.1   PARTNER shall provide the following materials and tools for class-room
         training:

         (a)      Introduction of CDMA FWA including supported services;

         (b)      System Planning, Engineering, Operation and Maintenance
                  Procedures;

         (c)      Network Planning, which includes Traffic Engineering and

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                  Link Budget;

         (d)      Installation and Test Procedures; and

         (e)      Troubleshooting.

47.6.2   PARTNER shall propose the following training material and tools, for on
         the job training:

         (a)      Operation and maintenance procedure of CDMA FWA;

         (b)      System performance measurement; and

         (c)      Trouble shooting by measuring equipment.

Article 48.      Management Forum

The Parties shall establish a regular channel of communication between their
respective managements and shall hold meetings on a semi-annual basis to discuss
the progress of the T-21 Program.

Article 49.      Development of Indonesian Industry

The Parties agree to support the development of the Indonesian
telecommunications industry and to maximise the benefit of the T-21 Program to
local industry. In additional to providing economic benefit through maximising
local procurement, TELKOM and PARTNER have agreed on other steps that they will
take together, including setting up educational or training centres, and working
with TELKOM to develop business models to promote new local business
opportunities arising out of the deployment of T.21 Program technologies such as
new CDMA content development. PARTNER has also agreed to consider supplying CDMA
20001x test bed systems and trainers to the planned educational or training
centers for CDMA 20001x, ED-DO/-DV and other CDMA Technology training of TELKOM
and other Project staff. The Parties agree to discuss the technical and
financial aspects of such joint actions and within ninety (90) days after the
effective date of this Agreement, agree on an implementation plan for
development of the Indonesian telecommunication industry in accordance with
PARTNER's commitments in its response to the RfP.

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CHAPTER 5. TECHNICAL PROVISIONS

Article 50.      General Requirement for Equipment

50.1     All equipment supplied by PARTNER to TELKOM shall:

50.1.1   meet the agreed requirements in Appendix 5 (Technical Specifications);

50.1.2   function in accordance with the technical documentation in the
         Technical Specifications;

50.1.3   have obtained type approval from DGPT and met TELKOM's quality
         assurance standards.

50.1.4   at delivery meet the requirements prescribed by or pursuant to the
         applicable laws, rules, regulations, guidelines, and standards of all
         applicable jurisdictions;

50.1.5   conform to the Technical Specifications and be free of material,
         production, construction and design faults;

50.1.6   be manufactured from new and sound material;

50.1.7   at a minimum comply with the MTBF (Mean-Time-Between-Failures) values
         submitted by PARTNER and as updated from time to time;

50.1.8   be packed adequately; and

50.1.9   be accompanied by the agreed upon Documentation in English.

50.2     Until Commissioning of the relevant equipment, software and components
         in any Purchase Order in which software is included, software delivered
         by PARTNER shall not contain viruses or any improper additions or
         modifications. "Viruses" includes time bombs, worms, 'trojan horses',
         drop dead devices, back door devices or any other components, which may
         fully or partly affect the

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<PAGE>

         intended functioning of the software. "Additions and modifications"
         mean software components which modify the functionality in a different
         way from that set forth in the applicable specifications. PARTNER shall
         not be entitled to activate a virus to the detriment of TELKOM. If
         PARTNER detects a virus or addition/modification or symptoms of a virus
         prior to Commissioning and during the SLA period, it shall immediately
         inform TELKOM and undertake its best efforts to eliminate the virus or
         the addition/modification and prevent damage for TELKOM at no charge.

Article 51.      Quality Assurance

51.1     PARTNER shall make all reasonable efforts to ensure that TELKOM at its
         discretion, is entitled to inspect and/or audit the development,
         production and installation phases of the processes of all members of
         PARTNER's consortium and its sub-contractors. PARTNER shall cooperate
         with TELKOM in case TELKOM elects at its expense to conduct such
         inspections and/or audits.

51.2     PARTNER shall make a final inspection of all Deliverables prior to
         delivery to TELKOM and a report containing the results of the final
         inspection shall be supplied to TELKOM on delivery.

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

Article 52.      Survey, Design, and Planning

52.1     The planning and design activities for the Project must be able to
         fully accommodate the JPS, DRM and monthly meeting mechanism described
         in Article 26 and the flexible procurement mechanism as described in
         Article 27 of

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         this Agreement.

52.2     The planning and design works shall consist of the following
         activities:

52.2.1   Survey of the Location/Site(s)

         PARTNER shall determine the optimum Location/Site for installation of
         the equipment, provided that the optimum Location/Site should
         preferably be in the premises of TELKOM or its subsidiaries in order to
         ease network integration and maintenance.

52.2.2   Maximizing use of existing infrastructure

         Based on the information acquired during site surveys and data provided
         by TELKOM, PARTNER will be required to maximize and optimize all
         reusable infrastructure and incorporate it into the equipment
         requirements. The underlying objective shall be to maximize the asset
         turnover of TELKOM while ensuring that current infrastructure or future
         development/ expansion will not be impacted adversely. TELKOM shall
         review and agree to the list proposed by PARTNER before PARTNER may
         utilize it to support network roll-out.

52.2.3   Proposing more efficient solutions

         PARTNER shall propose a more efficient solution, if available, after
         TELKOM's review of PARTNER initial roll-out plan. Such solution shall
         highlight areas of improvement from the original plan.

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52.2.4   Network optimization planning

         PARTNER will be required to conduct Network optimization planning
         together with TELKOM considering both existing and future Network
         requirements. Network optimization planning must be able to fully
         accommodate the JPS, DRM and monthly meeting mechanism and the
         flexibility procurement mechanism provided for in Articles 26 and 27,
         respectively, of this Agreement. Network optimization planning shall
         consist of the proposed plan and improvement of the current plan
         including potential implication to the overall network performance.
         Network optimization planning shall take into account the following
         technical aspects:

         (a)      ease of maintenance/operation;

         (b)      network reliability (diversity to important subscriber);

         (c)      flexibility to demand fluctuation (capacity and features);

         (d)      expandability of the Network;

         (e)      ease of construction and integration; and

         (f)      interoperability.

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

53.1     The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Appendix
         3 (Scope of Work). For the avoidance of doubt the Scope of Work does
         not include site acquisition and preparation for NSS equipment.

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

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53.2.1   arrange and acquire all the permits required to perform the work, such
         as (but not limited to) installation permits, rights of way, and other
         permits necessary either from local municipality or other parties. The
         cost for acquiring the permit are included in the unit price and shall
         not be priced separately;

53.2.2   acquire the right of use of land on a rental basis, subsequent to
         TELKOM's approval to install towers for mounting the antennas or for
         other needs relating to the Project;

53.2.3   conduct the land acquisition process, in the event rental is not
         possible, subsequent to TELKOM's approval to install towers for
         mounting the antennas or for other needs relating with the Project.
         TELKOM shall provide and procure that its subsidiaries provide all
         reasonable assistance to PARTNER where the land is under their control.
         The cost associated with the land acquisition process (but not the cost
         of the land, rental and lease fee itself) shall be borne by the
         PARTNER. The cost of the land itself shall be agreed in advance with
         TELKOM (such agreement not to be unreasonably withheld or delayed).
         TELKOM shall make full payment to PARTNER for the cost of the land,
         rental or lease promptly upon acquiring legal title to the land (as
         evidenced by the executed sale and purchase of land deed) or upon
         execution of the applicable rental or lease contract.

53.3     PARTNER shall arrange and acquire a frequency license from Directorate
         General of Post and Telecommunication (DGPT) on behalf of TELKOM.
         TELKOM will assist PARTNER by issuing the appropriate cover letter to
         DGPT. For the avoidance of doubt, PARTNER shall not own the license,
         but will simply support TELKOM by providing technical assistance and
         consulting services (which are included in the unit prices). The cost
         associated with the frequency acquisition process (but not the cost of
         the license itself) shall be borne by PARTNER. TELKOM shall make full

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         payment to PARTNER for the cost of the license itself promptly upon
         TELKOM's receipt of the license.

Article 54.      Installation Procedures and Standards

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

         PARTNER shall provide equipment installation services that shall
         consist of the following activities:

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

54.1.2   materials delivery and storage;

54.1.3   transportation of goods;

54.1.4   installation of the equipment;

54.1.5   cleaning-up sites; and

54.1.6   site preparation plan and drawings.

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

54.2.1   PARTNER's contractor shall provide all materials, labor, tools,
         transportation, telecommunication facilities (telephone, facsimile,
         etc.) and everything else necessary for completion of work in
         accordance with this Agreement;

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

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

54.2.4   PARTNER's contractor shall itemize and provide all equipment, tools,
         measuring equipment, machinery and electricity necessary for execution
         of the Scope of Work in Indonesia; and

54.2.5   PARTNER's contractor shall provide a list of equipment, tools,
         measuring equipment, machinery and electricity which is used for
         installation purpose only.

54.3     Installation of the equipment shall consist of the following
         activities:

54.3.1   PARTNER's contractor shall be responsible for providing connection and
         integrating sub-components into system units, i.e. NSS and BSS;

54.3.2   PARTNER's contractor shall be responsible for system unit check and
         shall ensure the each system units functions as required.

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

54.4.1   PARTNER's contractor shall keep the work and storage areas clean and
         tidy and shall remove daily all combustible rubbish from inside and
         near the buildings, structures and plant;

54.4.2   upon completion of each installation, PARTNER's contractor shall remove
         from the Location/Site as early as possible all

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         tools, appliances, packing cases and plant not constituting an integral
         part of this Agreement.

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

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

Article 55.      Testing and Commissioning

55.1     NSS Pre-Commissioning Activities

55.1.1   The testing and commissioning activities contained in this Article
         shall be read in conjunction with Appendix 17 (Quality Assurance
         Guidelines/Acceptance Testing Procedures). Prior to PARTNER's personnel
         being dispatched to a Location where the NSS is being installed,
         PARTNER shall cause its sub-contractor to provide to PARTNER and
         TELKOM a completed "Location/Site Readiness Checklist*. The completed
         checklist shall be verified and signed off by PARTNER's designated
         representative assigned to the wireless network in which the work is
         being performed. Upon the successful completion of the Location/Site
         Readiness Checklist the Location/Site will be declared "Location/Site
         Ready".

55.1.2   Once the Location/Site is declared "Location/Site Ready", PARTNER will:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning and
                  invited to send qualified personnel to witness the MSC
                  Commissioning;

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         (b)      provide all tools and test equipment required to Commission
                  the MSC;

         (c)      scan the bar code on all field replaceable MSC units and
                  organise the data for the purposes on maintaining site
                  specific historical information;

         (d)      test all E1 interconnects including backhaul straight span,
                  drop and insert tests; and

         (e)      test electrical (AC) power availability at the place where the
                  MSC is located.

55.2     BTS Pre-Commissioning Activities

55.2.1   Prior to PARTNER's personnel being dispatched to a Location/Site where
         the BTS is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location/Site will be
         declared "Location/Site Ready".

55.2.2   Once the Location/Site is declared "Location/Site Ready", PARTNER
         shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

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         (c)      install and connect all batteries and circuit packs delivered
                  to the relevant Location/Site]

         (d)      provide, place and terminate all RF cables from (i) the BTS to
                  the antenna cables(s)/ feeder cables brought to BTS equipment
                  room by PARTNER's sub-contractor and (ii) from the BTS to the
                  GPS, including all clamps, connectors, etc; and

         (e)      install all required amplifiers and other elements as
                  necessary for adding carriers to an existing BTS Cabinet.

55.3     BSC Pre-Commissioning Activities

55.3.1   Prior to PARTNER's personnel being dispatched to a Location where the
         BSC is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location will be declared
         "Location/Site Ready".

55.3.2   Once the Location is declared "Location/Site Ready", PARTNER shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

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         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      provide, place and terminate all the cables from:

                  (i)      Tx equipment

                  (ii)     MSC

                  (iii)    PDSN

                  (iv)     other BSCs, including all clamps, connectors, etc.

55.4     Testing and Equipment Certification

55.4.1   PARTNER shall be required to perform and facilitate system tests for
         all equipment and components delivered under this Agreement.

55.4.2   The Commissioning tests shall comprise of the Sub-system Acceptance
         Tests and the Integrated System Acceptance Tests. A summary of the
         testing, commissioning and certification conditions are summarized in
         the table provided below:

<TABLE>
<CAPTION>
        NAME OF TEST                           CERTIFICATE                           CONDITION FOR CERTIFICATION
- ----------------------------------------------------------------------------------------------------------------
<S>                              <C>                                                 <C>
Factory Performance Test         No certification issued, but TELKOM should have     None
                                 access to the results of the test
- ----------------------------------------------------------------------------------------------------------------
Goods Delivery Test              Goods Delivery Certificate                          Passes visual inspection.
- ----------------------------------------------------------------------------------------------------------------
PARTNER Own Test                 No certification issued, but TELKOM should be       None
                                 provided with the results of the test prior to
                                 the Sub-system Acceptance Test.
- ----------------------------------------------------------------------------------------------------------------
Sub-System Acceptance Test       No certification issued, but TELKOM
                                 should be provided with the results
                                 of the test prior to the Integrated
                                 System Acceptance Test.
- ----------------------------------------------------------------------------------------------------------------
</TABLE>

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<PAGE>

<TABLE>
<CAPTION>
           NAME OF TEST                            CERTIFICATE                        CONDITION FOR CERTIFICATION
- ------------------------------------------------------------------------------------------------------------------
<S>                                   <C>                                           <C>
Integrated System Acceptance Test     Partial Integrated System Acceptance Test     A system test has been
                                      Certificate                                   completed for the equipment,
                                                                                    satisfying all relevant
                                                                                    requirements under this
                                                                                    Agreement except for end to
                                                                                    end connectivity
                                      ----------------------------------------------------------------------------
                                      Integrated System Acceptance Test             All system tests have been
                                      Certificate                                   completed for the equipment,
                                                                                    satisfying all relevant
                                                                                    requirements, including end to
                                                                                    end connectivity
- ------------------------------------------------------------------------------------------------------------------
Civil Work Acceptance Test            Certificate (for foundation)                  Passed third party and/or
                                      Certificate (for tower)                       TELKOM  quality checks
                                      Certificate (others)
- ------------------------------------------------------------------------------------------------------------------
</TABLE>

55.5     Factory Performance Test

55.5.1   PARTNER shall perform factory performance tests of all equipment to be
         deployed to ensure that the equipment is complete in all respects and
         complies with the terms of the Agreement. Details of the factory
         performance test are set out in Appendix 16.

55.5.2   PARTNER shall provide TELKOM with full access to the results of the
         factory performance tests including without limitation evidence in the
         form of certification letter provided by the factory.

55.5.3   Successful completion of the factory acceptance tests are a
         pre-requisite for Sub-System Acceptance Tests.

55.6     Goods Delivery Test

55.6.1   TELKOM shall visually inspect the equipment on delivery to the
         installation Location/Site based on a copy of the goods shipping
         documents and TELKOM's Project Manager shall promptly (and no later
         than five (5) Business Days) issue a Goods Delivery

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         Certificate if there is no obvious physical damage to the equipment and
         the quantity of equipment delivered is correct according to the
         supporting Documentation provided.

55.6.2   Issue of a Goods Delivery Certificate shall not constitute acceptance
         of the equipment nor shall it affect TELKOM's rights under this
         Agreement.

55.7     PARTNER Own Test

55.7.1   PARTNER shall perform on-Location/Site tests of each individual Network
         Sub-system (BSS and/or NSS) following installation.

55.7.2   Successful completion of PARTNER's Own Tests are a pre-requisite for
         Sub-system Acceptance Tests.

55.7.3   The tests for NSS shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Mobile Switching Center (MSC) and Visitor Location Register
                  (VLR);

         (b)      Home Location Register (HLR);

         (c)      Authentication Center (AC);

         (c)      Interworking Function (IWF);

         (d)      Wireless Intelligent  Network (WIN);

         (e)      Short Message Service Center (SMSC);

         (f)      WAP Gateway and Server;

         (g)      Voice Mail System (VMS);

         (h)      NSS Network Element Manager (NSS NEM).

55.7.4   The tests for BSS shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.7.5   The tests for PDN shall comprise of tests to determine the overall
         equipment functionality of:

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         (a)      Packet Data Serving Node (PDSN) device;

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

         (d)      Directory Number System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.7.6   PARTNER shall provide TELKOM with the results of PARTNER's Own Tests
         when it requests TELKOM to attend the Commissioning.

55.8     Commissioning: Sub-System Acceptance Test

55.8.1   Upon completion of PARTNER Own Tests, PARTNER shall conduct tests of
         each individual Sub-system in the presence of TELKOM as a witness.

55.8.2   The tests shall be conducted during normal weekday working hours and
         PARTNER shall liaise with TELKOM at least fourteen (14) calendar days
         before the proposed test date to fix the timing and resources required
         for the test. PARTNER shall co-ordinate the test dates across the
         relevant DIVRE to ensure that the tests are scheduled efficiently.

55.8.3   Successful completion of the Sub-system Acceptance Tests are a
         pre-requisite for Integrated System Acceptance Tests.

55.8.4   The tests for NSS shall comprise of tests to verify the overall
         functionality of:

         (a)      Mobile Switching Center (MSC) (and Visitor Location Register
                  (VLR));

         (b)      Home Location Register (HLR);

         (c)      Authentication Center (AC);

         (d)      Interworking Function (IWF);

         (e)      Wireless Intelligent Network (WIN);

         (f)      Short Message Service Center (SMSC);

         (g)      WAP Gateway and Server;

         (h)      Voice Mail System (VMS);

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<PAGE>

         (i)      NSS Network Element Manager (NSS NEM).

55.8.5   The tests for BSS shall comprise all tests necessary to verify the
         overall equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.8.6   The tests for PDN shall comprise tests to verify the overall equipment
         functionality of:

         (a)      Packet Data Serving Node (PDSN);

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

         (d)      Directory Number System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.8.7   In addition the following on-Location tests shall be conducted for each
         Sub-system:

         (a)      Mechanical, quantity and appearance checks;

         (b)      Workmanship checks;

         (c)      Construction, installation, cabling, wiring, fixing, equipment
                  foundation, painting and galvanizing, appearance and
                  mechanical strength and labeling checks;

         (d)      Meter and Alarm Indication check;

         (e)      Power supply checks;

         (f)      Losses contact checks.

55.8.8   PARTNER shall provide TELKOM with full access to the results of any
         Sub-system Acceptance Tests before initiating any Integrated System
         Acceptance Tests.

55.9     Commissioning: Integrated System Acceptance Test

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<PAGE>

55.9.1   PARTNER shall conduct Integrated System Acceptance Tests in the
         presence of TELKOM as a witness upon completion of the Sub-system
         Acceptance Tests (including tests on measuring equipment and spare
         parts) to ensure that a System is functioning as designed and ready for
         acceptance by TELKOM.

55.9.2   PARTNER shall prepare a comprehensive testing plan and test procedure
         for TELKOM's approval.

55.9.3   The smallest Network element that may be System tested shall be a BTS
         and its associated equipment. All System tests must be carried out on a
         end to end basis (i.e., PSTN to MSC to BSC to BTS to test subscribers)
         to verify that:

         (a)      the installed system complies with the Technical
                  Specifications of the Agreement;

         (b)      the System has been demonstrated to be compatible with the
                  existing exchange, BSS and other Systems;

         (c)      the equipment is interoperable and interconnected with
                  existing PSTN and PLMN operational systems.

55.9.4   The tests shall be conducted during normal weekday working hours and
         PARTNER shall liaise with TELKOM at least ten (10) Business Days before
         the proposed test date to fix the timing and resources required for the
         test. PARTNER shall co-ordinate the test dates across the relevant
         DIVRE to ensure that the tests are scheduled efficiently.

55.9.5   In addition, PARTNER shall provide TELKOM with details of all
         transmission links and assistance to be provided by TELKOM. TELKOM may
         postpone the test date if the transmission links required cannot be
         provisioned in time.

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<PAGE>

55.9.6   TELKOM shall within ten (10) Business Days issue a Integrated System
         Acceptance Test Certificate for the equipment tested once:

         (a)      all the relevant System tests have been successfully
                  completed;

         (b)      all required test equipment and necessary tools have been
                  supplied; and

         (c)      all handbooks, as-built drawings, inventory list and other
                  information necessary for maintenance of the relevant System
                  have been supplied.

         The Integrated System Acceptance Test Certificate shall be issued on a
         per Location basis. In the event that any Sub-system or Site within the
         Location cannot be tested caused by any reason, a Partial Integrated
         System Acceptance Test Certificate may be issued for the Location
         covering only the Commissioned Sub-system(s) or Site(s).

55.9.7   In the event that TELKOM is unable to provide, where required, the
         necessary transmission links and/or an E1 link at the PSTN switch to
         connect the Network elements to each other, but it is shown that the
         relevant System otherwise fulfils all the requirements above, TELKOM
         shall issue a Partial Integrated System Acceptance Test Certificate
         within ten (10) Business Days.

55.9.8   15% of the applicable Contract Value for the equipment tested shall be
         payable on TELKOM's issuance of the Integrated System Acceptance Test
         Certificate or Partial Integrated System Acceptance Test Certificate,
         as the case may be. The applicable PAYG Payment Period shall commence
         only on issuance of the relevant Integrated System Acceptance Test
         Certificate.

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<PAGE>

55.9.9   If TELKOM offers a System for commercial service which has not yet
         received an Integrated System Acceptance Test Certificate, then this
         System shall be deemed to have been tested and accepted and TELKOM
         shall issue the relevant Integrated System Acceptance Test Certificate
         in accordance with Article 55.9.6.

55.10    Civil Work Tests

55.10.1  PARTNER shall regularly inspect all civil works in progress on a
         continuous and/or interim basis, based on the civil work test plan
         submitted to and agreed by TELKOM. The test plan shall include the
         proposed frequency of the inspections and the test protocol to be used.
         The test protocol shall be in the form of worksheets to be used on
         Location/Site as the work progresses.

55.10.2  TELKOM will issue certificates at each stage of work once the civil
         work tests are successfully completed based on the agreed test
         protocol.

Article 56.       Integration, Interoperability and Compatibility

56.1     Integration and Interconnection

56.1.1   The CDMA Network consisting of NSS and BSS shall interface with:

         (a)      TELKOM's PSTN via standard 2 Mbps interface (E-1) link and be
                  connected to external ATM/ IP data network via an Inter-
                  Working Function (IWF) device. Details of the NSS
                  interconnection requirements are set out in Appendix 5
                  (Technical Specifications); and

         (b)      TELKOM's data network via a PDSN (Packet Data Serving Node)
                  device as part of the PDN (Packet Data Network) supplied by
                  PARTNER.

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<PAGE>

56.1.2   In particular, PARTNER shall ensure without limitation that:

         (a)      the NSS equipment is integrated with the existing PSTN,
                  TELKOM's Signalling Transfer Point (STP) for CCS #7 signalling
                  system, and Public Land Mobile Network (PLMN);

         (b)      the BSS/BSC is integrated with the NSS and PDN (Packet Data
                  Network) equipment; and

         (c)      all related Sub-systems within the NSS, BSS and PDN to be
                  delivered by PARTNER are integrated with each other.

56.2     Interoperability Requirement

56.2.1   The NSS equipment must be interoperable with BSS equipment from other
         CDMA FWA vendors which shall be based on the IOS 4.0. The
         interoperability between the NSS equipment and value added services
         equipment from other vendors shall be based on IS 41D standard.

56.2.2   The BSS equipment must be interoperable with NSS equipment provided by
         PARTNER and compatible with CDMA IOS 4.0 standards.

56.2.3   PARTNER shall provide TELKOM with supporting evidence in the form of a
         written statement or certificate from operators, certification body, or
         PARTNER stating operator's name and contact information, location,
         types of NSS and BSS equipment, and examples where interoperability
         occurs. TELKOM shall issue an IOP Certificate to PARTNER in accordance
         with the Interoperability Commitment Agreement following successful
         completion of its own interoperability (IOP) tests.

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<PAGE>

56.3     Compatibility

56.3.1   All new software releases or versions shall be backwards compatible
         with previous releases and versions.

Article 57.      Cut Over Procedures

57.1     PARTNER shall ensure that the cut over of any equipment on the Network
         (for example, where a BTS is to be disconnected from an existing BSC
         and reconnected to a new BSC being installed or where a BSC is to be
         disconnected from an existing NSS and reconnected to a new NSS being
         installed) does not interfere with the operation of the Network.

57.2     PARTNER shall liaise with TELKOM as to the procedures and timing for
         the cut over and any cutover should take place during the hours of 2:00
         am - 4:00 am (the "Cutover Period"), unless otherwise agreed by TELKOM.

57.3     PARTNER shall ensure that the previous connections can be
         re-established without any interruption to the Network in the event
         that the cutover does not work properly or perform satisfactorily. In
         the event that the cutover appears unlikely to be completed during the
         Cutover Period, PARTNER shall re-establish the previous connection and
         re-attempt the cut over the following day.

57.4     PARTNER shall indemnify TELKOM against any loss or damage suffered as a
         result of any interruption to the Network (including without limitation
         any service interruption or system downtime) occurring outside the
         Cutover Period caused by a cut over that results in a revenue loss for
         TELKOM, in accordance with Article 11.

57.5     These Cutover procedures shall also be applicable to Package 1.

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Article 58.      Compliance with Environmental Standards

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

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

58.3     PARTNER shall provide TELKOM with the following information early
         enough to give TELKOM reasonable time to pass it on to all parties
         involved before Deliverables are received:

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

58.3.2   where such substances and/or preparations are located in the equipment
         and how the components concerned must be treated at the end of their
         useful life and at the end of the useful life of the equipment, and how
         such components can be removed from the equipment safely and correctly;

58.3.3   which regulations are applicable to the transport, storage,
         installation, use, dismantling and processing of the substance in
         connection with the harm it is capable of causing; and

58.3.4   how to improve the information distribution/acquisition process at and
         by TELKOM to a reasonable extent without raising its costs.

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58.4     PARTNER shall state which components of the equipment are suitable for
         re-use or recycling other than by incineration at the end of its useful
         life. PARTNER shall retrieve the equipment from TELKOM for this purpose
         or pay TELKOM an appropriate fee for waste processing/recycling.

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

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

Article 59.      Development of Mediation Device

PARTNER shall at TELKOM's request develop and provide interfaces to TELKOM's
customer care, billing, NMS, VMS, SMS, MMSC, WAP and other value added services
systems. The cost of the development (save in the case of the mediation device
for the NMS as already agreed in Appendix 4) shall be agreed in advance with
TELKOM and then added to the Contract Value of the Purchase Order associated
with the equipment with which the mediation device will be used. 25% of the
development costs shall be paid on commissioning of the mediation device, and
the remaining 75% paid by TELKOM in accordance with the PAYG payment scheme for
the associated equipment.

Article 60.      Documentation

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

                                      115
<PAGE>

         submitted to TELKOM. Instruction handbooks to be supplied shall include
         but not be limited to the following:

60.1.1   Installation and system handbooks;

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

60.1.3   Repair handbooks including circuit diagrams;

60.1.4   Customer handbooks for the fixed terminal shall include assembly
         drawings, wiring information, and complete instruction for
         familiarization, installation, maintenance, and parts replacement;

60.1.5   Customer handbooks for the mobile handset shall include only complete
         instruction for familiarization, maintenance and part replacement. All
         handbooks shall be prepared in English and the metric system of weights
         and measures should be used.

60.2     PARTNER shall maintain and keep updated a Project library in Indonesia
         containing all relevant documents related to the Project, including
         without limitation, minutes of each JPS, DRM and-monthly meeting, all
         Purchase Orders, demand forecasts, Change Requests, each agreed
         revision of the Implementation Plan and all correspondence between
         PARTNER, its sub-contractors and TELKOM. The Project library shall be
         accessible by TELKOM and its representatives during normal working
         hours and TELKOM may from time to time request copies of all or parts
         of the Project library to be supplied to it at no further cost. The
         Project library shall be handed over to TELKOM on termination of this
         Agreement.

60.3     PARTNER shall submit drawings and documents (including as-buiit,
         assembly, connection and allocation drawings) related to the relevant
         Systems and Sub-systems installed.

                                      116
<PAGE>

60.4     Any drawings and documents with respect to the relevant Systems or Sub-
         systems owned by PARTNER related to the relevant Deliverables shall be
         kept for the life-time of such System or Sub-system to enable PARTNER
         to procure any parts which need replacement and/or expansion of such
         System or Sub-system if so required at any time.

60.5     Any Intellectual Property Rights with respect to any drawings,
         specifications and data which are issued by the respective Parties
         pursuant to the implementation of this Agreement shall remain the
         property of the respective Parties in accordance with this Agreement.

60.6     Any incompleteness, doubts with respect to breakdown and/or elaboration
         contemplated in any documents and/or those which constitute parts of
         this Agreement shall be presented to TELKOM for clarification.

60.7     As long as PARTNER is providing maintenance and support in accordance
         with this Agreement and the applicable SLA, the cost of updates to the
         Documentation shall be included in the fees paid by TELKOM to PARTNER
         pursuant to the relevant SLA. For ihe avoidance of doubt, the costs of
         the Documentation shall be payable under general services.

60.8     All Documentation shall be in accordance with the requirements stated
         in the RfP. The standard documents required to be provided by PARTNER
         are listed in Appendix 22 (Documentation).

60.9     At the first JPS, PARTNER shall submit to TELKOM its plan to execute
         the Location/Site survey consisting, without limitation of the
         following items:

60.9.1   time schedule;

60.9.2   manpower schedule;

60.9.3   team organization.

                                      117
<PAGE>

60.10    TELKOM will provide a letter of approval of the detailed Location/Site
         survey plan submitted by PARTNER, after it has agreed to the proposed
         content. PARTNER shall perform the Location/Site survey accompanied by
         TELKOM's assigned team as scheduled in the Location/Site survey plan.

60.11    PARTNER shall provide a Location/Site survey report ("Survey Report")
         for installation within two (2) weeks of the Location/Site survey. The
         Survey Report shall consist of the following items:

60.11.1  Location/Site layout, that shall include guide map, floor lay out and
         cable racking;

60.11.2  arrangement of terminal block and existing distribution frame;

60.11.3  arrangement of the sub distribution panel;

60.11.4  availability of supporting facility and other requirements;

60.11.5  availability of antenna space at the existing tower;

60.11.6  map of the site's profile and backhaul system;

60.11.7  availability of port and link at TELKOM's exchanges; and

60.11.8  coverage map of each BTS.

60.12    PARTNER shall submit its final as-built drawings based on the Network
         configuration upon completion of the installation work.

CHAPTER 6. SERVICE LEVEL AGREEMENTS

Article 61.      Service Level Agreements

61.1     Operation and Maintenance Support Service Level Agreement

61.1.1   TELKOM has requested PARTNER to render certain operation and
         maintenance support services, and PARTNER has agreed to provide these
         services in accordance with a Service Level Agreement.

61.1.2   Prior to Commissioning of the Deliverables in the Second Purchase
         Order, TELKOM and PARTNER shall

                                      118
<PAGE>

         enter into a Service Level Agreement in form and substance as set out
         in Appendix 19 to cover operation and maintenance support. The initial
         term of the Service Level Agreement shall expire three (3) years from 1
         January 2003 unless earlier terminated in accordance with the SLA.

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

Article 62.      General

62.1     Subject to Article 14.2.1, this Chapter shall apply to Package 1 and
         Package 2.

62.2     PARTNER acknowledges that certain Network equipment for Package 1 is
         being supplied by other equipment vendor(s) and that achieving inter-
         operability between each vendor's equipment is a key requirement of the
         T-21 Program. In particular, TELKOM requires that the NSS
         configuration be fully interoperable with BSS equipment from other CDMA
         FWA vendor(s) in accordance with Article 56. The Parties recognise that
         until inter-operability has been achieved, service cannot begin in the
         DIVREs where more than one vendors are providing equipment. To achieve
         this aim, the Parties have entered into a separate interoperability
         commitment agreement with the other vendor(s) in Package 1.

62.3     In the event that the vendors are unable to achieve satisfactory
         interoperability by the end of the testing period, or by the end of the
         first quarter of 2003, whichever is earlier TELKOM may at its sole
         discretion:

         (a)      extend the testing period for such period as it thinks fit and
                  request the vendors to continue working towards
                  interoperability;

                                      119
<PAGE>

         (b)      stop further testing until further notice; or

         (c)      notify either of the vendors or both, as the case may be, that
                  based on a comprehensive technical review of the cause or
                  causes resulting in the failure of achieving inter-operability
                  as contemplated in this Agreement, TELKOM intends to exercise
                  its right to terminate this Agreement pursuant to Article
                  14.2, and that TELKOM reserves its right to claim from and to
                  be indemnified by PARTNER for its proportionate share of
                  Project-related costs for which it is responsible, suffered
                  by TELKOM as a result of the failure of achieving
                  inter-operability.

62.4     Following issuance of the IOP Certificate, the Parties acknowledge that
         certain additional modifications are required to this Agreement to
         allow inputs from each vendor at the JPS and DRMs and that they will
         deal expeditiously with any delays caused by one or more vendors which
         affect the other vendors.

Article 63.      JPS, DRMs and monthly meetings

63.1     At each JPS:

63.1.1   the demand forecasting and economic analysis shall be conducted by the
         vendor of the BSS equipment and TELKOM jointly, with the vendor of the
         NSS equipment providing comments only;

63.1.2   the prioritisation of Locations/Sites for network deployment of the BSS
         equipment shall first be conducted by the vendor of the BSS equipment
         and TELKOM jointly. The prioritisation of

                                      120
<PAGE>

         Locations for Network deployment of the NSS equipment shall follow on
         and be conducted by the vendor of the NSS equipment and TELKOM jointly;
         and

63.1.3   the technology review shall be conducted by all vendors and TELKOM
         jointly.


63.2     At each DRM:

63.2.1   each vendor shall be responsible for surveying their own deployment
         sites;

63.2.2   TELKOM and the vendor of the BSS equipment shall jointly calculate,
         check and update the Installed Line Procurements, with the vendor of
         the NSS equipment providing comments only;

63.2.3   the Deployment Plan for the BSS equipment for the next Quarter shall
         first be jointly developed, agreed and approved by the vendor of the
         BSS equipment and TELKOM; then the Deployment Plan for the NSS
         equipment for the next Quarter shall be jointly developed, agreed and
         approved by the vendor of the NSS equipment and TELKOM;

63.2.4   TELKOM and each vendor shall develop, agree and approve their
         respective detailed network designs, BoQ, resource plans and training
         plans;

63.2.5   TELKOM and the vendors shall jointly discuss any changes which may be
         required to the Project Management Plans and Implementation Schedule,
         and in particular shall provide information on any potential delays or
         other matters which could affect the other vendor(s) or the overall
         deployment of the Network. TELKOM and each vendor shall then jointly
         agree and approve any adjustments to their respective plans and
         schedules taking into account the information provided by the other
         vendor(s).

                                      121
<PAGE>

63.3     TELKOM may from time to time request the vendors to attend together the
         monthly meetings to allow information sharing and joint discussions to
         take place.

Article 64.      Commissioning Tests

64.1     The Parties acknowledge that in order to test the Network end to end,
         each Network component (MSC, BSC and BTS) must be interconnected and be
         available for testing during the period scheduled for the Integrated
         System Acceptance Tests.

64.2     The Integrated System Acceptance Tests shall be conducted during normal
         weekday working hours and PARTNER seeking to test its equipment shall
         co-ordinate with TELKOM and the other vendor(s) at least fourteen (14)
         calendar days before the proposed test date to fix the timing and
         resources required for the test. PARTNER shall co-ordinate the test
         dates across the relevant DIVRE to ensure that the tests are scheduled
         efficiently.

64.3     Each vendor shall upon receipt of the notice promptly inform TELKOM and
         the other vendor(s) whether its equipment has completed the required
         Sub-system Acceptance Tests, and if not when such tests are scheduled
         for and if it expects any delay to its agreed completion dates.

64.4     TELKOM may reschedule the proposed test date by up to one (1) month to
         address any delays which are attributable to other vendors. In the
         event that the other vendor's equipment is still not available for
         testing after the one month grace period, but it is shown that the
         vendor's system otherwise fulfils all the Integrated System Acceptance
         Test requirements, TELKOM shall issue a Partial Integrated System
         Acceptance Test Certificate to the vendor.

                                      122
<PAGE>

64.5     For the avoidance of doubt, the testing and Commissioning procedures
         for Package 1 are provided in Article 55.

                                      123
<PAGE>
IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized representatives on the day and year first above written.

PERUSAHAAN PERSEROAN (PERSERO)
PT TELEKOMUNIKASI INDONESIA TBK.

     BY /s/ Kristiono
        -------------
     Name  :  Kristiono
     Title :  President Director

SAMSUNG CONSORTIUM
SAMSUNG ELECTRONIC CO., LTD.

        [STAMP]

By:/s/ Soon Ho Hong
   ----------------
Name : Soon Ho Hong
Title: Senior Vice President &
       General Manager
       Telecommunication Systems
       Division

PT MITRAGUNA INTIKOM

By: /s/ Budi F. Japadermawan
    ------------------------
Name : Budi F. Japadermawan
Title: Director

                                      124

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.12
<SEQUENCE>12
<FILENAME>u92256exv4w12.txt
<DESCRIPTION>EX-4.12 AM#1 TO THE MASTER PROCUREMENT PARTNERSHIP
<TEXT>
<PAGE>
                                                                    Exhibit 4.12

                                AMENDMENT NO. 1
                  TO MASTER PARTNERSHIP PROCUREMENT AGREEMENT
                FOR FIXED WIRELESS ACCESS PACKAGE-2 T-21 PROJECT

                        NO.K.TEL.217/HK.910/UTA-00/2002

                            DATED DECEMBER 23, 2002
<PAGE>


                                 AMENDMENT No. 1
                   TO MASTER PARTNERSHIP PROCUREMENT AGREEMENT
             NO.K.TEL.217/HK.910/UTA-00/2002 DATED 23 DECEMBER 2002
                FOR FIXED WIRELESS ACCESS PACKAGE-2 T-21 PROJECT

                     NUMBER: K.TEL. 273 /HK.920/UTA-00/2003

On this day WEDNESDAY dated THIRTYONE month December of year 2003, at Corporate
Office of PT. (Persero) Telekomunikasi Indonesia, Tbk. Jalan Japati No.1,
Bandung, between the parties:

I.       PT (PERSERO) TELEKOMUNIKASI INDONESIA, Tbk., a telecommunication
         services and network provider established and incorporated under the
         law of the Republic of Indonesia, having its registered office at Jalan
         Japati No.1 Bandung - 40133, in this Amendment represented by
         KRISTIONO, President Director, hereinafter in this Amendment referred
         to as TELKOM;

And

II.      SAMSUNG CONSORTIUM, established based on Consortium Agreement dated 11
         December 2002, comprised of SAMSUNG ELECTRONICS CO., LTD, as leader of
         the consortium having its legal domicile in Seoul, Korea, for the
         purpose of signing of this Amendment being duly represented by YEO
         YEONG WOON, in his capacity as General Manager Telecommunication
         Systems Division, PT MITRAGUNA INTIKOM, as a member of the Consortium,
         having its legal domicile in Jakarta, Indonesia, for the purpose of
         signing of this Amendment being duly represented by Budi F.
         Japadermawan, in his capacity as Director and PT.SAMSUNG TELE-
         COMMUNICATION INDONESIA, a company incorporated under the law of the
         Republic of Indonesia, which its

                                        1
<PAGE>

         article of association has legalized by Minister of Justice and HAM RI
         through letter No.C-28256.HT.01.01.TH.2003 dated 2 December 2003 its,
         as a member of the Consortium, for the purpose of signing of this
         Amendment being duly represented by LEE JIN HEE, in his capacity as
         Director;

         Hereinafter collectively the Parties belonging to this Consortium in
         this Amendment referred to as PARTNER.

         (severally SAMSUNG ELECTRONICS CO., LTD referred to as SAMSUNG, PT
         MITRAGUNA INTIKOM referred to as INTIKOM, and PT. SAMSUNG
         TELECOMMUNICATION INDONESIA referred to as STIN).

By first taking into consideration the following matters:

a.       Whereas TELKOM and SAMSUNG Consortium have signed the Master
         Procurement Partnership Agreement No. K.TEL.217/HK910 /UTA-00/2002
         dated December 23, 2003 (hereinafter referred to as the "Main
         Agreement");

b.       Whereas SAMSUNG Consortium intended to add a new consortium member
         through its letter dated August 22, 2003;

c.       Whereas STIN as a company which is requested as a new consortium member
         has fulfilled the TELKOM's requirement where it's the article of
         association shall be legalized by Minister of Justice and HAM RI.

After having taken into consideration the above matters, TELKOM and PARTNER have
agreed to amend the provisions stipulated in the Main Agreement by the following
terms and conditions:

                                        2
<PAGE>

ARTICLE 1: MEMBER OF CONSORTIUM

Referring to the Preamble of Main Agreement, TELKOM and PARTNER agreed to add a
new Consortium member, namely:

Name of Company: PT. Samsung
Telecommunication Indonesia.

Address: Wisma Antara Lantai-8 Suite 803, JI.Medan Merdeka Selatan No.17
Jakarta-10110 Indonesia.

ARTICLE 2: NOTICE

All notification required in connection with the implementation of this
Amendment concordant article 20 Main Agreement still valid, except is add
addressed follows:

Other copy to PT. MITRAGUNA INTIKOM, must be address to:

PT. SAMSUNG TELEKOMUNIKASI
INDONESIA (STIN)
WISMA ANTARA lantai-8
Jl. Medan Merdeka Selatan No. 17
Gambir, Jakarta 10110, Indonesia
Up. IG KYU CHOI
Fax. (021) 2312520
E Mail: Ik.choi@samsung.com

ARTICLE 3: RIGHT AND RESPONSIBILITY

Right and responsibility which is obligate PARTNER definitely as at Main
Agreement.

ARTICLE 4: EFFECTIVE DATE OF AMENDMENT

This Amendment becomes immediately effective after duly signed by TELKOM and
PARTNER.

                                        3
<PAGE>

ARTICLE 5: APPENDICES

The following Appendices of this Amendment constitute an inseparable part of the
Main Agreement and this Amendment:

Appendix 1 : Power of Attorney
Appendix 2 : Consortium Agreement
Appendix 3 : Correspondence
Appendix 4 : Company Profile of STIN

If there is a conflict between the terms specified in the main body of this
Amendment and the Appendices, the terms specified in the main body of this
Amendment shall govern.

ARTICLE 6: OTHER PROVISIONS

6.1.     All terms and conditions as stipulated in Main Agreement, except as
         expressly amended in accordance with the provisions of this Amendment,
         shall remain valid in full force.

6.2.     This amendment is drawn-up with two (2) originals, in the Indonesian
         Language and English Language, each of them having the same meaning,
         and having the same legal power after being signed by both parties.

                                        4
<PAGE>

In witness whereof the Parties, hereto set their hand this day and year above
written.

                        Signed by, for and on behalf of:

PT.TELEKOMUNIKASI INDONESIA, Tbk.                 SAMSUNG CONSORTIUM
                                             SAMSUNG ELECTRONICS CO., LTD
                                                      (LEADER)
/s/ Kristiono
- ------------------------                              [STAMPED]
       KRISTIONO
     --------------
     Direktur Utama                                /s/ Yeo Yeong Woon
                                                   ----------------------------
                                                       YEO YEONG WOON
                                             ----------------------------------
                                             General Manager, Telecommunication
                                                       Systems Division

                                             PT MITRAGUNA INTIKOM (MEMBER)

                                                      [STAMPED]

                                               /s/ Budi F. Japadermawan
                                               -------------------------------
                                                   BUDI F. JAPADERMAWAN
                                                   --------------------
                                                         Director

                                                     PT.SAMSUNG
                                             TELECOMMUNICATION INDONESIA
                                                       (MEMBER)

                                                     /s/ Lee Jin Hee
                                                     -----------------------
                                                           LEE JIN HEE
                                                           -----------
                                                            Director

                                        5

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.13
<SEQUENCE>13
<FILENAME>u92256exv4w13.txt
<DESCRIPTION>EX-4.13 SERVICE LEVEL AGREEMENT,DATED DEC.23, 2002
<TEXT>
<PAGE>
                                                                    Exhibit 4.13


                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA Tbk.

                                       AND

                               SAMSUNG CONSORTIUM
                          SAMSUNG ELECTRONICS CO. LTD.
                              PT MTTRAGUNA INTIKOM

                             SERVICE LEVEL AGREEMENT

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
No.                                                                           Page
- ---                                                                           ----
<S>                                                                           <C>
1.       Definitions......................................................      1

2.       Force Majeure....................................................      3

3.       Assignment and Subcontracting....................................      3

4.       Governing Law and Language.......................................      4

5.       Settlement of Disputes...........................................      4

6.       Notices and Authorized Representatives...........................      5

7.       Termination......................................................      6

8.       General provisions...............................................      8

9.       General Principles...............................................      9

10.      Fault Management.................................................     10

11.      On-line Information/Reporting....................................     12

12.      Hardware Change Management.......................................     12

13.      Software Update..................................................     13

14.      Operation and Maintenance Assistance.............................     16

15.      Escalation procedure for Service Level Failures..................     17

16.      Payment Amount...................................................     18

17.      Evaluation of Key Performance Indicators ("KPIs") Compliance.....     19
</TABLE>

Appendix A - Help Desk Contact Information
Appendix B - Fault Management Service
Appendix C - Compensation for Revenue Loss
Appendix D - On-Line Information Service Requirements
Appendix E - Spare Part Turn Around Time
Appendix F - Operation and Maintenance Assistance Service-Tasks
Appendix G - Operation and Maintenance Assistance Service-Composition
Appendix H - KPI Compliance and Payment
Appendix I - KPI Measurement Mechanism
Appendix J - SLA Fee Components
Appendix K - SAMSUNG Service Proposal
Appendix L - Scope and Responsibilities of TELKOM's Operations and Maintenance
             Services
Appendix M - Schedule of Proposed Sub-Contractors

                                       ii
<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 Jalan Japati
         No. 1, Bandung, Indonesia, in this legal action duly represented by
         Kristiono in his capacity as President Director, and having its office
         at Jl. Japati No. 1, Bandung, hereinafter referred to as "TELKOM".

and

(2)      SAMSUNG CONSORTIUM, established based on Consortium Agreement dated 11
         December 2002, comprised of SAMSUNG ELECTRONICS CO., LTD, as leader of
         the consortium having its legal domicile in Seoul, Korea, for the
         purpose of signing of this Agreement being duly represented by Soon Ho
         Hong, in his capacity as Senior Vice President and General Manager,
         Telecommunication Systems Division, and PT MITRAGUNA INTIKOM, as a
         member of the Consortium, having its legal domicile in Jakarta,
         Indonesia, for the purpose of signing of this Agreement being duly
         represented by Budi F. Japadermawan, in his capacity as 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, unless earlier terminated.

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 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.

                                        1
<PAGE>


         (b)      "COMMENCEMENT DATE"     means January 1, 2003 or earlier as
                                          requested by TELKOM.

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

         (d)      "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.

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

         (f)      "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.

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

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

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

         (j)      "TSC2"                  means PARTNER's support personnel
                                          located within each DIVRE (Field
                                          Support Office) and at the main help
                                          desk in Bandung or Jakarta.

         (k)      "TSC3"                  means PARTNER's specialised technical
                                          support staff and designers who have
                                          the capability of evaluating complex
                                          Network problems, and who are located
                                          in Korea.

         (l)      "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.

                                        2
<PAGE>


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
         re-enacted.

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.

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, 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 approval of PARTNER, such approval not to be unreasonably
         withheld, 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
         M. 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

                                        3
<PAGE>

         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 price for the Services or
         the 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 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 Article 5.4(i) are satisfied).

                                        4
<PAGE>

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 the Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by this Article 5.

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 time to time notified in writing:

         For TELKOM :

                  Perusahaan Perseroan (PERSERO) PT Telekomunikasi Indonesia
                  Tbk.

                  Jl. Japati NO. 1, Bandung 40133
                  Attention : President Director
                  Fax       : (022)440-313
                  Email     : Kristiono@telkom.co.id

         For PARTNER:

                  Samsung Electronics Co. Ltd.
                  18th IT Center
                  Maetan-3 dong, Paldal-gu, Suwon-si,

                                        5
<PAGE>

                 Gyeonggi-do, Korea 442-742
                 Attention : Ig Kyu Choi
                 Fax       : (82-31)_279-3899
                 Email     : ik.choi@samsung.co.kr

         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 arc listed below:

         PARTNER's Point of Contact:

         Project Manager
         Plaza Mashill, 23rd Floor
         Jalan Jend. Sudirman Kav. 25
         Jakarta 12920, Indonesia
         Tel    : (021)522-5522
         Fax    : (021)522-5511
         E-mail : jay.lec@Samsung.com
         Mobile : (0812) 1834-222

         TELKOM Point of Contact

         Head of Fixed Wireless Division (as Project Manager)
         Jalan Kebon 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

                                        6
<PAGE>

         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 by TELKOM 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 he 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;

         (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
<PAGE>


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 except as provided otherwise under this Agreement.

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.

                                        8
<PAGE>

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 (within Indonesia based at
         locations approved by TELKOM) to provide the Services.

9.3      The scope and responsibilities of TELKOM's TSC1 operations and
         maintenance services are as detailed in Appendix L.

9.4      Without prejudice to Article 9.2, PARTNER shall provide TELKOM with a
         list identifying all personnel deployed and their qualifications
         (PARTNER'S initial organisation chart is attached as Appendix G).
         PARTNER shall seek TELKOM's approval for replacement of the Project
         Manager (which shall not be unreasonably refused or delayed). For all
         other personnel, TELKOM shall inform PARTNER of any objections within
         ten (10) Business Days of notification by PARTNER in advance of any
         proposed changes to the personnel providing the Services. Any such
         personnel to whom TELKOM objects shall not be appointed. Replacements
         must be equally well-qualified and appropriate for the provision of the
         Services.

9.5      The Services as described in Article 9.1 are comprised 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;

         (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.

                                        9
<PAGE>


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 consist of one main Help-Desk located in
                  either Jakarta or Bandung (the "Main Help Desk") and DIVRE
                  Field Support Office Help-Desks located in each DIVRE (the
                  "DIVRE Help Desks").

         (c)      The Main Help-Desk will be operational and manned 24 hours a
                  day, 365/366 days a year. The Main Help-Desk will provide the
                  Emergency Support Service.

         (d)      The DIVRE Help-Desks shall be operational between 8:00 am and
                  5:00 pm Mondays to Fridays (Indonesian local time).

         (e)      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.

         (f)      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 technician assigned to the trouble ticket.

         (g)      Depending on the severity of the problem, the problem may be
                  escalated to TSC-3 for them to attend to,

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

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

                  (i)      "Critical";

                  (ii)     "Major"; or

                  (iii)    "Minor".

         (j)      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.

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

         (l)      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.

10.2     The Fault Management Service

         (a)      PARTNER shall provide a fault-management service to TELKOM to
                  correct and

                                       10
<PAGE>


                  rectify faults with the Network in a timely manner (the "Fault
                  Management Service").

         (b)      A "fault" under this Article shall include all defects,
                  interruptions or disturbances to the Network and the failure
                  of the Network 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 Main Help-Desk, in conjunction with the DIVRE Help-Desks,
                  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.

10.4     For revenue impacting breakdowns, PARTNER will pay compensation to
         TELKOM, based on the mechanism described in Appendix C.

                                       11
<PAGE>


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 and shall
                  continuously monitor the performance of the hardware of the
                  Network periodically and record its findings in a Hardware
                  Report. Any changes to the hardware shall be recorded in the
                  Hardware Report PARTNER shall forward all Hardware Reports to
                  TELKOM.

         (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 the most suitable and available
                  test facility.

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

         (b)      PARTNER shall provide to TELKOM, without limitation, access to
                  the spare parts database which will show the spare parts
                  stored by PARTNER on site or near the site at its sole expense
                  in order to minimise delay. As a general rule, PARTNER will

                                       12
<PAGE>

                  maintain a store of spare parts at each MSC location. In
                  addition, where the respective Project Managers have decided
                  that it is necessary or desirable to maintain spare parts
                  storage facilities at a particular BTS site, PARTNER will
                  arrange for storage of critical spare parts at such sites.

         (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 Network 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)      Upon request by TELKOM, PARTNER shall implement all required
                  hardware changes in the Network to meet the required operation
                  and maintenance parameters.

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 update services as well as
                  software maintenance services (the "Software Update Service")
                  which shall consist of at least software customisation;
                  software updates (including bug fixes and patches) required to
                  optimize the system performance of the Network; and achieving
                  interoperability with external systems.

                  (i)      Software customization. With the participation and
                           agreement of TELKOM,

                                       13
<PAGE>

                           PARTNER shall customize TELKOM's existing software to
                           meet TELKOM's internal and/or external business
                           requirements in relation to operation and maintenance
                           of the Network PARTNER shall:

                           -        Work with TELKOM to determine the
                                    customization requirements of the software;

                           -        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.

                  (ii)     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.

                  (iii)    External interoperability. 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.

                                       14
<PAGE>


         (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.

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, subject to Article 13.3(b).

         (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 planning 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

                                       15
<PAGE>

                  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 upgrade (not including related services).
                  TELKOM may at its sole discretion decide to accept or decline
                  each upgrade.

         (b)      TELKOM's requests for software upgrades pursuant to Article
                  13.2 of this Agreement are subject to agreement of the Parties
                  on fees and other terms and conditions before PARTNER engages
                  in development activity.

14.      OPERATION AND MAINTENANCE ASSISTANCE

14.1     The Operations and Maintenance Assistance Service

         (a)      PARTNER shall provide in writing to TELKOM a description of
                  the tasks required to be performed to assist TELKOM's staff to
                  operate and maintain the Network 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. These shall include
                  a 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.

         (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 requested
                  by TELKOM from time to time. PARTNER shall deploy its
                  operation and maintenance assistance team in accordance with
                  Appendix G and K. 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 two days' 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 number of expert
                  personnel based on yearly estimates. The yearly estimates and
                  the qualifications of its expert personnel shall be prepared
                  by PARTNER and supplied to TELKOM for its approval at least 2
                  months prior to each anniversary of the Commencement Date. Any
                  changes in PARTNER's expert personnel assigned to perform the
                  Services as recommended by PARTNER and approved by TELKOM
                  assigned thereafter shall be approved by TELKOM in writing.

                                       16
<PAGE>


         (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 TSC2 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:

                  (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 Korea and the senior executives of TELKOM.

                                       17
<PAGE>


CHAPTER 3 - PAYMENT TERMS AND CONDITIONS

16.      PAYMENT AMOUNT

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

         (a)      a Basic Fee calculated according to Appendix J, payable in
                  four equal installments at the end of each Quarter in the
                  first year, This amount shall be due upon delivery to TELKOM
                  of an invoice for each installment, accompanied by the
                  following Documentation 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)      an Annual Fee calculated according to Appendix J. This amount
                  shall be due upon delivery to TELKOM of an invoice for the
                  agreed sum, accompanied by the following Documentation
                  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 Annual 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 PARTNER
         for reasons not permitted under Article 7.3, a pro rata percentage of
         the current year's Annual Fee shall be refunded to TELKOM and:

         (a)      if occurring during the first year of this Service Level
                  Agreement, PARTNER shall repay to TELKOM 66% of the Basic Fee;

         (b)      if during the second year of this Service Level Agreement,
                  PARTNER shall repay to TELKOM 33% of the Basic Fee;

         (c)      if during the third year of this Service Agreement, PARTNER
                  shall repay to TELKOM 16% of the Basic Fee;

16.3     In principle, the Services are provided on a fixed fee basis.
         Additional costs which are reimbursable to PARTNER are the actual costs
         of replacement spare parts and reasonable related labor costs, provided
         that such reimbursement shall only be available in the event that the
         part replaced is shown to be damaged due to actions solely caused by
         the negligence or failure of TELKOM personnel to follow applicable
         Network maintenance and operation manuals, including preventative
         maintenance procedures, and specific training lessons/instructions
         provided by PARTNER.

16.4     TELKOM shall be responsible for adequately insuring all equipment,
         software and components which have been Commissioned and for which
         legal title has been transferred to TELKOM. The actual cost of
         replacement spare parts and reasonable related labor costs which are
         covered by TELKOM's insurance are reimbursable to PARTNER but only to
         the extent that a TELKOM claim (supported by documentation from
         PARTNER) is accepted by the insurer and the insurer pays the claim, it
         being understood that TELKOM's obligation to

                                       18
<PAGE>


         reimburse PARTNER based on insurance claims is contingent on TELKOM
         first receiving from the insurer an amount in settlement of the claim
         which is at least equal to or more than the amount of PARTNER's claim
         for reimbursement.

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)        SAMSUNG CONSORTIUM
PT TELEKOMUNIKASI INDONESIA TBK.      SAMSUNG ELECTRONICS CO., LTD

                                      [STAMP]

By /s/ Kristiono                      By: /s/ Soon Ho Hong
  ------------------------               --------------------------------
Name : Kristiono                      Name  : Soon Ho Hong
Title  President Director             Title : Senior Vice President and
                                              General Manager,
                                              Telecommunication Systems Division

                                      PT Mitraguna INTIKOM

                                      By /s/ Budi F. Japadermawan
                                         ----------------------------
                                      Name : Budi F. Japadermawan
                                      Title : Director

                                       19

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.14
<SEQUENCE>14
<FILENAME>u92256exv4w14.txt
<DESCRIPTION>EX-4.14 LOAN AGREEMENT, DATED AUG.27, 2003
<TEXT>
<PAGE>
                                                                    Exhibit 4.14


                                 LOAN AGREEMENT

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

                                 US$ 123,965,000


                                     between



                         PERUSAHAAN PERSEROAN (PERSERO)

                        PT. TELEKOMUNIKASI INDONESIA, TBK



                                   as Borrower



                                       and



                        THE EXPORT-IMPORT BANK OF KOREA


                                    as Lender



                              Dated August 27, 2003


<PAGE>

                                TABLE OF CONTENTS

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


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

                                       2

<PAGE>

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

                                       3

<PAGE>

                                 LOAN AGREEMENT

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

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

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


                                   BACKGROUND

WHEREAS:

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

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

                                       4

<PAGE>

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

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

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

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


                    ARTICLE 1 DEFINITIONS AND INTERPRETATION

SECTION 1.1 DEFINITIONS

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

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

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

                                       5

<PAGE>
Borrower.

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

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

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

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

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

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

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

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

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

                                       6

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

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

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

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

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

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

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

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

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

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

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

                                       7

<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       8

<PAGE>

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

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

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


SECTION 1.2 INTERPRETATION

(a)   In this Agreement:

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

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

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

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

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


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

                                       9

<PAGE>

                             ARTICLE 2 THE FACILITY

SECTION 2.1 AMOUNT

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

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

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


SECTION 2.2 PURPOSE

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


                             ARTICLE 3 DISBURSEMENT

SECTION 3.1 DISBURSEMENT PROCEDURES

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

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SECTION 3.2 DIRECT PAYMENT PROCEDURE

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

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

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


SECTION 3.3 RELIANCE ON REQUEST FOR DISBURSEMENT AND DISBURSEMENT DOCUMENTS

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

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

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

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<PAGE>


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

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

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


SECTION 3.4 BINDING EFFECT

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


SECTION 3.5 AVAILABILITY

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


SECTION 3.6 NOTICE OF DISBURSEMENT

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

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                     ARTICLE 4 INTEREST AND DEFAULT INTEREST

SECTION 4.1 INTEREST

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


SECTION 4.2 DEFAULT INTEREST

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


SECTION 4.3 COMPUTATION

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


                           ARTICLE 5 FEES AND EXPENSES

SECTION 5.1 COMMITMENT FEE

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

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

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

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


SECTION 5.2 EXPOSURE FEE

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

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

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


SECTION 5.3 MANAGEMENT FEE

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

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

                                       14
<PAGE>
whatsoever.


SECTION 5.4 EXPENSES

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

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

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


                       ARTICLE 6 REPAYMENT AND PREPAYMENT

SECTION 6.1 REPAYMENT

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

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<PAGE>
SECTION 6.2 NOTES

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

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

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

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


SECTION 6.3 VOLUNTARY PREPAYMENT

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

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

                                       16
<PAGE>
outstanding. Such prepayment shall be applied to installments of the Loan in the
inverse order of maturity. The Borrower shall not be entitled to reborrow under
the Agreement any amounts so prepaid.

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

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


SECTION 6.4 MANDATORY PREPAYMENT

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

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

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

                                       17
<PAGE>
pursuant to Article 13 of this Agreement.


                         ARTICLE 7 PAYMENT AND CURRENCY

SECTION 7.1 PLACE OF PAYMENT

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


SECTION 7.2 BANKING DAY

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


SECTION 7.3 PAYMENTS TO BE FREE AND CLEAR

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


SECTION 7.4 GROSSING-UP OF PAYMENTS

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

                                       18
<PAGE>
(i)   pay together with such payment, such additional amount as will ensure
      that the Lender receives the full amount which it would have received if
      no such deduction or withholding had been made or required to be made;

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

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


SECTION 7.5 BANKING CHARGES, ETC.

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


SECTION 7.6 APPLICATION OF INSUFFICIENT PAYMENTS

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

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

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

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

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

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

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


SECTION 7.7 LOAN ACCOUNTS

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


SECTION 7.8 DOLLAR TRANSACTION

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


                         ARTICLE 8 CONDITIONS PRECEDENT

SECTION 8.1 CONDITIONS TO INITIAL DISBURSEMENT

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

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

                                       20

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

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

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

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

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

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

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

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


SECTION 8.2 CONDITIONS TO EACH DISBURSEMENT

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

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

                                       21
<PAGE>
the date of each Disbursement;

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

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


                    ARTICLE 9 REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Lender as follows:


SECTION 9.1 STATUS OF BORROWER

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


SECTION 9.2 AUTHORIZATION OF BORROWING

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

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<PAGE>
SECTION 9.3 ENFORCEABILITY AND PROPER LEGAL FORM

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


SECTION 9.4 NO CONTRAVENTION

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


SECTION 9.5 RANKING OF LOAN

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


SECTION 9.6 GOVERNMENT APPROVALS

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

                                       23
<PAGE>
SECTION 9.7 COMMERCIAL ACTS

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


SECTION 9.8 NO LEGAL PROCEEDINGS

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

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


SECTION 9.9 FINANCIAL STATEMENTS

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

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

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

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


SECTION 9.10 INFORMATION

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

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

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

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


SECTION 9.11 NO DEFAULT

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


SECTION 9.12 EFFECTIVENESS OF THE CONTRACT

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


SECTION 9.13 NEGATIVE PLEDGE

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

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


SECTION 9.14 CONTINUING REPRESENTATIONS AND WARRANTIES

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


                              ARTICLE 10 COVENANTS

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


SECTION 10.1 UNDERTAKING OF BORROWER

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

                                       26
<PAGE>
SECTION 10.2 MAINTENANCE OF GOVERNMENT APPROVALS

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


SECTION 10.3 REPRESENTATIONS AND WARRANTIES

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


SECTION 10.4 NOTICE OF DEFAULT

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


SECTION 10.5 PROJECT IMPLEMENTATION AND MODIFICATIONS OF CONTRACT

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

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

                                       27
<PAGE>
SECTION 10.6 COMPLIANCE CERTIFICATES

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


SECTION 10.7 DISPOSALS

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


SECTION 10.8 CHANGE OF BUSINESS

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


SECTION 10.9 MERGERS AND ACQUISITIONS

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

(a) the Borrower is the surviving entity;

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

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


SECTION 10.10 DOCUMENTS AND INFORMATION

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

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

(c) The Borrower shall supply to the Lender:

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

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

     (1)  its current financial condition and operations;

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


SECTION 10.11 CONSULTATION AND VISIT

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

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

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


SECTION 10.12 ENVIRONMENTAL CONSIDERATION

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


                              ARTICLE 11 ILLEGALITY

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

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

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


                          ARTICLE 12 CURRENCY INDEMNITY

SECTION 12.1 CURRENCY INDEMNITY

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

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

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

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

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


SECTION 12.2 OTHER INDEMNITIES

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

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

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

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


                          ARTICLE 13 EVENTS OF DEFAULT

SECTION 13.1 EVENTS OF DEFAULT

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

                                       31
<PAGE>
the Agreement:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       33
<PAGE>
SECTION 13.2 CONSEQUENCES OF DEFAULT

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

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

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

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

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

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

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

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

                                       34

<PAGE>

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


                    ARTICLE 14 GOVERNING LAW AND JURISDICTION

SECTION 14.1 GOVERNING LAW

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


SECTION 14.2 JURISDICTION

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

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

(c) The Borrower hereby irrevocably:

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

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

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

                                       35

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


SECTION 14.3 SERVICE OF PROCESS AND ACKNOWLEDGEMENT

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

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


SECTION 14.4 WAIVER OF IMMUNITY

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

                                       36

<PAGE>

                            ARTICLE 15 MISCELLANEOUS

SECTION 15.1 ENTIRE AGREEMENT; AMENDMENT

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


SECTION 15.2 NO WAIVER AND CUMULATIVE RIGHTS

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


SECTION 15.3 DISCLAIMER

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

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

                                       37

<PAGE>

SECTION 15.4 ASSIGNMENT

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


SECTION 15.5 COMMUNICATIONS

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

(i)   if delivered by hand, upon delivery;

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

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

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

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

(i) For the Lender

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

                                       38

<PAGE>

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

(ii) For the Borrower

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

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

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


SECTION 15.6 ACCOUNTS

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

SECTION 15.7 DISCLOSURE

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

                                       39

<PAGE>

SECTION 15.8 SEVERABILITY

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


SECTION 15.9 COUNTERPARTS

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


SECTION 15.10 INTERPRETATION

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

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

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

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

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

                                       40

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.15
<SEQUENCE>15
<FILENAME>u92256exv4w15.txt
<DESCRIPTION>EX-4.15 MASTER PROCUREMENT PARTNERSHIP AGREEMENT
<TEXT>
<PAGE>
                                                                    Exhibit 4.15


                    MASTER PROCUREMENT PARTNERSHIP AGREEMENT

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

                            Dated December 23, 2002

                                     BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                       AND

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

<PAGE>

                               TABLE OF CONTENTS

<Table>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</Table>

                                       i
<PAGE>
<Table>

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

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

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

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

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

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

CHAPTER 2.     COMMERCIAL TERMS AND CONDITIONS

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

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

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

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

CHAPTER 3.     FINANCIAL TERMS AND PAYG

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

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

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

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

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

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

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

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

</Table>

                                       ii
<PAGE>

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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


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

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

                                      iii
<PAGE>
<Table>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</Table>

APPENDICES

<Table>
<Caption>

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

</Table>


                                       iv
<PAGE>
     <Table>

     <S>            <C>

     Appendix 3     Scope of Work

     Appendix 4     Price Schedule

     Appendix 5     Technical Specifications

     Appendix 6     Demand Forecast

     Appendix 7     Deployment Plan

     Appendix 8     Project Management Plan

     Appendix 9     Implementation Schedule

     Appendix 10    Local infrastructure

     Appendix 11    Pay as you Grow (PAYG)

     Appendix 12    Purchase Orders

     Appendix 13    Bill of Quantities

     Appendix 14    Technical and Engineering Norms

     Appendix 15    Financing Arrangements

     Appendix 16    Project Schematic

     Appendix 17    Quality Assurance Guidelines/Acceptance Test Procedures

     Appendix 18    Change Request

     Appendix 19    Training

     Appendix 20    Service Level Agreement

     Appendix 21    Inter-Operability Commitment Agreement

     Appendix 22    Documentation

     Appendix 23    Technical Terms

     Appendix 24    Non-Disclosure Agreement

     Appendix 25    Performance Bond

     </Table>

                                       v
<PAGE>

                         MASTER PROCUREMENT PARTNERSHIP
                                    AGREEMENT

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

                                23 DECEMBER 2002

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

BETWEEN:

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

and

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

                                       1

<PAGE>

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

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

WHEREAS

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

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

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

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

                                       2

<PAGE>

CHAPTER 1. GENERAL TERMS AND CONDITIONS

ARTICLE 1. DEFINITIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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         "DIVRE" means a TELKOM Regional Division;

         "DOCUMENTATION" means the documentation listed in Appendix 22;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

         "PURCHASE ORDER" means a document issued by TELKOM from time to time
         pursuant to Article 28 and acknowledged by PARTNER for the supply and
         Commissioning by PARTNER of all or parts of the Network and/or for the
         provision of services. Any attachments or appendices to a Purchase
         Order and any amendments to a Purchase Order in accordance with Article
         36 shall form an integral part of the Purchase Order;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1.11     Appendices

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

ARTICLE 2. COMMENCEMENT AND DURATION OF AGREEMENT

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

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

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

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

ARTICLE 3. PROJECT DESCRIPTION

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

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

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

ARTICLE 4. SCOPE OF WORK AND DELIVERABLES

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

4.2      PARTNER agrees and undertakes to:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ARTICLE 5. PROCUREMENT PARTNERING COVENANTS

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

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

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5.1.2    The Parties agree that a key mutual objective is to support the
         development of the Indonesian telecommunications industry and economy
         through maximizing the amount of equipment, materials, manpower and
         services procured locally within Indonesia;

5.1.3    The Parties agree to conduct regular consultations to discuss the
         respective performance of the Network deployment with the aim of
         resolving amicably and promptly any disputes that may arise from time
         to time in the spirit of building joint business opportunities and
         creating mutual value together so as to create a responsive and stable
         commercial relationship between themselves;

5.1.4    PARTNER shall inform TELKOM as effectively and fully as possible, in
         good time, of possible problems with any Deliverables which have been
         delivered or which are to be delivered and of permitted material
         changes in costs, deliveries and developments previously agreed upon
         which may be relevant to TELKOM;

5.1.5    The Parties agree to inform each other as fully as possible of any
         circumstance relevant to the Deliverables affecting the
         telecommunication networks of TELKOM, so as to enable one another to
         respond quickly to technology or commercial developments. With respect
         to future equipment purchases for potential use in Package 1, PARTNER
         shall notify TELKOM of its estimated prices in relation to new
         telecommunications technology adaptable to Indonesia which has been
         developed by LM Ericsson or by its affiliated companies, at least as
         early as the time such technology is offered to other
         telecommunications operators in Indonesia;

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5.1.6    Subject to Chapter VII of this Agreement, PARTNER undertakes to consult
         and co-operate with other relevant suppliers of equipment and/or
         services relevant to this Agreement or to the Deliverables, in order to
         achieve optimum functioning of the Deliverables before, during and
         after delivery. Such consultation shall start at the earliest possible
         time and shall include technical support with the aim of achieving the
         optimum operation of the telecommunication networks of TELKOM;

5.1.7    The Parties shall pursue quality improvement and a degree of
         standardisation suitable for the integrated management of the
         telecommunication networks of TELKOM. To that end, PARTNER shall be
         capable of adapting the Network under the T-21 Program to
         state-of-the-art technology over the period of this Agreement;

5.1.8    One of TELKOM's key objectives in the T-21 Program is the purchase of
         equipment and services that conform to international standard while
         minimizing major capital expenditures. PARTNER shall work with TELKOM
         to bring its know-how and expertise to bear in meeting this objective.
         This means, for instance, that PARTNER must use its best endeavours to
         analyze and take into account the financial and technical consequences
         of introducing its technology developments for TELKOM, especially in
         relation to hardware and software delivered by PARTNER and that which
         is already in place in the telecommunication networks of TELKOM;

5.1.9    PARTNER shall take all reasonable measures necessary to communicate to
         TELKOM the advantages and disadvantages of new technology developments,
         including the newest tested technology offered by LM Ericsson or by its
         affiliated companies. PARTNER shall agree from time to time with TELKOM
         on additions or improvements to the "road map" of technological
         development and evolution contemplated

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         for the Project which can be implemented during the course of the
         Project in a timely manner;

5.1.10   PARTNER has agreed that it shall not have exclusive rights in its
         Package 1 (BSS) area to install, deploy equipment and/or provide
         services over the duration of the T-21 Program, in consideration of
         which TELKOM has agreed to procure from PARTNER at least the minimum
         Installed Line Procurements as provided in Chapter 3.

ARTICLE 6. IMPORTATION; LOCAL FACILITIES; COMPLIANCE WITH LICENSES AND PERMITS

6.1      Except as may otherwise be agreed between the Parties, Deliverables
         which are imported into Indonesia shall be imported in the name of
         TELKOM but under the physical arrangement and management of PARTNER.
         All importation of Deliverables under this Agreement shall be
         calculated on a cost at Location/Site basis and shall be delivered at
         the agreed time and place and in accordance with applicable Indonesian
         regulations and this Agreement. PARTNER shall initially make the
         payment of any import VAT, sales tax on luxury goods, if applicable,
         income tax Article 22 on imports, import/customs duties and all customs
         clearance costs in relation to all imports. PARTNER shall at its own
         cost obtain all required Indonesian import permits and approvals
         necessary to import any equipment, components, spare parts and software
         into Indonesia in the name of TELKOM. TELKOM shall cooperate with
         PARTNER in this process and provide PARTNER with all documents
         reasonably requested by PARTNER in connection with any import
         application required to include TELKOM's name for purposes of
         importation. TELKOM shall ensure prompt signature and delivery of
         documents required by the competent authorities for such purposes.

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6.2      TELKOM shall reimburse PARTNER for its prepayment of import VAT and
         income tax Article 22 on imports within twenty-one (21) Business Days
         after receipt of complete related claim documents from PARTNER. Customs
         duties are included in the Contract Value and will be paid by TELKOM in
         accordance with Articles 31 and 32. In the event a waiver is not
         forthcoming and sales tax on luxury goods is assessed against any
         Deliverables imported into Indonesia, the cost of such tax shall be
         added to the Contract Value and be paid by TELKOM in accordance with
         Articles 31 and 32.

6.3      PARTNER shall maintain complete and accurate inventory records of the
         movement of such equipment after importation into Indonesia in
         accordance with recognised industry practices and ensure that all
         equipment imported into Indonesia pursuant to any Purchase Orders shall
         be stored separately from all other equipment to facilitate inspections
         by Indonesian customs authorities. Any imposition of customs duties or
         penalties due to any act, default or omission of PARTNER in breach of
         this provision shall be borne by PARTNER.

6.4      PARTNER shall comply with the requirements of all local laws,
         regulations, and decrees and with the lawful requirements of other
         authorities in any way affecting any equipment, components or software
         procured under this Agreement.

6.5      PARTNER will be responsible, at its own cost, for obtaining in a timely
         fashion all necessary export permits, licenses, and approvals from the
         country of origin and any intermediate locations, including the payment
         of any and all levies for freight handling and other costs related to
         such permits, licenses and approvals.

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ARTICLE 7. DELIVERY PROCEDURES

7.1      All physical deliveries of Deliverables covered by Purchase Orders
         shall be accompanied by a consignment note, which includes:

7.1.1    Name and registered office of PARTNER;

7.1.2    Purchase Order number;

7.1.3    Date of shipment and delivery;

7.1.4    Quantities included; and

7.1.5    Shipping documents (such as bill of lading or air way bills) and/or
         inland delivery documents.

7.2      Delivery of equipment to the intended Location/Site shall be
         implemented by reference to complete Systems or Sub-systems and not
         piecemeal, except as otherwise mutually agreed between the Parties.

7.3      TELKOM shall conduct a goods delivery inspection pursuant to Article
         55.5 on delivery of goods at the intended Location/Site.

7.4      PARTNER shall be responsible for delivery of the equipment, components
         and software from the country of origin to the point of landing in
         Indonesia, and from the point of landing to the intended Location/Site
         as specified in the applicable Purchase Order in accordance with
         Appendix 9 (Implementation Schedule). PARTNER and shall be responsible
         for all inland transportation shipping costs to the intended
         Location/Site.

7.5      PARTNER represents and warrants that all equipment and components
         installed are type-approved by the relevant authorities in Indonesia
         and have passed quality assurance by TELKOM in accordance with the
         quality assurance guidelines set forth in Appendix 17 (Quality
         Assurance Guidelines/ Acceptance Test Procedures).

7.6      PARTNER shall be responsible for the provision and cost of any of the
         following facilities, equipment and services that

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         may be required by PARTNER and its staff:

7.6.1    all locally engaged skilled and unskilled personnel, including
         electricians, wiremen, laborers, tradesmen, artisans, and their
         equipment and tools;

7.6.2    any work and/or entry permits, licenses, visas, etc., necessary for
         personnel employed or temporarily engaged by PARTNER and its
         sub-contractors, and any income taxes incurred by such personnel or
         corporate income taxes;

7.6.3    transportation (including, without limitation, to and from any
         Location/Site), housing and medical facilities for such personnel as
         may be necessary;

7.6.4    equipment, tools and other resources necessary for such personnel to
         complete the works;

7.6.5    telephone, telegram, telex, modem, internet and facsimile services;

7.6.6    security, warehousing, storage and office facilities; and

7.6.7    customs and/or excise duties on tools, equipment and personal effects
         of PARTNER staff.

ARTICLE 8. INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS

8.1      PARTNER warrants:

8.1.1    that it has or will obtain prior to installation all Intellectual
         Property Rights necessary to enable PARTNER to meet its obligations
         under this Agreement; and

8.1.2    that the Contract Value includes all amounts paid or payable for the
         rights to use all Intellectual Property Rights embodied in the relevant
         System, and all equipment, components, software and Documentation
         forming a part of any Deliverables.

                                       21
<PAGE>

8.2      PARTNER shall grant or shall cause to be granted to TELKOM a
         royalty-free, irrevocable, non-transferable (except as set forth in
         this Article), non-exclusive and perpetual license or sub-license, as
         the case may be in the Republic of Indonesia to use the proprietary
         intellectual property (excluding source code) of PARTNER or its
         constituent members or any third party (including the employees or
         agents of PARTNER and any sub-contractors) to enable TELKOM to use such
         proprietary intellectual property in connection with the repair,
         maintenance, operation and use of the relevant System, Sub-systems,
         equipment, software, components and related Documentation to the extent
         contemplated by this Agreement.

8.3      PARTNER further warrants that the supply or undertaking of any item of
         the equipment, software, components, services and related
         Documentation, will not infringe (or cause TELKOM to infringe) any
         third party Intellectual Property Rights. PARTNER shall indemnify and
         hold harmless TELKOM at all times from all direct damages, costs and
         expenses arising from any claim or demand based on an allegation of
         such infringement. PARTNER shall, at the request of TELKOM, defend at
         PARTNER'S own cost any or all such claims or demands, provided TELKOM:

         (a)      gives PARTNER prompt written notice of such claim;

         (b)      permits PARTNER to defend or settle the claim;

         (c)      does not admit liability in respect of the whole or any part
                  of the claim or agrees to settle or dispose of the claim; and

         (d)      provides all reasonable assistance to PARTNER in defending or
                  settling the claim.

                                       22
<PAGE>

         This indemnity shall not apply where the liability arises:

         (a)      solely as a result of modifications to the Deliverables or
                  mandatory instructions made by TELKOM without the approval of
                  PARTNER;

         (b)      from the combination of the Deliverables with any equipment
                  not supplied by PARTNER, and if without TELKOM having made
                  that combination the claim of infringement would not have been
                  valid; the indemnification shall, however, be applicable if
                  PARTNER has provided the system integration services which
                  caused the infringement;

         (c)      use of the Deliverables by TELKOM other than as contemplated
                  in this Agreement;

         (d)      TELKOM'S continued use of the Deliverables after notification
                  by PARTNER of any modification or changes in the Deliverables
                  required to avoid infringement claims.

8.4      TELKOM agrees that it shall use the applicable license for software and
         Documentation pursuant to this Agreement only for its business
         purposes, and shall not market or otherwise commercialize it. The
         license for software and Documentation so granted shall authorize
         TELKOM to undertake all activities related to and/or as reasonably
         required for the intended use of the relevant equipment. The license1,
         for software and Documentation shall become effective at the latest
         upon TELKOM's issuance of the Integrated System Acceptance Test
         Certificate related to the applicable software and Documentation and
         shall be limited to the right to use the Documentation and software to
         operate the related equipment. TELKOM shall not assign, transfer or
         sub-license such software

                                       23
<PAGE>

         without the prior written consent of PARTNER, which consent shall not
         unreasonably be withheld or delayed.

8.5      TELKOM shall be entitled to make copies of the applicable software for
         back-up purposes only. TELKOM shall be entitled to make copies of
         software Documentation for internal use and for archival purposes, and
         when making permitted copies TELKOM shall transfer to the copy/copies
         any copyright or other marking on the software or related
         documentation. Use by TELKOM's affiliates in Project-related
         activities, shall be with PARTNER'S approval. TELKOM may not de-compile
         the software, except as permitted by law. Prior thereto, TELKOM shall
         provide PARTNER with reasonable advance written notice and an
         opportunity to provide the required interfacing information in lieu of
         TELKOM's exercising its rights to de-compile the software.

8.6      If, owing to the relevant equipment or its use, a right of a third
         party is infringed or an unlawful act is committed against a third
         party, PARTNER shall, at its own expense and in consultation with
         TELKOM:

8.6.1    replace the equipment or part of the equipment with equivalent
         equipment or parts of the equipment which do not infringe a right of a
         third party or whose use does not in any other way constitute an
         unlawful act against a third party; or

8.6.2    acquire a license in respect of the said right; or

                                       24
<PAGE>

8.6.3    modify the equipment in such a way that the infringement or unlawful
         act is terminated, provided that modification and/or replacement shall
         not cause the functionality and/or quality of the equipment to be
         materially reduced.

8.7      PARTNER and/or its sub-contractors shall provide TELKOM with the
         interface specification of the applicable software and with all
         Documentation and information in order to enable TELKOM to make
         external enhancements and/or modifications to the relevant equipment or
         add additional functionality to the equipment and/or to achieve
         interoperability and compatibility. PARTNER shall be relieved from its
         indemnification obligations to the extent the claim is caused by TELKOM
         enhancements and/or modifications.

8.8      If the central processing unit on which the applicable software is
         installed becomes temporarily unavailable, such software may be
         temporarily transferred to an alternative central processing unit. If
         TELKOM desires to use the software in a service bureau mode (i.e., to
         provide computing services to another supplier of similar services),
         TELKOM shall request a meeting with PARTNER in which the Parties shall
         discuss the required terms and conditions under which PARTNER would
         enter into a written agreement permitting such use.

8.9      The provisions of this Article 8 shall in substance be included in the
         BOT arrangements contemplated in Articles 28.10-28.14.

ARTICLE 9. FORCE MAJEURE

9.1      Neither Party shall be liable for delays in delivery or performance, or
         for failure to manufacture, deliver or perform when caused by any of
         the following which are beyond the reasonable control of the delayed
         Party, including but not limited to acts of God, acts of the public
         enemies, acts of civil or military authority, act of

                                       25
<PAGE>

         war, acts of terrorism, riots, strikes, lockouts, other labor
         disturbances, hurricanes, earthquakes, fires, floods or other natural
         disasters, epidemics and embargoes or a change to any government of
         Indonesia law, regulation, decree or government department policy
         having the force of law which has a material adverse impact on the
         ability of a Party to perform this Agreement.

9.2      Any occurrence belonging to a Force Majeure category shall be notified
         immediately to the other Party not later than fourteen (14) days after
         such occurrence. If an event of Force Majeure causes TELKOM to fail to
         pay any amounts due for a period of more than ninety (90) days, any of
         the Parties may terminate this Agreement. Any other event of Force
         Majeure continuing for a period in excess of 6 months shall entitle any
         of the Parties to terminate this Agreement.

9.3      In the event that due to Force Majeure the implementation of this
         Agreement or relevant agreement, acceptance test, integration, drive
         test or other matters provided for in this Agreement are suspended, the
         implementation period shall be extended by the numbers of days equal to
         the duration of such suspended implementation.

9.4      Neither Party shall be liable for any losses suffered by the other
         Party arising as a result of Force Majeure, provided that in the event
         of termination of this Agreement by PARTNER by reason of Force Majeure
         pursuant to Article 9.2, the provisions of Article 31 and Article 32
         shall apply with respect to losses involving Commissioned Deliverables
         and the provisions of Articles 14.4, 14.5 and 14.6 shall apply with
         respect to losses involving non-Commissioned Deliverables.

                                       26
<PAGE>

ARTICLE 10. TRANSFER OF RISK AND TITLE

10.1     The transfer of operational risk from PARTNER to TELKOM shall take
         place when the respective Deliverables have been installed, and the
         relevant Integrated System Acceptance Test Certificate has been issued
         by TELKOM.

10.2     Legal title and other rights to the relevant Deliverables shall only
         pass to or vest in TELKOM (i) at the time the related Integrated System
         Acceptance Test Certificate is issued for Deliverables procured in
         Indonesia, and (ii) on the high seas for Deliverables procured outside
         of Indonesia.

ARTICLE 11. INDEMNIFICATION

11.1     Without prejudice to any other provisions of this Agreement, PARTNER
         shall indemnify and hold TELKOM harmless from all direct damages, cost
         and expenses arising from any Claims (as defined below), if Claims
         arise:

11.1.1   as a result of a failure by PARTNER to perform its obligations pursuant
         to this Agreement, Purchase Orders or other specific agreement related
         to these agreements;

11.1.2   in connection with the work carried out pursuant to its obligations
         under this Agreement, unless the occurrence of the damage is not
         attributable to PARTNER;

11.1.3   in connection with the faulty design of the equipment or any other
         material or supplies which are supplied by PARTNER;

11.1.4   in connection with an infringement of any Intellectual Property Rights
         or industrial property right belonging to a third party in relation to
         Article 8.3;

                                       27
<PAGE>

11.1.5   in connection with any Claims including, without limitation, any fines
         or other penalties suffered by TELKOM as a result of the violation by
         PARTNER or any of its employees or agents of any laws or regulations in
         Indonesia related to Article 6;

11.1.6   in connection with any interruption to the Network under Article 57.4;

11.1.7   for personal injury to and death of any persons and damage to any
         property arising out of the performance of this Agreement due to acts
         or omissions whether negligent or otherwise of PARTNER, its employees,
         agents or sub-contractors;

11.1.8   loss or damage caused by the gross negligence or wilful act, fault or
         omission of PARTNER, its employees, agents or sub-contractors,
         including without any limitation any damage or interruption to TELKOM's
         existing Network during the migration to the new network to be provided
         by PARTNER; or

11.1.9   in connection with termination by TELKOM for non-delivery of contracted
         equipment, components or software.

         Provided that TELKOM:

         (a)      gives PARTNER prompt written notice of such Claim;

         (b)      permits PARTNER to defend or settle the Claim;

         (c)      does not at any time admit liability in respect of the whole
                  or any part of the Claim or agrees to settle or dispose of the
                  Claim; and

                                       28
<PAGE>

         (d)      provides all reasonable assistance to PARTNER in defending or
                  settling the Claim.

11.2     "Claims" shall mean any demands, claims, actions, liabilities, losses,
         damages awarded by a court or arbitration tribunal against TELKOM,
         costs (including legal and other professional costs), penalties and
         expense incurred by TELKOM as a result of a breach by PARTNER or any
         sub-contractor of any of its obligations, representations, undertakings
         or warranties under this Agreement.

11.3     Notwithstanding any provision of this Agreement to the contrary, the
         liability of PARTNER to TELKOM under this Agreement or at law shall in
         no circumstances exceed in any one case, an amount equal to 100% of the
         Contract Value of the relevant Purchase Order subject to In aggregate
         (after taking into account amounts previously paid under those clauses)
         an amount equal to 10% of the total Contract Value of all Purchase
         Orders which have been issued and accepted up to the date on which the
         liability falls due.

11.4     Neither Party shall in any circumstance be liable to the other for
         indirect or consequential losses or damages, whether or not such losses
         or damages are subject to this indemnity.

ARTICLE 12. EQUIPMENT MAINTENANCE AND SUPPORT

12.1     PARTNER undertakes that the Scope of Work will be executed in
         accordance with terms and any conditions of this Agreement and any
         Purchase Orders.

12.2     PARTNER warrants that all equipment and Network Systems and Sub-systems
         to be delivered to TELKOM are 100% (one hundred per cent) new, having
         no latent defect (excluding software latent defects which PARTNER has
         remedied upon discovery pursuant to the Service

                                       29

<PAGE>

         Level Agreement) and shall not have originated through unlawful
         procurement or manufacturing practices. PARTNER shall further undertake
         that all equipment (both hardware and software) delivered to TELKOM
         under this Agreement shall have a service life of at least ten (10)
         years from the date of issuance of the respective Integrated System
         Acceptance Test Certificate, or from the time the equipment is used
         commercially by TELKOM, whichever occurs first, provided that TELKOM
         has:

         (a)      materially complied with the terms of the SOP and SMP (as
                  referred to in Article 60.1.2); and

         (b)      not made any material modifications or changes to the
                  equipment (both hardware and software) delivered to TELKOM.

12.3     If, upon the expiry of any applicable SLA period, TELKOM requires
         maintenance assistance for the equipment from PARTNER, PARTNER agrees
         to carry out such maintenance including replacement of the same or
         comparable spare parts within the life time of the equipment as
         referred to in Article 12.2, with costs thereof as agreed at least
         ninety (90) days prior to the expiration of the applicable SLA.

12.4     PARTNER warrants that all equipment supplied to TELKOM is in accordance
         with Appendix 3 (Scope of Work) and Appendix 5 (Technical
         Specifications) and the execution of the works is in accordance with
         this Agreement and best practice standards as agreed by the Parties.

ARTICLE 13. LIQUIDATED DAMAGES FOR DELAY

13.1     PARTNER shall be deemed to have failed to perform an obligation under
         this Agreement for reasons for which it can be

                                       30
<PAGE>

         held responsible, if after the performance has become due and PARTNER
         has been given due notification of non-performance with a reasonable
         time allowance not exceeding thirty (30) days to rectify or correct the
         failure to perform condition, it has not fulfilled the obligation or
         has not fulfilled it in time or in accordance with what has been agreed
         upon. Without limitation, among other examples of delays by PARTNER are
         the following:

13.1.1   the Deliverables stated in the respective Purchase Order or specific
         agreement has not met the acceptance criteria at the agreed date on a
         per Location/Site basis;

13.1.2   the contracted equipment or software to be delivered is not available
         at the time and place committed by PARTNER in accordance with the terms
         and schedules of the respective Purchase Order, including without
         limitation where the delay results from damage or loss of goods during
         shipment;

13.2     PARTNER shall not be responsible to TELKOM for non-performance if the
         non-performance is a result of (i) late or non-performance of TELKOM,
         or the Investor pursuant to Article 28.10 or other Network equipment
         suppliers, or (ii) delays in acquiring land, provided PARTNER has been
         diligent and used its reasonable endeavours during the land acquisition
         process, it being agreed that the cost of the land acquisition process
         itself for which PARTNER is responsible shall not be a reason for
         PARTNER seeking to excuse its delayed performance. In such event,
         PARTNER shall be entitled to an appropriate extension of time for the
         performance of its obligations. PARTNER shall take all reasonable steps
         to minimize the impact of the delay and shall promptly notify TELKOM in
         writing, with supporting details, of the extension of time required.
         PARTNER's entitlement to extension of time shall be limited to the time
         which would have been due if it had given prompt notice and had taken
         all reasonable steps.

                                       31
<PAGE>

13.3     The liquidated damages for each day of delay shall be calculated on the
         basis of a percentage of the Contract Value specified in the respective
         Purchase Order related to the delayed Location in the amount of 6% per
         annum, up to a maximum of 5% of the said Contract Value in the
         applicable Purchase Order. For the avoidance of doubt, if non-
         performance is not remedied within the remedial period permitted under
         Article 13.1, or as otherwise agreed by the Parties, then liquidated
         damages shall be payable starting from the first day following the
         remedial period.

13.4     Liquidated damages assessed for delays in performance pursuant to
         Article 13 shall be without prejudice to any other non-financial claims
         TELKOM may have in respect of delays for which PARTNER is responsible.
         Subject to Article 11.3, these include without limitation, TELKOM's
         right: (i) to terminate this Agreement; and (ii) following discussions
         with PARTNER and acting reasonably with respect to the selection of a
         third party, to appoint the third party to continue this Agreement with
         respect to such works as may be able to be completed by third parties
         on condition that any excess amounts reasonably incurred for continuing
         such works as required shall be borne by PARTNER.

ARTICLE 14. TERMINATION OF THE AGREEMENT

14.1     If PARTNER is in material breach of any of its obligations under this
         Agreement, which failure is not capable of being cured, or if it can be
         cured, and PARTNER shall have failed to cure such default within thirty
         (30) days or an

                                       32
<PAGE>

         agreed lapse of time after written notice requiring that such default
         be made good (given either under this Article 14.1 or pursuant to
         Article 13.1 and 13.2), then TELKOM shall have the right, at its
         election and without prejudice to other rights and remedies provided in
         this Agreement to terminate this Agreement and recover damages from
         PARTNER.

14.2     TELKOM shall be entitled to terminate all or part of this Agreement,
         and/or all or part of the Purchase Orders and/or any related agreement
         upon any of the following events:

14.2.1   PARTNER's breach of the Interoperability Commitment Agreement;

14.2.2   PARTNER declares or clearly states that the Scope of Work, or any
         substantial part thereof, will not or cannot be completed;

14.2.3   PARTNER takes or has taken or instituted against it any action or
         proceeding, whether voluntary or compulsory, which has as an object or
         may result in the winding up of PARTNER (other than a voluntary winding
         up by members for the purpose of reconstruction or amalgamation), or is
         placed under official management or enters into a compromise or other
         arrangement with its creditors or any class of them or an
         administrative receiver or an administrator or receiver is appointed to
         carry on its business or to take control or possession of any of its
         assets for the benefit of its creditors or any of them;

14.2.4   PARTNER violates any law relating to the prevention of corruption or
         bribery in PARTNER's home country or any jurisdiction in which PARTNER
         is carrying out any of the works; or

14.2.5   The Parties have been unable to agree mutually acceptable financing
         arrangements for the Project pursuant to Article 35.1.

                                       33
<PAGE>

14.3     PARTNER shall not be entitled to terminate or abandon this Agreement
         except in the event that:

14.3.1   TELKOM takes or has taken or instituted against it any action or
         proceeding, whether voluntary or compulsory, which has as an object or
         may result in the winding up of TELKOM (other than a voluntary winding
         up by members for the purpose of reconstruction or amalgamation), or is
         placed under official management or enters into a compromise or other
         arrangement with its creditors or any class of them or an
         administrative receiver or an administrator or receiver is appointed to
         carry on its business or to take control or possession of any of its
         assets for the benefit of its creditors or any of them; or

14.3.2   TELKOM fails to pay any amounts due, or becomes unable to pay amounts
         to become due, for a period of more than six (6) months and during
         discussions with TELKOM during such period the Parties cannot agree on
         a satisfactory mechanism for payment and/or security for payments owed,
         including establishment of an escrow account or the provision of a bank
         guarantee by TELKOM acceptable to PARTNER. For the avoidance of doubt,
         if termination occurs under Article 14.3.1 at the end of the period
         contemplated in Article 35.1, then in such circumstances all amounts
         owed to PARTNER shall become due and payable; or

14.3.3   TELKOM, without PARTNER's prior written approval: (i) transfers or
         assigns the license for software and Documentation granted in Article
         8, or (ii) transfers PARTNER's proprietary software outside the
         Republic of Indonesia, or (iii) commercializes or manufactures the
         applicable software, equipment and Documentation, or (iv) uses the
         Deliverables in a manner not permitted in this Agreement, or (v)
         encumbers PARTNER's Intellectual Property Rights.

                                       34
<PAGE>

14.4     Termination of this Agreement shall be without prejudice to any accrued
         rights of the Parties up to the date of termination.

14.5     The termination of this Agreement or other specific agreement shall not
         affect or prejudice any provisions of those agreements which are
         expressly or by implication provided to continue in effect after such
         termination.

14.6     If this Agreement is terminated as provided in this Article 14, TELKOM,
         in addition to any other rights provided in this Article, may require
         PARTNER to transfer title and to deliver to TELKOM in the manner and to
         the extent directed by them upon full payment, any completed equipment,
         material or supplies, and such partially completed cable and materials,
         parts, tools, dies, jigs, fixtures, plans, drawings, information, and
         contract rights as PARTNER has had specifically produced or
         specifically acquired for the performance of such part of this
         Agreement as may have been terminated and which if this Agreement had
         been completed, would have been required to have been furnished to
         TELKOM. In addition, PARTNER shall, upon the direction of TELKOM,
         protect and preserve property in its possession in which TELKOM has an
         interest. PARTNER shall be paid the prices specified in Appendix 4
         (Price Schedule) for completed equipment, material and supplies
         delivered and services performed, and the amounts agreed upon by TELKOM
         and PARTNER for the manufacturing materials delivered to TELKOM by
         PARTNER, and for the protection and preservation of property in which
         TELKOM has an interest.

14.7     If this Agreement is terminated in accordance with Article 14.2, TELKOM
         may elect to take over and to complete the work. In such event,
         PARTNER, shall, without prejudice to any other rights or remedies of
         TELKOM hereunder, be liable to TELKOM for all costs so incurred by them
         taking into account any sums due under this Agreement to PARTNER for
         work commenced, partly executed or

                                       35
<PAGE>

         completed and accepted by TELKOM or materials, plant, machinery, tools
         and implements and other things purchased, used or to be used in
         connection with the work.

14.8     In the event of termination, the Parties agree to waive the provisions
         of Article 1266 of the Indonesian Civil Code to the extent necessary to
         effect termination of this Agreement in accordance with Article 14
         without the need for a court decision.

ARTICLE 15. GOVERNING LAW

         This Agreement shall be interpreted and governed in accordance with the
         laws of the Republic of Indonesia.

ARTICLE 16. SETTLEMENT OF DISPUTES

16.1     If any disputes arising between TELKOM and PARTNER in connection with
         or arising out of this Agreement or the breach, termination of validity
         thereof (a "Dispute"), the Parties shall attempt for a period of thirty
         (30) days after receipt by one Party of a notice from the other Party
         of the existence of the dispute, to settle such Dispute in the first
         instance by mutual discussions between senior executives of the
         Parties.

16.2     Any Dispute which cannot be resolved by amicable settlement between the
         Parties arising out of or in connection with this Agreement, including
         any question regarding its existence, validity or termination, shall be
         referred to and finally resolved by arbitration in Singapore in
         accordance with the Arbitration Rules of the Singapore International
         Arbitration Centre ("SIAC") for the time being in force which rules are
         deemed to be incorporated by reference to this clause.

                                       36
<PAGE>

16.3     The arbitration shall be conducted before an arbitral tribunal composed
         of three (3) arbitrators. The language of the arbitration shall be
         English.

16.4     The three (3) person arbitration panel shall be selected as follows:

         (a)      each arbitrator shall be fluent in English and shall be
                  experienced with legal matters concerning the
                  telecommunications industry.

         (b)      each of (A) the Party initiating the arbitration and (B) the
                  respondent Party or Parties to the Dispute shall nominate one
                  (1) arbitrator within thirty (30) days of the written notice
                  of the Dispute described above. The relevant Parties shall
                  within (30) days of the appointment of the two (2) arbitrators
                  seek to appoint a third arbitrator. If any relevant Party does
                  not nominate an arbitrator or if the relevant Parties cannot
                  agree on the choice of the third arbitrator, in each case
                  within the relevant period, then each unappointed arbitrator
                  shall be selected by the Chairman of the SIAC (provided that
                  the requirements in Article 16.4(a) are satisfied).

16.5     The award rendered shall be in writing and shall set out the facts of
         the Dispute and the reasons for the arbitration panel's decision. The
         award shall apportion the costs of the arbitration as the arbitration
         panel deems fair.

16.6     The Parties agree that the arbitration award shall be final and binding
         on the Parties. The Parties agree that no Party shall have any right to
         commence or maintain any suit or legal proceedings until the Dispute
         has been determined in accordance with the arbitration procedure
         provided herein and then only for enforcement of the award rendered in
         the arbitration. Judgment upon the arbitration award may be rendered in
         any court of competent jurisdiction or application may

                                       37
<PAGE>

         be made to such court for a judicial acceptance of the award and an
         order of enforcement, as the case may be.

16.7     Each of the Parties hereby expressly waives any Indonesian laws and
         regulations, decrees or policies having the force of law that would
         otherwise give a right to appeal against the decision of the
         arbitration panel, and the Parties agree that no Party shall appeal to
         any court against the award or decision contained therein. The Parties
         agree that any dispute in connection with or arising out of this
         Agreement or the breach, termination of validity thereof under is of a
         commercial nature.

16.8     Each of the Parties waives the applicability of Article 48(1) of the
         Indonesian Law on Arbitration and Alternative Dispute Resolution (the
         "Arbitration Law") and agrees that no arbitration need be completed
         within a specific time. For purposes of Article 5 paragraph 1 of the
         Arbitration Law, the Parties agree that the relationship among the
         Parties is commercial in nature and any Dispute related to this
         Agreement shall be deemed commercial.

16.9     No Party or person involved in any way in the creation, coordination or
         operation of the arbitration of any Dispute may disclose the existence,
         content or results of the Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by Article 19.

16.10    This Agreement and the rights and obligations of the Parties shall
         remain in full force and effect pending the award in such arbitration
         proceeding, which award, if appropriate shall determine whether and
         when only termination shall become effective. The provisions contained
         in this Article 16 shall survive the termination and/or expiration of
         this Agreement.

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<PAGE>

ARTICLE 17. LANGUAGE

17.1     All data, documents, Purchase Orders, invoices, descriptions, diagram,
         books, catalogues, instructions, marking for easy identification of
         major items of the material and most correspondence shall be in the
         English language and in the metric system of weights and measures.

17.2     PARTNER's personnel shall be proficient in English both written and
         spoken, for the purpose of providing instruction, offering advisory
         services, training and any other submission as required.

17.3     This Agreement is concluded in both English and Bahasa Indonesia. In
         the event of any inconsistency or contradiction between the Bahasa
         Indonesia and English texts, the Bahasa Indonesia text shall govern and
         prevail.

ARTICLE 18. CORPORATE REPRESENTATIONS AND WARRANTIES

18.1     Each Party (including each constituent member of PARTNER) represents
         and warrants that (i) it has obtained all necessary approvals, consents
         and authorizations of third parties and governmental authorities to
         enter into this Agreement and to perform and carry out its obligations
         under it; (ii) the persons executing the Agreement on its behalf have
         express authority to do so, and, in doing so, to bind the party to it;
         (iii) the execution, delivery, and performance of this Agreement does
         not violate any provision of any bylaw, charter, regulation, or any
         other corporate governing authority of the Party; (iv) the execution,
         delivery and performance of the Agreement has been duly authorized by
         all necessary corporate action; (v) the execution, delivery and
         performance by it of this Agreement constitute private and commercial
         acts rather than public or governmental acts; and (vi) the obligations
         of the Parties under the Agreement are valid and binding obligations of
         such Party, enforceable in accordance with its terms.

                                       39
<PAGE>

ARTICLE 19. CONFIDENTIAL INFORMATION

19.1     TELKOM and PARTNER shall enter into a Non-Disclosure Agreement in the
         form set out in Appendix 24 (Non-Disclosure Agreement) which details
         the terms and conditions related to permitted uses and disclosures of
         confidential information in the development (if applicable), operation,
         use and maintenance of the relevant Systems in the T-21 Program.

ARTICLE 20. NOTICE

20.1     All notifications required or permitted under this Agreement shall be
         sufficiently given if made in writing and delivered personally by hand
         or by courier or sent by prepaid registered post or by facsimile to the
         addresses of the Parties as from time to time notified.

20.2     All notification required in connection with the implementation of this
         Agreement shall be addressed as follows:

         To TELKOM:
         Perusahaan Perseroan (Persero) PT
         Telekomunikasi Indonesia Tbk.
         Jl. Japati No. 1, Bandung 40133
         Attention: President Director
         Fax : (022)440-313
         E-mail: kristiono@telkom.co.id

         To PARTNER:
         PT Ericsson Indonesia
         Wisma Pondok Indah, 10th Floor
         Jl. Sultan Iskandar Muda VTA
         Jakarta 12310, Indonesia
         Attention: President Director
         Fax: (021) 750-1482
         E-mail : ulf.mansson@eid.ericsson.se

20.3     PARTNER shall appoint a point of contact or designated representative
         authorized to act on behalf of PARTNER, and whose instructions and
         requests shall be binding for PARTNER as to all

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         matters pertaining to implementation of the Project brought to his
         attention by TELKOM. TELKOM shall also appoint a point of contact or
         designated representative authorized to act on behalf of TELKOM as to
         all matters pertaining to implementation of the Project. The initial
         point of contact for each Party is listed below:

         PARTNER's Point of Contact:
         General Manager, TELKOM Account
         PT Ericsson Indonesia
         Wisma Pondok Indah, 10th Floor
         Jl. Sultan Iskandar Muda VTA
         Jakarta 12310, Indonesia
         Tel: (021) 769-2222
         Fax: (021) 750-1482
         Email: bintang.juliarso@eid.ericsson.se

         TELKOM's Point of Contact:
         Head of Fixed Wireless Division (as
         Project Manager)
         Jalan Kebon Sirih, Kav. 12
         Jakarta
         Indonesia
         Tel:    (021)385-7777
         Fax:    (021)344-0707
         E-mail: alex is@telkom.co.id
         Mobile: 0811-965500

20.4     A Party may change its address by giving prior written notice to the
         other Party. Notices and other communications may be in the Indonesian
         or English language. All notices shall be effective (i) in the case of
         delivery by personal delivery or courier, on the date of receipt as
         evidenced by a delivery receipt from the recipient or confirmation of
         delivery received by the sender from the courier, and (ii) in the case
         of transmission by facsimile transmission or electronic mail or other
         electronic transmission, on the date of receipt as promptly
         acknowledged by the recipient, failing which acknowledgement then on
         the date of such transmission as evidenced by the convention applicable
         to such transmission.

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ARTICLE 21. GENERAL PROVISIONS

21.1     If any provision of this Agreement or part thereof is rendered void,
         illegal or unenforceable by any legislation to which it is subject, it
         shall be rendered void, illegal or unenforceable only to that extent
         and it shall in no way affect or prejudice the enforceability of the
         remainder of such provision or the other provisions of this Agreement.
         The invalidity, illegality or unenforceability of any provision in this
         Agreement under the laws of any one jurisdiction shall not in itself
         affect the validity, legality and enforceability of such provision
         under the laws of any other jurisdiction.

21.2     No remedy conferred by any of the provisions of this Agreement is
         intended to be exclusive of any other remedy that is otherwise
         available at law or otherwise, and each and every other remedy shall be
         cumulative and shall be in addition to every other remedy given
         hereunder or now or hereafter existing at law or otherwise. The
         election of any one or more of such remedies by either Party shall not
         constitute a waiver by such Party of the right to pursue any other
         available remedies.

21.3     No failure on the part of either Party to exercise and no delay on the
         part of either Party in exercising any right hereunder will operate as
         a release or waiver thereof, nor will any single or partial exercise of
         any right under this Agreement preclude any other or further exercise
         of it. The rights and remedies provided in this Agreement are
         cumulative and not exclusive of any right or remedy provided by law.

21.4     This Agreement embodies all the terms and conditions agreed upon
         between the Parties as to the subject matter of this Agreement, and
         supersedes all prior representations, arrangements,

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<PAGE>

         understandings and agreements between the Parties whether written or
         oral (including without limitation, the RfP, except as provided
         otherwise under this Agreement).

21.5     This Agreement may be executed in any number of counterparts, each of
         which shall constitute an original and take effect without reference to
         any other counterpart, and together the counterparts shall be deemed as
         one and the same agreement.

21.6     Notwithstanding the reference to the terms "partner" and/or
         "partnership" in this Agreement, the relationship between the Parties
         shall not constitute a legal partnership. Neither Party has the power
         or the right to bind, commit or pledge the credit of the other Party.

21.7     This Agreement shall enure to the benefit of and be binding upon the
         Parties and their respective successors and permitted assigns.

21.8     The main body of this Agreement may only be amended by a written
         instrument duly executed by all Parties.

CHAPTER 2.  COMMERCIAL TERMS AND CONDITIONS

ARTICLE 22. CONTRACT VALUE

22.1     Based on the unit prices referred to Article 23.3, the initial Contract
         Value (excluding any VAT) for execution of the Project under this
         Agreement (not including SLA) is US$57,450,007.00 (primarily for goods
         and services purchased outside Indonesia) and IDR 170,453,021,626.00
         (primarily for goods and services procured within Indonesia). This
         Contract Value may be adjusted from time to time in accordance with
         mechanism provided in Article 27.

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<PAGE>

ARTICLE 23. PRICES, FEES

23.1     The prices, and fees as listed under Appendix 4 (Price Schedule) are
         the agreed prices and applicable to the relevant Purchase Orders. Such
         prices and fees shall be deemed to include all costs, expenses and
         import/customs duties which are deemed necessary to carry out this
         Agreement, but excluding any VAT, income tax (Article 22) on imports
         and sales tax on luxury goods.

23.2     The prices and fees payable by TELKOM under this Agreement shall be
         denominated in United States of America Dollars (USD) or in Indonesian
         Rupiah (IDR) as applicable. PARTNER shall quote all goods and services
         procured within Indonesia in Indonesian Rupiah (IDR) and goods and
         services purchased outside Indonesia in United States dollars, as
         applicable. All payments made under or pursuant to this Agreement by
         TELKOM shall be made in the currency specified. In the event that any
         such payments are unable to be made in the currency specified for
         whatsoever reason, then at the option of PARTNER such payments may be
         made by TELKOM by payment of an equivalent amount (at the then
         prevailing exchange rates) of such other currency as is permissible. If
         so requested by PARTNER, TELKOM shall pay the relevant amount in the
         name of PARTNER or a third party designated by PARTNER at a bank within
         Indonesia.

23.3     Unit prices quoted in Appendix 4 (Price Schedule) are firm fixed prices
         and shall not be varied except as permitted under this Agreement. Unit
         prices for equipment are deemed to include payments by PARTNER for all
         costs of freight, insurance, import/customs duties, clearance at the
         port of entry, inland transportation, warehousing and delivery to the
         Location/Site where the equipment is to be installed. Unit prices for
         equipment related services shall include survey, planning, design,
         permits, rights of way, installation, integration, project management,
         insurance up to transfer of title, testing and commissioning costs,

                                       44
<PAGE>

         services related to land acquisition, frequency licence application
         services and all related materials and expenses to complete the Project
         on a turnkey basis as contemplated in Article 3. Import/customs duties
         are included in the unit prices set out in Appendix 4 (Price Schedule)
         and shall remain fixed. Variations in unit price shall only be subject
         to change if specifically agreed upon by the Parties pursuant to a
         Change Request.

ARTICLE 24. TAXES AND DUTIES

24.1     The Contract Value excludes any VAT, sales tax on luxury goods, and
         income tax (Article 22) on imports), but includes import/customs duties
         imposed by the government of Indonesia on the Deliverables in
         connection with the Project. Each Party shall be responsible for all
         taxes which it is required to pay, withhold or collect as the case may
         be, in accordance with prevailing laws and regulations, it being
         acknowledged by PARTNER that in relation to VAT administration TELKOM
         is a designated VAT collector under applicable regulations.

ARTICLE 25. INSURANCE AND SAFETY

25.1     PARTNER shall at its own expense take out an all risk insurance policy
         ("All Risk Policy") to cover any works to be carried out pursuant to
         any Purchase Order. The insurance shall cover all risks against losses,
         damages (including accidents caused by the work performed by PARTNER
         its employees, agents or sub-contractors) at a minimum until the
         transfer of title to the relevant Deliverables pursuant to Article
         10.2. The All Risk Policy shall also cover any plant, machinery, tools,
         goods, vehicles or property belonging to PARTNER, its employees, agents
         or sub-contractors which have been placed at any relevant Location/Site
         where any works are being executed, all risks during transportation,
         warehousing, storage, delivery, installation and testing, whether by
         fire, theft, earthquake/flood, natural disaster,

                                       45
<PAGE>

         consequence of fault in construction, or otherwise, and legal liability
         to third parties during construction, installation and operation
         periods including loss of revenue insurance and damage to surrounding
         property. PARTNER shall provide evidence of this All Risk Policy to
         TELKOM upon request.

25.2     PARTNER shall at its own expense replace any loss, damaged and/or
         destroyed equipment, components and software while such are in the
         process of being delivered and installed.

25.3     Notwithstanding the procurement of an All Risk Policy, PARTNER's
         liability in respect of loss or damage attributable to the acts,
         omission or negligence of PARTNER shall not be limited to the amount of
         the insurance coverage under the All Risk Policy.

25.4     PARTNER shall take full responsibility for the adequacy, stability and
         safety of all works carried out at the relevant Locations/Sites in
         accordance with the provisions of any law, order, regulation, decree,
         directive or standards now or hereinafter in force in Indonesia.
         PARTNER shall ensure that all equipment, tools, facilities and other
         items used by PARTNER or its sub-contractor in the execution of the
         works shall be safe, sound, in good working condition which shall, at a
         minimum, conform to acceptable standards in the industry. PARTNER shall
         at its own expense provide the necessary safety equipment, protective
         clothing, footwear and such other appliances as may be necessary or
         required by law or regulation for proper and safe execution of the
         works. PARTNER shall ensure that all personnel provided are fully
         trained and qualified and properly certified by the relevant
         authorities or bodies if such certification is required under the

                                       46
<PAGE>

         applicable laws, rules or regulations or directive of any governmental
         body.

CHAPTER 3.  FINANCIAL TERMS AND PAYG

ARTICLE 26. JOINT PLANNING SESSIONS, DESIGN REVIEW MEETINGS AND MONTHLY MEETINGS

26.1     Joint Planning Session or JPS

26.1.1   The Parties agree to conduct systematic, periodic and comprehensive
         joint planning exercises as described below.

26.1.2   TELKOM and PARTNER shall conduct annual Joint Planning Sessions ("JPS")
         in October or November at the end of each Fiscal Year to plan for the
         following Fiscal Year's Package Level Requirements. The first of these
         JPSs shall be conducted at a time to be mutually determined after the
         Parties have executed this Agreement and shall cover the period
         immediately following the execution of this Agreement up to the end of
         Fiscal Year 2003. The JPS may also be convened at such other times as
         the Parties may agree. TELKOM and PARTNER shall jointly conduct and/or
         agree on at least the following activities as applicable to the
         following Fiscal Year:

         (a)      demand forecasting (which in this Agreement shall refer to a
                  minimum of one (1) year time horizon) at a national level
                  considering various macro economic factors;

         (b)      economic analysis to assess the business feasibility of
                  deploying the intended Network; and

         (c)      development of the details of the Deployment Plan and
                  Implementation Schedule on a quarterly basis with
                  prioritization of Locations for Network deployment.

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<PAGE>

26.1.3   At each subsequent JPS, TELKOM and PARTNER shall conduct jointly and/or
         agree on at least the following activities as applicable to the
         following Fiscal Year:

         (a)      demand forecasting at a national level considering various
                  macro economic factors;

         (b)      economic analysis to assess the business feasibility of
                  deploying the intended Network;

         (c)      development of details of the Deployment Plan and
                  Implementation Schedule on a quarterly basis with
                  prioritization of Locations for Network deployment;

         (d)      review of future technology deployment strategies, considering
                  availability and suitability of the latest technologies,
                  equipment or software; and

         (e)      resolve issues referred to it by a DRM or otherwise and agree
                  on corrective actions.

26.1.4   PARTNER shall take responsibility for the organizational and
         administrative activities required to convene the JPSs. PARTNER shall
         be responsible for all reasonable costs of convening the JPS and shall
         fund at its own expense the cost of external consultants in performing
         any of the work or analyses contemplated under Article 26.1. TELKOM
         shall only be responsible for the costs of providing accommodations and
         transport for TELKOM staff attending a JPS.

26.1.5   The Parties shall produce minutes of the JPS meetings in which any
         substantive agreements shall be recorded as agreements of the Parties,
         as evidenced by signature of the minutes (or the applicable sections
         thereof) by the authorized representative of each Party.

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<PAGE>

26.1.6   At each JPS and subject to either or both Parties first reporting
         unresolved issues to the respective senior executives of each Party for
         consideration, TELKOM shall be entitled to make the final decisions on
         such matters as revision of the Deployment Plan and adjustments to the
         calculation of Installed Lines Procurements, after taking into account
         PARTNER's inputs concerning, among others, demand forecasts, market
         outlook and take-up of the capacity deployed.

26.2     Design Review Meeting or DRM

26.2.1   TELKOM and PARTNER shall conduct systematic, periodic and comprehensive
         Design Review Meetings ("DRM") on a quarterly basis at a DIVRE level
         throughout the term of this Agreement.

26.2.2   The first DRM shall be conducted within ten (10) Business Days after
         the first JPS or within such timeframe agreed at the first JPS.
         Thereafter, DRMs are intended to be held at the end of each Quarter
         with an agenda which looks forward to the contemplated activities of
         the following Quarter.

26.2.3   Before the first DRM, TELKOM and PARTNER jointly shall conduct at least
         the following activities:

         (a)      survey the planned deployment Location/Site(s) to ensure the
                  readiness of the Location/Site(s);

         (b)      calculate Installed Line Procurements (reasonably relating to
                  Subscriber Targets) required by Location and Site (BTS);

         (c)      based on the Subscriber Targets, develop a detailed network
                  design, agree and approve the detailed BoQ and the value of
                  the detailed BoQ by Location and Site (BTS);

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<PAGE>

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

         (f)      update the Deployment Plan for the next Quarter if necessary.

26.2.4   At the first DRM, TELKOM and PARTNER Jointly shall conduct and/or agree
         on at least the following activities:

         (a)      check and update the calculation of Installed Line
                  Procurements (reasonably relating to Subscriber Targets) by
                  Location and Site (BTS);

         (b)      based on the Subscriber Target, agree and approve the detailed
                  Network design;

         (c)      based on the Subscriber Target, agree and approve the detailed
                  BoQ and the total value of the detailed BoQ by Location and
                  Site (BTS);

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

         (f)      agree and approve adjustments, if any, to the Project
                  Management Plan and the Implementation Schedule; and

         (g)      agree and approve the updated Deployment Plan for the
                  following Quarter if necessary.

26.2.5   Following the first DRM and after each subsequent DRM, TELKOM shall
         promptly issue Purchase Order(s) signed by the TELKOM Project Manager
         or other person authorized by TELKOM based on the results of the
         related DRM.

26.2.6   With respect to the quarterly DRM which coincides with a JPS each
         fiscal year, the DRM shall be convened immediately after

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<PAGE>

         the completion of such JPS, with an agenda which is designed not to
         repeat or duplicate JPS activities in such DRM, unless necessary.

26.2.7   Before each subsequent DRM, TELKOM and PARTNER jointly shall conduct
         and/or agree on at least the following activities:

         (a)      survey the planned deployment Location/Site(s) to ensure the
                  readiness of the Location/Site(s), to assess the demand;

         (b)      update the Deployment Plan for that Quarter by calculating the
                  Installed Line Procurement (reasonably relating to Subscriber
                  Targets) required by Location and Site (BTS);

         (c)      based on the Subscriber Targets, develop a detailed Network
                  design, a detailed BoQ and the total value of the detailed BOQ
                  by Location and Site (BTS);

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

         (f)      assess market demand and update deployment plan for the
                  following Quarter if necessary.

26.2.8   At each subsequent DRM, TELKOM and PARTNER jointly shall conduct and/or
         agree on at least the following activities for the following Quarter:

         (a)      check and update the calculation of Installed Line
                  Procurements (reasonably relating to Subscriber Targets) by
                  Location and Site (BTS);

         (b)      based on the Subscriber Target, agree and approve the detailed
                  Network design;

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<PAGE>

         (c)      based on the Subscriber Target, agree and approve the detailed
                  BoQ and the total value of the detailed BoQ by Location and
                  Site (BTS);

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

         (f)      agree and approve adjustments, if any, to the Project
                  Management Plan and Implementation Schedule;

         (g)      evaluate performance of the Project in the previous Quarter
                  and revise implementation procedures to take account of
                  failures or other unsatisfactory performance;

         (h)      agree and approve the updated Deployment Plan for the
                  following Quarter if necessary; and

         (i)      resolve issues referred to it by a monthly meeting or
                  otherwise and agree on corrective actions.

26.2.9   PARTNER shall take responsibility for the organizational and
         administrative activities required to organize all DRMs. PARTNER shall
         be responsible for all reasonable costs of convening the DRM and shall
         fund at its own expense the analysis contemplated under Article 26.2.
         TELKOM shall only be responsible for the costs of providing
         accommodations and transport for TELKOM staff attending a DRM.

26.2.10  The Parties shall produce minutes of each DRM in which any substantive
         agreements shall be recorded as agreements of the Parties, as evidenced
         by signature of the minutes (or the applicable section thereof) by the
         authorized representative of each Party.

26.2.11  The following additional agreements apply to the DRMs:

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<PAGE>

         (a)      TELKOM and PARTNER jointly will design and calculate the exact
                  BoQ to support the intended number of Subscriber Targets based
                  on the design rules in Appendix 14 (Technical and Engineering
                  Norms);

         (b)      the design rules in Appendix 14 (Technical and Engineering
                  Norms) are based on technical and engineering norms current at
                  the date of this Agreement and may be adjusted by written
                  agreement of the Parties during the planning process based on
                  the evolution of the market to avoid any over or under-
                  estimation of the equipment required;

         (c)      in case there are any major issues that need urgent attention
                  or cause any significant deviation from the original
                  Deployment Plan, PARTNER shall bring it to the attention of
                  TELKOM and, if mutually agreed, promptly convene a special DRM
                  to address such issues;

         (d)      if necessary, any activities mandated by a JPS meeting may be
                  executed in conjunction with a DRM meeting;

         (e)      in the event that terms of a particular Purchase Order are
                  inconsistent with agreements reached in a DRM, the Parties
                  shall review and if necessary amend any mistakes or
                  discrepancies in the Purchase Order or BoQ;

         (f)      At each DRM, decisions on such matters as revision of the
                  Deployment Plan and calculation of Installed Line
                  Procurements, shall be mutually agreed by the Parties after
                  taking into account all inputs of both Parties concerning,
                  among others, demand forecasts, market

                                       53
<PAGE>

                  outlook, equipment production capacity, and take up of the
                  capacity deployed; and

         (g)      TELKOM and PARTNER agree that the Deployment Plan for the
                  following Quarter for a particular Location shall be
                  calculated based on Installed Line Procurements that
                  realistically can be provisioned within a period of a minimum
                  of three (3) years if new common equipment is deployed, and a
                  minimum of one (1) year for each module such as racks,
                  sub-racks and cards.

         If the Parties cannot reach agreement at a DRM on matters such as the
         terms of a particular Purchase Order or other critical issue, the
         matter shall be referred to senior management of each Party for
         resolution.

26.3     Monthly Meetings

26.3.1   PARTNER through its authorized representatives shall conduct monthly
         meetings with the relevant TELKOM staff in the Location to be developed
         to ensure smooth execution of Project operations and to raise and
         discuss issues in a timely manner.

26.3.2   The first of these meetings will be conducted at a time to be mutually
         determined after the first DRM has been conducted. Thereafter, these
         meetings shall be held on a monthly basis throughout the term of this
         Agreement.

26.3.3   At each monthly meeting, PARTNER shall be responsible for at least the
         following activities: preparation of progress reports from site
         managers, site supervisors, and other staff to the TELKOM Project
         Manager or his authorized representative, updates on any relevant
         developments, and discussion of any problems or unresolved issues
         arising in the previous month.

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<PAGE>

26.3.4   Monthly meetings may be held anywhere at such times and places as
         mutually convenient to the Parties.

26.4     Representation at JPS, DRM and Monthly Meetings.

26.4.1   TELKOM and PARTNER shall notify each other from time to time regarding
         their appointments (and any changes to such appointments) of authorized
         representatives who have authority to execute or make agreements in any
         JPS and/or DRM and/or monthly meeting on their behalf.

26.4.2   Agreements of the Parties reached at a JPS and/or DRM and/or monthly
         meeting shall be signed by authorized representatives of each of the
         Parties as notified to each other from time to time.

ARTICLE 27. INSTALLED LINE PROCUREMENTS

27.1     The planned number of lines to be installed in each Quarter (the "Base
         Line") as set out in Appendix 7 (Deployment Plan) shall be used as a
         fixed number from which to calculate the amount by which planned
         Installed Line Procurements can be adjusted from time to time at a DRM
         or JPS in accordance with the flexible procurement methodology
         contemplated in this Article 27.

27.2     Based on the Deployment Plan for the following Quarter, the calculation
         of Installed Line Procurements contemplated in the following Quarter
         will be adjusted in accordance with the following formula:

         Installed Line Procurements = Base Line x (1+ Percentage Index)

27.3     The Percentage Index shall be 0% for the first Quarter. For subsequent
         Quarters, TELKOM may at its sole discretion vary the Percentage Index
         by a maximum of

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<PAGE>

         15%, up or down, from the Percentage Index adopted for the previous
         Quarter, i.e., the Percentage Index = Percentage Index for the previous
         Quarter +/- 15%, provided that over the term of this Agreement, the
         minimum Installed Line Procurements shall be 60% of the total
         cumulative Base Line.

27.4     The Parties may also agree to change the Percentage Index by more than
         15% for a particular Quarter, provided that for purposes of calculating
         the applicable maximum limits of the Percentage Index for the following
         Quarter, the Percentage Index for the previous Quarter will be deemed
         to have been varied by a maximum of 15% only, and the Percentage Index
         for the following Quarter calculated from that limit rather than from
         the actual Percentage Index of the previous Quarter in which the
         applicable maximum limits were exceeded.

27.5     For the avoidance of doubt, once the commitment volumes set forth in
         Article 27.3 have been reached, TELKOM shall have no further commitment
         to increase the Installed Line Procurements.

ARTICLE 28. PURCHASE ORDERS AND PROCEDURES

28.1     PARTNER shall deliver all Deliverables to TELKOM in response to
         Purchase Orders issued by TELKOM from time to time, generally on a
         quarterly basis in conjunction with a DRM.

28.2     TELKOM through the TELKOM Project Manager (preferably) or other
         authorized TELKOM representative and/or authorized BOT representatives
         agreed by the Parties (for particular geographical areas as notified in
         writing by TELKOM from time to time) will issue Purchase Orders based
         on deployment at a particular DIVRE level.

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<PAGE>

28.3     A Purchase Order will be valid only if it is: (a) made in writing in
         the form set out in Appendix 12 (Purchase Orders), and (b) signed by
         the TELKOM Project Manager or his designated representative, and (c)
         accompanied by a promissory note and documentary credit which complies
         with Article 28.15.

         Each Purchase Order shall include necessary and appropriate attachments
         to clearly describe:

28.3.1   Subscriber Target numbers defined per Location and Site (BTS);

28.3.2   Value of Purchase Order defined per Location and Site (BTS);

28.3.3   Local Content items and value;

28.3.4   Project Locations/Site;

28.3.5   Detailed Network Design;

28.3.6   Detailed BoQ; and

28.3.7   The overall Implementation Schedule and the breakdown for each
         Location.

28.4     The Subscriber Target for a Purchase Order shall be the Installed Line
         Procurement for the DIVRE/Location for the relevant Quarter based on
         the Deployment Plan as updated and determined at the related DRM.

28.5     The Subscriber Recorder is TELKOM's database system in the NSS/MSC in
         the related DIVRE.

28.6     Within five (5) Business Days from receipt of a Purchase Order, PARTNER
         through its authorized representative shall either:

28.6.1   accept the Purchase Order by countersigning on the space provided on
         the Purchase Order or a copy thereof and returning the same to TELKOM
         by way of facsimile, followed by mail or hand delivery or by courier.
         Countersigning of the Purchase Order by authorized representatives of
         PARTNER shall be deemed to constitute acceptance of the

                                       57
<PAGE>

         Purchase Order without conditions by PARTNER and any terms and
         conditions accompanying such acceptance shall be null and void; or

28.6.2   notify TELKOM by way of facsimile, followed by mail or hand delivery or
         by courier that the Purchase Order has not been accepted.

         PARTNER shall be entitled to refuse to accept a Purchase Order if: (a)
         the Purchase Order is incomplete or does not have the required
         attachments; or (b) the Purchase Order does not reflect the decision of
         the relevant DRM; or (c) the total of the aggregate amount owing to
         PARTNER by TELKOM as at the date of receipt of the Purchase Order in
         respect of Deliverables invoiced by PARTNER pursuant to Article 31.4
         exceeds the amount of US$25,000,000 during any of the first three (3)
         years of this Agreement.

28.7     TELKOM shall not be legally bound to purchase more than its minimum
         obligations under this Agreement, based on the maximum reduction to the
         Installed Line Procurements allowable under Article 27.

28.8     TELKOM may issue one or more new Purchase Orders as appropriate in
         conjunction with a DRM relating to the installed Line Procurement
         requirements for the following Quarter.

28.9     TELKOM may issue one or more new Purchase Orders for general services
         or combine them with Purchase Orders for Installed Line Procurement
         with a separate breakdown for the general services component.

28.10    The T-21 Program includes elements which may be covered by Build
         Operate and Transfer ("BOT") arrangements between TELKOM and other
         local entities (each an "Investor"). The procurement volumes under
         these BOT arrangements are included within the overall T-21 procurement
         volumes and are to be

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<PAGE>

         planned as part of the JPS and DRM meetings, but will not be paid in
         accordance with the PAYG payment method set forth in Article 32, but
         shall be paid 100% on Commissioning unless otherwise agreed. An
         Investor shall: (a) provide PARTNER evidence of its bona fides as a
         financially sound company of good reputation; and (b) enter into a
         separate agreement with PARTNER on terms and conditions acceptable to
         PARTNER.

28.11    The Purchase Orders may be issued by one or more Investors directly
         and, if accepted by PARTNER, shall constitute separate contract(s)
         between PARTNER and the Investor for the equipment and services to be
         supplied. TELKOM shall provide PARTNER with a list of authorised
         representatives of the Investors for each region who can issue such
         Purchase Orders.

28.12    The maximum prices of the equipment and services and other commercial
         terms of these BOT arrangements shall be as provided in Chapter 2 of
         this Agreement, but the actual prices shall be subject to negotiation
         to the extent of the interest or other savings achieved by virtue of
         payment on Commissioning, or as otherwise agreed, rather than by the
         PAYG payment method. Title in the equipment shall be transferred upon
         full payment by the Investor (to eventually be transferred to TELKOM at
         the end of the BOT arrangement by virtue of the agreement between
         TELKOM and the Investor). Payment guarantee will be made by Investor
         pursuant to one of the following payment mechanisms: (i) payment to an
         escrow account at a bank in Indonesia with acceptable terms and
         conditions to PARTNER; (ii) opening of an L/C issued by a bank in
         Indonesia with terms and conditions acceptable to PARTNER; or (iii)
         issuance of a bank guarantee from a bank in Indonesia with terms and
         conditions acceptable to PARTNER.

28.13    A three year Service Level Agreement in form and substance as set forth
         in Appendix 20 (Service Level Agreement)

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         shall apply to the equipment procured under the BOT arrangement upon
         Commissioning. The equipment will be operated by TELKOM on behalf of
         the Investor during the term of the BOT arrangement pursuant to a
         separate agreement and TELKOM shall work together with PARTNER as if
         the BOT equipment were part of TELKOM's network.

28.14    The substance of Chapters 1 and 5 of this Agreement, appropriately
         adjusted to the circumstances, shall be included in the contract
         between PARTNER and the Investor, unless otherwise agreed.

28.15    As security for its payment obligations only during the period
         contemplated in Article 35.1, TELKOM shall procure the issuance with
         each Purchase Order and shall deliver to PARTNER with each Purchase
         Order one or more documentary credits and promissory note in favor of
         PARTNER in the aggregate amount of the total value of the Purchase
         Order. The Parties agree that it is a condition precedent to the
         Purchase Order becoming a binding contract between the Parties that the
         documentary credit and promissory note covering payment for the work to
         be performed under the relevant Purchase Order(s) is in full force and
         effect. Each documentary credit issued under this Article 28.15 shall:

         (a)      be a bank guarantee or standby letter of credit denominated in
                  the currency in which TELKOM's payment obligation is
                  denominated;

         (b)      be issued by a bank acceptable to PARTNER; and

         (c)      be issued on terms and conditions acceptable to PARTNER.

28.16    As each payment is made by TELKOM in respect of the relevant Purchase
         Order, the value of the applicable documentary credit shall be adjusted
         to reflect the aggregate outstanding Contract Value of that Purchase
         Order. This process of adjustment may only be made at the

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         amount of and on the date on which each payment is received by PARTNER.
         TELKOM shall maintain the documentary credit and promissory note at the
         appropriate value levels at all times until the last payment in respect
         of the relevant Purchase Order has been received by PARTNER.

ARTICLE 29. PERFORMANCE BOND

29.1     As security for the performance of the work to be undertaken by PARTNER
         for Package 1 of the T-21 Program, within ten (10) Business Days
         following TELKOM's issuance and PARTNER's acceptance of the first
         Purchase Order, PARTNER shall deliver to TELKOM a performance bond in
         favor of TELKOM in the amount of 5% of the total value of the first
         Purchase Order, in form and substance as appears in Appendix 25
         (Performance Bond). The Parties agree that it is a condition precedent
         to the first Purchase Order and any subsequent Purchase Orders becoming
         a binding contract between the Parties that the Performance Bond
         covering the work to be performed under the relevant Purchase Order(s)
         is in full force and effect.

29.2     As each new Purchase Order following the first Purchase Order is issued
         and accepted, the value of the then existing Performance Bond shall be
         adjusted to reflect the aggregate value of: (i) 5% of the total value
         of that Purchase Order; plus (ii) 5% of the total value of that portion
         of the previous Purchase Order(s) relating to equipment, software and
         components not yet Commissioned as of that date. This process of
         adjustment may only be made at the end of each Quarter at the relevant
         DRM so as to ensure that as each new Purchase Order is issued and
         accepted, PARTNER will adjust the value of the Performance Bond to the
         appropriate level, taking into account the value of all equipment,
         software and components not yet Commissioned at that time under the
         relevant Purchase Orders (new or prior). PARTNER shall maintain the

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<PAGE>

         Performance Bond at the appropriate value levels for a period
         terminating on a date which is six (6) months from the first to occur
         of issuance of the first Integrated System Acceptance Test Certificate
         by TELKOM pursuant to this Agreement, or commercial deployment of any
         of the Deliverables.

ARTICLE 30. TERMINATION OF PURCHASE ORDERS

30.1     A Purchase Order may be terminated by TELKOM in whole or in part and
         from time to time, whenever TELKOM shall so determine. TELKOM shall
         deliver to PARTNER a written notice, the "Notice of P.O. Termination",
         signed by authorized signatories of TELKOM, specifying the extent to
         which performance of work under the Purchase Order is terminated and
         the date (which shall be not less than five (5) Business Days from the
         date of Notice of P.O. Termination) upon which such termination becomes
         effective.

30.2     On receipt of such a Notice of P.O. Termination, unless otherwise
         directed by TELKOM in the notice, PARTNER shall:

30.2.1   stop work under the Purchase Order on the date and to the extent
         specified in the Notice of P.O. Termination (except to the extent
         reasonably required by considerations of security or safety);

30.2.2   place no further orders or contracts for materials, services, or
         facilities except as may be necessary for completion of any portion of
         the work under the Purchase Order which is not terminated;

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<PAGE>

30.2.3   use reasonable efforts to terminate all orders and contracts to the
         extent that they relate to the performance of work terminated by the
         Notice of P.O. Termination;

30.2.4   subject to payment by TELKOM in accordance with Article 30.3, as
         reasonably requested assign to TELKOM, in the manner, at the time and
         to the extent directed by TELKOM, PARTNER's rights, title and interest
         under the orders and contracts so terminated;

30.2.5   use reasonable efforts to mitigate any damages caused by the
         termination of the Purchase Order and settle outstanding liabilities
         and claims arising out of such termination of orders and contracts,
         with TELKOM's approval or ratification to the extent they may require,
         which approval or ratification shall be final for all the purposes of
         this Article 30;

30.2.6   subject to payment by TELKOM in accordance with Article 30.3 and as
         reasonably requested by TELKOM, (i) transfer title and deliver to
         TELKOM in the manner, at the time, and to the extent (if any) directed
         by TELKOM the fabricated or unfabricated parts, work in progress,
         completed work, supplies, and other material produced as part of, or
         acquired in connection with the performance of the work terminated by
         the Notice of P.O. Termination, and (ii) deliver to TELKOM the
         completed or partially completed plans, drawings, information and other
         property which, if the Purchase Order had been completed, would have
         been required to be furnished to TELKOM;

30.2.7   complete performance of such part of the Scope of Work as may not have
         been terminated by the Notice of P.O. Termination; and

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30.2.8   take such action as may be necessary, or which TELKOM may direct, for
         the protection and preservation of the property related to the Purchase
         Order which is in PARTNER's possession and in which TELKOM has or may
         acquire an interest, provided that if it complies with TELKOM's
         directions, PARTNER shall have no liability to TELKOM for loss or
         damage to such property.

30.3     After reception of a Notice of P.O. Termination PARTNER shall submit to
         TELKOM a written termination claim. Such claim shall be submitted
         promptly, but in no event later than ninety (90) calendar days from the
         Notice of P.O. Termination. Payment of claimed amounts under such
         termination claim agreed by TELKOM to be payable in accordance with
         performance by PARTNER of its obligations under Article 30.2, shall be
         payable to PARTNER pursuant to issuance of a special Purchase Order and
         payment within twenty-one (21) Business Days of approval by TELKOM
         (such approval not to be unreasonably withheld or delayed) of the
         claim. For the avoidance of doubt, for purposes of TELKOM's payment
         obligations under this Article 30, any equipment, software or
         components related to a Purchase Order for which Notice of P.O.
         Termination has been given shall be inspected and checked to the
         satisfaction of TELKOM, which inspection shall be deemed to constitute
         Commissioning. In such event the Subscriber Target for the terminated
         portion of the equipment, software or components will be adjusted to
         zero and the value of that portion of the Purchase Order terminated
         shall not be taken into account for the purposes of Article 32.2.

30.4     In the settlement of any such partial or total termination claim,
         TELKOM's payment to PARTNER shall be limited to the following:

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30.4.1   the price for completed work, based on Appendix 4 (Price Schedule);

30.4.2   a fair and reasonable sum in respect of partially completed work
         prorated where practicable based on Appendix 4 (Price Schedule);

30.4.3   the cost of supplies and materials reasonably and necessarily purchased
         in respect of the terminated portion of the Purchase Order, but not
         incorporated into completed or partially completed work;

30.4.4   the cost of settling and paying claims arising out of the termination
         of the work under contracts and orders, as provided above, which are
         properly chargeable to the terminated portion of the Purchase Order;

30.4.5   the reasonable costs of accounting, legal and clerical expenses
         reasonably necessary for the preparation of settlement claims and
         supporting data with respect to the terminated portion of the Purchase
         Order and for the termination and settlement of contracts thereunder,
         together with reasonable storage, transportation, and other costs
         incurred in connection with the protection or disposal of property
         allocable to the Purchase Order.

 30.5    Notwithstanding the above, the total payment to PARTNER pursuant to
         this Article 30, taken together with any other payment, shall not
         exceed the value applicable to the work or to part therefore so
         terminated. TELKOM shall not be responsible for any costs or charges
         beyond those costs which have been claimed and validated in accordance
         with Article 30.4. TELKOM shall not be liable to PARTNER in the event
         of such termination for any loss of profit or consequential damages
         whatsoever.

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<PAGE>

30.6     In arriving at the amount due to PARTNER under this Article 30, there
         shall be deducted from all monies paid or due to be paid to PARTNER,
         any amounts then due and owing by PARTNER to TELKOM and the agreed
         price for or the proceeds of sale of any materials, supplies or other
         things acquired by PARTNER or sold, pursuant to the provisions of this
         Article, and not otherwise recovered by or credited to TELKOM. If this
         results in PARTNER having a net liability towards TELKOM, such sum
         shall be payable by PARTNER to TELKOM within thirty (30) calendar days
         after written demand.

30.7     For a period of one (1) year after final settlement under the Purchase
         Order, PARTNER shall preserve and make available to TELKOM at all
         reasonable times at PARTNER's premises, but without charge to TELKOM,
         all books, records and documents bearing on costs and expenses under
         the Purchase Order relating to the work terminated under this Article
         30.

ARTICLE 31. TERMS OF PAYMENT

31.1     Payments by TELKOM shall be made to PARTNER in accordance with the
         terms of each Purchase Order. The Parties contemplate that TELKOM will
         pay for equipment procured pursuant to this Agreement in three
         instalments: upon delivery, following Commissioning as evidenced by
         issuance of the respective Integrated System Acceptance Test
         Certificate, followed by payment during the PAYG Period, in accordance
         with the terms and conditions of this Article 31.

31.2     TELKOM will pay 10% of the value of a particular Purchase Order upon
         delivery of the Deliverables (and equipment related services but not
         including general services for operation and maintenance, spare parts,
         software upgrades, Documentation and training) to the Location
         specified in the Purchase Order. This amount shall be due upon delivery

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<PAGE>

         to TELKOM of an invoice for the agreed sum, accompanied by the
         following documents, or such additional documents as may reasonably be
         required by TELKOM:

31.2.1   Invoice covering letter;

31.2.2   Original shipping documents (bill of lading or A/W bill) for imported
         equipment;

31.2.3   Packing list for equipment;

31.2.4   Detailed BoQ and the value of the detailed BoQ by Location and Site;

31.2.5   Tax invoice ("Faktur Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak");

31.2.6   Original Goods Delivery Certificate ("Berita Acara Barang Tiba") issued
         by TELKOM for equipment; and

31.2.7   Simple receipt ("Kuitansi").

31.3     TELKOM will pay 15% of the proportionate value of a particular Purchase
         Order upon successful Commissioning of all or part of the equipment,
         software and components in a particular Purchase Order as evidenced by
         TELKOM's issuance of the related Integrated System Acceptance Test
         Certificate or Partial Integrated System Acceptance Test Certificate,
         or commercial deployment of any of the Deliverables, whichever is
         earlier. This amount shall be due upon delivery to TELKOM of an invoice
         for the agreed sum, accompanied by the following documents, or such
         additional documents as may reasonably be required by TELKOM:

31.3.1   Invoice covering letter;

31.3.2   Detailed BoQ and the value of the detailed BoQ by Location and Site;

31.3.3   As-built drawings;

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<PAGE>

31.3.4   Original Integrated System Acceptance Test Certificate and/or Partial
         Integrated System Acceptance Test Certificate, certified by TELKOM;

31.3.5   Tax invoice ("Faktur Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak"); and

31.3.6   Simple receipt ("Kuitansi").

31.4     The remaining value of each Purchase Order constituting 75% of the
         total value of a particular Purchase Order (the "PAYG Value"), shall be
         invoiced (a "PAYG Value Invoice") only upon issuance of the associated
         Integrated System Acceptance Test Certificate(s) (and not Partial
         Integrated System Acceptance Test Certificates), or commercial
         deployment of any of the Deliverables, whichever is earlier, and shall
         be payable in accordance with the provisions of Article 32. PAYG Value
         Invoices shall be accompanied by the following documents, or such
         additional documents as may reasonably be required by TELKOM:

31.4.1   Invoice covering letter;

31.4.2   Simple receipt ("Kuitansi");

31.4.3   Copy of Integrated System Acceptance Test Certificate(s) certified by
         TELKOM; and

31.4.4   A worksheet showing the PAYG Value of the Purchase Order.

31.5     To request quarterly payments during the PAYG Payment Period under PAYG
         Value Invoices issued in accordance with the provisions of Article 32,
         PARTNER shall deliver to TELKOM a "PAYG payment request" in form and
         substance as shall be agreed between the Parties, each such request to
         be accompanied by a tax invoice ("Faktur Pajak") and tax payment slip
         (SSP) ("Surat Setoran Pajak") and shall include at least the following
         data:

         (i)      the total additional number of T-21 Program CDMA subscribers
                  in the relevant DIVRE at the end of the Quarter;

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<PAGE>

         (ii)     the total Subscriber Target number attributable to the
                  Deliverables that have been Commissioned in the relevant DIVRE
                  in the Quarter;

         (iii)    the total PAYG Value of all Deliverables that have been
                  Commissioned in the Quarter;

         (iv)     the requested quarterly payment calculated in accordance with
                  the provisions of Article 32.

ARTICLE 32. PAYG PAYMENTS

32.1     For the purposes of implementing the Pay as You Grow (PAYG) concept
         contemplated in the T-21 Program, all Purchase Orders relating to all
         or any part of the Deliverables that have been Commissioned (excluding
         those in relation to general services for operation and maintenance,
         spare parts, software upgrades, Documentation and training) in the same
         Quarter shall be grouped together on a DIVRE level basis, provided also
         that a group of Purchase Orders may be segmented by types of equipment,
         software, components and scope of services, if necessary. For the
         purposes of administration, each Purchase Order shall at the end of the
         relevant Quarter be treated as if comprised of two parts as
         appropriate, one part comprising all Commissioned Deliverables and one
         part comprising the Deliverables not yet Commissioned.

32.2     Subject to the provisions of this Article 32, PAYG payments for that
         part of each Purchase Order comprising Commissioned Deliverables shall
         become due at the end of each Quarter based on the net increase in
         subscribers in the DIVRE at the end of each Quarter as stated in the
         Subscriber Recorder. The initial calculation of PAYG payments in the
         case where there are no outstanding Purchase Orders will be as follows:

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<PAGE>

Total number of T-21 Program CDMA subscribers
in that DIVRE at the end of that Quarter minus   Total PAYG Value of all
the total number of T-21 Program CDMA            Deliverables Commissioned
subscribers in that DIVRE at the end of          in that Quarter
previous Quarter

- -------------------X
Total Subscriber Target number attributable to
the Deliverables that have been Commissioned
in that DIVRE in that Quarter

           The detailed methodology to calculate the PAYG payments is provided
           in Appendix 11.

32.3     Where only part of the equipment (e.g., a BTS or card) in a
         Location/Site referred to in a Purchase Order has been Commissioned,
         (i) the Subscriber Target shall be based on the Commissioned BTS or
         cards; and (ii) the PAYG Value attributable to that equipment, software
         and components shall be based on the value of said Commissioned BTS or
         cards including the associated software and components.

32.4     The PAYG Value of equipment, software and components such as BSC, PDN,
         and other equipment in relation to a particular Purchase Order
         containing such equipment shall be calculated at the end of the
         relevant Quarter by using the total value of such equipment software
         and components Commissioned in that Quarter multiplied by the ratio of
         the Subscriber Target of all BTS Commissioned in that Quarter divided
         by the total Subscriber Target of all BTS in the related Purchase
         Order.

32.5     Purchase Orders signed by TELKOM will be paid off sequentially
         commencing with the earliest in time. Non-Commissioned Deliverables in
         a Purchase Order issued in a particular Quarter will be carried forward
         into the Purchase Order(s) aggregated in the following Quarter, until
         Commissioned, and if Commissioned in

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         that Quarter, will be accounted for in the calculation of the PAYG
         payment in that Quarter. To facilitate this calculation, the particular
         Purchase Order from which non-Commissioned Deliverables have been
         carried forward into the following Quarter shall be deemed amended by
         mutual agreement of the Parties by way of inclusion of such
         non-Commissioned Deliverables in a subsequent Purchase Order issued in
         that following Quarter. Thereafter, without further action of the
         Parties, such Purchase Order previously comprised of both Commissioned
         and non-Commissioned Deliverables shall be deemed to be comprised only
         of Commissioned Deliverables and, as such, shall become payable under
         the PAYG payment mechanism set out in this Article 32. Any adjustment
         that are required to be made to the Implementation Schedule and/or
         Deployment Plan as a result of this carry-forward shall be discussed
         and decided at the relevant DRM.

32.6     The net subscriber increase within the second and/or following Quarter
         will be counted first towards the cumulative subscribers related to the
         Deliverables Commissioned in the first Quarter to the extent such
         portion of such Purchase Order relating to the Deliverables
         Commissioned in the relevant Quarter have not been paid fully, and then
         towards the cumulative subscribers related to the Deliverables
         Commissioned in the second and/or following Quarter.

32.7     If there is a decrease in the number of subscribers due to churn or
         other reasons in the following Quarter, then no PAYG payments shall be
         due until the current number of subscribers has exceeded the number of
         subscribers at the time the last PAYG payment became due.

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32.8     If the PAYG Value of a Purchase Order has not been paid by the end of
         its PAYG Payment Period, the remaining unpaid amount shall be due upon
         delivery to TELKOM of an invoice for that amount.

32.9     In order to calculate the PAYG Value applicable to each Quarter, TELKOM
         shall within ten (10) Business Days of the end of each Quarter, provide
         to PARTNER the net number of new subscribers added and the total number
         of subscribers per DIVRE as recorded by the Subscriber Recorder.
         PARTNER shall within ten (10) Business Days of receipt of the
         Subscriber Recorder numbers, submit to TELKOM a calculation showing the
         PAYG payments due by DIVRE and Purchase Order number (or amended
         Purchase Order number) for that Quarter.

ARTICLE 33. GENERAL SERVICES PAYMENTS

33.1     General services for training provided under this Agreement are not
         under the PAYG payment scheme and shall be invoiced by PARTNER
         supported by a copy of the Training Acceptance Certificate issued by
         TELKOM, after the services have been completed and shall be payable by
         TELKOM thirty (30) days after the date the invoice is received by
         TELKOM.

33.2     All general services for Documentation to be provided by PARTNER under
         this Agreement shall be invoiced by PARTNER supported by a copy of a
         Documentation Acceptance Certificate issued by TELKOM and shall be paid
         25% on delivery and the remaining 75% shall be paid in accordance with
         the PAYG payment scheme by adding the amount due to the Contract Value
         of the group of Purchase Orders for equipment, software and components
         Commissioned in that Fiscal Year and paid in accordance with the PAYG
         Payment Period for that group of Purchase Orders.

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<PAGE>

33.3     Payments for operation and maintenance, spare parts, software updates
         and upgrades shall be made and paid in accordance with the terms of the
         applicable Service Level Agreement.

ARTICLE 34. INVOICING

34.1     Payments by TELKOM shall be made to PARTNER based on the issuance and
         delivering of invoices to TELKOM.

34.2     All invoices shall be submitted in triplicate, shall be sent by courier
         and shall be accompanied by the relevant documentation listed in
         Article 31 showing the acknowledgement by TELKOM or its agent of the
         relevant equipment or services delivered and/or such other supporting
         documents as may be required by TELKOM. All invoices shall be addressed
         to:

         PT TELEKOMUNIKASI INDONESIA, TBK, Attn. Head of Fixed Wireless CDMA
         Division (as Project Manager)
         Jalan Kebon Sirih, Kav. 12
         Jakarta, Indonesia

34.3     TELKOM shall have (a) fifteen (15) Business Days from receipt of an
         invoice to either (i) dispute the amounts due by notice in writing or
         (ii) instruct the amount to be released under the vendor financing
         arrangements, or (b) thirty (30) calendar days to pay PARTNER if paid
         directly by TELKOM (without involvement of a vendor financing
         institution). If TELKOM disputes the invoice, PARTNER shall have five
         (5) Business Days to reissue a further invoice and the provisions of
         sub-paragraph (a) and (b) shall again apply.

34.4     TELKOM shall pay interest at the rate of 6% per annum, on any
         undisputed payment due and unpaid for a period of three (3) months, up
         to a maximum of 5% of the undisputed and unpaid portion of the Contract
         Value referenced in the applicable Purchase Order, commencing from the
         end of such 3-month period.

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<PAGE>

ARTICLE 35. FINANCING OF TELKOM'S PAYMENT OBLIGATIONS

35.1     PARTNER has agreed to seek and arrange financing from one or more
         reputable financial institutions and TELKOM and PARTNER have entered
         into discussions in relation to a financing proposal for the financing
         of TELKOM's payment obligations under this Agreement. The general
         concept of the financing proposal and payment mechanism is set out in
         Appendix 15 (Financing Arrangements). The Parties intend to conclude
         the financing arrangements as soon as possible following execution of
         this Agreement but in any event at the latest six (6) months following
         such execution. In the event that the Parties cannot agree on
         acceptable financing terms with the relevant financial institution(s)
         by the end of such six (6) month period, or as such period may be
         extended by mutual written agreement of the Parties, TELKOM reserves
         the right to terminate the Agreement, in which event the provisions of
         Articles 14.4, 14.5 and 14.6 shall apply.

35.2     If the financing arrangements contemplated in Article 35.1 have not
         been put in place within the period required in Article 35.1 and if
         TELKOM decides not to exercise its right to terminate, TELKOM shall
         provide alternate financing or a bank guarantee or equivalent security
         satisfactory to PARTNER in relation to all Purchase Orders issued or to
         be issued.

ARTICLE 36. CHANGE REQUEST PROCEDURES

36.1     During implementation of the Scope of Work, a Party may request at any
         time that a change be made to (without limitation) the Deliverables,
         Purchase Orders, the Installed Line Procurements.

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<PAGE>

         the Implementation Schedule, the Deployment Plan or other Appendix to
         this Agreement, as the case may be. Such request shall be made in the
         form of a "Change Request" and must be in writing.

36.2     The Change Request form shall be completed by the requesting party in
         accordance with Appendix 18 (Change Request).

36.3     Within ten (10) Business Days after receipt of a Change Request, or
         within such other period as may be agreed, PARTNER will evaluate the
         Change Request and provide a full written quotation or cost reduction
         estimate specifying the form that the proposed amendment will take and
         detailing the cost impact and effect on the works, including the
         Implementation Schedule.

36.4     In the event that the Change Request is processed and agreed in the
         required form, the relevant Deliverables, Purchase Order(s), Installed
         Line Procurements, Implementation Schedule, Deployment Plan or other
         Appendix to this Agreement, as the case may be, shall be deemed amended
         accordingly.

36.5     In the event that the Change Request cannot be agreed, there shall be
         notification of the reasons in writing within ten (10) Business Days of
         receiving the Change Request. Otherwise, when the Parties agree to
         implement the Change Request, the details of such change shall be
         specified and agreed in writing.

36.6     At the same time as giving the Change Request, the requesting Party
         shall provide the other Party such information as may reasonably be
         required to assess the impact of the Change Request on the overall
         Scope of Work. If there is a reasonable possibility that there will
         need to be a material amount of time and effort spent in dealing with a
         Change Request additional payment or payment reduction.

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<PAGE>

         as appropriate, for that time and effort may be negotiated, but
         compensation for any work to deal with the Change Request shall be
         contingent on prior written agreement between TELKOM and PARTNER.

36.7     PARTNER shall make such changes and implement the Change Request only
         upon execution by the Parties of a written document specifying the
         agreed changes, the scope of the changes, the adjustments to the
         Implementation Schedule, if any, the additional/costs or reduction of
         costs, if any.

36.8     Where immaterial changes in the overall size, scope or functionality of
         the Deliverables or to the Scope of Work or Technical Specifications
         result in an amendment of a Purchase Order and/or this Agreement, such
         changes will not affect the Contract Value or the Implementation
         Schedule. The cost of any minor amendments or variations or amendments
         required by reason of any defect or deficiency in any design or
         Documentation or any equipment, component or software made or provided
         by PARTNER shall be borne solely by PARTNER.

36.9     In the event TELKOM and PARTNER cannot reach agreement on the scope and
         impact of a Change Request, the matter shall first be referred to the
         respective managements of both TELKOM and PARTNER, and failing
         agreement, the provisions of Article 16 shall apply.


ARTICLE 37. RELOCATION OF EQUIPMENT

37.1     Following discussion between the Parties of costs and benefits, TELKOM
         may decide to re-locate equipment within a DIVRE if it decides that
         initial demand projections or forecast in a given Location were not
         accurate and the equipment to be procured pursuant to a Purchase Order
         is not likely to generate the revenue that was expected.

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<PAGE>

37.2     Upon written request of TELKOM, PARTNER shall assist with and supervise
         such relocation including re-designing the Network and conducting all
         appropriate tests to put the re-deployed equipment into service.

37.3     PARTNER shall bear the costs for the relocation of modular equipment
         such as sub-racks and cards which the Parties have agreed do not entail
         substantial costs. In all other cases, TELKOM and PARTNER shall conduct
         a cost benefit analysis prior to any relocation. All reasonable costs
         associated with the relocation of all other equipment shall be borne by
         TELKOM. Any relocation of equipment conducted by TELKOM shall be
         supervised by PARTNER. PARTNER shall bear the costs of providing the
         supervision service. TELKOM shall bear the costs of any additional
         equipment required.

ARTICLE 38. DETAILS OF PARTNER'S BANK ACCOUNTS

38.      Details of PARTNER's bank accounts into which all payments from TELKOM
         shall be paid into are set out below:

1.       USD Account For Import Goods/Material Payment in USD

         Name of
         the Bank        :  Mellon Bank NA
         Address of      :  Pittsburgh, PA ABA
         the Bank           043000261

         Beneficiary     :  Ericsson Wireless
                            Communications Inc.
                            Federal Tax ID:
                            75-2816602
                            6455 Lusk Boulevard,
                            San Diego, CA 92121
                            USA
         Account No.     :  048872
         Swift Code      :  MELNUS3P
         Bank Contact    :  Lillian Booker
         Phone No.       :  +1.412.234.8790

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<PAGE>

2.       USD Account For Local Services/ Payment in USD

         PT Ericsson Indonesia
         Citibank N.A
         Jl. Jend. Sudirman Kav. 54-55 Jakarta
         Account No. 0.103933.528
         Swift Code CITIIDJX

3.       IDR Account For Local Services/ Goods/Payment in IDR

         PT Ericsson Indonesia
         Citibank N.A
         Jl. Jend. Sudirman Kav. 54-55 Jakarta
         Account No. 0.103933.099

CHAPTER 4. CONSORTIUM ORGANIZATIONAL MATTERS

ARTICLE 39. CONSORTIUM MEMBERSHIP CRITERIA

39.1     The Consortium of which PARTNER is a part shall have at least one
         Indonesian member.

39.2     The Consortium leader shall be required to be the leading technology
         supplier for the Project (i.e., the radio network manufacturer).

39.3     All substitutions, replacements or other changes to the composition of
         the membership of PARTNER's Consortium must be submitted to and
         approved by TELKOM in writing before being implemented.

ARTICLE 40. ASSIGNMENT AND SUBCONTRACTING

40.1     PARTNER shall not, without the prior written consent of TELKOM (which
         consent shall not be unreasonably withheld or delayed), assign this
         Agreement, or assign or encumber any of the moneys due or becoming due
         under this Agreement, it being understood that PARTNER intends to
         assign its interests in accounts receivable from TELKOM in favour of a
         reputable third party institution for purposes of facilitating the
         financing of the Deliverables in accordance with this Agreement. TELKOM
         reserve the right to assign this Agreement, without prior

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         approval of PARTNER to an Investor, as contemplated in Articles 28.10 -
         28.14 provided the Investor gives PARTNER satisfactory payment
         assurances under Article 28.12 of this Agreement.

40.2     TELKOM reserves the right to assign this Agreement, with the prior
         written approval of PARTNER (such approval not to be unreasonably
         withheld), to any of TELKOM's subsidiaries or related companies,
         provided the subsidiaries or related companies provide satisfactory
         payment assurances.

40.3     A schedule of each proposed sub contractor and the part of the Scope of
         Work proposed to be performed by such sub-contractor is attached in
         Appendix 1. In case of any plan to change and/or to add a
         sub-contractor. PARTNER shall notify TELKOM in writing immediately
         before the proposed sub-contractor is appointed. TELKOM shall advise
         within ten (10) Business Days if it has substantive objections to the
         appointment of any of such proposed sub-contractors and/or the work
         they were intended to do, and PARTNER shall take such objections into
         account so as to meet with TELKOM's approval.

40.4     The use of sub-contractors shall in no way relieve PARTNER from its
         responsibility to deliver the Deliverables to TELKOM (in particular to
         ensure that any Deliverables comply with all requirements of this
         Agreement) or to perform necessary tasks such as project management
         related to this responsibility in accordance with this Agreement.

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40.5     PARTNER shall ensure that the addition or removal of any
         sub-contractors shall not impact the agreed Contract Value or
         implementation of the Scope of Work.

ARTICLE 41. INVOLVEMENT OF LOCAL ENTITIES

41.1     PARTNER shall use all reasonable efforts to maximize involvement of
         entities in Indonesia in its provision of Deliverables, the objective
         being to maximize financial benefits as well as transfer of knowledge
         and learning in Indonesia and thereby reduce TELKOM's exposure to
         foreign exchange risk. In this connection, "all reasonable efforts"
         will be defined by reference to a minimum threshold level of local
         Indonesian involvement in executing the Project, comprising a
         percentage of the total contract value of the Project, which is at
         minimum 20% of the Contract Value of Package 1.

41.2     The Local Content requirement can be satisfied by reference to the
         total contract value of the Project executed through Local Indonesian
         Entities, whether as members of PARTNER, key subcontractors or through
         other external Indonesian parties.

41.3     TELKOM agrees that expenses of non-Local Indonesian Entities supporting
         the Project may be included in the calculation of total contract value
         for these purposes, including salaries paid to staff located in
         Indonesia (Indonesian nationals or residents only), property rental and
         other operational expenses of Indonesia offices, administrative
         materials and services acquired in Indonesia, provided that PARTNER
         executes an undertaking to TELKOM as provided below.

41.4     The undertaking required by TELKOM shall state that PARTNER will, over
         the duration of the Project, procure certain materials and services
         within Indonesia (stating all categories of materials and services) to
         support the local operations of the overseas companies in the
         Consortium. Further, that all such

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         procurements will be in accordance with, the requirements stated by
         TELKOM in the RfP for the T-21 Program to the extent not inconsistent
         with this Agreement.

41.5     TELKOM reserves the right to verify, accept or reject all claims in
         part or in full regarding execution of the Project through Local
         Indonesian Entities, expenses of overseas companies and in regard to
         the claimed transfer of skills, technology and financial benefits.

ARTICLE 42. LOGISTICS

42.1     PARTNER shall provide all logistical requirements from the point of
         origin of any equipment, components or other Project goods to the
         applicable Project Location/Site, inclusive of all charges, such as
         transport and transit, demurrage, storage, insurance, fees and levies.
         In addition, pursuant to the Scope of Work, PARTNER shall provide all
         equipment related services (covering survey, design, planning, permits,
         right of way, services related to land acquisition, installation,
         integration, project management, insurance up to transfer of title in
         accordance with Article 10.2, testing and commissioning, and all
         related materials and expenses) for both imported and local goods.

42.2     PARTNER shall provide all arrangements for shipping/transportation,
         forwarding and servicing equipment, components or other Project goods
         from their point of origin to the Project Location/Site where they are
         finally deployed.

42.3     PARTNER shall provide all warehousing requirements and explain the
         locations of the facilities to be used for this purpose. PARTNER will
         also be required to arrange for warehousing and storage facilities at
         installation sites to ensure proper storage and protection of all
         equipment, components or other Project goods. PARTNER shall ensure that
         all equipment is adequately

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         packaged and stored to avoid any damage. While in such warehousing, the
         equipment and material will be the sole responsibility of PARTNER.

42.4     PARTNER shall provide all required protection, insurance and other
         services to ensure safe delivery of the all equipment, components or
         other Project goods. PARTNER shall be responsible for any damage or
         loss of goods.

ARTICLE 43. INVENTORY

43.1     PARTNER shall provide all services to ensure proper installation of
         equipment, components or other Project goods, provide optimal operating
         conditions and maximize the long term viability of the foregoing.
         PARTNER must provide all tools and equipment necessary to install and
         commission any Project equipment procured under this Agreement.

43.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

43.2.1   PARTNER's contractor shall provide all materials (including cables,
         connectors and other miscellaneous materials), labor, tools,
         transportation, telecommunication facilities (telephone, facsimile,
         etc.) and everything else necessary for completion of work in
         accordance with this Agreement;

43.2.2   PARTNER's contractor shall employ an adequate supervisory force and an
         adequate staff of experienced engineers, technicians and workmen to
         complete the Scope of Work in a satisfactory and workman like manner
         within the time specified in the this Agreement;

43.2.3   with the cooperation of TELKOM staff, all work at any Location/Site
         shall be carried out in such a manner as to minimize any obstructions
         to the operation of TELKOM's staff at such Location/Site:

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43.2.4   PARTNER and its sub-contractors shall itemize and provide all
         equipment, tools, measuring equipment, machinery and electrical power
         equipment necessary for execution of the Scope of Work in Indonesia;
         and

43.2.5   PARTNER and its sub-contractors shall provide a list of equipment,
         tools, measuring equipment, machinery and electrical power equipment
         which is used for installation purpose only.

43.3     Delivery and storage of Project equipment and materials shall consist
         of the following activities:

43.3.1   the PARTNER and its sub-contractors shall be responsible for storage
         arrangements during the interval from the delivery of equipment until
         it is required for installation;

43.3.2   the PARTNER and its sub-contractors shall be responsible for loading
         and unloading as well as handling of any equipment and materials at all
         stages up to Commissioning;

43.3.3   PARTNER and its sub-contractors shall also be responsible for unpacking
         (and repacking where necessary), identification and checking of
         materials and relevant invoices or other documents; and

43.3.4   PARTNER and its sub-contractors shall be responsible for handling and
         storage of any goods during transportation and at the site.

ARTICLE 44. LOCAL SUPPORT INFRASTRUCTURE

44.1     PARTNER shall have local (Indonesian) infrastructure in place to
         support the T-21 Program as set out in Appendix 10. PARTNER shall
         provide TELKOM access to its local technical staff to ensure effective
         deployment, operations and timely problem solving. PARTNER shall use
         its best endeavours to ensure that such local support is timely, cost
         effective, and of high quality in order to meet TELKOM's desired
         service levels.

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<PAGE>

ARTICLE 45. PROJECT MANAGEMENT

45.1     PARTNER shall propose a Project Management Plan ("PMP"), in a form as
         provided in Appendix 8 (Project Management Plan). TELKOM and PARTNER
         shall discuss and mutually agree on the details of the PMP.

45.2     Prior to start-up of Project activities, the Parties shall have agreed
         on a PMP containing at least the following:

45.2.1   Scope of work;

45.2.2   Project organization and personnel;

45.2.3   Project activity plan and schedule by Location;

45.2.4   Reporting of progress and issues.

45.3     PARTNER shall appoint the Project personnel as described in the PMP
         including a Project Manager who will be responsible for contact with
         TELKOM with respect to resolving issues arising in the course of
         Project implementation. The Project Manager may also serve as one of
         the Project personnel referenced in the PMP.

45.4     The identity and qualifications of all key Project personnel proposed
         by PARTNER to work on the Project in Indonesia, including the Project
         Manager as described in the PMP shall be notified in writing by PARTNER
         to TELKOM before appointment. The Project Manager shall only be
         appointed with TELKOM's prior approval. For all other key Project
         personnel, TELKOM shall inform PARTNER of any objections within ten
         (10) Business Days of notification and any Project personnel to whom
         TELKOM objects shall not be appointed. Replacements must be equally
         well qualified and appropriate for the Project.

45.5     At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom PARTNER Project personnel shall

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         maintain close cooperation and communication at all times. TELKOM may
         also appoint local supervisors with whom PARTNER'S local Project
         personnel shall maintain close cooperation and communication at all
         times.

45.6     TELKOM may object to and, after consultation with PARTNER direct
         PARTNER to remove from any site immediately any person employed by
         PARTNER or any sub-contractor at the site who in the reasonable opinion
         of TELKOM, misconducts himself, has proved to be unsuitable under the
         terms of the Scope of Work or is incompetent or negligent in the
         performance of his duties, and such person shall not be employed again
         at any Project site except with the prior written approval of TELKOM.

45.7     PARTNER shall submit to TELKOM the required progress report described
         in the Scope of Work. With respect to any period covered by a progress
         report, in the event that PARTNER fails to inform TELKOM of any
         problem, TELKOM shall be entitled to presume that no such problem arose
         during such period. However, submission by PARTNER to TELKOM of the
         specified progress reports will not alter, amend or modify PARTNER
         obligations pursuant to any other provision of this Agreement.

45.8     PARTNER shall provide complete project management support to the
         Project including without limitation, managing the constituents members
         of PARTNER, subcontractors and other suppliers, as well as managing the
         acquisition of required sites, licenses, permits and rights of way.

45.9     PARTNER shall provide comprehensive and up-to-date reporting to TELKOM
         management at all appropriate levels to track progress of the Scope of
         Work, monitor key requirements, identify and address issues and ensure
         high quality of deployment achieved within budget.

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<PAGE>

45.10    PARTNER shall provide the following types of reports to TELCOM
         during the period of deployment of the Network on a monthly basis:

         (a) Deployment Status Update;

         (b) Updated Issues Log;

         (c) Shipment Tracking Report.

45.11    PARTNER shall at intervals of two (2) months submit an updated
         Implementation Schedule to TELKOM. The updated Implementation Schedule
         shall contain important milestones including:

45.11.1  Commencement of implementation of each Location;

45.11.2  Commencement of the detailed survey for each Location;

45.11.3  Completion of installation, construction designs, drawings associated
         with the Project;

45.11.4  Readiness dates for interim inspections, PARTNER own tests, and
         Commissioning tests for each Location/Site;

45.11.5  Manufacturing and transportation schedules of materials for each Sub-
         system per each Location including the times of factory performance
         tests.

45.12    Delivery of equipment, components, software and services by PARTNER,
         shall be in conformity with the provisions of this Agreement and/or the
         respective Purchase Order, including the time schedule and milestones
         set forth in Appendix 9 (Implementation Schedule).

45.13    Each alteration to the Implementation Schedule shall be upon mutual
         agreement of the Parties and valid only if executed as a Change Request
         signed by the authorized representative of each of the Parties.

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45.14    PARTNER shall keep records of (without limitation) the general business
         administration of the Project, i.e.:

45.14.1  Invoicing and records of TELKOM payments;

45.14.2  Personnel management;

45.14.3  Taxes; and

45.14.4  Insurance.

45.15    PARTNER shall report on the Project's progress, including any
         significant difficulties encountered, to TELKOM at monthly meetings in
         accordance with Article 26.3.

45.16    PARTNER shall liaise with TELKOM in each DIVRE for deployment
         coordination and with regional authorities, public utilities and third
         parties in the areas for permits and Network roll-out. The liaison
         shall be arranged during regular monthly meetings with TELKOM and the
         following parties during Network roll-out: (i) TELKOM in the regional
         division area; (ii) other TELKOM contracting parties; and (iii)
         subcontractors.

45.17    In addition, the Parties shall arrange ad-hoc meetings as required on
         reasonable notice to deal with co-ordination and implementation related
         issues.

ARTICLE 46. RESEARCH AND DEVELOPMENT

46.1     PARTNER shall from time to time at TELKOM's request consider
         participating in joint development efforts in the field of software and
         services enhancement. Any such joint development activities shall be
         mutually agreed upon as to the scope, responsibilities of each Party,
         allocation of costs, ownership of Intellectual Property Rights and
         other mutually agreed items. TELKOM employees shall be actively
         involved in such development efforts.

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<PAGE>
46.2     Pursuant to Article 5.1.9, PARTNER shall provide timely notice to
         TELKOM of its newest tested technologies and any improvements it deems
         advantageous to TELKOM in the current Project "road map" of technology
         development.

ARTICLE  47. TRAINING, TRANSFER OF KNOW HOW AND DEVELOPMENT OF INTELLECTUAL
             PROPERTY

47.1     PARTNER shall provide training in accordance with this Article 47 and
         the detailed training requirements and schedule specified in Appendix
         19 (Training). TELKOM shall provide qualified engineers for training
         programs provided by PARTNER under this Agreement.

47.2     Training shall be conducted in two (2) parts, one in PARTNER's training
         center overseas (at a location to be advised to TELKOM at least
         forty-five (45) calendar days prior to such training), and the other in
         Indonesia. For both training locations, PARTNER shall provide
         class-room training ('Class') and On-the-job training ('Job'). PARTNER
         shall propose detailed schedules for both types of training based on
         TELKOM's requirements.

47.3     The training course shall cover 3 (three) areas of expertise, i.e.:

         (a)      SYSTEM ENGINEERING

                  PARTNER shall conduct training in an efficient manner to
                  produce well trained proficient personnel capable of
                  engineering. The course is intended to train personnel to have
                  basic knowledge of CDMA network planning and system design
                  engineering.

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         (b)      OPERATION AND MAINTENANCE

                  The course is Intended to train personnel to have basic
                  knowledge of system's operation and maintenance and who Shall
                  be required to provide guidance and instruction, necessary to
                  the entire operation team after completion.

         (c)      BUSINESS DEVELOPMENT AND MARKETING

                  The course is intended to train personnel to have basic
                  knowledge on how to develop the CDMA FWA business and will
                  Include training on product knowledge and marketing.

47.4     Overseas Training

47.4.1   The overseas training requirement for BSS is summarized below:

<TABLE>
<CAPTION>
                                                                        NUMBER OF TRAINEES
                                                                           PER TRAINING
                                                                     ------------------------
                                     NUMBER OF TRAINING   DURATION         CLASS          JOB
                                     ------------------   --------   ------------------------
<S>                                  <C>                  <C>        <C>                  <C>
System Engineering                          2 times        2 weeks            10          N/A

Operation and Maintenance                   2 times        2 weeks            10           10

Business Development and Marketing          2 times        2 weeks            10          N/A
</TABLE>

47.4.2   For overseas training, the following costs are included in the unit
         price:

         (a)      Daily allowance for accommodation and meals of $200 per
                  trainee including Saturday and Sunday and 2 days for travel
                  (arrival and departure)

         (b)      Airport tax, excess baggage and fiscal $500 per person

         (c)      Insurance, $50 per person

         (d)      Tuition Fee (including training materials)

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<PAGE>

         (e)      Roundtrip airfares from Indonesia to PARTNER's Main Training
                  Center, according to the following rates:

                  (i)   Europe              : $3,500/PAX

                  (ii)  United States       : $3,500/PAX

                  (iii) Asia                : $1,500/PAX

                  (iv)  Australia           : $2,000/PAX

47.5     In-Country Training


47.5.1   The in-country training requirement for BSS is summarized below:

<TABLE>
<CAPTION>
                                                                    NUMBER OF TRAINEES PER
                                                                           TRAINING
                                                                    ----------------------
                                   NUMBER OF TRAINING   DURATION      CLASS        JOB
                                   -------------------------------------------------------
<S>                                <C>                  <C>           <C>          <C>
System Engineering                      2 times          2 weeks       10          N/A

Operation and Maintenance               2 times          2 weeks       10           10

Business Development and Marketing      2 times          2 weeks       10          N/A
</TABLE>

47.5.2   For local training, the following costs per trainee are included in the
         unit price:

         (a)      Divlat (TELKOM's training center) fee: $350 per week for
                  accommodation, meals and training venue (not required for
                  on-the-job training)

         (b)      Tuition fee (including training materials)

47.6     Training Materials and Tools

47.6.1   PARTNER shall provide the following materials and tools for class-room
         training:

         (a)      Introduction of CDMA FWA including supported services;

         (b)      System Planning, Engineering, Operation and Maintenance
                  Procedures;

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         (c)      Network Planning, which includes Traffic Engineering and Link
                  Budget;

         (d)      Installation and Test Procedures; and

         (e)      Troubleshooting.

47.6.2   PARTNER shall propose the following training material and tools, for on
         the job training:

         (a)      Operation and maintenance procedure of CDMA FWA;

         (b)      System performance measurement; and

         (c)      Trouble shooting by measuring equipment.

ARTICLE 48. MANAGEMENT FORUM

The Parties shall establish a regular channel of communication between their
respective managements and shall hold meetings on a semi-annual basis to discuss
the progress of the T-21 Program.

ARTICLE 49. DEVELOPMENT OF INDONESIAN INDUSTRY

The Parties agree to support the development of the Indonesian
telecommunications industry and to maximise the benefit of the T-21 Program to
local industry. In additional to providing economic benefit through maximising
local procurement, TELKOM and PARTNER have agreed on other steps that they will
take together, including setting up educational or training centres, and working
with TELKOM to develop business models to promote new local business
opportunities arising out of the deployment of T.21 Program technologies such as
new CDMA content development. PARTNER has also agreed to consider supplying CDMA
20001x test bed systems and trainers to the planned educational or training
centers for CDMA 20001x, ED-DO/-DV and other CDMA Technology training of TELKOM
and other Project staff. The Parties agree to discuss the technical and
financial aspects of such joint actions and within ninety (90) days after the
effective date of this Agreement, agree on an implementation plan for
development of the Indonesian telecommunication industry in accordance with
PARTNER's commitments in its response to the RfP.

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CHAPTER 5. TECHNICAL PROVISIONS

ARTICLE 50. GENERAL REQUIREMENT FOR EQUIPMENT

50.1     All equipment installed by PARTNER to TELKOM shall:

50.1.1   meet the agreed requirements in Appendix 5 (Technical Specifications);

50.1.2   function in accordance with the technical documentation in the
         Technical Specifications;

50.1.3   have obtained type approval from DGPT and met TELKOM's quality
         assurance standards;

50.1.4   at delivery meet the requirements prescribed by or pursuant to the
         applicable laws, rules, regulations, guidelines, and standards of all
         applicable jurisdictions;

50.1.5   conform to the Technical Specifications and be free of material,
         production, construction and design faults;

50.1.6   be manufactured from new and sound material;

50.1.7   at a minimum comply with the MTBF (Mean-Time-Between-Failures) values
         submitted by PARTNER and as updated from time to time;

50.1.8   be packed adequately; and

50.1.9   be accompanied by the agreed upon Documentation in English.

50.2     Until Commissioning of the relevant equipment, software and components
         in any Purchase Order in which software is included, software delivered
         by PARTNER shall not contain viruses or any improper additions or
         modifications. "Viruses" includes time bombs, worms, 'trojan horses',
         drop dead devices, back door devices or any other components, which may
         fully or partly affect the intended functioning of the software

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         "Additions and modifications" mean software components which modify the
         functionality in a different way from that set forth in the applicable
         specifications. PARTNER shall not be entitled to activate a virus to
         the detriment of TELKOM. If PARTNER detects a virus or
         addition/modification or symptoms of a virus prior to Commissioning and
         during the SLA period, it shall immediately inform TELKOM and undertake
         its best efforts to eliminate the virus or the addition/modification
         and prevent damage for TELKOM at no charge.

ARTICLE 51. QUALITY ASSURANCE

51.1     PARTNER shall make all reasonable efforts to ensure that TELKOM at its
         discretion, upon reasonable notice and during business hours, is
         entitled to inspect and/or audit the production and installation phases
         of the processes of all members of PARTNER's consortium and its
         sub-contractors. PARTNER shall co-operate with TELKOM in case TELKOM
         elects at its expense to conduct such inspections and/or audits.

51.2     PARTNER shall make a final inspection of all Deliverables prior to
         delivery to TELKOM and a report containing the results of the final
         inspection shall be supplied to TELKOM on delivery.

51.3     If and in so far as any equipment or a component thereof is produced by
         a sub-contractor working for PARTNER, PARTNER shall make all reasonable
         endeavors to include similar provisions in its contract with the
         sub-contractor in order to enable TELKOM to perform inspections of a
         similar nature.

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ARTICLE 52. SURVEY, DESIGN, AND PLANNING

52.1     The planning and design activities for the Project must be able to
         fully accommodate the JPS, DRM and monthly meeting mechanism described
         in Article 26 and the flexible procurement mechanism as described in
         Article 27 of this Agreement.

52.2     The planning and design works shall consist of the following
         activities:

52.2.1   Survey of the Location/Site(s)

         PARTNER shall determine the optimum Location/Site for installation of
         the equipment, provided that the optimum Location/Site should
         preferably be in the premises of TELKOM or its subsidiaries in order to
         ease network integration and maintenance.

 52.2.2  Maximizing use of existing infrastructure

         Based on the information acquired during site surveys and data provided
         by TELKOM, PARTNER will be required to maximize and optimize all
         reusable infrastructure and incorporate it into the equipment
         requirements. The underlying objective shall be to maximize the asset
         turnover of TELKOM while ensuring that current infrastructure or future
         development/ expansion will not be impacted adversely. TELKOM shall
         review and agree to the list proposed by PARTNER before PARTNER may
         utilize it to support network roll-out.

 52.2.3  Proposing more efficient solutions

         PARTNER shall propose a more efficient solution, if available, after
         TELKOM's review of PARTNER initial roll-out plan. Such solution shall
         highlight areas of improvement from the original plan.

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52.2.4   Network optimization planning

         PARTNER will be required to conduct Network optimization planning
         together with TELKOM considering both existing and future Network
         requirements. Network optimization planning must be able to fully
         accommodate the JPS, DRM and monthly meeting mechanism and the
         flexibility procurement mechanism provided for in Articles 26 and 27,
         respectively, of this Agreement. Network optimization planning shall
         consist of the proposed plan and improvement of the current plan
         including potential implication to the overall network performance.
         Network optimization planning shall take into account the following
         technical aspects:

         (a)      ease of maintenance/operation;

         (b)      network reliability (diversity to important subscriber);

         (c)      flexibility to demand fluctuation (capacity and features);

         (d)      expandability of the Network;

         (e)      ease of construction and integration; and

         (f)      interoperability.

ARTICLE 53. SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

53.1     The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Appendix
         3 (Scope of Work).

53.2     PARTNER shall perform all necessary tasks to ensure Location/Site
         preparation for Network roll-out in coordination with TELKOM, as
         follows:

53.2.1   arrange and acquire all the permits required to perform the work, such
         as (but not limited to) installation permits rights of way, and other
         permits necessary either from local municipality

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<PAGE>

         or other parties. The cost for acquiring the permit are included in the
         unit price and shall not be priced separately;

53.2.2   acquire the right of use of land on a rental basis, subsequent to
         TELKOM's approval to install towers for mounting the antennas or for
         other needs relating to the Project;

53.2.3   conduct the land acquisition process, in the event rental is not
         possible, subsequent to TELKOM's approval to install towers for
         mounting the antennas or for other needs relating with the Project.
         TELKOM shall provide and procure that its subsidiaries provide all
         reasonable assistance to PARTNER in relation to this land acquisition
         process. The cost associated with the land acquisition process (but not
         the cost of the land, rental and lease fee itself) shall be borne by
         the PARTNER. The cost of the land itself shall be agreed in advance
         with TELKOM (such agreement not to be unreasonably withheld or
         delayed). TELKOM shall make full payment to PARTNER for the cost of the
         land (inclusive of land transfer taxes and notarial fees), rental or
         lease promptly upon acquiring legal title to the land (as evidenced by
         the executed sale and purchase of land deed) or upon execution of the
         applicable rental or lease contract.

53.3     PARTNER shall arrange and acquire a frequency license from Directorate
         General of Post and Telecommunication (DGPT) on behalf of TELKOM.
         TELKOM will assist PARTNER by issuing the appropriate cover letter to
         DGPT. For the avoidance of doubt, PARTNER shall not own the license,
         but will simply support TELKOM by providing technical assistance and
         consulting services (which are included in the unit prices), provided
         that if PARTNER has diligently undertaken its obligations under this
         Article 53.3, refusal of DGPT to issue the frequency license shall not
         be deemed a default of PARTNER under this Agreement. The cost
         associated with the frequency acquisition process (but

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         not the cost of the license itself) shall be borne by PARTNER. TELKOM
         shall make full payment to PARTNER for the cost of the license itself
         promptly upon TELKOM's receipt of the license.

ARTICLE 54. INSTALLATION PROCEDURES AND STANDARDS

54.1     PARTNER shall provide all services to ensure proper installation of all
         equipment, provide optimal operating conditions and maximize its long
         term viability. PARTNER shall must provide all tools and equipment
         necessary to install and commission their equipment.

         PARTNER shall provide equipment installation services that shall
         consist of the following activities:

54.1.1   provision of materials, labor, equipment, tools and machinery for
         installation;

54.1.2   materials delivery and storage;

54.1.3   transportation of goods;

54.1.4   installation of the equipment;

54.1.5   cleaning-up sites; and

54.1.6   site preparation plan and drawings.

54.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

54.2.1   PARTNER's contractor shall provide all materials, labor, tools,
         transportation, telecommunication facilities (telephone, facsimile,
         etc.) and everything else necessary for completion of work in
         accordance with this Agreement;

54.2.2   PARTNER's contractor shall employ an adequate supervisory force and an
         adequate staff of experienced engineers, technicians and workmen to
         complete.

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         the work in a satisfactory and workman like manner within the time
         specified in this Agreement;

54.2.3   with the cooperation of TELKOM staff, all work at each Location/Site
         shall be carried out in such a manner as to minimize any obstructions
         to the operation of TELKOM's staff at site.

54.2.4   PARTNER's contractor shall itemize and provide all equipment, tools,
         measuring equipment, machinery and electricity necessary for execution
         of the Scope of Work in Indonesia; and

54.2.5   PARTNER's contractor shall provide a list of equipment, tools,
         measuring equipment, machinery and electricity which is used for
         installation purpose only.

54.3     Installation of the equipment shall consist of the following
         activities:

54.3.1   PARTNER's contractor shall be responsible for providing connection and
         integrating sub-components into system units;

54.3.2   PARTNER's contractor shall be responsible for system unit check and
         shall ensure the each system units functions as required.


54.4     Cleaning-up at each Location/Site shall be conducted during
         installation periods and consist of the following activities:

54.4.1   PARTNER's contractor shall keep the work and storage areas clean and
         tidy and shall remove daily all combustible rubbish from inside and
         near the buildings, structures and plant;

54.4.2   upon completion of each installation, PARTNER's contractor shall remove
         from the Location/Site as early as possible all tools, appliances,
         packing cases and plant not constituting an integral part of this
         Agreement.

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54.5     PARTNER's contractor shall either remove or level as required by
         TELKOM's Project Manager, all excess earth or spoils resulting from any
         excavation.

54.6     PARTNER's contractor shall make good to the satisfaction of TELKOM's
         Project Manager at his own expense, all damages to buildings, plants,
         finishes, etc., caused by contractor, his subcontractor(s) and/or their
         employees.

ARTICLE 55. TESTING AND COMMISSIONING

55.1     BTS Pre-Commissioning Activities

55.1     Prior to PARTNER's personnel being dispatched to a Location/Site where
         the BTS is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location/Site will be
         declared "Location/Site Ready".

55.1.2   Once the Location/Site is declared "Location/Site Ready", PARTNER
         shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      install and connect all batteries and circuit packs delivered
                  to the relevant Location/Site;

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         (d)      provide, place and terminate all RF cables from (i) the BTS to
                  the antenna cables(s)/ feeder cables brought to BTS equipment
                  room by PARTNER's sub-contractor and (ii) from the BTS to the
                  GPS, including all clamps, connectors, etc; and

         (e)      install all required amplifiers and other elements as
                  necessary for adding carriers to an existing BTS Cabinet.

55.2     BSC Pre-Commissioning Activities

55.2.1   Prior to PARTNER's personnel being dispatched to a Location where the
         BSC is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location will be declared
         "Location/Site Ready".

55.2.3   Once the Location is declared "Location/Site Ready", PARTNER shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      provide, place and terminate all the cables from:

                  (i)      Tx equipment

                  (ii)     PDN

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                  (iii)    other BSCs, including all clamps, connectors, etc.

55.3     Testing and Equipment Certification

55.3.1   PARTNER shall be required to perform and facilitate system tests for
         all equipment and components delivered under this Agreement.

55.3.2   The Commissioning tests shall comprise of the Sub-system Acceptance
         Tests and the Integrated System Acceptance Tests. A summary of the
         testing, commissioning and certification conditions are summarized in
         the table provided below:

<TABLE>
<CAPTION>
   NAME OF TEST                      CERTIFICATE                 CONDITION FOR CERTIFICATION
   ------------                      -----------                 ---------------------------
<S>                            <C>                             <C>
Factory Performance Test       No certification issued,                  None
                               but TELKOM should have
                               access to the results of
                               the test

Goods Delivery Test            Goods Delivery Certificate      Passes visual inspection

PARTNER Own Test               No certification issued, but              None
                               TELKOM should be provided with
                               the results of the test
                               prior to the Sub-system
                               Acceptance Test.

Sub-System                     No certification issued,
Acceptance Test                but TELKOM should be provided
                               with the results of the test
                               prior to the Integrated
                               System Acceptance Test.

Integrated System              Partial Integrated System       A system test has been
Acceptance Test                Acceptance Test Certificate     completed for the
                                                               equipment, satisfying all
                                                               relevant requirements
                                                               under this Agreement
                                                               except for end to end
                                                               connectivity
</TABLE>

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<TABLE>
<CAPTION>
   NAME OF TEST            CERTIFICATE                 CONDITION FOR CERTIFICATION
   ------------            -----------                 ---------------------------
<S>                    <C>                             <C>
                       Integrated System Acceptance    All system tests have been
                       Test Certificate                completed for the equipment,
                                                       satisfying all relevant
                                                       requirements, including
                                                       end to end connectivity

Civil Work Acceptance  Certificate (for foundation)    Passed third party and/or
Test                   Certificate (for tower)/        TELKOM quality checks
                       Certificate (others)
</TABLE>

55.4     Factory Performance Test

55.4.1   PARTNER shall perform factory performance tests of all equipment to be
         deployed to ensure that the equipment is complete in all respects and
         complies with the terms of the Agreement. Details of the factory
         performance test are set out in Appendix 17 (Quality Assurance
         Guidelines/Acceptance Test Procedures).

55.4.2   PARTNER shall provide TELKOM with full access to the results of the
         factory performance tests including without limitation evidence in the
         form of certification letter provided by the factory.

55.4.3   Successful completion of the factory acceptance tests are a
         pre-requisite for Sub-System Acceptance Tests.

55.5     Goods Delivery Test

55.5.1   TELKOM shall visually inspect the equipment on delivery to the
         installation Location/Site based on a copy of the goods shipping
         documents and TELKOM's Project Manager shall promptly (and no later
         than five (5) Business Days) issue a Goods Delivery Certificate if
         there is no obvious physical damage to the equipment and the quantity
         of equipment delivered is correct according to the supporting
         Documentation provided.

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55.5.2   Issue of a Goods Delivery Certificate shall not constitute acceptance
         of the equipment nor shall it affect TELKOM's rights under this
         Agreement.

55.6     PARTNER Own Test

55.6.1   PARTNER shall perform on-Location/Site tests of each individual
         Network Sub-system (BSS) following installation.

55.6.2   Successful completion of PARTNER's Own Tests are a pre-requisite for
         Sub-system Acceptance Tests.

55.6.3   The tests for BSS shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.6.4   The tests for PDN shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Packet Data Serving Node (PDSN) device;

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

         (d)      Directory Number System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.6.5   PARTNER shall provide TELKOM with the results of PARTNER's Own Tests
         when it requests TELKOM to attend the Commissioning.

55.7     Commissioning: Sub-System Acceptance Test

55.7.1   Upon completion of PARTNER Own Tests, PARTNER shall conduct tests of
         each individual Sub-system in the presence of TELKOM as a witness.

55.7.2   The tests shall be conducted during normal weekday working hours and
         PARTNER shall liaise with TELKOM at

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         least fourteen (14) calendar days before the proposed test date to fix
         the timing and resources required for the test. PARTNER shall
         co-ordinate the test dates across the relevant DIVRE to ensure that the
         tests are scheduled efficiently.

55.7.3   Successful completion of the Sub-system Acceptance Tests are a
         prerequisite for Integrated System Acceptance Tests.

55.7.4   The tests for BSS shall comprise all tests necessary to verify the
         overall equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.7.5   The tests for PDN shall comprise tests to verify the overall equipment
         functionality of:

         (a)      Packet Data Serving Node (PDSN);

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

         (d)      Directory Number System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.7.6   In addition the following on-Location tests shall be conducted for each
         Sub-system:

         (a)      Mechanical, quantity and appearance checks;

         (b)      Workmanship checks;

         (c)      Construction, installation, cabling, wiring, fixing, equipment
                  foundation, painting and galvanizing, appearance and
                  mechanical strength and labelling checks;

         (d)      Meter and Alarm Indication check;

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         (e)      Power supply checks;

         (f)      Losses contact checks.

55.7.7   PARTNER shall provide TELKOM with full access to the results of any
         Sub-system Acceptance Tests before initiating any Integrated System
         Acceptance Tests.

55.8     Commissioning: Integrated System Acceptance Test

55.8.1   PARTNER shall conduct Integrated System Acceptance Tests in the
         presence of TELKOM as a witness upon completion of the Sub-system
         Acceptance Tests (including tests on measuring equipment and spare
         parts) to ensure that a System is functioning as designed and ready for
         acceptance by TELKOM.

55.8.2   PARTNER shall prepare a comprehensive testing plan and test procedure
         for TELKOM's approval.

55.8.3   The smallest Network element that may be System tested shall be a BTS
         and its associated equipment. All System tests must be carried out on a
         end to end basis (i.e., PSTN to MSC to BSC to BTS to test subscribers)
         to verify that:

         (a)      the installed system complies with the Technical
                  Specifications of the Agreement; and

         (b)      the System has been demonstrated to be compatible with the
                  existing NSS and other Systems.

55.8.4   The tests shall be conducted during normal weekday working hours and
         PARTNER shall liaise with TELKOM at least ten (10) Business Days before
         the proposed test date to fix the timing and resources required for the
         test. PARTNER shall co-ordinate the test dates across the relevant
         DIVRE to ensure that the tests are scheduled efficiently.

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<PAGE>
55.8.5   In addition, PARTNER shall provide TELKOM with details of all
         transmission links and assistance to be provided by TELKOM. TELKOM may
         postpone the test date if the transmission links required cannot be
         provisioned in time.

55.8.6   TELKOM shall within ten (10) Business Days issue a Integrated System
         Acceptance Test Certificate for the equipment tested once:

         (a)      all the relevant System tests have been successfully
                  completed;

         (b)      all required test equipment and necessary tools have been
                  supplied; and

         (c)      all handbooks, as-built drawings, inventory list and other
                  information necessary for maintenance of the relevant System
                  have been supplied.

          The Integrated System Acceptance Test Certificate shall be issued on a
          per Location basis. In the event that any Sub-system or Site within
          the Location cannot be tested caused by any reason, a Partial
          Integrated System Acceptance Test Certificate may be issued for the
          Location covering only the Commissioned Sub-system (s) or Site (s).

55.8.7   In the event that TELKOM is unable to provide, where required, the
         necessary transmission links and/or an E1 link at the PSTN switch to
         connect the Network elements to each other, but it is shown that the
         relevant System otherwise fulfils all the requirements above, TELKOM
         shall issue a Partial Integrated System Acceptance Test Certificate
         within ten (10) Business Days.

55.8.8   15% of the applicable Contract Value for the equipment tested shall be
         payable on TELKOM's issuance of the Integrated System Acceptance Test
         Certificate or Partial Integrated System Acceptance Test Certificate,
         as the case may be. The applicable PAYG Payment Period shall commence
         only on issuance of the relevant Integrated System Acceptance Test
         Certificate.

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<PAGE>

55.8.9   If TELKOM offers a System for commercial service which has not yet
         received an Integrated System Acceptance Test Certificate, then this
         System shall be deemed to have been tested and accepted and TELKOM
         shall issue the relevant Integrated System Acceptance Test Certificate
         in accordance with Article 55.9.6.

55.9     Civil Work Tests

55.9.1   PARTNER shall regularly inspect all civil works in progress on a
         continuous and/or interim basis, based on the civil work test plan
         submitted to and agreed by TELKOM. The test plan shall include the
         proposed frequency of the inspections and the test protocol to be used.
         The test protocol shall be in the form of worksheets to be used on
         Location/Site as the work progresses.

55.9.2   TELKOM will issue certificates at each stage of work once the civil
         work tests are successfully completed based on the agreed test
         protocol.

ARTICLE 56. INTEGRATION, INTEROPERABILITY AND COMPATIBILITY

56.1     Integration and Interconnection

56.1.1   The CDMA Network consisting of BSS shall interface with TELKOM's data
         network via a PDSN (Packet Data Serving Node) device as part of the PDN
         (Packet Data Network) supplied by PARTNER.

56.1.2   In particular, PARTNER shall ensure without limitation that:

         (a)      the BSS/BSC is integrated with TELKOM's NSS and PDN (Packet
                  Data Network) equipment; and

         (b)      all related Sub-systems within the BSS and PDN to be delivered
                  by PARTNER are integrated with each other.

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<PAGE>

56.2     Interoperability Requirement

56.2.1   The BSS equipment must be interoperable with NSS equipment provided by
         other CDMA FWA vendor(s) and compatible with CDMA IOS version 4.0
         standards.

56.2.2   PARTNER shall provide TELKOM with supporting evidence in the form of a
         written statement or certificate from operators, certification body, or
         PARTNER stating operator's name and contact information, location,
         types of BSS equipment, and examples where interoperability occurs.
         TELKOM shall issue an IOP Certificate to PARTNER in accordance with the
         Interoperability Commitment Agreement following successful completion
         of its own interoperability (IOP) tests.

56.3     Compatibility

56.3.1   New software releases or versions shall be backwards compatible with
         the previous release and/or version and such other previous releases
         and/or versions where technically and commercially feasible.

ARTICLE 57. CUT OVER PROCEDURES

57.1     PARTNER shall ensure that the cut over of any equipment on the Network
         (for example, where a BTS is to be disconnected from an existing BSC
         and reconnected to a new BSC being installed or where a BSC is to be
         disconnected from an existing NSS and reconnected to a new NSS being
         installed) does not interfere with the operation of the Network.

57.2     PARTNER shall liaise with TELKOM as to the procedures and timing for
         the cut over and any cut over should take place during the hours of
         2:00 am - 4:00 am (the "Cut Over Period"), unless otherwise agreed by
         TELKOM.

57.3     PARTNER shall ensure that the previous connections can be
         re-established without any interruption to the Network in the event
         that the cut

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<PAGE>

         over does not work properly or perform satisfactorily. In the event
         that the cut over appears unlikely to be completed during the Cut Over
         Period, PARTNER shall re-establish the previous connection and
         re-attempt the cut over the following day.

57.4     PARTNER shall indemnify TELKOM against any loss or damage suffered as a
         result of any interruption to the Network (including without limitation
         any service interruption or system downtime) occurring outside the Cut
         Over Period caused by a cut over that results in a revenue loss for
         TELKOM, in accordance with Article 11.

57.5     These cut over procedures shall also be applicable to Package 1.

ARTICLE 58. COMPLIANCE WITH ENVIRONMENTAL STANDARDS

58.1     The Deliverables supplied by PARTNER shall comply with all applicable
         legal requirements and shall not contain any legally prohibited
         substances and/or preparations. The Deliverables shall not contain any
         substances and/or preparations that cannot be processed by means of a
         normal waste processing method.

58.2     PARTNER shall allow TELKOM to examine its degree of environmental care
         and provide reasonable assistance to TELKOM in examining that of the
         manufacturers concerned.

58.3     PARTNER shall provide TELKOM with the following information early
         enough to give TELKOM reasonable time to pass it on to all parties
         involved before Deliverables are received:

58.3.1   which substances and/or preparations present in the equipment are
         harmful to people, property or the environment, including soil, water
         and air;

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<PAGE>

58.3.2   where such substances and/or preparations are located in the equipment
         and how the components concerned must be treated at the end of their
         useful life and at the end of the useful life of the equipment, and how
         such components can be removed from the equipment safely and correctly;

58.3.3   which regulations are applicable to the transport, storage,
         installation, use, dismantling and processing of the substance in
         connection with the harm it is capable of causing; and

58.3.4   how to improve the information distribution/acquisition process at and
         by TELKOM to a reasonable extent without raising its costs.

58.4     PARTNER shall state which components of the equipment are suitable for
         re-use or recycling other than by incineration at the end of its useful
         life.

58.5     PARTNER shall provide TELKOM with the above-mentioned information,
         either via an electronic information carrier or electronically in a
         commonly used computer program and in a format requested by TELKOM.

58.6     PARTNER shall warrant that all of the information provided to TELKOM is
         complete and correct to the best of its knowledge.

ARTICLE 59. DEVELOPMENT OF MEDIATION DEVICE

PARTNER shall at TELKOM's request develop and provide interfaces to TELKOM's
customer care, billing and NMS. The cost of the development, (save in the case
of the mediation device for the NMS as already agreed in Appendix 4) shall be
agreed in advance with TELKOM and then added to the Contract Value of the
Purchase Order associated with the equipment with which the mediation device
will be used. 25% of the development costs shall be paid on commissioning of the
mediation device, and the remaining 75% paid by TELKOM in accordance with the
PAYG payment scheme for the associated equipment.

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<PAGE>

ARTICLE 60. DOCUMENTATION

60.1     PARTNER shall provide an adequate number of handbooks and drawings that
         shall be required to support equipment maintenance, installation, and
         test function. Handbooks and drawings shall include assembly drawings,
         wiring information, schematics, drawings, circuit diagrams/descriptions
         and complete instruction for familiarization, installation, operation,
         theory, maintenance, and parts replacements, as well as appropriate
         system drawings. Instruction handbooks for each piece of equipment
         shall be prepared separately, and submitted to TELKOM. Instruction
         handbooks to be supplied shall include but not be limited to the
         following:

60.1.1   Installation and system handbooks;

60.1.2   Equipment handbook including Standard Operating Procedure (SOP) and
         Standard Maintenance Procedure (SMP);

60.1.3   Repair handbooks including block diagrams;

60.1.4   Customer handbooks for the fixed terminal shall include assembly
         drawings, wiring information, and complete instruction for
         familiarization, installation, maintenance, and parts replacement;

60.1.5   Customer handbooks for the mobile handset shall include only complete
         instruction for familiarization, maintenance and part replacement. All
         handbooks shall be prepared in English and the metric system of weights
         and measures should be used.

60.2     PARTNER shall maintain and keep updated a Project library in Indonesia
         containing all relevant documents related to the Project, including
         without limitation, minutes of each JPS, DRM and monthly meeting, all
         Purchase Orders, demand forecasts, Change Requests, each agreed
         revision of the Implementation Plan and all

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<PAGE>

         correspondence between PARTNER, its sub-contractors and TELKOM. The
         Project library shall be accessible by TELKOM and its representatives
         during normal working hours and TELKOM may from time to time request
         copies of all or parts of the Project library to be supplied to it at
         no further cost. The Project library shall be handed over to TELKOM on
         termination of this Agreement.

60.3     PARTNER shall submit drawings and documents (including as-built,
         assembly, connection and allocation drawings) related to the relevant
         Systems and Sub-systems installed.

60.4     Any drawings and documents with respect to the relevant Systems or Sub-
         systems owned by PARTNER related to the relevant Deliverables shall be
         kept for the life-time of such System or Sub-system to enable PARTNER
         to procure any parts which need replacement and/or expansion of such
         System or Sub-system if so required at any time.

60.5     Any Intellectual Property Rights with respect to any equipment,
         drawings, specifications, software and Documentation and data which are
         issued by the respective Parties pursuant to the implementation of this
         Agreement shall remain the property of the respective Parties in
         accordance with this Agreement.

60.6     Any incompleteness, doubts with respect to breakdown and/or elaboration
         contemplated in any documents and/or those which constitute parts of
         this Agreement shall be presented to TELKOM for clarification.

60.7     As long as PARTNER is providing maintenance and support in accordance
         with this Agreement and the applicable SLA, the cost of updates to the
         Documentation shall be included in the fees paid by TELKOM to PARTNER
         pursuant to the relevant SLA. For the avoidance of doubt, the initial
         costs of the Documentation shall be payable under general services
         pursuance Article 33.

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<PAGE>

60.8     All Documentation shall be in accordance with the requirements stated
         in the RfP. The standard documents required to be provided by PARTNER
         are listed in Appendix 22 (Documentation).

60.9     At the first JPS, PARTNER shall submit to TELKOM its plan to execute
         the Location/Site survey consisting, without limitation, of the
         following items:

60.9.1   time schedule;

60.9.2   manpower schedule;

60.9.3   team organization;

60.10    TELKOM will provide a letter of approval of the detailed Location/Site
         survey plan submitted by PARTNER, after it has agreed to the proposed
         content. PARTNER shall perform the Location/Site survey accompanied by
         TELKOM's assigned team as scheduled in the Location/Site survey plan.

60.11    PARTNER shall provide a Location/Site survey report ("Survey Report")
         for installation within two (2) weeks of the Location/Site survey. The
         Survey Report shall consist of the following items:

60.11.1  Location/Site layout, that shall include guide map, floor lay out and
         cable racking;

60.11.2  arrangement of terminal block and existing distribution frame;

60.11.3  arrangement of the sub distribution panel;

60.11.4  availability of supporting facility and other requirements;

60.11.5  availability of antenna space at the existing tower;

60.11.6  map of the site's path profile and, if required, the backhaul system
         for PARTNER'S equipment;

60.11.7  availability of port and link at TELKOM's exchanges; and

60.11.8  coverage map of each BTS;

60.12    PARTNER shall submit its final as-built drawings based on the Network
         configuration upon completion of the installation work.

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<PAGE>

CHAPTER 6. SERVICE LEVEL AGREEMENTS

ARTICLE 61. SERVICE LEVEL AGREEMENTS

61.1     Operation and Maintenance Support Service Level Agreement

61.1.1   TELKOM has requested PARTNER to render certain operation and
         maintenance support services, and PARTNER has agreed to provide these
         services in accordance with a Service Level Agreement.

61.1.2   Prior to Commissioning of the Deliverables in the first Purchase Order,
         TELKOM and PARTNER shall enter into a Service Level Agreement in form
         and substance as set out in Appendix 19 to cover operation and
         maintenance spare parts and software services support. The initial
         term of the Service Level Agreement shall expire, unless earlier
         terminated in accordance with the SLA, three (3) years from the
         earliest to occur of: (a) the date of the first Integrated System
         Acceptance Test Certificate; or (b) commercial deployment of any of the
         equipment, software and components supplied by PARTNER. For the
         avoidance of doubt, any commercial use of PARTNER's equipment supplied
         under the initial interoperability testing required under Chapter 7
         shall be covered under the Service Level Agreement.

CHAPTER 7. INTER-OPERABILITY AND CO-ORDINATION REQUIREMENTS FOR PACKAGE 1 AND
           PACKAGE 2

ARTICLE 62. GENERAL

62.1     Subject to Article 14.2.1, this Chapter shall apply to Package 1 (DIVRE
         II) only.

62.2     PARTNER acknowledges that certain Network equipment for Package 1 is
         being supplied by other equipment vendor(s) and that achieving inter-
         operability between each vendor's

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<PAGE>

         equipment is a key requirement of the T-21 Program. In particular,
         TELKOM requires that the NSS configuration be fully interoperable with
         BSS equipment from other CDMA FWA vendor(s) in accordance with Article
         56. The Parties recognise that until inter-operability has been
         achieved, service cannot begin in the DIVREs where more than one
         vendors are providing equipment. To achieve this aim, the Parties have
         entered into a separate interoperability commitment agreement with the
         other vendor(s) in Package 1.

62.3     In the event that the vendors are unable to achieve satisfactory
         interoperability by the end of the testing period, or by the end of the
         first quarter of 2003, whichever is earlier TELKOM may at its sole
         discretion:

         (a)      extend the testing period for such period as it thinks fit and
                  request the vendors to continue working towards
                  interoperability;

         (b)      stop further testing until further notice; or

         (c)      notify either of the vendors, or both as the case may be, that
                  based on a comprehensive technical review of the cause or
                  causes resulting in the failure of achieving inter-operability
                  as contemplated in this Agreement, TELKOM intends to exercise
                  its right to terminate this Agreement pursuant to Article
                  14.2, and that TELKOM reserves its right to claim from and to
                  be indemnified by PARTNER for its proportionate share of
                  Project-related costs for which it is responsible, which have
                  been suffered by TELKOM as a result of the failure of
                  achieving inter-operability.

                                      115

<PAGE>

62.4     Following issuance of the IOP Certificate, the Parties acknowledge that
         certain additional modifications are required to this Agreement to
         allow inputs from each vendor at the JPS and DRMs and that they will
         deal expeditiously with any delays caused by one or more vendors which
         affect the other vendors.

ARTICLE 63. JPS, DRMs AND MONTHLY MEETINGS

63.1     At each JPS:

63.1.1   the demand forecasting and economic analysis shall be conducted by the
         vendor of the BSS equipment and TELKOM jointly, with the vendor of the
         NSS equipment providing comments only;

63.1.2   the prioritisation of Locations/Sites for network deployment of the BSS
         equipment shall first be conducted by the vendor of the BSS equipment
         and TELKOM jointly. The prioritisation of Locations for Network
         deployment of the NSS equipment shall follow on and be conducted by the
         vendor of the NSS equipment and TELKOM jointly; and

63.1.3   the technology review shall be conducted by all vendors and TELKOM
         jointly.

63.2     At each DRM:

63.2.1   each vendor shall be responsible for surveying their own deployment
         sites;

63.2.2   TELKOM and the vendor of the BSS equipment shall jointly calculate,
         check and update the Installed Line Procurements, with the vendor of
         the NSS equipment providing comments only;

63.2.3   the Deployment Plan for the BSS equipment for the next Quarter shall
         first be jointly developed, agreed and approved by the vendor of
         the BSS

                                      116

<PAGE>

         equipment and TELKOM; then the Deployment Plan for the NSS equipment
         for the next Quarter shall be jointly developed, agreed and approved by
         the vendor of the NSS equipment and TELKOM;

63.2.4   TELKOM and each vendor shall develop, agree and approve their
         respective detailed network designs, BoQ, resource plans and training
         plans;

63.2.5   TELKOM and the vendors shall jointly discuss any changes which may be
         required to the Project Management Plans and Implementation Schedule,
         and in particular shall provide information on any potential delays or
         other matters which could affect the other vendor(s) or the overall
         deployment of the Network. TELKOM and each vendor shall then jointly
         agree and approve any adjustments to their respective plans and
         schedules taking into account the information provided by the other
         vendor(s).

63.3     TELKOM may from time to time request the vendors to attend together the
         monthly meetings to allow information sharing and joint discussions to
         take place.

ARTICLE 64. COMMISSIONING TESTS

64.1     The Parties acknowledge that in order to test the Network end to end,
         each Network component (MSC, BSC and BTS) must be interconnected and be
         available for testing during the period scheduled for the Integrated
         System Acceptance Tests.

64.2     The Integrated System Acceptance Tests shall be conducted during normal
         weekday working hours and PARTNER seeking to test its equipment shall
         co-ordinate with TELKOM and the other vendor(s) at least fourteen (14)
         calendar days before the proposed test date to fix the timing and
         resources required for the test. PARTNER shall co-ordinate the test
         dates across the relevant DIVRE to ensure that the tests are scheduled
         efficiently.

                                      117

<PAGE>

64.3     Each vendor shall upon receipt of the notice promptly inform TELKOM and
         the other vendor(s) whether its equipment has completed the required
         Sub-system Acceptance Tests, and if not when such tests are scheduled
         for and if it expects any delay to its agreed completion dates.

64.4     TELKOM may reschedule the proposed test date by up to one (1) month to
         address any delays which are attributable to other vendors. In the
         event that the other vendor's equipment is still not available for
         testing after the one month grace period, but it is shown that the
         vendor's system otherwise fulfils all the Integrated System Acceptance
         Test requirements, TELKOM shall issue a Partial Integrated System
         Acceptance Test Certificate to the vendor.

64.5     For the avoidance of doubt, the testing and Commissioning procedures
         for Package 1 are provided in Article 55.

                                      118

<PAGE>

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized representatives on the day and year first above written.

PERUSAHAAN PERSEROAN (PERSERO)           ERICSSON CDMA CONSORTIUM
PT TELEKOMUNIKASI INDONESIA TBK.
                                         ERICSSON WIRELESS COMMUNICATION INC.


                                                       [STAMP]


By /s/ Kristiono                         By /s/ Mark Cratsenburg
  ---------------------------              ------------------------------
Name   :  Kristiono                      Name  : Mark Cratsenburg
Title  :  President Director             Title : Attorney-in-Fact of Ericsson
                                                 Wireless Communication Inc.

                                         PT ERICSSON INDONESIA

                                         By /s/ Ulf Mansson
                                            -----------------------
                                         Name  :  Ulf Mansson
                                         Title :  President Director

                                         PT INFRACELL NUSATAMA

                                         By /s/ Djoko N. Labbaika
                                           --------------------------
                                         Name  : Djoko N. Labbaika
                                         Title : President Director

                                       119


</TEXT>
</DOCUMENT>
<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
<PAGE>

         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.

                                       2
<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.

                                       3
<PAGE>

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

                                       4
<PAGE>

         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.

                                       5
<PAGE>

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)

                                       6
<PAGE>

         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;

                                       7
<PAGE>

         (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).

                                       8
<PAGE>

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;

                                       9
<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].

                                       10
<PAGE>

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>
<DOCUMENT>
<TYPE>EX-4.17
<SEQUENCE>17
<FILENAME>u92256exv4w17.txt
<DESCRIPTION>EX-4.17 MASTER PROCUREMENT PARTNERSHIP AGREEMENT
<TEXT>
<PAGE>

                                                                    Exhibit 4.17

                     PARTNERSHIP FOR SUPPLY MASTER AGREEMENT
                        NO. K.TEL.194/HK.810/UTA-00/2003


<PAGE>
                                                                               .
                                                                               .
                                                                               .
                                TABLE OF CONTENTS


<TABLE>
<S>         <C>                                                    <C>
CHAPTER I   GENERAL TERMS AND CONDITIONS ........................   2
Article 1.  Definitions .........................................   2
Article 2.  Commencement and Term of Agreement ..................   7
Article 3.  Description of Project ..............................   8
Article 4.  Scope of Work and Goods To Be Transferred ...........   8
Article 5.  Partnership Arrangement For Supply ..................  10
Article 6.  Import; Local Facilities ............................  12
Article 7.  Procedures for Delivery .............................  12
Article 8.  Intellectual and Industrial Property Rights .........  13
Article 9.  Force Majeure .......................................  16
Article 10. Risk and Right Transfer .............................  16
Article 11. Indemnification .....................................  17
Article 12. Maintenance and Support for Equipment ...............  18
Article 13. Liquidated Damages for Lateness .....................  19
Article 14. Termination of Contract .............................  20
Article 15. Governing Laws ......................................  23
Article 16. Dispute Resolution ..................................  23
Article 17. Language ............................................  23
Article 18. The Company's Representation and Warranty ...........  24
Article 19. Confidential Information ............................  24
Article 20. Notification ........................................  24
Article 21. General Provision ...................................  25
CHAPTER 2   COMMERCIAL TERMS AND CONDITIONS .....................  26
Article 22. Contract Price ......................................  27
Article 23. Price and Expenses ..................................  27
Article 24. Tax and Duty ........................................  27
Article 25. Insurance and Security ..............................  28
CHAPTER 3   FINANCIAL AND PAYG TERMS ............................  29
Article 26. Collective Plan Session, Design Review Meeting and
            Monthly Meeting .....................................  29
Article 27. Supply of Installed Lines ...........................  34
Article 28. Purchase Order and Procedure ........................  35
Article 29. Performance Bond ....................................  37
Article 30. Termination of Purchase Order .......................  38
Article 31. Terms of Payment ....................................  40
Article 32. PAYG Payment ........................................  42
Article 33. Payment of Public Service ...........................  45
</TABLE>


<PAGE>

<TABLE>
<S>         <C>                                                    <C>
Article 34. Collecting ..........................................  46
Article 35. Financing ...........................................  46
Article 36. Procedure of Request For Change .....................  47
Article 37. Relocation of Equipment .............................  48
Article 38. Full Details of the PARTNER's Bank Account ..........  48
CHAPTER 4   PROJECT ORGANIZATION ................................  49
Article 39. Local Indonesian Agency, Sub-Contractor, Supplier ...  49
Article 40. Assignment and Sub-Contract .........................  49
Article 41. Logistic ............................................  50
Article 42. Inventory ...........................................  50
Article 43. Local Supporting Infrastructure .....................  51
Article 44. Project Management ..................................  52
Article 45. Research and Development ............................  54
Article 46. Training, Transfer of Knowledge (Know How) ..........  54
Article 47. Management Forum ....................................  57
Article 48. The Development of Industry in Indonesia ............  57
CHAPTER 5   TECHNICAL CONDITIONS ................................  57
Article 49. General Terms for Equipment .........................  57
Article 50. Quality Warranty ....................................  58
Article 51. Survey, Design and Planning .........................  59
Article 52. Location, Obtainment, Right to Pass, License ........  60
Article 53. Standard and Procedure Installation .................  61
Article 54. Examination And Acceptance Test .....................  62
Article 55. Integration, Inter-Operation Ability, and Suitability  68
Article 56. Cut Over Procedure ..................................  69
Article 57. The Environmental Standard Fulfillment ..............  69
Article 58. Mediation Device Development ........................  70
Article 59. Documentation .......................................  70
CHAPTER 6   SERVICES LEVEL AGREEMENT ............................  73
Article 60. Services Level Agreement ............................  73
CHAPTER 7   PERFORMANCE QUALIFICATIONS INTER OPERATION AND
            COORDINATION ........................................  73
Article 61. General .............................................  73
Article 62. JPS, DRM and Monthly Meetings .......................  74
Article 63. Acceptance Test .....................................  75
</TABLE>

<PAGE>
                     PARTNERSHIP FOR SUPPLY MASTER AGREEMENT
                        NO. K.TEL.194/HK.810/UTA-00/2003


THIS PARTNERSHIP FOR SUPPLY MASTER AGREEMENT ("Agreement") is made in Bandung on
this day, Tuesday, the twenty sixth day of August two thousand three
(26-8-2003), by and between:

I.   PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK., a
     telecommunications network and services operator company established
     pursuant to the laws of the Republic of Indonesia, having its headquarters
     on Jalan Japati No. 1, Bandung, in this matter duly represented by
     Kristiono in his capacity as the President Director, hereinafter referred
     to as "TELKOM";

And

II.  PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO), a limited liability company
     established pursuant to the laws of the Republic of Indonesia, having its
     head office on Jalan Mohamad Toha No. 77, Bandung, in this matter duly
     represented by John Welly in his capacity as the President Director,
     hereinafter referred to as "PARTNER".

(TELKOM and PARTNER individually referred to as the "Party", and collectively as
the "Parties").

WITNESSETH:

a.   TELKOM is a telecommunications network and services operator company that
     provides fixed wireline and wireless services and telecommunications
     infrastructure in Indonesia;

b.   TELKOM has initiated a significant investment program for the purpose of
     modernizing and expanding its network infrastructure;

c.   TELKOM, in its letters No. Tel.658/LG280/TCC-00/2003 of 6 August 2003 and
     No. Tel.666/LG.210/TCC-00/2003 of 11 August 2003, selected PT INTI as the
     potential PARTNER and requested it to submit a quotation for the
     construction of telecommunications facilities FWA CDMA at DIVRE III;

d.   PT INTI, in its letter No. 1717/NG.01/102010/2003 of 15 August 2003,
     submitted a quotation for the construction of telecommunications facilities
     FWA CDMA at DIVRE III;

e.   On 19-20 August 2003, TELKOM and PT INTI held clarifications and
     negotiations of the quotation submitted by PT INTI as referred to in
     paragraph e. above;


<PAGE>

f.   In its letter No. Tel.691/LG000/TCC-00/2003 of 22 August 2003, TELKOM
     appointed PT INTI as the PARTNER for performing the construction of
     telecommunications facilities FWA CDMA at DIVRE III;

g.   In its letter No. 1754/NG.02/102010/2003 of 22 August 2003, PT INTI
     expressed its willingness to perform the work as referred to in paragraph
     f. above;

IN WITNESS WHEREOF, the Parties have agreed to enter into this Agreement subject
to the terms and conditions as follows:


                                    CHAPTER I
                          GENERAL TERMS AND CONDITIONS

ARTICLE 1. DEFINITIONS

1.1  Unless the context requires otherwise, the following expressions shall have
     the meanings as follows:

     "AGREEMENT" means this Agreement and its Schedules, together with any
     amendment thereto;

     "BASELINE BILL OF QUANTITIES" ("BOQ") means the basic list of work volumes
     set forth in Schedule 13, as amended from time to time pursuant to Articles
     26 and 36;

     "BUSINESS DAY" means a day, other than Saturday, Sunday or any public
     holiday in Indonesia, on which commercial banks are open for business
     during normal business hours in Jakarta;

     "REQUEST FOR CHANGE" means a form attached hereto as Schedule 18, which
     pursuant to Article 36 will be used to make all and any change, among other
     things, of anything in a Purchase Order;

     "ACCEPTANCE TEST" means any successful testing, commissioning, integration
     and acceptance of Goods To Be Transferred in conditions ready for full
     commercial operation by PARTNER as approved by TELKOM by way of issuing
     either the Minute of Integrated System Acceptance Test or the Minute of
     Partial Integrated System Acceptance Test from TELKOM in accordance with
     the terms hereof. "Commission" or "Commissioned" shall be construed in its
     context;

     "CONTRACT PRICE" means the total amount of all Purchase Orders and with
     respect to any Purchase Order, the entire payment (in USD or Rp., as the
     case may be) to be paid by TELKOM to PARTNER based upon any Purchase Order
     for all Goods To Be Transferred to be supplied under such Purchase Order
     and for full performance of obligations and duties by PARTNER hereunder,
     including any amount payable to PARTNER to use or procure licenses for
     rights to software and Documentation, and for expenses

                                       2

<PAGE>

     for insurance and transportation and any other expenses under this
     Agreement, subject to any change expressly permitted under this Agreement
     or any Purchase Order;

     "TERM OF CUT OVER" means the term as referred to in Article 56.2;

     "GOODS TO BE TRANSFERRED" means any equipment, components, software and
     Documentation to be transferred and any related services to be provided by
     PARTNER pursuant to any Purchase Order;

     "REQUEST ESTIMATION" means request estimation set forth in Schedule 6 as
     renewed from time to time by the Parties in a JPS or DRM;

     "DESIGN REVIEW MEETING" or "DRM" means a design review meeting held
     pursuant to Article 26.2;

     "PLACEMENT PLAN" means the number of installed lines/customers target which
     counted to be placed each year based upon the customer target as set forth
     in Schedule 7, as may be amended from time to time pursuant to Article 26
     of this Agreement;

     "DIVRE" means Regional Division III for West Java and Banten;

     "DOCUMENTATION" means any documentation set forth in Schedule 22;

     "MINUTE OF TRANSFER OF DOCUMENTATION" means a certificate signed by TELKOM
     and PARTNER stating that documentation transferred by PARTNER is in
     compliance with this Agreement;

     "FISCAL YEAR" means TELKOM's fiscal year commencing from 1 January and
     ending on 31 December of each year;

     "MINUTE OF ARRIVAL OF GOODS" means a certificate signed by TELKOM and
     PARTNER stating that goods transferred by PARTNER have been examined and
     inspected by TELKOM in accordance with Article 7.3;

     "PERFORMANCE SCHEDULE" means the schedule for time and phases of progress
     determined pursuant to Schedule 9 as amended from time to time in
     accordance with Article 26;

     "SUPPLY OF INSTALLED LINES" means the number of installed lines to be
     provided by TELKOM as agreed by the Parties based upon the flexible supply
     method as referred to in Article 27;

     "INTEGRATED SYSTEM ACCEPTANCE TEST/ISAT" means an integrated system test to
     be conducted after the completion of all sub-system and any other tests
     (including the test of measuring tool and spare parts) in accordance with
     Article 54 and Schedule 17 (Manual for Quality Warranty/Procedure for
     Acceptance Test);

                                       3

<PAGE>

     "MINUTE OF INTEGRATED SYSTEM ACCEPTANCE TEST" means a minute of transfer to
     be issued and signed by TELKOM and PARTNER after the completion of the
     Integrated System Acceptance Test or otherwise pursuant to Article 54.8.8;

     "INTELLECTUAL PROPERTY RIGHTS" means patent, registered design, design,
     copyright, semiconductor mask work, and any other forms of intellectual
     property rights or industry know-how, discovery, formula, secret process,
     secret trade and secret information, and any other protected rights or
     assets, and any licenses and permits relating thereto, in any part of this
     world, registered or not, registrable or not, and for the full period and
     any extension and renewal thereto, and any registration application in
     connection therewith;

     "IOP AGREEMENT" means the Inter-Operation Commitment Agreement enclosed
     hereto as Schedule 21;

     "MINUTE OF TRANSFER OF IOP" means a certificate or statement issued and
     signed by TELKOM confirming that PARTNER's equipment has passed all the
     inter-operation Tests pursuant to the IOP Agreement;

     "JOINT PLANNING SESSION" ("JPS") means a joint planning session to be held
     pursuant to Article 26.1;

     "LOCATION" means the location in the Project area relating to any TELKOM
     PSTN switch (STO);

     "NETWORK" means any telecommunication network/system to be designed,
     constructed and supplied by PARTNER under this Agreement, the detail of
     which is set forth in Schedule 3 (Scope of Works);

     "PARTIAL INTEGRATED SYSTEM ACCEPTANCE TEST" means an integrated system
     acceptance test to be conducted after the completion of one or more
     Sub-systems and any other tests (including the test of measuring tool and
     spare parts) in accordance with Article 54 and Schedule 17 (Manual for
     Quality Warranty/Procedure for Acceptance Test);

     "MINUTE OF PARTIAL INTEGRATED SYSTEM ACCEPTANCE TEST" means a minute of
     transfer to be issued and signed by TELKOM after the completion of the
     Sub-system Acceptance Test or otherwise pursuant to Article 54.8 in case
     any Integrated System Acceptance Test cannot be conducted within thirty
     (30) days because of delay in the test of any Sub-system in which TELKOM
     can be held responsible;

     "PAYG PAYMENT PERIOD" means the period counted in relation to the whole
     Purchase Orders of any DIVRE in the same quarter, which will commence from
     the last date of the quarter when the Minute of Integrated System
     Acceptance Test is issued by TELKOM and will end four (4) years later, or
     after payment by TELKOM for the last PAYG payment is due (of the last
     Purchase Order issued), where earlier;

                                       4

<PAGE>

     "PAYG VALUE" means the proportional value of each Purchase Order to be
     payable pursuant to Article 31.4;

     "PERCENTAGE INDEX" means an index declared as an index calculated pursuant
     to Article 27.4;

     "PERFORMANCE BOND" means a performance bond to be provided by PARTNER to
     TELKOM pursuant to Article 29;

     "PROJECT MANAGEMENT PLAN/PMP" means the project management plan to be given
     by PARTNER pursuant to Schedule 8;

     "PROJECT" means work to be performed by PARTNER under this Agreement for
     BSS supply regional package for DIVRE;

     "PURCHASE ORDER" means documents to be issued by TELKOM from time to time
     pursuant to Article 28 and acknowledged by PARTNER for supply and
     Acceptance Test by PARTNER for all or part of Network and/or for provision
     of services. Any schedule or appendix thereto and any change thereof
     pursuant to Article 36 shall form an integral part thereof;

     "QUARTER" means a period of three months, specifically 31 March, 30 June,
     30 September, and 31 December of each year;

     "RFP" means a Request for Proposal for Construction of Telecommunications
     Facilities FWA CDMA DIVRE III under a Partnership scheme;

     "SCOPE OF WORK" means the scope of work as determined in Schedule 3;

     "PLACE" means a place in Location where BTS is to be installed;

     "SLA" or "SERVICES LEVEL AGREEMENT" means a services level agreement for 27
     (twenty seven) months to be made between the Parties on the Acceptance Test
     as regulated in Article 60;

     "CUSTOMER RECORDING" means the database system of TELKOM in the DIVRE
     Billing System;

     "CUSTOMER TARGET" means the number calculated from lines to be placed each
     year in each location for the relevant Quarter based upon the Placement
     Plan as renewed and decided during the relevant DRM in connection with the
     Supply of Installed Lines approved for each location in the relevant
     Quarter;

     "SUB-SYSTEM" means the BSC, BTS, transmission equipment, BSS' NEM
     (equipment considered to be BSS), PSDN, AAA, HA, DNS, Fire wall, PDN's NEM
     (equipment considered to be PDN), and any similar and other related
     equipment supplied by PARTNER, including all the relevant software and
     components;

                                       5

<PAGE>

     "SYSTEM" means two or more Sub-systems constituting a network ready for
     commercial services;

     "SUB-SYSTEM ACCEPTANCE TEST" means the test to be conducted after the
     completion of certain Sub-system in accordance with Schedule 17;

     "TECHNICAL SPECIFICATION" means the whole technical specification set forth
     in Schedule 5, and the applicable specification issued by each manufacturer
     and all specifications approved in accordance with any amendment to this
     Agreement or any Purchase Order;

     "COMMON EQUIPMENT" means Sub-system used collectively by one or more BTS
     such as BSC and PDN;

     "MINUTE OF TRAINING" means a minute signed by TELKOM stating that the
     training provided by PARTNER has been in compliance with the provisions of
     this Agreement;

1.2  Technical Terms. Any technical terms used in this Agreement (e.g., BTS,
     PDN) shall be defined in Schedule 23.

1.3  Writing. Any reference in this Agreement to any writing shall include
     typing, printing, lithography, photography, telefax, facsimile, e-mail, and
     telex messages and any form of reproducing words in any readable form.

1.4  Plural; Gender; Person. Words importing the singular shall include the
     plural, and vice versa; words importing gender shall include all genders;
     and words importing persons shall include entities, whether incorporated or
     not.

1.5  Agreement. Documents declared as "in agreed forms" or "agreed" mean
     documents agreed to by TELKOM and PARTNER and (for identification purposes)
     initialed on behalf of each of them.

1.6  Headings. Headings used in this Agreement are for convenience purposes only
     and shall not effect the construction of this Agreement.

1.7  Days. In this Agreement, unless defined or the context requires otherwise,
     any reference to a "day" shall mean a calendar day covering a duration of
     twenty four (24) hours ending at 12 midnight. If this Agreement is
     mentioning a duration of time, then the commencement day of such duration
     of time shall be the day after the commencement day of the duration of time
     is announced or the day after the occurrence of an event which commences
     the duration of time.

1.8  Reference. References herein to Articles and Schedules are to Articles and
     Schedules hereof. References to laws or regulations are to laws or
     regulations as amended or reapplied or reinstated from time to time.

                                       6

<PAGE>

1.9  Priority of Documents. If there is any inconsistency between this Agreement
     and its Schedules, the terms and conditions of this Agreement shall
     prevail.

1.10 General and Special Provisions. If there is any doubt or inconsistency with
     respect to the application of a provision hereof, this Agreement shall be
     construed by prioritizing the special meaning and/or application over the
     general meaning and/or application.

1.11 Schedules.

<TABLE>
<S>                <C>
     Schedule 1    Details of Partner/Supplier/Local Subcontractor
     Schedule 2    [not applicable]
     Schedule 3    Scope of Work
     Schedule 4    List of Prices
     Schedule 5    Technical Specifications
     Schedule 6    Request Estimation
     Schedule 7    Placement Plan
     Schedule 8    Project Management Plan
     Schedule 9    Performance Schedule
     Schedule 10   Local Infrastructures
     Schedule 11   PAYG Payment
     Schedule 12   Purchase Order
     Schedule 13   Bill of Quantities
     Schedule 14   Technical Norms and Engineering
     Schedule 15   [not applicable]
     Schedule 16   Project Schematic
     Schedule 17   Manual for Quality Warranty/ Procedures for Acceptance Test
     Schedule 18   Request for Change
     Schedule 19   Training
     Schedule 20   Services Level Agreement
     Schedule 21   Interoperability (IOP) Agreement
     Schedule 22   Documentation
     Schedule 23   Technical Terms
     Schedule 24   Confidentiality Agreement
     Schedule 25   Performance Bond
     Schedule 26   Software License
     Schedule 27   Bank Guarantee
</TABLE>


ARTICLE 2. COMMENCEMENT AND TERM OF AGREEMENT

2.1  This Agreement shall be effective upon its signing and shall remain
     effective until such time as PARTNER and TELKOM have fully performed their
     respective obligations under this Agreement, unless terminated earlier
     pursuant to Article 14.

2.2  Scope of Work relating to the placement of a Network shall be performed and
     completed within 34 (thirty four) months in accordance with the provisions
     of this Agreement. The completion period shall include Sunday and any
     public holiday, days for consultation (meeting and approval for

                                       7

<PAGE>

     documents) with TELKOM and days for signing the Minute of Integrated System
     Acceptance Test.

2.3  TELKOM's obligations concerning payment for Goods To Be Transferred shall
     terminate after TELKOM has paid the last owed PAYG, subject to TELKOM's
     performance of its obligations hereunder.

2.4  Initial period for SLA to be entered into between the Parties pursuant to
     Article 60 shall be for a period ending 27 (twenty seven) months from (i)
     the date of the Acceptance Test for equipment supplied under the first
     Purchase Order or (ii) an earlier date at TELKOM's request.


ARTICLE 3. DESCRIPTION OF PROJECT

3.1  This Agreement is a master agreement covering various stages of request
     estimation, delivery and acceptance, installation and use, operation
     assistance and maintenance, use of equipment by customers, and payment
     scheme of Pay As You Grow as illustrated in Schedule 16 (Project
     Schematic). In accordance with the agreement of the Parties on the terms of
     supply of Installed Lines according to adjustments agreed to and based upon
     the flexible supply method for each JPS and DRM as set forth in Article 26,
     PARTNER shall warrant and be collectively responsible for request
     estimation and be solely responsible for survey, design, development,
     making, transfer, supply, installation, integration and Network Acceptance
     Test, including all projects management, training and any other related
     services, for the turnkey basis under this Agreement.

3.2  "Turnkey basis" means under the Scope of Work, once PARTNER receives any
     Purchase Order, PARTNER shall be fully and collectively responsible for
     request estimation and be solely responsible for survey, design,
     development, making, transfer, supply, installation, integration and
     Network Acceptance Test and repair of any defect, in order to make the
     Network ready for operation pursuant to this Agreement. PARTNER shall also
     do anything necessary which may reasonably be implied from this Agreement
     as required of PARTNER to perform its obligations hereunder. PARTNER shall
     provide any personnel, goods, consumables and any other things or services,
     whether temporary or permanent, which are necessary in and for the design,
     performance, completion of Network and repair of any defects pursuant to
     the provisions of this Agreement. TELKOM shall also cooperate with PARTNER
     when performing its obligations hereunder on a turnkey basis.


ARTICLE 4. SCOPE OF WORK AND GOODS TO BE TRANSFERRED

4.1  Scope of Work for this Project is set forth in Schedule 3 (Scope of Work).

4.2  PARTNER agrees and covenants to:

                                       8

<PAGE>

4.2.1  perform the Scope of Work in good order and manner in accordance with the
       Technical Specifications by using materials required for the completion
       of such work in accordance with the quality and standard as set forth in
       Schedule 5 (Technical Specifications);

4.2.2  be fully responsible for the appropriate design, quality and completeness
       of work and for quantity of materials, and appropriate goods required for
       completion of such work pursuant to Schedules 3 (Scope of Work) and 5
       (Technical Specifications);

4.2.3  provide Goods To Be Transferred as set forth in Schedules 3 (Scope of
       Work), 5 (Technical Specifications), and 4 (List of Prices) and all
       cables, connectors and any other materials necessary for completion of
       Network in accordance with the provisions of this Agreement. All such
       Goods To Be Transferred shall in any respect comply with technical
       specifications, capacity, function, design feature and performance
       specifications set forth in Schedule 5 (Technical Specifications);

4.2.4  perform survey, design, plan, develop, make, transfer, install, inspect,
       test, and interconnect Goods To Be Transferred and furnish any other
       services and relating to the Network pursuant to Schedules 3 (Scope of
       Work), 5 (Technical Specifications), and 9 (Performance Schedule), and in
       any respect in accordance with this Agreement;

4.2.5  perform the work pursuant to any Purchase Order in accordance with
       Schedule 9 (Performance Schedule) and complete every phase of work on
       the fixed date or time;

4.2.6  provide Documentation to TELKOM in accordance with this Agreement;

4.2.7  procure land and frequency licenses in accordance with this Agreement;

4.2.8  provide services to TELKOM at TELKOM's request through the issuance of a
       Purchase Order in accordance with the price unit set forth in Schedule 4
       (List of Prices);

4.2.9  provide technical skills as set forth in any Purchase Order in accordance
       with the price unit set forth in Schedule 4 (List of Prices);

4.2.10 provide training in accordance with Article 46 of this Agreement; and

4.2.11 perform and fulfill any other obligations under this Agreement and each
       Purchase Order;

4.3    PARTNER shall ensure the suitability of interworking, interfacing and
       integration of Network and equipment, components and software of third
       party vendors or other operators obtaining a license in Indonesia which
       connects to the Goods To Be Transferred of Network as set forth in
       Schedules 3 (Scope of Work), 5 (Technical Specifications, and 21

                                       9

<PAGE>
       (Interoperability Agreement), or if not set forth therein, in accordance
       with the best industry standard as agreed by the Parties.

4.4    PARTNER shall design the Network in such a way that, unless agreed
       otherwise in writing, is as follows:

4.4.1  Individual sub-system (including all services) is placed irrespective of
       the status of placement of another System or Sub-system;

4.4.2  Scale of the Network may be forthwith made bigger or smaller to meet
       customer's request for changes ;

4.4.3  The Network may be moved from a fixed network or network with limited
       mobility (enabling the customer to move in a coverage area of one BTS)
       into a network with full mobility in the future;

4.4.4  The Network may be moved into a network with the third generation (3G)
       basis in the future.


ARTICLE 5. PARTNERSHIP ARRANGEMENT FOR SUPPLY

5.1    The Parties agree to be bound to certain principles during the
       performance of this Agreement. The general principles set forth below are
       intended to be performed in good faith and without prejudice to the
       rights and obligations of each Party contained herein:

5.1.1  TELKOM's objective to achieve the optimal performance of its
       telecommunications networks in providing the best services for its
       customers shall not be considered as not in line with PARTNER's objective
       to sell its commercial equipment and services during the determined
       period;

5.1.2  The Parties agree that the main collective objective is to support the
       development of the telecommunications industry and economy of Indonesia
       by maximizing the quantity of equipment, materials, workforce and
       provision of services throughout Indonesia;

5.1.3  The Parties agree to hold a routine consultation to discuss the
       performance of the placement of each Network for the purpose of amicably
       resolving any dispute that may arise from time to time and of creating a
       business opportunity with collective value in order to establish a good
       business relationship between them;

5.1.4  PARTNER shall inform TELKOM, as effective and complete as possible, in
       due time, of any anticipated problems relating to any Goods To Be
       Transferred that have been transferred or will be transferred and of any
       material change which is permitted in relation to costs, transfer and
       development that previously has been agreed, which may relate to TELKOM;

                                       10

<PAGE>

5.1.5  The Parties agree to inform each other, as completely as possible, of any
       situation relating to any Goods To Be Transferred that may effect
       TELKOM's telecommunications network in order to enable the Parties to
       promptly respond to any technology and business developments. In respect
       of any purchase of equipment in the future for use at DIVRE, PARTNER
       shall inform TELKOM of its price estimation in connection with any new
       telecommunications technology which may be applicable in Indonesia that
       has been developed by PARTNER or its affiliates and Vendors, at the
       latest by the same time that PARTNER offers the equipment to any other
       telecommunications operator in Indonesia;

5.1.6  Subject to Chapter 7 of this Agreement, PARTNER shall ensure that it will
       hold a consultation and/or cooperation meeting with other suppliers of
       any equipment and/or services that relate to this Agreement or to Goods
       To Be Transferred before, during, and after the transfer. Such
       consultation and/or cooperation meeting shall commence as early as
       possible and shall cover technical support with the intention of
       achieving the optimal operation of TELKOM's telecommunications network;

5.1.7  The Parties shall use its best endeavor to achieve quality development
       and standardization levels that are suitable for the integrated
       management of TELKOM's telecommunications network. For such purpose,
       PARTNER shall, during the term of this Agreement, make the Network
       suitable for the most recent technology;

5.1.8  One of TELKOM's main objectives under this Agreement is to purchase
       equipment and services that meet international standards, and at the same
       time to minimize huge expenditure. PARTNER shall cooperate with TELKOM in
       order to ensure that its expertise and know-how may meet these
       objectives. It is understood that PARTNER shall use its best endeavor to
       analyze and take into account any financial and technical impact from the
       introduction of the development of its technology to TELKOM, particularly
       in relation to hardware and software transferred by TELKOM for the
       development of technology used in TELKOM's telecommunications network;

5.1.9  PARTNER shall take all reasonable steps necessary for informing TELKOM of
       advantages and disadvantages of new technology development, including the
       qualified newest technology proposed by PARTNER or its affiliations and
       Vendors. PARTNER shall from time to time reach an agreement with TELKOM
       concerning the expansion and development of the "road map" and evolution
       of technology set for the Project which can be performed during the
       Project in due time;

5.1.10 PARTNER agrees that it shall not have exclusive rights at the DIVRE area
       to install, to place equipment and/or to provide services during the term
       of this Agreement, in consideration of the sum which TELKOM has agreed to
       procure from PARTNER at least the minimum amount of the Supply of
       Installed Lines as set forth in Schedule 7.

                                       11

<PAGE>

ARTICLE 6. IMPORT; LOCAL FACILITIES

6.1    Unless agreed otherwise by the Parties, Goods To Be Transferred imported
       into Indonesia shall be imported in the name of PARTNER. Any importation
       of Goods To Be Transferred hereunder shall be calculated on the basis of
       costs at the Location/Place and shall be delivered at the agreed time and
       place and in compliance with the applicable rules in Indonesia and with
       this Agreement. PARTNER shall pay VAT for importation, sales tax for
       luxury goods, if any, income tax (Article 22) for importation, import
       duties or custom duties and any expenses relating to importation. PARTNER
       shall, at its own expenses, procure any licenses and import permits from
       Indonesia necessary to import Goods To Be Transferred into Indonesia.

6.2    PARTNER shall keep the complete and accurate inventory records of the
       movement of equipment after their importation into Indonesia in line with
       the customary industry practice and shall ensure that all equipment
       imported into Indonesia based upon the Purchase Order has been stored
       separately from other equipment in order to ease the inspection by the
       customs authority in Indonesia. Any customs duties or penalties arising
       as a result of actions, defaults or omissions by PARTNER in violation
       hereof shall be the responsibility of PARTNER.

6.3    PARTNER shall comply with the local laws, rules, and regulations and with
       legal requirements of any other authority that may in any way effect the
       supply of Goods To Be Transferred under this Agreement.

6.4    PARTNER, at its own expense, shall be responsible for procuring all
       permits, licenses and approvals for exportation from the origin country
       and any transit location in due time, including payment for any and all
       levies for public transportation and any other expenses relating thereto.


ARTICLE 7. PROCEDURES FOR DELIVERY

7.1    Any physical delivery of Goods To Be Transferred listed in the Purchase
       Order shall be accompanied with records of delivery, covering:

7.1.1  Name and registered office of PARTNER;

7.1.2  Number of Purchase Order;

7.1.3  Date of delivery and transfer;

7.1.4  Volumes included; and

7.1.5  Delivery documents or delivery order.

7.2    Delivery of equipment to Location/Place shall be made with reference to
       the System or Sub-system completely and not partially, unless jointly
       agreed otherwise by the Parties.

7.3    TELKOM shall do an inspection on the transfer of goods pursuant to
       Article 54.4 concerning transfer of goods at Location/Place.

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7.4    PARTNER shall be responsible for the delivery of Goods To Be Transferred
       from the origin country to the point of arrival in Indonesia and from the
       point of arrival to the Location/Place as stated in the relevant Purchase
       Order in accordance with Schedule 9 (Performance Schedule). PARTNER shall
       be responsible for any land transportation delivery costs to the intended
       Location/Place.

7.5    PARTNER covenants and warrants that all installed Goods To Be Transferred
       are from types that have been approved by the authority in Indonesia and
       have passed quality warranty by TELKOM in accordance with the manual for
       quality warranty set forth in Schedule 17 (Manual For Quality Warranty/
       Procedures For Acceptance Test).

7.6    PARTNER shall be responsible for the supply of, and costs for, the
       following facilities, equipment and services that may be required by
       PARTNER and its staff:

7.6.1  all skilled and unskilled personnel assigned in local scope, including
       electricians, wiremen, workers, traders, labors, and their tools and
       equipment;

7.6.2  any work and/or entry permits, licenses, visas, etc., which are necessary
       for personnel assigned or involved temporarily by PARTNER and its
       subcontractors, and income tax borne by such personnel or income tax of
       the company;

7.6.3  transportation (including, without limitation, from and to Location/
       Place), housing and medial facilities for such personnel as may be
       necessary;

7.6.4  equipment, tools and any other resources required by such personnel to
       complete the work;

7.6.5  telephone, telegram, telex, modem, internet and facsimile services;

7.6.6  security, warehouse, storage and office facilities; and

7.6.7  import duties and/or customs duties for equipment, tools, and private
       items of PARTNER's staff.


ARTICLE 8. INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS

8.1    MITRA undertakes that:

8.1.1  MITRA has obtained or shall obtain all Intellectual Property Rights that
       are required prior to the installation so that MITRA will be able to
       fulfill its obligations set forth in this Agreement; and

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8.1.2  Contract Price including all amounts that are paid or shall be paid for
       the right to use soft ware and Documentation, and all Goods To Be
       Transferred are included as Goods To Be Transferred.

8.2    MITRA shall deliver to or shall cause to be delivered to TELKOM License
       or sub-License, depending on the context in the Republic of Indonesia,
       which are free of royalty, irrevocable (except as determined in Software
       License), which cannot be assigned (except as determined in this
       Article), and which are non-exclusive and permanent, to use software (not
       including source code) and MITRA's Documentation or its member or third
       party (including employees or MITRA's agent and sub-contractor) so that
       TELKOM is entitled to use such software and Documentation related to
       repair, maintenance, operation and usage of System, Sub-system and Goods
       To Be Transferred to the extent mentioned in this Agreement.

8.3    Furthermore, MITRA undertakes that the supply or guarantee upon a part of
       Goods To Be Transferred shall not constitute an infringement (or cause
       TELKOM to infringe) any third party's Intellectual Property Rights. MITRA
       shall at all times undertake and release TELKOM from all damage, cost and
       direct expenses incurred by every claim or suit based on the accusation
       of such infringement. MITRA, upon TELKOM's demand, shall defend every or
       all claims or suits at its own cost, provided that TELKOM:

       (a)  shall immediately deliver a written notification to MITRA concerning
            the claim;

       (b)  agrees that MITRA shall have full control of all pleas and all
            negotiations in relation to settlement.

       (c)  does not acknowledge its obligation in relation to all or part of
            the claim or agree to settle or revoke such claim; and

       (d)  provide reasonable assistance to MITRA in giving any plea or settle
            such claim.

       This indemnity is not applicable where obligations arise:

       (a)  because of modification of Goods To Be Transferred or written
            instruction issued by TELKOM without approval from MITRA;

       (b)  from the combination of Goods To Be Transferred with equipment that
            is not supplied by MITRA and if TELKOM does not conduct the
            combining process, the infringement claim is deemed as illegal; but,
            indemnity is applicable if MITRA does not provide the integration
            system service which causes such infringement;

       (c)  from the utilization of Goods To Be Transferred by TELKOM other than
            as mentioned in this Agreement; and

       (d)  from the continuing use of Goods To Be Transferred by TELKOM after
            MITRA deliver a notification concerning modification or amendment to
            Goods To Be Transferred which is necessary to avoid the infringement
            claim.

8.4    TELKOM agrees that it will only use necessary licenses for software and
       Documentation which is based on this Agreement for its business
       purposes,

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<PAGE>

       and shall not distribute or commercialize it. The Software license and
       Documentation entitles TELKOM to perform all activities and/or as
       reasonably required to use the respective equipment for its own purposes.
       Software licenses and Documentation are effectively prevails at the
       latest after TELKOM issues Minutes of Integrated System Acceptance Test
       related to the software and Documentation and shall be limited to the
       rights to use Documentation and software to operate the relevant
       equipment. TELKOM shall not assign, transfer or give sub-licenses of the
       software without prior written consent from MITRA, approval of which must
       not be withheld or delayed without any reasonable reason. Other
       requirements that are relevant to software which licenses have been
       provided for are set forth in the Software License attached in Schedule
       26.

8.5    TELKOM has the right to make a copy of the relevant software only for the
       back up purpose. TELKOM has the right to make a copy of the software
       Documentation to be used for internal purposes and for filing purposes
       and to make the approved copy TELKOM will assign all copyright in the
       relevant software or Documentation. The use by a TELKOM affiliate in the
       relevant activities of the Project, shall be subject to an approval from
       MITRA. TELKOM shall not decompile the software, unless it has obtained a
       written approval from MITRA. Further requirements relating to software
       are contained in the Software License as attached in Schedule 26.

8.6    In the event that any third party's rights have been violated or any
       torts have been conducted against a third party because of the relevant
       equipment or its use, MITRA, at its discretion and its cost, and after
       consultation with TELKOM, must:

8.6.1  replace the relevant equipment or parts of the equipment with equipment
       or parts of equipment that are equivalent and do not violate the third
       party's rights or because of its use in any way whatsoever does not
       constitute a tort against a third party; or

8.6.2  obtain a license in relation to the rights; or

8.6.3  modify equipment in any way to end the violation or torts, provided that
       such modification and/or replacement shall not make the equipment
       disfunctional and/or the equipment's quality be materially reduced.

8.7    MITRA and/or its sub-contractor shall deliver the software's interface
       specification together with all Documentation and information to TELKOM
       so that TELKOM can make an improvement and/or external modification to
       the relevant equipment or make additional functions to the equipment
       and/or to reach certain inter-operational ability and conformation. MITRA
       shall be released from its obligation to give indemnification to the
       extent that such claim is caused by improvement and/or modification
       conducted by TELKOM.

8.8    If the central processing unit where the correctly installed software is
       temporarily unavailable, then such software can be temporarily
       transferred to

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<PAGE>

       the alternative central processing unit. If TELKOM intends to use the
       software in service biro mode (i.e: give computation service to other
       supplier with the same service), then TELKOM shall request to convene a
       meeting with MITRA where the Parties could discuss necessary requirements
       and a provision based on which MITRA will construe a written agreement
       approving such use.

8.9    Provisions in this Article 8 will also be included in the BOT regulation
       as mentioned in Article 28. 10-28.14.


ARTICLE 9. FORCE MAJEURE

9.1    Each of the Parties shall not be responsible for any delay in deliverance
       or performance, or for any failure to make, deliver or perform, if such
       matter is caused by one of the following reasons which are out of any
       reasonable control of the Parties having the delay, including but limited
       to an act of God, public enemy act, civil act, or authorized military,
       war, terrorism, riot, strike, lockouts, another manpower distraction,
       storm, earthquake, fire, flood, epidemic, and embargo or amendment of law
       of Republic of Indonesia, regulation, order or government policy which
       prevails and adversely materially effects a Party's ability in performing
       this Agreement.

9.2    Each event that is included in the Force Majeure category shall be
       notified to the other Party within fourteen (14) days at the latest as of
       the occurrence. If the Force Majeure causing TELKOM not to be able to pay
       its indebtedness in a period of more than ninety (90) days, then one of
       the Parties may terminate this Agreement. Other Force Majeure events
       which persist for the period of more than six (6) months shall give the
       right to each of the Parties to end this Agreement.

9.3    In the event that because of the Force Majeure event, there is a delay in
       the performance of this Agreement or another relevant agreement,
       acceptance test, integration, drive test or other matter determined in
       this Agreement , then the performance period shall be extended until the
       same period of the performance delay.

9.4    Each of the Parties is not responsible for any loss suffered by the other
       Party that occurs because of the Force Majeure event, provided that the
       termination of this Agreement by MITRA because of of the Force Majeure as
       determined in Article 9.2, then the provision in Article 31 and Article
       32 will prevail in relation to the loss related to the Goods To Be
       Transferred which has passed the Acceptance Test and the provisions in
       Article 14.4, 14.5 and 14.6 will prevail with respect to the Goods To Be
       Transferred which has not yet passed the Acceptance Test.


ARTICLE 10. RISK AND RIGHT TRANSFER

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<PAGE>

10.1   Notwithstanding each transfer of ownership rights according to Article
       10.2, the operational risk transfer in relation to the relevant Goods To
       Be Transferred from MITRA to TELKOM shall only occur if each of the Goods
       To Be Transferred has been installed, and the relevant Minutes of
       Integrated System Acceptance Test has been issued by TELKOM.

10.2   Ownership rights and other rights upon the Goods To Be Transferred shall
       transfer or be delivered to TELKOM on the issuance of Minutes of
       Integrated System Acceptance Test for the Goods To Be Transferred.
       Notwithstanding to any contradictive provision in this Agreement, the
       right upon software shall not be transferred to TELKOM at any time.


ARTICLE 11. INDEMNIFICATION

11.1   Notwithstanding to any other provisions in this Agreement, MITRA shall
       indemnify to and release TELKOM from any direct losses, costs and
       expenses which are incurred because of a Claim (as defined hereunder), if
       a Claim arises:

11.1.1 because of MITRA's negligence in performing its obligations according to
       this Agreement, Purchase Order or other specific agreements related to
       the Agreement;

11.1.2 in connection with the work performed in accordance with its obligations
       based on this Agreement, except if such loss is not caused by MITRA;

11.1.3 in connection with the incorrect design equipment or material or other
       supplies from MITRA;

11.1.4 in connection with the infringement to the Intellectual Property Rights
       or industrial ownership rights owned by a third party in relation to
       Article 8.3;

11.1.5 in connection with the Claim including, but not limited to, penalties or
       other sanctions suffered by TELKOM as a result of a violation of a law or
       regulation in Indonesia related to Article 6 by MITRA or any of its
       employees or agents ;

11.1.6 in connection with each of the Network disturbances based on Article
       56.4;

11.1.7 in the case of a personal accident suffered and/or death of a person and
       damage that occurred on properties from the performance of this Agreement
       as a result of an act or negligence to perform and act, either by
       negligence or not, by MITRA or its employees, agents or its
       sub-contractors;

11.1.8 from loss or damage caused by gross negligence or an intentional act,
       misconduct or negligence to do something from MITRA, its employees,
       agents, or its sub-contractors, including but limited to damage or
       network disturbance which occurs during the transfer to the new network
       to be provided by MITRA; or

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<PAGE>

11.1.9 in connection with the termination by TELKOM because the Goods To Be
       Transferred are not transferred as agreed;

       provided that TELKOM:

       (a)  immediately delivers a written notification to MITRA concerning such
            Claim;

       (b)  permits PARTNER to defend or settle such Claim;

       (c)  at any time does not acknowledge obligations relating to the whole
            or a part of such Claim or agrees to settle or cancel such Claim;
            and

       (d)  provides PARTNER with any reasonable assistance in defending or
            settling such Claim.

11.2   "Claim" means any suits, claims, actions, obligations, injuries,
       compensation decided by any court or arbitration body against TELKOM,
       costs (including legal costs or another professional costs), sanctions
       and expenses borne by TELKOM as a result of breach by TELKOM or its
       subcontractor of any obligations, statements, covenants, or warranties
       under this Agreement.

11.3   Notwithstanding anything contrary herein, PARTNER's obligations to TELKOM
       under this Agreement shall not in any way exceed the amount equal to 100%
       of the Contract Price of the relevant Purchase Order, subject to (after
       taking into account amounts paid under such articles) the amount equal to
       10% of the Contract Price of all Purchase Orders issued and received
       until the date that such obligations fall due and payable.

11.4   Each Party shall not be responsible in any way to the other Party for any
       consequential loss, whether included in this Indemnification or not.

11.5   It is agreed that TELKOM shall pay compensation and release PARTNER from
       any loss, costs and expenses directly arising from any Claim if such
       Claim arises for personal injury and death of someone and damage of
       property in relation to the performance of this Agreement as a result of
       actions or negligence in taking any action whether because of negligence
       or not from TELKOM, its employees, agents or subcontractors.


ARTICLE 12. MAINTENANCE AND SUPPORT FOR EQUIPMENT

12.1   PARTNER shall ensure that the Scope of Work shall be performed in
       accordance with the terms and conditions of this Agreement and Purchase
       Orders.

12.2   PARTNER shall transfer all equipment and Network Systems and Sub-systems
       to TELKOM in 100% (one hundred percent) new condition, without hidden
       defect (not including hidden defect on software) or other hidden

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<PAGE>

       defects that cannot be repaired by PARTNER in accordance with the
       Services Level Agreement with the proviso that the Services Level
       Agreement is valid when it is found, and is obtained not through
       unlawfully acts. PARTNER further ensures that, subject to the Services
       Level Agreement, all equipment (whether hardware or software) transferred
       to TELKOM under this Agreement shall have the age at the minimum of ten
       (10) years since the issuance date of each Minute of Integrated System
       Acceptance Test, or since the time that such equipment is commercially
       used by TELKOM, whichever is earlier, provided that TELKOM:

       (a)  has materially fulfilled SOP and SMP requirements (as set forth in
            Article 59.1.2); and

       (b)  does not make any material modification or alteration to equipment
            (whether hardware or software) transferred to TELKOM.

12.3   If, after the expiry of the term of the applicable SLA, TELKOM requires
       maintenance assistance for equipment from PARTNER, PARTNER agrees to
       perform such maintenance, including replacement with the same spare parts
       or equivalent spare parts during the life of such equipment as set forth
       in Article 12.2, with the agreed costs, within ninety (90) days at the
       latest before the expiry of the applicable SLA.

12.4   Until the issuance date of the relevant Minute of Integrated System
       Acceptance Test (including issuance pursuant to Article 54.8.8), all
       equipment supplied to TELKOM shall be in compliance with Schedules 3
       (Scope of Work) and 5 (Technical Specifications). PARTNER shall perform
       such work in accordance with this Agreement and the best practice
       standard (as agreed by the Parties).

12.5   Unless determined otherwise in this Agreement, all warranties expressly
       or implicitly excepted shall include commercial warranty or the ability
       to be used for specific purposes.


ARTICLE 13. LIQUIDATED DAMAGES FOR LATENESS

13.1   PARTNER shall be considered in default in performing its obligations
       hereunder and can be held liable, if after failing in its performance and
       PARTNER has been properly advised of such non-performance within a
       reasonable time not exceeding thirty (30) days to cure or remedy such
       default, PARTNER fails to meet its obligations, or to meet its
       obligations in due time, in accordance with the agreement. Without
       limitation, the following is an example of lateness by PARTNER:

13.1.1 Goods To Be Transferred stated in the relevant Purchase Order or specific
       agreement do not meet the acceptance requirements on the date agreed per
       Location/Place;

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<PAGE>
13.1.2 The contracted Goods To Be Transferred to be transferred are not
       available at the time and place agreed by PARTNER in accordance with the
       terms and the relevant Purchase Order schedule, including without
       limitation where such lateness is due to damage or loss of goods during
       delivery.

13.2   PARTNER shall not be responsible to TELKOM for non-performance if such
       non-performance is due to (i) lateness or non-performance by TELKOM, or
       Investor in accordance with Article 28.10 or supplier of other Network
       equipment, or (ii) TELKOM's lateness in procuring an area, or (iii) force
       majeure pursuant to Article 9. In such events, PARTNER has the right to a
       reasonable time extension for the performance of its obligations. PARTNER
       shall take necessary steps to minimize any impact from such lateness and
       shall promptly inform TELKOM in writing of the time extension required,
       along with complete supporting information,. PARTNER's right to a time
       extension shall be limited to the time that would be due had PARTNER
       provided a prompt notice and taken all reasonable steps.

13.3   Liquidated damages for lateness per day shall be calculated on the basis
       of a percentage of the Contract Price set forth in each Purchase Order in
       respect of the relevant delayed Location of 6% per year, to the maximum
       of 5% of the Contract Price stated in the relevant Purchase Order. For
       the avoidance of doubt, if such non-performance is not cured within the
       period permitted pursuant to Article 13.1, or as agreed by the Parties,
       the liquidated damages shall be calculated and paid on the first day
       after such period.

13.4   Liquidated damages calculated for lateness of performance pursuant to
       Article 13 shall not prejudice any claim other than the financial claim
       that may be brought by TELKOM in relation to lateness for which PARTNER
       may be held responsible. Subject to Article 11.3, including without
       limitation TELKOM's rights: (i) to terminate this Agreement in accordance
       with Article 14; and (ii) after discussion with PARTNER and reasonably
       acting for the third parties selection, to appoint any third party to
       carry on this Agreement in respect of such work as may be completed by
       the third party, provided that any reasonable excess amount incurred for
       the continuance of such work, as may be required, shall be borne by
       PARTNER. Payment of such excess amount shall be in place of the
       determined compensation paid since the third party is appointed.


ARTICLE 14 TERMINATION OF CONTRACT

14.1   Should PARTNER materially breach its obligations in accordance with this
       Agreement, which failure could not be remedied, or if the failure is
       remediable, the PARTNER failed to remedy the failure within 30 (thirty)
       days or within an agreed period after receiving a written notification
       instructing the remedy of the default (which was given based on this
       Article 14.1 or in accordance with the Articles 13.1 and 13.2), TELKOM,
       by its sole discretion and without limiting the rights and other legal
       actions as stipulated

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<PAGE>

       by this Agreement has the right to terminate this  Agreement and to
       obtain damages from PARTNER.

14.2   In compliance with the stipulations regarding remedy in Article 14.1,
       TELKOM has the right to terminate the entire or part of this Agreement
       and/or the entire or part of the Purchase Order and/or the relevant
       agreement after the occurrence of any of the following events:

14.2.1 PARTNER materially breaches the Inter-Operation Commitment Agreement;

14.2.2 PARTNER announces or clearly states that the Scope of Work or a
       substantial part thereto, will not or cannot be completed;

14.2.3 PARTNER is taking or has taken or has engaged a self legal action or self
       legal proceeding, whether it is voluntary or mandatory, which is intended
       to or may cause the liquidation of PARTNER (other than voluntary
       liquidation by its members for the purpose of reconstruction or
       consolidation) or to be put under a formal management or to reach a
       compromise or other means of settlement with its creditor or a group of
       creditors or an administrative curator or an administrator or curator
       appointed to run the business or to control or own any of its assets for
       the interests of its creditors or any of them;

14.2.4 PARTNER violates the law relating to the prevention of corruption or
       bribery in PARTNER's country of origin or a jurisdiction in which PARTNER
       is conducting any of the work; or

14.2.5 In accordance with Article 9.

14.3   PARTNER is only entitled to terminate or cancel this Agreement in the
       event TELKOM has conducted a material breach and failed to remedy the
       default (providing that the default is remediable) within thirty (30)
       days or any agreed period after the conveyance of the written
       notification from PARTNER instructing it to remedy the default in the
       context of the following events:

14.3.1 PARTNER is taking or has taken or has engaged a self legal action or self
       legal proceeding, whether it is voluntary or mandatory, which is intended
       to or may cause the liquidation of TELKOM (other than voluntary
       liquidation by its members for the purpose of reconstruction or
       consolidation) or to be put under a formal management or to reach a
       compromise or other means of settlement with its creditor or a group of
       creditors or an administrative curator or an administrator or curator
       appointed to run the business or to control or own any of its assets for
       the interests of its creditors or any of them;

14.3.2 TELKOM failed to pay any outstanding amount, or becomes incapable to pay
       the amount that will be due and payable, for a period of more than 6
       months and during the discussion with TELKOM regarding the matter the

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<PAGE>

       Parties could not agree on a satisfactory payment mechanism and/or
       guarantee to pay the outstanding amount, including the stipulation
       regarding the bank guarantee by TELKOM acceptable to the PARTNER; or

14.3.3 In accordance with the Article 9.2; or

14.3.4 TELKOM, (a) without a prior written consent from PARTNER: (i) transfers
       or conveys the given license and Documentation as mentioned in Article 8,
       or (ii) transfers the ownership of PARTNER's software or hardware outside
       the territory of the Republic of Indonesia, (iii) trades or invents
       compatible software, equipment and Documentation or utilizes the Goods to
       be Transferred in the means that are not allowed under this Agreement; or
       (iv) encumbers the PARTNER's Intellectual Property Rights; or (v) is in
       the material breach of the terms and conditions of the Software License;
       (b) materially breaches  the non-disclosure obligation under duly signed
       Schedule 24 (Confidentiality Agreement); (c) materially breaches the
       prevailing laws and regulations, in which the default has direct impact
       to the PARTNER causing the existence of a legal obligation to prevent the
       implementation of the PARTNER's obligation according to this Agreement.

14.4   The termination of this Agreement shall not reduce the right of the
       Parties up to the date of the termination.

14.5   The termination of this Agreement or any of the specific regulations
       shall not effect or reduce the stipulations of such regulations that are
       clearly or impliedly stated to remain valid after such termination.

14.6   Should this Agreement be terminated by any of the Parties as mentioned in
       this Article 14, TELKOM, in addition to other rights as stipulated by
       this Agreement, may request the PARTNER to transfer the right and to
       deliver to TELKOM with the means as determined by them with a full
       payment, the equipment, complete material and or supply and cable and
       materials, devices, application, mold, jig, supply, application, plan,
       drawing, information and the partially completed contractual rights as
       specifically made or obtained by the PARTNER for the implementation of
       this Agreement as may be terminated and in the event this Agreement is
       already terminated, must have been delivered to TELKOM. In addition to
       the above, the PARTNER, based on the guidance from TELKOM must prevent
       and protect the PARTNER's assets in which TELKOM has an interest thereto.
       The PARTNER will be paid the amount as mentioned in the Schedule 4
       (Daftar Harga) for the completely delivered equipment, materials and
       supply and the related services, and in accordance with the amount as
       agreed between TELKOM and PARTNER for the manufacture material delivered
       by PARTNER to TELKOM, and to protect and to preserve the assets in which
       TELKOM has an interest thereto.

14.7   Should this Agreement be terminated in accordance with Article 14.2,
       TELKOM may choose to take over and to finish the work. In this matter,
       the PARTNER, without reducing the rights or other legal actions of TELKOM
       in accordance with this Agreement, has the obligation to pay all of the

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<PAGE>

       reasonable extensive costs which are borne by them by taking into account
       the outstanding amount in accordance with this Agreement to PARTNER of
       the initiated work, which partially conducted or completed and which is
       received by TELKOM or materials, installations, machineries, tools and
       equipment and all of the purchased matters, utilized or will be utilized
       in relation to the work.

14.8   In the event of termination, the Parties agree to waive the provisions of
       Article 1266 of Indonesian Civil Code to the extent it is necessary to
       put the termination of this Agreement in force in compliance with Article
       14 without any court decision necessary.


ARTICLE 15. GOVERNING LAWS

This Agreement shall be interpreted and regulated under the laws of the Republic
of Indonesia.


ARTICLE 16. DISPUTE RESOLUTION

16.1   If any dispute between TELKOM and PARTNER in connection with this
       Agreement or arising out of this Agreement or any breach, or termination
       of its validity , the Parties, for a period of thirty (30) days after the
       receipt by one party of a notice from the other party of the existence of
       the Dispute, shall attempt to settle the Dispute at the first chance by
       discussion between the senior executives of the Parties.

16.2   If the Dispute which arises out of or in connection with this Agreement,
       is not settled by discussion between the Parties , including any queries
       regarding its existence, validity or termination, such dispute shall be
       finally settled by the Indonesian Arbitration Board (BANI) and be binding
       upon the Parties to execute.

16.3   Neither Party nor person by any manner involved in arbitration
       procurement, coordination or execution of a Dispute may, in any manner
       whatsoever, disclose the existence, content and/or result of the Dispute
       or arbitration executed under this Agreement related to such Dispute,
       subject to the disclosure allowed in Article 19.

16.4   This Agreement and the rights and obligations of the Parties shall remain
       in force and effect pending the award in any arbitration proceedings, in
       which such award, if appropriate, will determine whether and when the
       termination is effective. The provisions of Article 16 shall remain in
       force even if this Agreement is terminated and/or expires.


ARTICLE 17. LANGUAGE

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<PAGE>

17.1   All data, documents, Purchase Orders, invoices, descriptions, diagrams,
       books, catalogues, instructions, markings to identify the main items of
       correspondences shall be in bahasa Indonesia and in metric measurement
       and weight.


ARTICLE 18. THE COMPANY'S REPRESENTATION AND WARRANTY

18.1   Any Party (including any PARTNER member) represents and warrants that (i)
       it has obtained all consents, license and authority necessary of third
       parties or government to conclude this Agreement and execute the
       obligations under this Agreement; (ii) the persons signing the Agreement
       on behalf of its party have authority to do so and in doing so, bind such
       party to the Agreement; (iii) the signing, delivery and execution of this
       Agreement does not breach any provision of domestic rules (anggaran rumah
       tangga), articles of association, regulation, or other authorization
       stipulated by the company of the Party; (iv) the signing, delivery and
       execution of the Agreement has been ratified in accordance with all
       corporate actions necessary; (v) the signing, delivery and execution of
       this Agreement by its party constitute a personal and commercial action
       and not public or government action; and (vi) the obligation of the
       Parties under this Agreement is a valid and binding obligation upon the
       Party concerned, which may be effective in compliance with its
       requirements.


ARTICLE 19. CONFIDENTIAL INFORMATION

19.1   TELKOM and PARTNER will conclude a Confidentiality Agreement in the form
       as contemplated in Schedule 24 (of Confidentiality Agreement) which
       specifies the use and disclosure of related terms and conditions of the
       confidential information allowed in development (if any), operation, use
       and maintenance of the System concerned under this Agreement.


ARTICLE 20. NOTIFICATION

20.1   All notification necessary or allowed under this Agreement is concluded
       in writing and delivered by hand or by courier or sent by mail or
       facsimile to the addresses of the Parties as notified from time to time.

20.2   All notification required in relation to the performance of this
       Agreement shall be addressed to the following:

       TELKOM:
       Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia, Tbk
       Attention: President Director
       Address: Jl. Japati No. 1, Bandung 40133
       Facsimile: 022-4240313

       PARTNER:
       PT Industri Telekomunikasi Indonesia (Persero)

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<PAGE>

       Attention: KA. SBU FIXED NETWORK & ACCESS
       Address: Jl. Mohamad Toha No. 77, Bandung 40253
       Facsimile: 022-5205394

20.3   PARTNER will appoint a party or representative stipulated by the
       authorized PARTNER to act on behalf of MITRA, which its instruction and
       demand will bind MITRA to all matters related to the Project performance
       proposed by TELKOM. TELKOM will also appoint a party or representative
       stipulated by the authorized person to act on behalf of TELKOM, which its
       instruction and demand will bind TELKOM to all matters related to the
       Project performance. The first Party or representative of each Party is
       contemplated as follows:

       PARTNER:
       KA. SBU FIXED NETWORK & ACCESS, Project Manager
       Jl. Mohamad Toha No. 77, Bandung 40253
       Indonesia
       Phone: 022-5202615
       Facsimile: 022-5205394
       E-mail: rizka@inti.co.id
       Mobile: 0811-200040

       TELKOM:
       PT Telekomunikasi Indonesia, Tbk
       KADIV FIXED WIRELESS (as Project Manager)
       Jl. Kebon Sirih No. 12, 16th Floor, Jakarta Pusat
       Phone: 021-3447070
       Facsimile: 021-3440707
       E-mail: Alex_j@telkom.co.id

20.4   A Party may change its address by giving a prior written notification to
       the other Party. Notification and other communication may be concluded in
       bahasa Indonesia or English. All notification is applicable (i) in the
       event the delivery is sent by hand or by courier, on the acceptance date
       as evidenced by a receipt from the recipient or delivery acknowledgement
       accepted by the sender from the courier, and (ii) in the event the
       delivery is sent by a facsimile or e-mail or other electronic delivery,
       on the acceptance date clearly acknowledged by the recipient, in which if
       such acknowledgement is not performed then on the delivery date as
       evidenced under the prevailing agreement for such delivery.


ARTICLE 21. GENERAL PROVISION

21.1   If any provision of this Agreement or any part thereof is deemed to be
       null and void or inapplicable under the laws to which such provision is
       subject, then the said stipulation is deemed null and void or
       inapplicable to that extent only and by any manner it will not effect or
       diminish the effectiveness of other parts of such provision or other
       provisions of this Agreement. The ineffectiveness, invalidity or
       inapplicability of a provision of this Agreement under laws of a

                                       25

<PAGE>

       jurisdiction will not effect the effectiveness, validity and performance
       of such provision under laws of another jurisdiction.

21.2   A remedy given by one of the provisions of this Agreement is not intended
       to be exclusively effective against another remedy provided under laws,
       and each and any other remedy is cumulative and inclusive to other
       remedies given under this Agreement or presently or afterward existing
       under laws. The selection of one or more remedy by a Party is not a
       waiver of the said Party's right to execute another remedy provided.

21.3   Any failure and delay of a Party in executing the right under this
       Agreement is not considered as a release or waiver, and any performance
       in whole or in part of the right under this Agreement shall not exclude
       other performances of such right at a later date. The rights and remedies
       given by this Agreement are cumulative and non-exclusive of the right and
       remedy given by law.

21.4   This Agreement accommodates all terms and conditions approved by the
       Parties with regard to the main subject of this Agreement and reinstates
       all former representations, arrangements, understanding and consent
       between the Parties both in writing and verbal (including without
       limitation to RfP, unless stipulated otherwise under this Agreement).

21.5   This Agreement may be executed in many counterparts, each of them is an
       original document and effective without referring to other counterparts
       and all of which together are considered as the same agreement.

21.6   Notwithstanding any reference to the term "Partner" and/or "partnership"
       in this Agreement, the relation between the Parties is not a partnership
       in the legal sense. Each Party does not have any authorization or right
       to bind, commit or burden the other Party's credit.

21.7   This Agreement is effective for the benefit of and binding upon the
       Parties and its successors and assignees.

21.8   This Agreement does not constitute a relationship of employer and
       employee and PARTNER is considered to be an independent contractor.

21.9   No other modification, supplement or amendment is made against this
       Agreement or any part thereof unless made in writing and executed by the
       authorized representatives of the Parties.

21.10  The Parties agree that if the context of a provision indicates an
       intention that this provision shall remain in force even if this
       Agreement expires, or is terminated, such provision shall remain in
       force. In particular, the following Articles shall remain in force when
       this Agreement expires or is terminated: 8, 11, 13, 14, 15, 16 and 19 and
       Schedule 26.


                                    CHAPTER 2
                         COMMERCIAL TERMS AND CONDITIONS

                                       26

<PAGE>
ARTICLE 22. CONTRACT PRICE

22.1   Pursuant to the unit price stated in Article 23.3, the initial Contract
       Price (including without limitation to all costs, 10% VAT and other taxes
       in accordance with the prevailing provision, excluding expenses under the
       Service level Agreement/SLA) for Project performance under this Agreement
       is in the amount of US$ 22,856,791.31 (twenty two million eight hundred
       fifty six thousand seven hundred ninety one United States Dollars and
       thirty one cent) and Rp 61,407,761,908.52 (sixty one billion four hundred
       seven million seven hundred sixty one thousand nine hundred eight and
       fifty two Rupiahs). This Contract Price may be adjusted from time to time
       based upon the mechanism stipulated in Article 27.


ARTICLE 23. PRICE AND EXPENSES

23.1   Prices and expenses, which shall be paid by TELKOM, as contemplated in
       Schedule 4 (Price List) is a cost, which has been approved and applicable
       to the relevant Purchase Order. Such prices and expenses include all
       expenses, 10% VAT and other taxes in compliance with the prevailing
       provision.

23.2   Prices and expenses, which shall be paid by TELKOM under this Agreement,
       are denominated in United States Dollars (USD) or in Indonesian Rupiah
       (IDR), as applicable. All payments made by TELKOM under or in compliance
       with this Agreement shall be made in the lawful currency. If such payment
       is not made in the lawful currency due to any reason, then the payment
       upon PARTNER's option shall be made by TELKOM in an equivalent amount
       (with the prevailing exchange rate/middle market spot exchange rate
       quoted by Bank Indonesia on the transfer) of another lawful currency. If
       PARTNER requires it to do so, TELKOM will pay the relevant amount on
       behalf of PARTNER or a third party determined by PARTNER at a bank in
       Indonesia.

23.3   Unit price stated in Schedule 4 (Price List) is a fixed price and unable
       to be adjusted. Equipment unit price is considered to cover the payment
       made by PARTNER for all transport expenses, insurance, import
       duty/customs duty, permits in entry port, land transport, warehouse and
       delivery to the Location where the equipment will be installed. Equipment
       related service unit price is inclusive of survey, planning, design,
       permit, right to pass, installation, integration, project management,
       insurance until transfer of right, examination and expenses for the
       acceptance test, service relating to land procurement, procurement of
       frequency licenses and all material and relevant expenses to complete
       this Project on turnkey basis as stipulated in Article 3.


ARTICLE 24. TAX AND DUTY

                                       27

<PAGE>

24.1   Each Party shall be responsible for all taxes required to be paid,
       withheld or collected, as applicable, in compliance with the prevailing
       laws and regulations.


ARTICLE 25. INSURANCE AND SECURITY

25.1   PARTNER at its own expense shall insure all the risks (or by equivalent
       coverage) ("Risks Insurance Policy") to cover all work performed in
       accordance with the Purchase Order. Insurance covers all risks against
       loss, damage (including work related accident conducted by PARTNER, its
       employees, agents or sub-contractors) with a minimum amount until the
       transfer of right on the Goods To Be Transferred exists in accordance
       with Article 10.2. Risks Insurance also covers installation, machines,
       tools, goods, vehicles or assets belong to PARTNER, its employees, agents
       or sub-contractors set off at the Location where the work is performed,
       all risks during transporting, warehousing, storing, delivering,
       installing and examining, due to fire, burglary, earthquake/flood,
       natural disaster, failure in constructing, or any other, and legal
       obligation to third parties during the period of construction,
       installation and operating period including insurance against loss of
       PARTNER revenues and damage to the surrounded assets. PARTNER shall
       provide TELKOM with evidence of Risks Insurance Policy upon demand. As
       stated in the provision PARTNER shall be fully responsible for
       obligations under this Article 25. PARTNER, at its own option, may set up
       a Risks Insurance Policy that contemplates TELKOM as co-insured and a
       beneficiary of such policy. The company appointed for insurance coverage
       under this Agreement is PT Asuransi Jasa Indonesia (PT Jasindo) through
       PT Sarana Janesia Utama (PT SJU) as the broker.

25.2   PARTNER at its own expense shall restore any lost, damaged and/or
       dissolved Goods To Be Transferred whilst such Goods To Be Transferred are
       in the process of being delivered and installed.

25.3   Without prejudice to the procurement of Risks Insurance Policy, the
       obligation of PARTNER in connection with the loss or damage relating to
       PARTNER's action and failure is not restricted by the amount of insurance
       coverage under Risks Insurance Policy.

25.4   PARTNER shall be fully responsible for the sufficiency, stability and
       security of all work performed in the Location in accordance with the
       present or later prevailing law, order, regulation, decision, guidance or
       standard in Indonesia. PARTNER shall ensure that all the equipment,
       tools, facility and other goods used by PARTNER or its sub-contractors in
       performing the work are safe and in good condition that, at the minimum,
       fulfill the acceptable standard of industry. PARTNER at its own expense
       shall provide safety guards, protective clothing, shoes and other
       equipment necessary and required by law or regulation for good and safe
       working performance. PARTNER shall ensure that all the personnel provided
       have obtained full training and met the requirements and been approved by
       the authorized party or institution if such

                                       28

<PAGE>

       approval is necessary under the prevailing laws, regulations or guidance
       of the government institution.


                                    CHAPTER 3
                            FINANCIAL AND PAYG TERMS


ARTICLE 26. COLLECTIVE PLAN SESSION, DESIGN REVIEW MEETING AND MONTHLY MEETING

26.1   Collective Plan Session or JPS

26.1.1 The Parties agree to conduct a systematic, periodical and comprehensive
       collective training plan as described below.

26.1.2 TELKOM and PARTNER will convene an annual Collective Plan Session ("JPS")
       in September or October at the closing of the fiscal year to design the
       following Fiscal Year Packet Level Necessity. The first JPS will be
       conducted at the moment stipulated jointly after the Parties executing
       this Agreement and contain the precise period after the signing of this
       Agreement until the closing of fiscal year 2003. JPS also may be
       conducted in any other occasion as approved by the Parties. TELKOM and
       PARTNER shall jointly implement and/or agree to the minimum following
       activities which is applicable for the following fiscal year:

       (a)  the demand estimation (which in this Agreement will refer to the
            minimum of one (1) upcoming year) at DIVRE level which considers any
            macro economy factor;

       (b)  the economy analysis to evaluate the related business feasibility of
            Network development; and

       (c)  the specification improvement for the Development Plan and
            Implementation Schedule of each quarter by prioritizing the Location
            to Network development.

26.1.3 In each subsequent JPS, TELKOM and PARTNER shall jointly implement and/or
       agree to the following minimum activities which are applicable for the
       following fiscal year:

       (a)  the demand estimation for DIVRE which considers any macro economy
            factor;

       (b)  the economy analysis to evaluate the related business feasibility of
            Network development;

       (c)  the specification improvement on the Development Plan and
            Implementation Schedule of each quarter by prioritizing the Location
            to Network development;

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<PAGE>

       (d)  the study on the upcoming technology development strategy, by
            considering the supply and suitability of technology, latest
            equipment and software; and

       (e)  solving the problems conveyed to its party by DRM or any other party
            and approving the recovery action.

26.1.4 PARTNER shall be responsible for the organization and administrative
       activities necessary to conduct JPS. PARTNER shall be responsible for all
       reasonable expenses to conduct JPS and at its own expense shall pay the
       fee of outsourced consultancy, if necessary, in implementing the work or
       analysis as stipulated in Article 26.1. TELKOM shall only be responsible
       for the accommodation and transport fee for TELKOM's staff attending JPS.

26.1.5 The Parties shall draw up a minutes of JPS meetings in which the
       substantive approval shall be noted as the Parties' approval, as
       evidenced by the signature on the minutes (or any applicable parts
       thereof) of each Party's official representative.

26.1.6 In any JPS, and depending on each or both Parties firstly reported to
       each senior executive to be considered, regarding the existence of
       irresolvable matters, TELKOM is entitled to take the final decision on
       the problems regarding the Development Plan revision and adjustment to
       the Installed Connection Procurement calculation after considering
       PARTNER's input in regarding amongst other things, demand on estimation,
       market assessment and placed capacity use.

26.2   Design Review Meeting or DRM

26.2.1 TELKOM and PARTNER will convene a systematic, periodic and comprehensive
       Design Review Meeting ("DRM") each quarter at DIVRE level for the period
       of this Agreement.

26.2.2 First DRM will be convened not less than ten (10) working days after
       first JPS or within the period approved in the first JPS. Later, DRM will
       be convened at each of the closing of quarters with an agenda
       anticipating the activity concerned in the following quarter.

26.2.3 Prior to the first DRM, TELKOM and PARTNER will jointly convene the
       following activities as a minimum:

       (a)  survey Location for development designed to ensure the preparation
            of the Location;

       (b)  calculate the Installed Connection Procurement (reasonably equalized
            to Customer Target) necessary by Location and Place (BTS);

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<PAGE>

       (c)  based upon the Customer Target, develop detail network design,
            approving and ratifying BoQ and detail BoQ value in accordance with
            Location and Place (BTS);

       (d)  develop detail resources plan;

       (e)  develop detail training plan;

       (f)  if necessary, innovate the Development Plan for the following
            quarter.

26.2.4 On the first DRM, TELKOM and PARTNER will jointly convene and/or approve
       the following activities as a minimum:

       (a)  examining and innovating the Installed Connection Procurement
            calculation (reasonably equalized to Customer Target) based upon the
            Location and Place (BTS);

       (b)  based upon the Customer Target, approving and ratifying detail
            Network design;

       (c)  based upon the Customer Target, approving and ratifying detail BoQ
            and detail BoQ total value in accordance with Location and Place
            (BTS);

       (d)  approving and ratifying the detail resources plan;

       (e)  approving and ratifying the detail training plan;

       (f)  approving and ratifying adjustment, it any, to the Project
            Management Plan and Implementation Schedule;

       (g)  if necessary, approving and ratifying the renewed Development Plan
            for the following quarter.

26.2.5 After the first DRM and after each of the following DRM, TELKOM will
       issue a Purchase Order signed by TELKOM's Project Manager or another of
       TELKOM's authorized officers.

26.2.6 With respect to the quarterly DRM and annual fiscal year JPS which are
       coincided, DRM shall be convened immediately after the accomplishment of
       such JPS with an agenda designed not to repeat or imitate JPS's previous
       activity on such DRM, unless necessary.

26.2.7 Prior to each of the following DRM, TELKOM and PARTNER will jointly
       convene and/or approve the following activities as a minimum:

       (a)  surveying to Location/Place for development designed to ensure the
            preparation of the Location/Place, for evaluating a demand;

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<PAGE>

       (b)  innovating Development Plan for the relevant quarter by calculating
            the Installed Connection Procurement (reasonably equalized to
            Customer Target) necessary by the Location and Place (BTS);

       (c)  based upon the Customer Target, developing detail Network design,
            detail BoQ and detail BoQ total value in accordance with Location
            and Place (BTS);

       (d)  developing detail resources plan;

       (e)  arranging detail training plan;

       (f)  if necessary, evaluating market demand and innovating development
            plan for the following quarter.

26.2.8 In each of the following DRM, TELKOM and PARTNER will jointly convene
       and/or approve the following activities for the following quarter as a
       minimum:

       (a)  examining and renewing the Installed Connection Procurement
            calculation (reasonably equalized to Customer Target) in accordance
            with Location and Place (BTS);

       (b)  based upon the Customer Target, approving and ratifying detail
            Network design;

       (c)  based upon the Customer Target, approving and ratifying detail BoQ
            and detail BoQ total value in accordance with Location and Place
            (BTS);

       (d)  approving and ratifying the detail resources plan;

       (e)  approving and ratifying the detail training plan;

       (f)  approving and ratifying adjustment, if any, to the Project
            Management Plan and Implementation Schedule;

       (g)  evaluating Project implementation on the previous quarter and
            revising implementation procedure to consider the failure or other
            unsatisfactory implementation;

       (h)  if necessary, approving and ratifying the renewed Development Plan
            for the following quarter;

       (i)  resolving the problems conveyed to its party by monthly meeting or
            any other means and approving recovery action.

26.2.9 PARTNER is responsible for the organization and administrative activities
       necessary to organize all DRM. PARTNER is responsible for all reasonable
       expenses to convene DRM and at its own expense shall fund the analysis,
       if

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<PAGE>

        necessary, as stipulated in Article 26.2. TELKOM is only responsible for
        the accommodation and transport fee for TELKOM's staff attending DRM.

26.2.10 The Parties will draw up minutes of each DRM meeting in which the
        substantive approval shall be noted as the Parties' approval, as
        evidenced by a signature on the minutes (or any applicable parts
        thereof) of each Party's official representative.

26.2.11 Additional approval is effective to DRM:

        (a)  TELKOM and PARTNER will jointly design and calculate the BoQ
             precisely to support the number of Customer Target concerned upon
             design rules in Schedule 14 (Technical and Engineering Norms);

        (b)  design rules in Schedule 14 (Technical and Engineering Norms) are
             based upon the prevailing technical and engineering norms on the
             date of this Agreement and may be adjusted by written approval of
             the Parties for the period of the planning process in accordance
             with market trends to avoid any excessive or lack of the
             estimation on equipment necessary;

        (c)  if any enormous problem is immediately noticed or causes
             significant divergence of early Development Plan, PARTNER shall
             require for TELKOM's input and, if jointly approved, shall convene
             immediately an extraordinary DRM to resolve it;

        (d)  if necessary, activities obligated in JPS meeting may be convened
             simultaneously with DRM meeting;

        (e)  if the requirements of certain Purchase Orders are inconsistent
             with the approval reached in the DRM, the Parties shall review and
             if necessary correct any mistake or difference existing in the
             Purchase Order or BoQ;

        (f)  In each DRM, decisions on such problems regarding the revision of
             the Development Plan and Installed Connection Procurement
             calculation, shall be jointly approved by the Parties after
             considering the input of both Parties, regarding, amongst other
             things, the demand estimation, market's view, equipment production
             capacity, and placed capacity utilize; and

        (g)  TELKOM and PARTNER agree that the Development Plan for the
             following quarter for certain Location shall be calculated based
             upon the Installed Connection Procurement which is realistically
             provided within three (3) years at the minimum if placing new
             general equipment and one (1) year at the minimum for each module
             like racks, sub-racks and cards.

        Without prejudice to a contrary matter in this Agreement, the Purchase
        Order is only issued if terms and conditions of the Purchase Order are
        approved in writing by the relevant DRM or the subsequent DRM, by the
        authorized representative of each Party, as notified to each Party from
        time to time

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<PAGE>

        pursuant to Article 20.3. If the Parties do not reach any approval on
        problems such as certain Purchase Order's requirements or other
        significant matters, then the matter shall be decided by the senior
        management of each Party, if not, the provision of Article 16 may
        prevail.

26.3    Monthly Meeting

26.3.1  PARTNER through its official representative and TELKOM's relevant staff
        shall convene a monthly meeting in the Location being developed to
        ensure the smoothness of the Project operation performance and to
        propose and discuss the problem in due time.

26.3.2  The first meeting shall be convened at the time jointly agreed after the
        first DRM is performed. Subsequently, the meetings shall be convened
        every month for the period of this Agreement.

26.3.3  In each monthly meeting, PARTNER is, at a minimum, responsible for the
        following activities: reporting the progress of location managers,
        supervisors and other staff to TELKOM's Project Manager or its
        authorized representative, renewing each relevant improvement, and
        discussing the problem or unresolved matters that occurred in the
        previous month.

26.3.4  A monthly meeting may be convened anywhere at the time and place as
        jointly agreed by the Parties.

26.4    Representation to JPS, DRM and Monthly Meeting

26.4.1  TELKOM and PARTNER shall notify each other from time to time regarding
        the appointment made (and any change to such appointment) upon the
        official representative who has authority to execute or enter into an
        agreement to any JPS and/or DRM and/or monthly meeting on their behalf.

26.4.2  The approval of the Parties reached out in JPS and/or DRM and/or monthly
        meeting shall be signed by each Party's official representative as
        notified to each other from time to time.


ARTICLE 27. SUPPLY OF INSTALLED LINES

27.1    The number of lines planned to be installed in each Quarter ("Basic
        Lines") as determined in Schedule 7 (Exhibition Plan) shall be used as
        the fixed number to calculate the number in which the planned Supply of
        Installed Lines may be adjusted from time to time in a DRM or JPS in
        accordance with the flexible procurement methodology provided under this
        Article 27.

27.2    Based on the Exhibition Plan of the next Quarter, the calculation of the
        said Supply of Installed Lines in the next Quarter shall be in
        accordance with the following equation:

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<PAGE>

        Supply of Installed Lines = Basic Lines x (1 + Percentage Index)

27.3    Percentage Index is 0% for the first Quarter. For the following
        Quarters, TELKOM, at its own discretion, may amend the Percentage Index
        up to 15% at the maximum, above or below the Percentage Index noted from
        the previous Quarter, so that the Percentage Index = Percentage Index of
        the previous Quarter +/- 15%, provided that during the period of this
        Agreement, the minimum of the Supply of Installed Lines shall reach 60%
        of the Basic Lines in terms of the cumulative total.

27.4    The Parties may also approve amending the Percentage Index exceeding 15%
        for a certain Quarter, provided that for the purpose of calculation of
        the prevailing maximum limit of the Percentage Index for the following
        Quarter, the Percentage Index of the previous Quarter shall be deemed
        amended only to the maximum of 15%, and the Percentage Index for the
        following Quarter shall be calculated from the said limit instead of the
        initial Percentage Index of the previous Quarter whose prevailing
        maximum limit has been exceeded.

27.5    For the avoidance of doubt, once the promised volume as provided under
        Article 27.3 has been achieved, TELKOM does not commit to add the Supply
        of Installed Lines.


ARTICLE 28. PURCHASE ORDER AND PROCEDURE

28.1    PARTNER shall deliver all the Goods To Be Transferred to TELKOM as the
        response to the Purchase Order issued by TELKOM from time to time, which
        in general shall be delivered simultaneously with DRM in any quarter.

28.2    TELKOM through TELKOM's Project Manager (preferred) or any other
        authorized representative and/or the authorized representative of the
        BOT which has been approved by the Parties (for certain geographical
        area as notified in writing by TELKOM from time to time), shall issue a
        Purchase Order based on the exhibition at the DIVRE.

28.3    A Purchase Order shall be valid only if: (a) made in writing in the form
        as set forth in Schedule 12 (Purchase Order), and (b) signed by TELKOM's
        Project Manager or the appointed representative, and (c) accompanied by
        a written promissory in accordance with Article 32.10(b).

        Each Purchase Order shall include the attachment which is necessary and
        correct to describe the following in details:

28.3.1  Number of Customer Target as defined per Location and Place (BTS);

28.3.2  Value of the Purchase Order as defined per Location and Place (BTS);

28.3.3  Project Location/Area;

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<PAGE>

28.3.4  Detailed Network Design;

28.3.5  Detailed BoQ;

28.3.6  Performance Schedule for the whole and the description for each
        Location;

28.4    Customer Target for Purchase Order is the Supply of Installed Lines of
        the Location for the concerned Quarter based on the Exhibition Plan as
        has been renewed and determined by the concerned DRM.

28.5    Customer Recorder is TELKOM's data basis system in the DIVRE Billing
        System.

28.6    Within five (5) Working Days from the acceptance of the Purchase Order,
        PARTNER, through its authorized representative shall, among other
        things:

28.6.1  approve the Purchase Order by co-signing on the space provided in the
        Purchase Order or its copy(ies) and returning it to TELKOM by facsimile
        followed by a letter, or by direct mail or courier service. The signing
        of the Purchase Order by the authorized representative of the PARTNER
        shall be deemed as the approval of the Purchase Order under no condition
        by the PARTNER and all terms and conditions included in the agreement
        shall become null and void; or

28.6.2  notify TELKOM by facsimile followed by a letter, or by direct mail or
        courier service that Purchase Order is not approved.

        PARTNER is entitled to reject approving the Purchase Order if: (a)
        Purchase Order is not complete and does not have the required
        documentation; or (b) Purchase Order does not include the written
        decision of the concerned DRM in accordance with Article 26.2.11.

28.7    TELKOM is not legally bound to purchase beyond its minimum obligations
        as set forth under this Agreement, and in accordance with the maximum
        subtraction against the allowed Supply of Installed Lines provided under
        Article 27.

28.8    TELKOM may issue one or more new Purchase Orders as deemed necessary
        simultaneously with the concerned DRM with the conditions of the Supply
        of Installed Lines for the following Quarter.

28.9    TELKOM may issue one or more new Purchase Orders for public service or
        combine them with the Purchase Order for Supply of Installed Lines with
        separate descriptions for public service components.

28.10   T-21 Program includes the elements which may be covered in the
        arrangement of the Build Operate and Transfer ("BOT") between TELKOM
        and other local institution (each is referred to as "Investor"). The
        procurement volume under this BOT arrangement is included in T-21
        procurement volume in its whole and shall be planned as a part of JPS
        and

                                       36
<PAGE>

        DRM meetings, yet shall not be paid under PAYG payment method as set
        forth in Article 32, but shall be 100% paid upon Acceptance Test or as
        approved by the Investor. Investor shall: (a) deliver the evidence of
        the company's financial condition in good condition to PARTNER; and (b)
        sign a separate agreement with PARTNER, the terms and conditions of
        which shall be acceptable to PARTNER.

28.11   Purchase Order may be directly issued by one or more Investor(s) and if
        accepted by PARTNER, shall be a separate contract between PARTNER and
        the Investor for the provided equipment and service. TELKOM shall
        deliver to PARTNER, the list of authorized representatives of the
        Investor for each region that may issue such Purchase Order.

28.12   The Parties shall make their best effort to guarantee that the maximum
        price of the equipment and service and other commercial terms of the
        BOT arrangement are as determined in Chapter 2 of this Agreement.
        However, the actual price shall be subject to negotiation up to the
        limitation of the interest or other savings obtained as the result of
        the Acceptance Test payment or as approved other than the PAYG Payment
        mechanism. Rights upon the equipment shall be transferred after full
        payment to the Investor is conducted (to, eventually, be transferred to
        TELKOM at the end of the BOT arrangement as the result of the agreement
        between TELKOM and the Investor), except the rights of the software
        shall not be transferred at any time. The Investor shall make a payment
        guarantee in accordance with one of the following payment mechanisms:
        (i) payment to the escrow account at a bank in Indonesia with terms and
        conditions as approved by PARTNER; (ii) open L/C issued by a bank in
        Indonesia with terms and conditions as approved by PARTNER; or (iii)
        issuance of bank guarantee by a bank in Indonesia with terms and
        conditions as approved by PARTNER.

28.13   Three-year Services Level Agreement, in the form and with the content as
        provided in Schedule 20 (Service Level Agreement), shall prevail in
        relation to the equipment procured under the BOT arrangement at the
        Acceptance Test. Equipment shall be operated by TELKOM on behalf of the
        Investor during the period of BOT arrangement in accordance with the
        separate agreement, and TELKOM shall cooperate with PARTNER as if the
        BOT equipment were part of TELKOM's network.

28.14   Unless otherwise agreed, chapters 1 and 5 of this Agreement, which are
        adjusted to the current condition, shall prevail mutatis mutandis over
        the contract between PARTNER and the Investor.


ARTICLE 29. PERFORMANCE BOND

29.1    As the guarantee upon the performance of work conducted by PARTNER,
        within ten (10) Working Days following the issuance and receipt of a
        Purchase Order by TELKOM and PARTNER, respectively, PARTNER shall
        deliver to TELKOM a performance bond for TELKOM's interest in the amount
        of 5% of the total whole value of Purchase Order, with the form and

                                       37

<PAGE>

        content as provided in Schedule 25 (Performance Guarantee). The Parties
        agree that the aforementioned shall be the condition precedent for the
        Purchase Order, which becomes a binding agreement between the Parties
        and that the Performance Bond covering the work shall be conducted under
        the concerned Purchase Order, and validly and fully prevails.

29.2    Every Purchase Order issued by TELKOM, PARTNER shall issue a Performance
        Bond in the form of Bank Guarantee or Surety Bond in accordance with the
        prevailing provisions in TELKOM in the amount of 5% of the value of the
        concerned Purchase Order, the expiry of which shall be up to the
        issuance of Minute of Acceptance of Integrated System by TELKOM's this
        Agreement, or commercial exhibition of every Goods To Be Transferred
        under the concerned Purchase Order.


ARTICLE 30. TERMINATION OF PURCHASE ORDER

30.1    TELKOM may from time to time terminate a Purchase Order in whole or in
        part, by delivering written notification to PARTNER, which is the
        "Notification on Purchase Order Termination", signed by TELKOM's
        authorized representative, which shall disclose the reasons for the
        actions, the limit where the performance of work under the Purchase
        Order is terminated and the date (which shall not be less than five (5)
        Working Days from the date of Notification on Purchase Order
        Termination) where such termination shall become effective.

30.2    Unless directed otherwise by TELKOM, upon the acceptance of such
        Notification on Purchase Order Termination, PARTNER shall:

30.2.1  terminate the work given under the Purchase Order on the date and as
        provided in the Notification on Purchase Order Termination (unless
        properly required upon security or safety consideration);

30.2.2  be restricted from placing any following order or contract for material,
        service or facility, unless such is necessary to complete a part of the
        work in accordance with the Purchase Order which is not terminated;

30.2.3  make a proper effort to terminate every order and contract related to
        the performance of the work terminated under the Notification of
        Purchase Order;

30.2.4  subject to the payment from TELKOM under Article 30.3, transfer to
        TELKOM (if made possible under orders and contracts), at the time and as
        provided under TELKOM's direction, PARTNER's right, right of ownership
        and interest pursuant to the terminated order and contract;

30.2.5  make a proper effort to decrease the loss occurring from the termination
        of the Purchase Order and conclude all the outstanding obligations and
        any claim arising from the termination of such order and contract, with
        the approval and

                                       38

<PAGE>

        ratification from TELKOM, as far as such approval and ratification is
        required, the approval or ratification of which shall be final for all
        purposes set forth in this Article 30;

30.2.6  subject to the payment from TELKOM under Article 30.3 and as properly
        requested by TELKOM, (i) transfer the right and deliver to TELKOM , at
        the time and as provided (if any) under TELKOM's direction, the
        fabricated or not fabricated parts, the ongoing work, the completed
        work, stock, and other materials resulted as a part from, or obtained in
        relation with the performance of work that is terminated under the
        Notification on Purchase Order Termination, and (ii) deliver to TELKOM
        the plan, drawing, information and other asset which has been completed
        or partly completed, which if the Purchase Order were to be completed,
        would be delivered to TELKOM;

30.2.7  complete the performance of part of the Scope of Work that may not have
        been terminated under the Notification on Purchase Order Termination;
        and

30.2.8  take necessary actions, or as may be determined by TELKOM, to protect
        and maintain the assets related to the Purchase Order that are under
        PARTNER's authority, upon which TELKOM has or may have its right,
        provided that if PARTNER follows TELKOM's lead, PARTNER shall not be
        liable to TELKOM upon the loss or damage of such asset;

30.3    Upon the acceptance of Notification on Purchase Order Termination,
        PARTNER shall deliver to TELKOM a written termination claim. Such claim
        shall be delivered immediately, in any case within at the latest ninety
        (90) days from the Notification on Purchase Order Termination. Payment
        of the claimed amount pursuant to such termination claim, which is
        approved by TELKOM is to be paid in accordance with the performance of
        PARTNER's obligation under Article 30.2 and shall be paid to PARTNER
        pursuant to the issuance of special Purchase Order, and payment shall be
        conducted by TELKOM within twenty one (21) Working Days from TELKOM's
        approval (the approval of which shall not be withheld or postponed
        without any proper reason) upon such claim. For avoidance of doubt, for
        the purpose of TELKOM's payment obligation under this Article 30, all
        Goods To Be Delivered related to the Purchase Order for which the
        Notification on Purchase Order Termination has been delivered shall be
        examined to the extent of TELKOM's satisfaction, where this examination
        shall be considered as an Acceptance Test. In this case, Customer Target
        for the part which has been terminated from the Goods To Be Transferred
        shall be adjusted to zero and the value of the part which has been
        terminated from the Goods To Be Delivered shall be calculated for the
        purpose as set forth in Article 32.2.

30.4    In completing the claim of such termination in whole or in part, the
        payment from TELKOM to PARTNER shall be limited to the following:

30.4.1  the price for the accomplished work pursuant to Schedule 4 (Price List);

                                       39

<PAGE>

30.4.2  reasonable and proper pro rata amount in relation to the partly
        accomplished work, if such is made possible under Schedule 4 (Price
        List);

30.4.3  stock expense and the expense of goods that are reasonably purchased and
        required in relation to the part of Purchase Order which has been
        terminated, yet has not been included in the accomplished work in whole
        or in part;

30.4.4  completion expense and claim payment arising from the termination of
        work under contract and order, as determined above, which are reasonably
        imposed upon the terminated part of Purchase Order;

30.4.5  accounting, legal and administration expenses which are reasonably
        required to process the completion claim and supporting data related to
        the part of terminated Purchase Order and for the completion and
        accomplishment of the contract for such purpose, along with the storage,
        transport and other reasonable expenses born in relation to the
        protection or sale of assets allocated to the Purchase Order.

30.5    Notwithstanding the aforesaid, whole payment to PARTNER in accordance
        with this Article 30, along with other payments, shall not exceed the
        prevailing value for the work or for the terminated part. TELKOM shall
        not be responsible for any expense or other liability beyond the expense
        which has been claimed and validated in accordance with Article 30.4.
        TELKOM shall not be liable to PARTNER in the case of such termination
        upon any loss of profit or consequential damages.

30.6    Up to the outstanding amount indebted to PARTNER pursuant to this
        Article 30, all the paid money or money due to be made payable to
        PARTNER shall be deducted with each obligation PARTNER may have to
        TELKOM and prices that have been approved or result from the sale of all
        material, supplies or other things obtained by PARTNER or sold in
        accordance with this Article and not otherwise regained by or credited
        to TELKOM. If such causes net obligations of PARTNER to TELKOM, then
        PARTNER shall pay such amount to TELKOM within thirty (30) days after
        receiving a written request.

30.7    For the period of one (1) year following the final completion pursuant
        to Purchase Order, PARTNER shall maintain and provide TELKOM, at any
        reasonable time, and at PARTNER's premises, all books, records and
        documentation covering the expenses and fees in accordance with the
        Purchase Order related to the accomplished work pursuant to this
        Article 30.


ARTICLE 31. TERMS OF PAYMENT

31.1    Payment by TELKOM shall be conducted to PARTNER in accordance with the
        terms of this Agreement. The Parties hereby state that TELKOM shall pay
        for the equipment procured under this Agreement in three installments:
        (i) following the delivery of goods at the location, (ii) following the
        Acceptance Test as evidenced by the issuance of the concerned Minute of

                                       40

<PAGE>

        Handover of Integrated System, and (iii) payment during PAYG Period in
        accordance with the terms and conditions of this Article 31.

31.2    TELKOM shall pay 10% of the value of a Purchase Order after the transfer
        of Goods To Be Transferred (and the service related to the equipment but
        not including public service for operation and maintenance, spare parts,
        software upgrade, Documentation and training) to the Location as
        determined in the Purchase Order. This amount shall be due and be made
        payable when the invoice of such amount is delivered to TELKOM along
        with the following documents or any additional document which may be
        reasonably requested by TELKOM:

31.2.1  Cover letter for invoice;

31.2.2  Original Delivery Order;

31.2.3  Original Certificate of Origin;

31.2.4  Detailed BoQ and detailed amount of BoQ pursuant to Location and Place;

31.2.5  Tax Invoice and Tax Payment Letter;

31.2.6  Minute of Arrival of Original Goods issued by TELKOM for equipment;

31.2.7  Receipt; and

31.2.8  Insurance documents in the form of copies of the concerned policies;

31.3    TELKOM shall pay 15% of the proportional value of a Purchase Order after
        the accomplishment of the Acceptance Test of the whole or parts of the
        Goods To Be Transferred in a Purchase Order as evidenced by the issuance
        of the related Minute of Acceptance Test of Integrated System or the
        related Minute of Handover of Part of Integrated System, or commercial
        exhibition of each related Goods To Be Transferred, whichever comes
        first, by TELKOM. This amount shall be due and made payable at the time
        the invoice for the concerned amount is delivered to TELKOM along with
        the following documents or any additional document which may be
        reasonably requested by TELKOM:

31.3.1  Cover letter for invoice;

31.3.2  Detailed BoQ and detailed amount of BoQ pursuant to Location and Place;

31.3.3  Evidence of delivery of as-built drawings signed by TELKOM;

31.3.4  Original Minute of Handover of Integrated System or Minute of Acceptance
        Test of Parts of Integrated System, which is ratified by TELKOM;

31.3.5  Tax Invoice and Tax Payment Letter; and

                                       41

<PAGE>

31.3.6  Receipt.

31.4    Excess amounts of each Purchase Order that reach 75% of the total value
        in a certain Purchase Order ("PAYG Amount"), shall be invoiced
        ("Invoice of PAYG Amount") only after the issuance of the related Minute
        of Handover of Integrated System (and not the Minute of Handover of Part
        of Integrated System) or any expense in accordance with Article 54.8.8,
        whichever comes first, and shall be paid pursuant to the provisions set
        forth in Article 32. Invoice of PAYG Amount shall be accompanied with
        the following documents or any additional document which may
        be reasonably requested by TELKOM:

31.4.1  Cover letter for invoice;

31.4.2  Receipt;

31.4.3  Copy of Minute of Handover of Integrated System which is ratified by
        TELKOM; and

31.4.4  Work-sheet disclosing the PAYG Amount of the Purchase Order.

31.5    To collect the payment of each quarter during the PAYG Payment Period
        pursuant to the issued Invoice of PAYG Amount in accordance with the
        provision of Article 32, PARTNER shall deliver to TELKOM, a "PAYG
        payment request" in the form and substance which shall be approved by
        the Parties, each of which shall be completed with a Tax Invoice and
        Tax Payment Letter and shall include at least the following data:

        (a)  total additional amount of customers of DIVRE III CDMA FWA
             Partnership CDMA Program  in the concerned DIVRE at the end of the
             Quarter;

        (b)  total amount of Customer Target related to the Goods To Be
             Transferred which has been Tested in the concerned DIVRE during the
             Quarter;

        (c)  Total PAYG Amount of all Goods To Be Transferred which has been
             Tested during the Quarter; and

        (d)  payment of each requested quarter which is calculated pursuant to
             the provision set forth in Article 32.


ARTICLE 32. PAYG PAYMENT

32.1    For the purpose of performing the Pay As You Grow (PAYG) concept as
        referred to in the Agreement, every related Purchase Order with the
        whole or parts of the Goods To Be Transferred which has been Tested (not
        including the ones related to public service for operation and
        maintenance, spare parts, software upgrade, Documentation and training)
        during the same Quarter

                                       42
<PAGE>

        shall be grouped with the basis on DIVRE level, and also with the
        provision that the Purchase Order group may be segmented based on the
        type of Goods To Be Delivered and scope of service, if necessary.
        For administration purposes, each Purchase Order, at the end of the
        related Quarter shall be treated as if it consists of two parts that are
        deemed appropriate, where one part consists of all the Goods To Be
        Transferred which have been Tested, and one part consists of the Goods
        To Be Transferred which have not been Tested.

32.2    Pursuant to the provision of this Article 32, PAYG Payment for parts of
        each Purchase Order consisting of Goods To Be Transferred which have
        been Tested shall be due at the end of each Quarter in accordance with
        the net addition of customers at the DIVRE at the end of each Quarter as
        stated in the Customer Recorder. Initial calculation of PAYG payment in
        the event where there is no outstanding Purchase Order shall be as
        follows:

<TABLE>
<S>                                      <C>  <C>
        Total number of CDMA
        customers at the DIVRE at
        the end of the Quarter
        subtracted by total number
        of CDMA at the DIVRE at
        the previous Quarter                  Total PAYG Amount of all Goods To
        --------------------------       X    Be Transferred which have been
        Total number of Customer              Tested at such Quarter
        Target related to Goods
        To Be Transferred which
        have been Tested at the
        DIVRE at such Quarter.
</TABLE>

        Detailed method for PAYG payment calculation in various conditions is
        set forth in Schedule 11.

32.3    If only parts of the equipment (for example: BTS or card) at a Location/
        Place as disclosed in a Purchase Order have been Tested, (i) Customer
        Target shall be based on the Tested BTS or cards; and (ii) the related
        PAYG Amount which may be related to Goods To Be Transferred shall be
        based on the values of the Tested BTS or cards, including other related
        software and components.

32.4    PAYG Amount of Goods To Be Transferred such as BSC, PDN and other common
        equipment in relation to a Purchase Order which includes such equipment
        shall be calculated at the end of the Quarter by using the whole value
        of such Goods To Be Transferred which have been Tested at such Quarter,
        multiplied by the ratio of Customer Target of all BTS which have

                                       43

<PAGE>

        been  Tested at such Quarter, divided by the whole Customer Target of
        all BTS  in the concerned Purchase Order.

32.5    Purchase Orders that are signed by TELKOM shall be paid in order,
        starting from the initial one.

32.6    Additional new customers in the second and/or subsequent Quarters shall
        be calculated first against the cumulative customers related to Goods To
        Be Transferred which have been Tested in the first Quarter as far as
        part of such Purchase Order related to Goods To Be Transferred which
        have been Tested in the previous Quarter but have not been fully paid,
        and then calculated against the cumulative customers related to Goods To
        Be Transferred which have been Tested in the second and/or subsequent
        Quarters.

32.7    If there is a decrease in the number of customers as the result of a
        fluctuation or any other reason in the subsequent Quarter, then the PAYG
        payment shall not be due until the number of existing customers exceeds
        the number of customers at the time the final PAYG payment becomes due.

32.8    If the PAYG Amount of the Purchase Order has not been paid at the end of
        its PAYG Payment Period, then the outstanding amount shall be due upon
        the delivery of a PAYG payment request, for such amount to TELKOM.

32.9    To calculate the prevailing PAYG Amount for each Quarter, TELKOM shall,
        within ten (10) Working Days of the end of each Quarter, deliver to
        PARTNER a net number of new customers which has been added and a number
        of total customers per DIVRE as recorded by the Customer Recorder.
        PARTNER shall, within ten (10) Working Days following the receipt of
        Customer Recorder amount, deliver to TELKOM a calculation disclosing the
        outstanding PAYG from DIVRE along with the amount of the Purchase Order
        (or the amended amount of Purchase Order) for such Quarter.

32.10   As the guarantee of payment obligations to PARTNER for PAYG Amount from
        Invoice of PAYG Amount as issued from time to time, TELKOM shall deliver
        a bank guarantee as payment guarantee for each invoice as provided under
        Article 32.10.(b). The Parties agree on the following with relation to
        such a bank guarantee:

        (a)  It is agreed that the guarantee delivered by TELKOM is in the form
             of a bank guarantee which is not intended to secure the payment of
             PAYG Amount of each indebted quarter to PARTNER, yet it is to
             secure each PAYG Amount which is still indebted at the end of the
             related PAYG Payment Period.

        (b)  At any time TELKOM issues a Purchase Order, TELKOM shall deliver a
             written promissory addressed to PARTNER stating its capability,
             which means that at the end of the related Quarter where each Goods
             To Be Transferred pursuant to Purchase Orders are Tested, TELKOM
             shall, after the end of the concerned Quarter,

                                       44
<PAGE>

             guarantee immediate issuance of a bank guarantee in accordance with
             this Article 32.10, for the whole amount and PAYG Amount of all
             Goods To Be Transferred which are Tested at such Quarter.

        (c)  Each bank guarantee, which is attached along with the Invoice of
             PAYG Amount issued pursuant to Article 32, shall be:

             (i)   denominated in the currency of which TELKOM's payment
                   obligation is specified;

             (ii)  issued by a bank which is accepted by PARTNER;

             (iii) valid for at least sixty (60) days following the end of the
                   concerned PAYG Period; and

             (iv)  issued under the terms and conditions which are accepted by
                   PARTNER, substantially in the form as set forth in Schedule
                   27 (Bank Guarantee), provided that in any event the bank
                   guarantee shall cover an agreement that PARTNER is not
                   allowed to claim payment pursuant to such bank guarantee
                   until the lapse of at least thirty (30) days after the end of
                   the concerned PAYG Payment Period in accordance with Goods To
                   Be Transferred  which have been Tested in the Invoice of PAYG
                   Amount covered in such bank guarantee.

        (d)  All prices and bank expenses arising in relation to the issuance
             and maintenance of the bank guarantee pursuant to Article 32.10
             shall be borne by PARTNER, and PARTNER shall pay such a required
             amount to the bank on behalf of TELKOM upon TELKOM's or the bank's
             instruction, whichever prevails.

        (e)  For each quarterly payment of the issued Invoice of PAYG amount,
             the Parties agree to cooperate with the relevant bank to
             automatically adjust the value of the guarantee from the
             corresponding bank, in accordance with the procedure of the bank
             issuing the bank guarantee.


ARTICLE 33. PAYMENT OF PUBLIC SERVICE

33.1    Public service for training as determined in this Agreement is not based
        on the PAYG payment plan provided under Article 32, and shall be
        collected by PARTNER and supported with the copy of Minute of Training
        Completion which is issued by TELKOM after the completion of the
        service. Invoices of public service for training shall be paid by TELKOM
        within thirty (30) days following the receipt of such invoices by
        TELKOM.

33.2    All public service for Documentation which have to be delivered to
        PARTNER pursuant to this Agreement shall be collected by PARTNER and
        supported with the copy of Minute of Handover of Documentation which is

                                       45

<PAGE>

        issued by TELKOM and shall be paid in the amount of 25% upon the
        delivery and the excess in the amount of 75% shall be paid in accordance
        with PAYG payment scheme as provided in Article 32, by adding the
        outstanding amount to the Contract Price of groups of Goods To Be
        Delivered which are Tested at such Quarter and shall be paid in
        accordance with PAYG Payment Period for such group of Purchase Order.

33.3    Payment for operation and maintenance, spare parts, software renewal and
        upgrade shall be conducted and paid in accordance with the terms of the
        prevailing Services Level Agreement.


ARTICLE 34. COLLECTING

34.1    Payment by TELKOM to PARTNER shall be conducted based on the issuance
        and the delivery of invoice to TELKOM. PARTNER, at its own discretion,
        may issue an invoice under PARTNER's name for Goods To Be Transferred
        that are outside Indonesia and/or by PARTNER's Indonesian office for
        Goods To Be Transferred and services in Indonesia.

34.2    All invoices shall be delivered in triplicate, shall be delivered with
        courier service and completed with documentation as set forth in Article
        31 which discloses TELKOM's or its agent's statement on the concerned
        equipment or service that has been delivered, and/or other supporting
        document as may be requested by TELKOM. All invoices shall be addressed
        to:

        PT Telekomunikasi Indonesia, Tbk.
        U.p. Kepala Divisi Fixed Wireless CDMA (sebagai Manager Proyek)
        Jalan Kebon Sirih Kav. 12
        Jakarta - Indonesia

34.3    TELKOM has thirty (30) calendar days to pay to PARTNER after the
        documents are accepted as being complete and correct.

34.4    TELKOM shall pay the interest at the rate of 6% per year, upon the
        outstanding payment which is not being questioned, is already due and
        has not been paid for the period of three (3) months, up to the maximum
        of 5% of the part which is not being questioned and has not been paid
        from the Contract Price referred to in the prevailing Purchase Order,
        calculated from the end of the said three (3) month period.


ARTICLE 35. FINANCING

35.1    Notwithstanding anything contrary herein, the Parties agree that TELKOM
        is not under any obligation to pay the PARTNER for the excess of Supply
        of Installed Lines due to the PARTNER's error. In the event such
        overindulgence is caused by the reasonable demand of TELKOM, the Parties
        agree to meet to discuss the terms and conditions of the financing of
        the additional procurement to be agreed by the Parties together.

                                       46

<PAGE>
ARTICLE 36. PROCEDURE OF REQUEST FOR CHANGE

36.1 Within the performance of the Scope Of Work, a Party may at any time
     request that amendment be performed to (without limitation) Goods To Be
     Transferred, Purchase Order, Supply of Installed Lines, Performance
     Schedule, Placement Plan or other Schedule to this Agreement, as may be
     requested. Such request shall be submitted in the form of "Request For
     Change" and in writing.

36.2 A Request For Change Form shall be filled by the requesting party in
     accordance with Schedule 18 (Request For Change).

36.3 Within ten (10) Working Days after the Request For Change is received or
     within such other time as may be agreed, the PARTNER will evaluate the
     Request For Change and deliver a complete written price offer or the
     estimated discount stating the proposed amendment and specifying the effect
     and cost of the work, including Performance Schedule.

36.4 In the event the Request For Change is processed and agreed in the required
     form, then the Goods To Be Transferred, Purchase Order, Supply of Installed
     Lines, Performance Schedule, Placement Plan or other related Schedule of
     this Agreement, as may be requested, is automatically deemed to be amended.

36.5 In the event the Request For Change is refused, there will be a
     notification of the refusal grounds in writing within ten (10) Working Days
     after the Request For Change is received. On the contrary, in the event the
     Parties agree to perform the Request For Change, a complete explanation
     concerning the amendment shall be stated and agreed in writing.

36.6 At the same time as the delivery of the Request For Change, the requesting
     Party shall provide information to the other Party as may be reasonably
     requested to asses the effect of the Request For Change to the whole Scope
     of Work. In the event of a reasonable possibility that material time and
     effort are needed to manage the Request For Change, then additional payment
     or reduced payment, as considered appropriate, for such time and effort are
     negotiable, however, the compensation for work in managing the Request For
     Change depends on prior written consent between TELKOM and the PARTNER.

36.7 The PARTNER shall perform the amendment and conduct the Request For Change
     only after the Parties execute a written document stating the agreed
     amendment, scope of amendment, adjustment to the Performance Schedule, if
     any, and additional cost or reduced cost, if any.

36.8 In the case of an amendment that is not material to the whole measure,
     scope or function of the Goods To Be Transferred or Scope Of Work or
     Technical Specification causing the amendment to the Purchase Order and/or
     this

                                       47
<PAGE>
      Agreement, such amendment shall not affect the Contract Price or
      Performance Schedule. The cost of a minor amendment or variation of
      necessary amendment due to a defect of a design or Documentation or Goods
      To Be Transferred made or provided by the PARTNER shall solely be born by
      the PARTNER.

36.9  In the event TELKOM and the PARTNER are unable to reach an agreement as to
      the scope and effect of the Request For Change, then such matter shall be
      brought before each Party's management and, if an agreement cannot be
      reached, Article 16 shall apply.

36.10 Only the appointed Project Manager of TELKOM and PARTNER or other
      representatives authorized in writing by TELKOM and the PARTNER, have the
      authority to sign a Request For Change.


ARTICLE 37. RELOCATION OF EQUIPMENT

37.1  After a discussion between the Party concerning the cost and benefit,
      TELKOM may resolve to relocate the equipment in DIVRE where it decides
      that the projection or estimation of a preliminary request in a Location
      is not appropriate and the equipment to be procured based on the Purchase
      Order may not gain the expected income.

37.2  Upon written request by TELKOM, the PARTNER shall assist and supervise the
      relocation, including re-designing the Network and re-performing all
      appropriate tests to activate the equipment that will be replaced.

37.3  The PARTNER shall bear the cost of the relocation of modular such as
      sub-racks and cards where the Parties agree that such relocation requires
      no substantial cost. In all other cases, TELKOM and the PARTNER shall
      perform a cost benefit analysis prior to the relocation. All reasonable
      cost and risk related to the relocation of all other equipment shall be
      born by TELKOM. Relocation conducted by TELKOM shall be supervised by the
      PARTNER. The PARTNER shall bear the cost of supervision service
      procurement on the condition that the Services Level Agreement applies.
      TELKOM shall bear the cost of necessary additional equipment.


ARTICLE 38. FULL DETAILS OF THE PARTNER'S BANK ACCOUNT

38.1  Full details of the PARTNER's bank account to which all payment from
      TELKOM will be paid is determined as follows:

      For the invoice issued by PT INTI
      Bank Mandiri, Asia Afrika Selatan branch
      Jl. Asia Afrika No. 118-120 Bandung
      Account No.: 130.0075000102 (USD) and 130.0074000095 (Rupiah)

                                       48
<PAGE>
                                    CHAPTER 4
                              PROJECT ORGANIZATION


ARTICLE 39. LOCAL INDONESIAN AGENCY, SUB-CONTRACTOR, SUPPLIER

39.1 PARTNER enters into contractual relationship with one or more local and
     foreign sub-contractor/supplier necessary to fulfill the obligations of
     PARTNER under this Agreement.

39.2 PARTNER shall be supported by a technology supplier for this Project,
     however, PARTNER shall be responsible for the perfect function of all
     supplied equipment.

39.3 All substitutions, alterations or other changes to the use of
     sub-contractor and supplier stipulated in Schedule 1 planned by PARTNER
     shall be submitted to and approved by TELKOM in writing (the approval of
     which shall not be unreasonably withheld) prior to execution.


ARTICLE 40. ASSIGNMENT AND SUB-CONTRACT

40.1 PARTNER, without prior written approval from TELKOM (the approval which
     shall not be unreasonably withheld or delayed), may not assign its
     obligations under this Agreement. TELKOM reserves the right to assign this
     Agreement without prior written approval from PARTNER to an Investor, as
     stipulated in Article 28.10 - 28.14, provided that the Investor has given a
     payment guarantee that has fulfilled the requirements to PARTNER, under
     Article 28.12 of this Agreement.

40.2 TELKOM reserves the right to assign this Agreement with prior written
     approval from PARTNER (the approval which shall not be unreasonably
     withheld or delayed) to one of its subsidiaries or affiliates, provided
     that the subsidiary or affiliate has given a satisfactory payment
     guarantee.

40.3 A list of every proposed sub-contractor and part of Scope Of Work proposed
     to be conducted by the said sub-contractor is attached in Schedule 1. In
     the event there is any request to change and/or to add a sub-contractor,
     PARTNER shall inform TELKOM in writing promptly before the appointment of
     the proposed sub-contractor. TELKOM shall, within ten (10) Working Days,
     give notification to TELKOM if it has a substantive objection on the
     appointment of one of the proposed sub-contractors and/or the work to be
     performed by the proposed sub-contractor and PARTNER shall consider such
     objection to meet TELKOM's approval.

40.4 The use of a sub-contractor in any way shall not release PARTNER from its
     responsibilities to deliver the Goods To Be Transferred to TELKOM
     (especially to guarantee that the Goods To Be Transferred meet all
     conditions in this Agreement) or to perform the necessary duties, such as

                                       49
<PAGE>
     project management related to its responsibility in accordance with this
     Agreement.

40.5 PARTNER shall guarantee that the addition, or termination, of a
     sub-contractor shall not effect the approved Contract Price or performance
     of Scope Of Work.


ARTICLE 41. LOGISTIC

41.1 PARTNER shall provide all logistic necessity from the origin of the Goods
     To Be Transferred or other Project material to Location/Project Site,
     including all costs, such as freight forwarding and transit, docking fee,
     storage, insurance, expenses and levies. Further, PARTNER shall state
     service costs related to all equipment (including survey, design, planning,
     permit, right to cross, service related to land obtainment, installation,
     integration, project management, insurance until the assignment of right,
     test and acceptance test, in accordance with Article 10.2, test and
     acceptance test, and all material and related expenses) for the imported
     and local goods.

41.2 PARTNER shall determine all management of delivery/forwarding, process and
     service of the Goods To Be Transferred or other Project material from their
     origin to the Location/Project Site where they are placed.

41.3 PARTNER shall provide all necessities of the warehouse and explain the
     facilities of the location used for this purpose. PARTNER shall also manage
     the warehouse and storage facilities in the installation place to ensure
     the proper storage and protection over all Goods To Be Transferred or other
     Project material. PARTNER shall guarantee that all equipment has been
     properly packed and stored to avoid defects. While stored in the warehouse,
     the equipment and material shall be the full responsible of PARTNER.

41.4 PARTNER shall provide all protection, insurance and other necessary
     services to ensure the safety of delivery of all Goods To Be Transferred or
     other Project material. PARTNER shall be responsible for the loss or defect
     of material.


ARTICLE 42. INVENTORY

42.1 PARTNER shall provide all services to guarantee the precision of the
     installation of Goods To Be Transferred or other Project material, provide
     the maximum conditions of operation and maximize the long period of
     continuity of the above. PARTNER shall provide all necessary utensils,
     equipment and machines for installation and test all Project equipment
     procured under this Agreement.

42.2 The procurement of material, workforce, equipment, utensils and machines
     for installation consists of the following activities:

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<PAGE>
42.2.1 PARTNER's contractor shall provide all material (including cables,
       connectors and various other materials), workforce, utensils, forwarding
       facilities and telecommunication (telephone, facsimile, etc.) as well as
       all necessary matters to complete the work in accordance with this
       Agreement;

42.2.2 PARTNER's contractor shall employ sufficient supervisors and staff
       consisting of engineers, technicians and experienced workers to complete
       the Scope Of Work in a satisfactory and efficient way within the period
       stated herein;

42.2.3 Cooperating with TELKOM's staff, all work in the Location/Place shall be
       performed in a way that minimizes the obstacles to the operation of
       TELKOM's in such Location/Place;

42.2.4 PARTNER and its sub-contractor shall specify and provide all equipment,
       utensils, measuring equipment, machines and electricity equipment
       necessary for the performance of Scope Of Work; and

42.2.5 PARTNER and its sub-contractor shall provide a list of equipment,
       utensils, measuring equipment, machines and electricity equipment used
       only for installation purpose.

42.3   Delivery and storage of equipment and Project material shall consist of
       the following activities:

42.3.1 PARTNER and its sub-contractor shall be responsible for arranging the
       storage during the interval between the time of the delivery of equipment
       and such time as the equipment is needed for installation;

42.3.2 PARTNER and its sub-contractor shall be responsible for the loading and
       unloading of all equipment and material until the Acceptance Test;


42.3.3 PARTNER and its sub-contractor shall also be responsible for the
       unloading of packaging (or re-packaging if necessary), identification and
       material checking related to the invoice or any other documents; and

42.3.4 PARTNER and its sub-contractor shall be responsible for the handling and
       storage of all goods while forwarded and placed.


ARTICLE 43. LOCAL SUPPORTING INFRASTRUCTURE

43.1   PARTNER shall give access to TELKOM's local technical staff to guarantee
       the timely performance of placement, operation and problem solving.
       PARTNER shall make its best effort to guarantee that such local support
       is performed timely, cost effectively and is of high quality so as to
       fulfill the service required by TELKOM.

                                       51
<PAGE>
ARTICLE 44. PROJECT MANAGEMENT

44.1   PARTNER shall propose a Project Management Plan ("PMP") in the form
       stipulated in Schedule 8 (Project Management Plan). TELKOM and PARTNER
       will discuss and approve the full details of the PMP.

44.2   Prior to the beginning of Project activities, the Parties shall have
       approved the PMP that at least consists of:

44.2.1 Scope Of Work;

44.2.2 Organization and project personnel;

44.2.3 Plan and project activities schedule based on Location; and

44.2.4 Delivery of progress and problem reports.

44.3   PARTNER shall appoint Project personnel as described in PMP including a
       Project Manager responsible for the contact with TELKOM in relation to
       problem solving during the operation of Project. The Project Manager may
       also become one of the Project personnel referred to in PMP.

44.4   Identity and qualification of all Project personnel proposed by PARTNER
       to work in the Project in Indonesia, including the Project Manager as
       described in PMP shall be notified in writing by PARTNER to TELKOM prior
       to appointment. A Project Manager may only be appointed with prior
       approval from TELKOM. For all other Project personnel, TELKOM shall
       inform PARTNER concerning its objection within ten (10) Working Days
       after the notification and such objected personnel shall not be
       appointed. The replacement shall have the same qualifications and be
       appropriate for the Project.

44.5   TELKOM shall appoint a Project Manager, with whom PARTNER's Project
       personnel shall at any time, maintain close cooperation and
       communication. TELKOM may also appoint a local supervisor with whom
       PARTNER's local Project personnel shall at any time, maintain close
       cooperation and communication.

44.6   TELKOM may propose objection to and, after consulting PARTNER, ask
       PARTNER to replace immediately someone hired by PARTNER or its
       sub-contractor in a place which, in TELKOM's reasonable opinion, commits
       an error, which is proved to have failed to meet the requirements of the
       Scope Of Work or is incompetent or negligent in performing their duty,
       and such person shall never be hired for any Project unless with prior
       written consent from TELKOM.

44.7   PARTNER shall deliver to TELKOM necessary progress reports as described
       in the Scope Of Work. With respect to a period included in a progress
       report, in the event PARTNER fails to notify TELKOM of a problem, TELKOM
       has the right to deem that such problem never occurred

                                       52
<PAGE>
        during such period. However, the delivery of such progress reports from
        PARTNER to TELKOM shall not change or modify PARTNER's obligations in
        accordance with other stipulations herein.

44.8    PARTNER shall support the complete project management to the Project
        including but not limited to the sub-contractors and other suppliers,
        and manage the necessary place obtainment, licenses, permit and crossing
        right.

44.9    PARTNER shall submit a comprehensive and up to date report to TELKOM
        management in all proper stages to track the progress of the Scope Of
        Work, as well as monitor important requirements, identify and handling
        problems and guarantee a high quality of any replacement, and
        accomplished such within the budget.

44.10   PARTNER shall monthly submit the report below to TELKOM within the
        period of Network replacement:

        (a)    Renewal of Replacement Status;
        (b)    Renewed Records of Problems;
        (c)    Report of Delivery Track.

44.11   PARTNER with two (2) months interval shall deliver a renewed Performance
        Schedule to TELKOM. The renewed Performance Schedule shall include
        significant milestones, including:

44.11.1 The beginning of operations of each Location;

44.11.2 The beginning of detail surveys for each Location;

44.11.3 The completion of installation, development design, drawings related to
        the Project;

44.11.4 The date of readiness for temporary checking, its own test from PARTNER,
        and Acceptance Test for each Location/Place; and

44.11.5 Schedule of the making and transportation of material for each
        Sub-system per each Location including the time for factory performance
        test.

44.12   The delivery of Goods To Be Transferred and service by PARTNER shall
        fulfill the terms stipulated herein and/or related Purchase Order,
        including time schedule and milestones stipulated in Schedule 9
        (Performance Schedule).

44.13   Any amendment to the Performance Schedule shall be based upon joint
        approval from the Parties and shall only be valid if performed as a
        Request For Change signed by the authorized representatives of each
        Party.

44.14   PARTNER shall keep records (without limitation) in relation to the
        Project general administration, namely:

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<PAGE>
44.14.1 Billing and TELKOM's payment record;

44.14.2 Personnel management;

44.14.3 Taxes; and

44.14.4 Insurance.

44.15   PARTNER shall deliver progress reports on the Project, including any
        significant difficulty, to TELKOM in its monthly meetings in accordance
        with Article 26.3.

44.16   PARTNER shall coordinate with TELKOM for the placement coordination and
        with local authority, government agency and third parties in such area
        for permit and Network roll-out. This coordination shall be arranged in
        routine monthly meetings with TELKOM and the following parties during
        the Network roll-out: (i) TELKOM in regional division area; (ii) other
        parties who enter into a contract with TELKOM; and (iii) the
        sub-contractors.

44.17   Further, the Parties shall arrange for ad-hoc meetings as requested
        through reasonable notification to manage the coordination and problems
        related to the performance.


ARTICLE 45. RESEARCH AND DEVELOPMENT

45.1    Based on TELKOM's request, PARTNER will, from time to time, consider
        participating in joint software development and service improvement.
        Every activity of the joint development covering the scope,
        responsibilities of each Party, expense allocation, Intellectual
        Property Rights and other matters shall be based on mutual consent by
        each of the Parties. Telkom employees shall actively participate in such
        development efforts.

45.2    In accordance with article 5.1.9, PARTNER will accurately notify TELKOM
        concerning its most recently tested technology that relates to the
        Project and shall notify TELKOM of its point of view on the most
        profitable development based on the particular Project technology
        development road map.


ARTICLE 46. TRAINING, TRANSFER OF KNOWLEDGE (KNOW HOW)

46.1    Based on the following Article 46, PARTNER shall provide training and
        the details of the condition and schedule of such training as described
        in Schedule 19 (Training). TELKOM shall provide a number of qualified
        engineers for the PARTNER training program as provided in this
        Agreement.

46.2    The Training shall commence in two (2) premises, one in the PARTNER
        training center or at its foreign supplier's premises (a location that
        shall be

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<PAGE>
        notified to Telkom at the latest 45 days before the Training), and one
        in Indonesia. For both training premises, PARTNER shall provide the
        Training in a classroom ("Class") and in the Office ("Job"). Based on
        TELKOM's requirement, PARTNER shall provide a detailed schedule for both
        locations.

46.3    The training course covers three (3) specialty department as follows:

        (a)     System Engineering

                The PARTNER shall provide an efficient training method with the
                view to produce qualified and trained personnel who are capable
                of mastering the system. The intention of the course is to train
                personnel in order to obtain the basic knowledge of the network
                engineering plan and CDMA system design engineering.

        (b)     Operation and maintenance

                The intention of the course is to train personnel in order to
                develop the basic knowledge of the system operation and
                maintenance and capability to provide the required guidance and
                instruction for the operational team.

        (c)     Business Development and Marketing

                The intention of the course is to train personnel in order to
                obtain the basic knowledge in recognizing the development method
                of FWA CDMA, including product information and marketing
                training.


46.4    Overseas Training

46.4.1  The requirements for BSS Overseas Training is provided as follows:

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Type of Training           Frequency                Duration               Number of Participant
                                                                          --------------------------
                                                                           Class       Job Training
- ----------------------------------------------------------------------------------------------------
<S>                        <C>                      <C>                   <C>          <C>
System Engineering         2 Times                  2 weeks                10          None
- ----------------------------------------------------------------------------------------------------
Operation and Maintenance  2 Times                  2 weeks                10          10
- ----------------------------------------------------------------------------------------------------
Business Development and   2 Times                  2 weeks                10          None
Marketing
- ----------------------------------------------------------------------------------------------------
</TABLE>


46.4.2  The following expenses are accounted for in the price:

        (a)    USD 200.00 daily allowance for food and accommodation per
               participant including Saturday and Sunday and 2 travel days
               (arrival and departure);
        (b)    USD 500.00 Airport Tax, excess baggage and fiscal per
               participant;
        (c)    USD 50.00 for insurance;

                                       55
<PAGE>
       (d)    Training course (including training material); and
       (e)    Round trip airplane travel expenses from Indonesia to the PARTNER
              training Center with the following rate:

                  (i)      Europe                    :USD 3,500/person
                  (ii)     United States             :USD 3,500/person
                  (iii)    Asia                      :USD 1,500/person
                  (iv)     Australia                 :USD 2,000/person

46.5   Domestic Training

46.5.1 The requirement for BSS Domestic Training is provided as follow:

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Type of Training           Frequency                Duration                 Number of Participant
                                                                            -------------------------
                                                                             Class        Job
                                                                                          Training
- -----------------------------------------------------------------------------------------------------
<S>                        <C>                      <C>                     <C>           <C>
System Engineering         2 Times                  2 weeks                  10           None
- -----------------------------------------------------------------------------------------------------
Operation and Maintenance  2 Times                  2 weeks                  10           10
- -----------------------------------------------------------------------------------------------------
Business Development and   2 Times                  2 weeks                  10           None
Marketing
- -----------------------------------------------------------------------------------------------------
</TABLE>

46.5.2 As described in Schedule 4, the domestic training expenses shall consist
       of the following:

       (a)    Training Division expenses (TELKOM training center); covering:
              accommodation, food and training center (not required for Job
              Training)
       (b)    Course expenses (including course material)

46.6   Training Material and Equipment

46.6.1 PARTNER shall provide the following, Class training material and
       equipment:

       (a)    Introduction to FWA CDMA including support service;
       (b)    System Engineering, Operation and Maintenance Procedure;
       (c)    Network Planning, including Traffic Engineering and Link Budget;
       (d)    Installation and testing Procedure; and
       (e)    Problem solving

46.6.2 In Job Training sessions, PARTNER shall provide the following training
       material and equipment:

       (a)    FWA CDMA operating and maintenance procedure;
       (b)    System performance measurement; and
       (c)    Problem solving with measurement tools.

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<PAGE>
ARTICLE 47. MANAGEMENT FORUM

The parties shall determine a routine telecommunication line among each
management and shall hold meetings in every semester to discuss the project
progress.


ARTICLE 48. THE DEVELOPMENT OF INDUSTRY IN INDONESIA

The PARTNER and its supplier agree to support the development of the
telecommunication industry in Indonesia and optimize the Project benefit for the
local industry. In addition to rendering economic benefit by optimizing local
supply, TELKOM and PARTNER have mutually agreed to take other action, including
the establishment of training centers, and, in cooperation with TELKOM, to
develop a business module to support new business opportunities, which arise
from the development of the new CDMA, content. The PARTNER for the intention of
TELKOM staff and other staff Project, have agreed to take into consideration the
supply of the test based on CDMA 2000 1x system including its trainers in the
planned CDMA 2000 1x, EV-DO/EV-DV and other CDMA technology training centers.
The Parties have agreed to discuss the technical and financial aspects of such
cooperation and within a 90 day period after the execution of this AGREEMENT
shall approve the Indonesian Telecommunication Industry development plan in
accordance with the PARTNER's commitment in the RfP response.


                                    CHAPTER 5
                              TECHNICAL CONDITIONS

ARTICLE 49. GENERAL TERMS FOR EQUIPMENT

49.1   Equipment supplied by the PARTNER to TELKOM:

49.1.1 Shall comply with the terms as approved in Schedule 5 (Technical
       Specification);

49.1.2 Shall function in accordance with the technical documentation as
       described in the Technical Specification;

49.1.3 On a necessity basis, shall obtain approval from the Directorate General
       of Pos and Telecommunication (DGPT) and fulfill TELKOM's quality
       guarantee standard;

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<PAGE>
49.1.4 Upon delivery, shall comply with the above described requirements or in
       accordance with the prevailing law, guidelines and standard from all
       relevant governing jurisdictions;

49.1.5 Shall comply with the Technical Specification and free of material,
       product, construction and design defect;

49.1.6 Shall be constructed from new and good material;

49.1.7 Shall, at the least, comply with PARTNER's Mean Time Between Failures
       calculation which should be renewed from time to time;

49.1.8 Shall be properly packed; and

49.1.9 Shall be accompanied with approved English language Documentation.

49.2   Until the Acceptance Test, based on the Purchase Order where software is
       included in particular goods, the software delivered by the PARTNER shall
       not contain virus or defective supplements or modifications in any form
       whatsoever. "Virus" including time bombs, worm, trojan horse, drop dead
       devices, back door devices or other components, which could affect the
       entire performance, or part of the performance, of the particular
       software. "Supplements and Modifications" shall mean components, which
       modify the performance of software other than the performance as
       described within valid specifications. Partner has no right to activate
       viruses which negatively effect TELKOM. In any case during the SLA period
       the PARTNER detects the presence of a virus or supplements/modifications
       or virus symptoms prior to the Acceptance Test, then it should directly
       inform TELKOM and use its best effort, without any expenses, to prevent
       the damage for TELKOM sake.


ARTICLE 50. QUALITY WARRANTY

50.1   The PARTNER shall exercise all appropriate effort and warrants that after
       proper notification and during working hours, TELKOM may at its sole
       discretion have the right to perform checking and/or an audit to each
       development, production and installation process level from every
       sub-contractor and supplier of PARTNER. In the case TELKOM performs such
       checking/auditing in its own account, PARTNER shall cooperate with
       TELKOM.

50.2   PARTNER shall perform a final check for all Goods ready for delivery and
       draft a report describing the result of such final check that has to be
       submitted to TELKOM upon the delivery.

50.3   If in any case and as long as equipment or a component were made by a
       subcontractor under the employment of PARTNER, then PARTNER shall in an
       appropriate effort include the similar clause being described above in
       its employment contract which enables TELKOM to perform a similar test.

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<PAGE>
50.4   PARTNER is obligated to submit a guarantee letter from the "Technology
       Supplier" which expresses its full responsibility in the performance of
       the Scope of Work in accordance with the terms and condition of this
       Agreement, accompanied by the MOU between the PARTNER and such
       "Technology Supplier". The Principal Undertaking mentioned herein forms
       an integral part of this Agreement.


ARTICLE 51. SURVEY, DESIGN AND PLANNING

51.1   The Project planning and design activity shall accommodate the JPS, DRM
       and monthly meeting mechanism that is described in Article 26 and a
       flexible supply mechanism as described in Article 27 of this Agreement.

51.2   The Work planning and design should consist of the following activities:

51.2.1 Location Survey

       PARTNER has to appoint an optimum location for the equipment installment,
       provided that for integration and network maintenance purpose, such
       optimum location is within TELKOM's premises or those of its affiliate
       company.

51.2.2 Optimizing the utilization of the available infrastructure.

       Based on the information provided during the location and data deliver by
       TELKOM, PARTNER shall optimize and maximize all recycled infrastructure
       and include it as part of the required equipment. The basic objectives
       are to maximize TELKOM asset turnover and guarantee that the recent
       infrastructure or its future development shall not cause a loss. TELKOM
       shall verify and render its approval to the list submitted by the
       PARTNER, before it is utilized as network rollout support.

51.2.3 Advising of a more efficient solution

       After PARTNER's initial rollout plan has been verified by TELKOM, PARTNER
       shall advise TELKOM in any case where a more efficient solution has been
       found. Such solution shall highlight sections that could escalate from
       the original plan.

51.2.4 Network optimization plan

       PARTNER and TELKOM shall perform the Network optimization plan by
       considering the recent and future Network requirements. The Network
       optimization plan shall fully accommodate the JPS, DRM and the mechanism
       of the monthly meeting and the flexibility of each supply mechanism that
       is describe in Articles 26 and 27 of the Agreement. The Network
       optimization plan shall consist of the plan and escalation that originate
       from the most recent plan including the possible effect upon the

                                       59
<PAGE>
       network performance as a whole. The Network optimization plan should
       consider the following technical aspects:

       (a)    The ease of the maintenance/operations;
       (b)    Network reliability (variation is consider as important to the
              customer);
       (c)    The flexibility to request alteration (feature and capacity);
       (d)    Network expansion ability;
       (e)    The ease of integration and development; and
       (f)    Inter-operational capability


ARTICLE 52. LOCATION, OBTAINMENT, RIGHT TO PASS, LICENSE

52.1   PARTNER is obligated to prepare the Location for the installment of the
       Delivered Goods in accordance with Schedule 3 (Scope of Work)

52.2   PARTNER shall coordinate with TELKOM to perform all required tasks to
       ensure the preparation of location for Network roll-out as follows:

52.2.1 To arrange and obtain every required license to perform the task
       including but not limited to, installment license, right to pass, and
       other required licenses from the local regency or from other parties. The
       expense to obtain the license shall be included in the price unit and
       shall not be determined separately, while the actual expense for the
       license shall be accounted to TELKOM;

52.2.2 Based upon TELKOM's approval, for the purpose of tower building and
       antenna installation and other needs, shall obtain the land utilization
       right by way of lease; and

52.2.3 If in any case a lease is not possible, based on TELKOM's approval the
       PARTNER shall exercise the land obtainment process for the purpose of
       tower building and antenna installation and other needs in relation to
       the Project. TELKOM shall provide and take action in order that its
       subsidiary can provide fair assistance to the PARTNER in relation to the
       obtainment of the land process. The expenses that occur in the process
       (not including the price of land and the lease price) shall be in the
       account of PARTNER. The land price shall be subject to the prior approval
       of TELKOM (the approval may not be held or delayed without a proper
       reason). Based on the sale and purchase of land or lease of land
       agreement, TELKOM shall perform the payment to the land seller or land
       owner whichever prevails. Such payment procedure shall be exercised
       within a period of one (1) month after the performance of this Agreement.

52.3   PARTNER shall arrange and obtain the frequency license under TELKOM's
       name, from the Directorate General of Post and Telecommunication (DGPT).
       TELKOM shall assist PARTNER by issuing a reference letter to the DGPT.
       For the avoidance of doubt, PARTNER may not own the license, but is to
       merely assist TELKOM by rendering technical assistance and consultation

                                       60
<PAGE>
       services (included in the unit price). The expenses in relation to the
       obtainment of frequency (not the expenses to obtain the license) shall be
       in the account of PARTNER. Upon the delivery of the document from PARTNER
       to TELKOM that indicates a payment obligation, TELKOM shall make the full
       payment of the license to DGPT.


ARTICLE 53. STANDARD AND PROCEDURE INSTALLATION

53.1   PARTNER should provide all installation services to guarantee conformity
       of all the equipment, as well as provide optimal operation conditions and
       maximize the equipment performance for the long-term period. PARTNER
       should provide all tools and equipment, which are needed to install and
       to test their equipment when received.

       PARTNER should provide equipment installation services activities as
       follows:

53.1.1 material, manpower, equipment, tools and machinery for installation;

53.1.2 submissions and storage of the materials;

53.1.3 loading and trucking of materials;

53.1.4 equipment installation;

53.1.5 cleaning the location; and

53.1.6 planning and sketching of the location preparation.

53.2   PARTNER shall provide materials, manpower, equipment, tools and
       machineries for installation activities as follows:

53.2.1 PARTNER's contractor shall provide all materials, manpower, tools,
       trucking, telecommunication facility (telephone, fax, etc) and everything
       that is needed for occupation settlement as of this Agreement;

53.2.2 PARTNER's contractor should recruit supervisors and staff which consist
       of engineers, technicians and well experienced workers to settle the
       occupation smoothly and efficiently for the term of this Agreement;

53.2.3 With the cooperation of TELKOM"s staff, all occupation at the
       Location/Place must be completed in the such a way so as to minimize
       barriers against TELKOM's staff operation at the Location/Place;

53.2.4 PARTNER's contractor should specify and provide all equipment, tools,
       measuring equipment, machinery and electricity that is needed to
       accomplish the Scope of Work in Indonesia; and

53.2.5 PARTNER's contractor should submit the list of equipment, tools,
       measuring equipment, machineries and electricity, that is to be used for
       the installation proposed.

53.3   Equipment installation activities are as follows:

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<PAGE>
53.3.1 PARTNER's contractor is responsible for providing the connection and
       integration of the sub-component into the Sub-System unit; and

53.3.2 PARTNER's contractor is responsible for the Sub-system unit inspection
       and should confirm that every Sub-system unit is in functional condition.

53.4   Cleaning of each Location/Place should by accomplished in the period of
       installation and include the following activities:

53.4.1 PARTNER's contractor should maintain the location of work and keep the
       storage area tidy and organized and should dispose of the flammable
       garbage from in and near the building, structure and installation every
       day; and

53.4.2 After finishing each installation, PARTNER's contractor should carry away
       all the tools, equipment, boxes and other installation, which is not
       integral to this Agreement from the Location/Place immediately.

53.5   PARTNER should ask for to his contractor to carry away and level the
       surface of the land or ruins as of digging.

53.6   PARTNER should ask its contractor, at its own cost, to fix all damage to
       the building, installation, finishing, etc, which is caused by a
       contractor, sub-contractor (s) and/or employees.


ARTICLE 54. EXAMINATION AND ACCEPTANCE TEST

54.1   Activities of Pre-Acceptance Test BTS

54.1.1 Before PARTNER's personnel are sent to the Location/Place where the BTS
       is discharged, PARTNER should ask for its sub-contractor to submit a
       completed Location/Place Readiness Inspection List ("LRIL") to PARTNER
       and TELKOM. LRIL, which has been filled in should be verified and signed
       by a representative of PARTNER who has been obligated to the wireless
       connection where the occupation is being accomplished. After completing
       the LRIL, Location/Place should be declared as "Location/Place are
       Ready".

54.1.2 After Location/Place is declared "Location/Place are Ready", PARTNER:

       (a)    should provide the Acceptance Test team to perform a Self
              Examination from PARTNER and an Acceptance Test after approval
              from PARTNER's sub-contractor which normally should be announced
              before the initial Acceptance Test;

       (b)    should provide all tools and examination equipment (including an
              adequate amount of handsets) which is needed for the Cell Site
              Cabinet/Carrier Acceptance Test;

       (c)    should install and connect all battery and circuit packs which are
              submitted to the Location/Place;

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       (d)    should provide, placing and cutting of all the RF cable from (i)
              BTS to antenna/feeder cable which is brought to the BTS equipment
              room by PARTNER's sub-contractor, and (ii) from BTS to GPS,
              including all clips, connectors etc; and

       (e)    should install all amplifiers which are needed and other elements
              as needed to put in the carrier to BTS Cabinet.

54.2   Pre BSC Acceptance Test Activity

54.2.1 Before PARTNER's personnel are sent to the Location/Place where the BSC
       is discharged, PARTNER should ask for its sub-contractor to submit
       Location/Place Readiness Inspection List ("LRIL"), which has been
       completed to PARTNER and TELKOM. LRIL, which has been completed should be
       verified and signed by a representative of PARTNER, who has been
       obligated to the wireless connection where occupation is being
       accomplished. After completing the LRIL, Location/Place should be
       declared as "Location/Place are Ready".

54.2.2 After Location/Place is declared "Location/Place are Ready", PARTNER:

       (a)    should provide Acceptance Test team to perform the Self
              Examination from PARTNER and Acceptance Test after approval from
              PARTNER's sub-contractor which normally should be announced before
              the Acceptance Test starts;

       (b)    should provide all tools and examination equipment (including an
              adequate amount of handsets) which are needed for the Cell Site
              Cabinet/Carrier Acceptance Test;

       (c)    should install and connect all battery and circuit packs which are
              submitted to the Location/Place;

       (d)    should provide, placing and cutting for all the RF cable from:

              (i)    Tx equipment
              (ii)   PDN
              (iii)  Another BSC, include clips, connecter, etc.

54.3   Minute of Examination and Equipment

54.3.1 PARTNER should accomplish and make easier the system examination to all
       equipment and components as set out in this Agreement.

54.3.2 The content of the Acceptance Test Sub-system Acceptance Test and
       Integrated System Acceptance Test, Examination Summary, Acceptance Test
       and the code of summary certification should be as listed below:

<TABLE>
<CAPTION>
          ------------------------------------------------------------------------------------------
                  NAME OF TESTS                   CERTIFICATE                CERTIFICATE CODE
          ------------------------------------------------------------------------------------------
<S>                                      <C>                            <C>
</TABLE>

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<PAGE>
<TABLE>
          ------------------------------------------------------------------------------------------
<S>                                      <C>                            <C>
          Manufacture Accomplishing      There is no minute, but        No
          Test                           TELKOM can access the result
                                         of examination
          ------------------------------------------------------------------------------------------
          Merchandise Submitted Test     Minute of Delivery             Past the visual
                                         Merchandise                    verification
          ------------------------------------------------------------------------------------------
          PARTNER Test                   There is no minute, but        No
                                         TELKOM should be given the
                                         examination result before
                                         Sub-system Acceptance Test
          ------------------------------------------------------------------------------------------
          Sub-system Acceptance Test     There is no minute, but
                                         TELKOM should be given the
                                         examination result before
                                         Integrated System Acceptance
                                         Test
          ------------------------------------------------------------------------------------------
          Integrated System Acceptance   Minute of part of Integrated   System examination has
          Test                           System Acceptance Test         been finished for
                                                                        equipment, which has
                                                                        fulfilled all conditions
                                                                        according to this
                                                                        Agreement excluding point
                                                                        to point connection
          ------------------------------------------------------------------------------------------
                                         Minute of part of Integrated   All system examination has
                                         System Acceptance Test         been finished for
                                                                        equipment, which has
                                                                        fulfilled all conditions
                                                                        including point to point
                                                                        connection
          ------------------------------------------------------------------------------------------
          Civil Occupation Acceptance    Minute of (foundation)         Pass the quality
          Test                           Minute of (tower)              examination which is held
                                         Minute of (others)             by PARTNER and TELKOM
          ------------------------------------------------------------------------------------------
</TABLE>

54.4   Manufacture Accomplish Test

54.4.1 PARTNER should accomplish manufacture accomplishment test for all
       equipment, which should be replaced to guarantee that equipment has
       completed and fulfilled the Agreement conditions. The information on
       manufacture accomplishment test is conducted in Schedule 17 (Manual for
       Quality Warranty/ Procedures for Acceptance Test).

54.4.2 PARTNER should provide full access to TELKOM against manufacture
       accomplishment test results including but not limited to the proof of
       certification letter given by the manufacturer.

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54.4.3 Accomplishment of manufacture acceptance test is a condition precedent to
       Sub-system Acceptance Test.

54.5   Merchandise Submitted Test

54.5.1 As visual, TELKOM should assess the equipment when they are submitted to
       installation Location/Place based on a copy of merchandise packing
       documents and TELKOM's Project Manager should affirm the Minute of
       Merchandise promptly (at least within five (5) week days) if there is no
       physical damage to equipment and the total of the equipment is
       appropriate and accompanied by all supporting documentation.

54.5.2 Minute of Arrival Merchandise shall not be deemed as an equipment
       acceptance and shall not affect to TELKOM's right according to this
       Agreement.

54.6   PARTNER test

54.6.1 PARTNER should accomplish the examination at Location/Place to every
       Individual Connection Sub-system (BSS) after installation.

54.6.2 Accomplishment of PARTNER test is a condition to Sub-system Acceptance
       Test.

54.6.3 Examination of BSS consists in an examination to observe the integral
       functions from:

       (a)    Base Station Controller (BSC);
       (b)    Base Transceiver System (BTS);
       (c)    Antenna;
       (d)    Transmission Equipment; and
       (e)    BSS Network Element Manager (BSS NEM).

54.6.4 Examination of PDN should include an examination to affirm the equipment
       integral function:

       (a)    Packet Data Serving Code (PSDN) set of equipment device;
       (b)    Authentication, Authorization and Accounting (AAA);
       (c)    Home Agent (HA);
       (d)    Domain Name System (DNS);
       (e)    Fire Wall; and
       (f)    PDN Network Element Manager (PDN NEM).

54.6.5 PARTNER would provide an examination result to TELKOM when TELKOM is
       present at the Acceptance Test.

54.7   Acceptance Test: Sub-system Acceptance Test

54.7.1 After PARTNER finishes the test, PARTNER should accomplish every
       individual Sub-system with TELKOM's present as a witness.

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54.7.2 Examination should be accomplished during working hours, weekdays and
       PARTNER should announce to TELKOM at least fourteen (14) days before the
       examination due date which is proposed to schedule announcement and
       resources as required for the examination. PARTNER shall coordinate on
       examination date for each DIVRE to secure that the examination is
       efficiently scheduled.

54.7.3 Accomplishment of Sub-system Acceptance Test is a condition precedent to
       Integrated System Acceptance Test.

54.7.4 Examination to BSS consist of all examinations, which are required to
       confirm all functions from:

       (a)    Base Station Controller (BSC);
       (b)    Base Transceiver System (BTS);
       (c)    Antenna;
       (d)    Transmission Equipment; and
       (e)    BSS Network Element Manager (BSS NEM).

54.7.5 Examination of PDN should include examination to affirm the equipment
       integral functions:

       (a)    Packet Data Serving Code (PSDN);
       (b)    Authentication, Authorization and Accounting (AAA);
       (c)    Home Agent (HA);
       (d)    Domain Name System (DNS);
       (e)    Fire Wall; and
       (f)    PDN Network Element Manager (PDN NEM).

54.7.6 Besides that, examination at the Location/Place should be accomplished
       for every Sub-system:

       (a)    Mechanism Inspection, amount and vision;
       (b)    Occupation Inspection;
       (c)    Construction Inspection, installation, cable system, wire system,
              tools, equipment foundation, painting and galvanization, vision
              and mechanism power and labeling;
       (d)    Showing of Measuring Tool and Nature Inspection;
       (e)    Power Supply Inspection; and
       (f)    Lost Boxes Inspection.

54.7.7 PARTNER should provide full access to TELKOM according to the result of
       the Sub-system Acceptance Test before initiating the Integrated System
       Acceptance Test.

54.8   Acceptance Test: Integrated System Acceptance Test

54.8.1 PARTNER (cooperating with NSS importer) should accomplish the Integrated
       System Acceptance Test with TELKOM present as a witness after

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       finishing Sub-system Acceptance Test (including measurement of tools and
       spare parts examination) to secure that the system is ready and
       functional as designed and applied for by TELKOM.

54.8.2 PARTNER should prepare the examination arrangement and procedure detail
       to obtain TELKOM's approval.

54.8.3 The Smallest Network Element that could be in the form of System, which
       can be examined, is BTS and other related equipment. Every examination of
       System should be accomplished from point to point (such as: PSTN to MSC
       to BSC to BTS to customer) to confirm that:

       (a)    Installation system fulfills the Specification Technical
              Agreement; and
       (b)    System is appropriate to NSS and other system.

54.8.4 Examination should be accomplished during working hours, weekdays and
       PARTNER should announce to TELKOM at least ten (10) days before the
       examination due date which is proposed to schedule announcement and
       resources as required for examination. PARTNER shall coordinate an
       examination date for each DIVRE to secure that the examination is
       efficiently scheduled.

54.8.5 Besides that, PARTNER should submit detailed information against all
       transmission links to TELKOM and for the assistance of TELKOM. TELKOM can
       delay the examination date if the transmission link requirement cannot be
       provided on time.

54.8.6 TELKOM within ten (10) week days should announce by way of a Minute of
       Integrated System Acceptance Test that the equipment has been tested
       after:

       (a)    All the System examinations have been successful;
       (b)    All the examination equipment and tools have been supplied; and
       (c)    All the handbooks, built drawings, inventory lists and other
              information needed for the maintenance of system have been
              supplied.

       Minute of Integrated System Acceptance Test shall be announced according
       to each Location. In the case where a Sub-system or Place at the Location
       could not by examined for any reason, part of the Minute of Integrated
       System Acceptance Test can be announced for a Location which covers
       Sub-system or Place that has been examined. Part of Minute of Integrated
       System Acceptance Test is not allowed to be withdrawn due to a little
       impairment or non-substantial impairment.

54.8.7 If TELKOM, as required, cannot provide a transmission link, which is
       required and/or E1 link at PSTN switch to connect to another network but
       it seems that the System has fulfilled all the conditions above, TELKOM
       will announce part of the Minute of Integrated System Acceptance Test
       within 10 (ten) week days.

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<PAGE>
54.8.8 If TELKOM utilize System before Minute of Integrated System Hand Over for
       commercial service, System work in good performance and connected to the
       other customers which gain an earning, so the System is assumed to have
       been examined and TELKOM should announce Minute of Integrated System
       Acceptance Test according to Article 54.8.6.

54.9   Civil Occupation Test

54.9.1 PARTNER should regularly ensure that all civil occupation continuously
       and/or temporarily, according to the civil occupation examination plan,
       is submitted to and approved by TELKOM. Examination plans should include
       the frequency proposed for inspection and utilized examination protocol.
       While the occupation is running, examination protocol should be in the
       worksheet that will be utilized at the Location/Place.

54.9.2 TELKOM should announce by way of a Minute in every occupation step after
       civil occupation examination is accomplished according to the approved
       examination protocol. Such a Minute cannot be withdrawn for a
       non-substantial impairment.


ARTICLE 55. INTEGRATION, INTER-OPERATION ABILITY, AND SUITABILITY

55.1   Integration and Interconnection

55.1.1 CDMA Network consisting of BSS should interface with data net of TELKOM
       through PDSN (Packet Data Serving Node) as part of PDN (Paket Data
       Network) supplied by PARTNER.

55.1.2 Specifically, PARTNER working together with NSS Suppliers shall
       guarantee, without limited that:

       (a)    BSS/BSC's equipment which is supplied by PARTNER shall match witch
              NSS' equipment and TELKOM's PDN (Paket Data Network); and

       (b)    All related sub-system in BSS and PDN to be submitted by PARTNER
              shall match to the others.

55.2   Requirement for Inter-Operation Ability

55.2.1 BSS' equipment shall be able to inter-connect with NSS' equipment that is
       supplied by other CDMA FWA vendors and compatible with the CDMA IOS
       version 4.0 standards.

55.2.2 PARTNER shall submit supporting evidence to TELKOM in the form of written
       statement or letter from the operators, certification board, or PARTNER
       which states the operator names and information for the contact persons,
       location, type of BSS equipment, and sample of where the inter-

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<PAGE>
       connection occurred. TELKOM should issue the Minutes of IOP to PARTNER
       pursuant to the Commitment for Inter-connection Ability Agreement
       following the accomplishment for their own inter-connection ability test
       (IOP).

55.3   Suitability

55.3.1 Every release or the latest software version should be retroactively
       compatible with the release and/or the previous version where it is
       technically and commercially possible.


ARTICLE 56. CUT OVER PROCEDURE

56.1   PARTNER shall ensure that the cut over from every equipments on the net
       (e.g, in the event of the BTS should be disconnected from the existing
       BSC and being reconnected to the new installed BSC or if the BSC is
       disconnected from the existing NSS and being reconnected to the newly
       installed NSS) will not interrupt the net operation.

56.2   PARTNER shall coordinate with TELKOM in the matter of procedures and time
       scheduling for cut over and for each cut over shall take place between
       2:00 am up to 4:00 am ("Cut Over Period"), unless agreed otherwise by
       TELKOM.

56.3   Unless agreed otherwise by the Parties, net interruption while operating
       the cut over shall not exceed fifteen (15) minutes for every given
       occasion.

56.4   PARTNER shall ensure that the previous connection can be reinstated
       without any interruption to the Net whenever the cut over did not work as
       it should or is unsatisfactory. Whenever the cut over seems unfeasible to
       be completed in the Cut Over Period, then PARTNER shall reinstate the
       previous connection and try the cut over all over again the next day.

56.5   PARTNER shall pay the damages to TELKOM for every loss or damage caused
       by any interruption on the Net (including but not limited to service
       interruption or system break down) which occurs outside the Cut Over
       Period caused by cut over which causes the income loss to TELKOM,
       pursuant to Article 11.

56.6   These cut over procedures are also applicable for DIVRE.


ARTICLE 57. THE ENVIRONMENTAL STANDARD FULFILLMENT

57.1   The Goods To Be Transferred that will be supplied by PARTNER must fulfill
       every prevailing legal requirement and shall not contain any materials
       and/or supplies that are forbidden by law. The Goods To Be Transferred
       shall not contain any materials and/or supplies that cannot be processed
       by normal methods of waste processing.

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<PAGE>
57.2   PARTNER shall give permission to TELKOM to observe the awareness level
       from them and shall give any ongoing assistance to TELKOM in observing
       the awareness level of the company about environmental matters.

57.3   PARTNER shall provide the following information to TELKOM as early as
       possible to ensure there is acceptable time for TELKOM to inform all
       related parties before the Goods To Be Transferred are accepted;

57.3.1 Which materials and/or supplies that are considered as hazardous
       equipment to society, to possessions or to the environment, including
       soil, water and air;

57.3.2 How, where the said materials and/or supplies are placed in the
       equipment, the related components must be treated at the end of there
       usage and at the end of their usage, how the said components can be
       lifted from the equipment in a safe and correct way;

57.3.3 Which regulations are applicable for forwarding, storage, installment,
       usage, unloading, and processing the material in relation to the
       hazard that might be effected by it; and

57.3.4 How to increase the information diffusion process/gains by TELKOM as far
       as it is considered acceptable without escalating the cost.

57.4   PARTNER shall state which components of the suitable equipment to be
       re-used or recycled as well as whether to smolder it in the end of its
       usage.

57.5   PARTNER shall provide such information as mentioned above to TELKOM
       through electronic transportation for information services or
       electronically in the computer program that is usually used and in the
       format which is reasonably requested by TELKOM.

57.6   PARTNER shall guarantee that all information provided to TELKOM is
       complete and true to the extent known by them.


ARTICLE 58. MEDIATION DEVICE DEVELOPMENT

PARTNER as requested by TELKOM shall develop and provides interface to customer
care, billing and NMS TELKOM. Development cost shall be previously approved by
TELKOM and then added to the Contract Price of the Purchase Order which relates
to the equipment where a mediation device shall be used. As for the rest, 25% of
the development cost shall be paid on the acceptance test of the mediation
device, and the remaining 75% will be paid by TELKOM pursuant to PAYG payment
scheme for the related equipment.


ARTICLE 59. DOCUMENTATION

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59.1   PARTNER shall provide the handbook and design in sufficient amount as
       required to support the equipment maintenance, installment, and functions
       test. Handbook and design must include the design, wiring, scheme,
       display, net diagram, block diagram and also the complete guidance so
       they will be familiar with the usage, installment, operation, theory,
       maintenance, and spare parting, as well as the right system design. The
       handbook for every part shall be separately created and submitted to
       TELKOM. The handbook to be supplied must include, but is not limited to:

59.1.1 Installation handbook and system;

59.1.2 Equipment handbook including the Standard Operation Procedure and
       Standard Maintenance Procedure;

59.1.3 Problem Solving handbook including block diagram;

59.1.4 Costumer handbook for permanent terminal shall include the assembling
       design, wiring, and complete guidance to be familiar with, installment,
       maintenance, and also spare parting;

59.1.5 Costumer handbook for mobile handset shall include complete guidance to
       be familiar with, installment, maintenance, and also spare parting. All
       handbooks shall be prepared in English and metric weight and measurement
       must be used.

59.2   PARTNER shall maintain and keep updating the Project library in Indonesia
       which contains every document related to the project, including but not
       limited to the minutes for every JPS, DRM, and monthly meeting, every
       Purchase Order, estimated order, Alteration Order, every approved
       revisions from the Operating Plan, and all correspondence between
       PARTNER, sub contractors, and TELKOM. The Project Library shall be
       accessible by TELKOM and its subsidiaries at normal working hours and
       TELKOM from time to time can ask for copies of all or part of the Project
       library to be supplied to them without extra cost. The Project Library
       shall be submitted to TELKOM at the termination of the prevailing Service
       Level Agreement.

59.3   PARTNER shall submit the design and documents (including final operation
       design, assembling design, connection, and allocation) that relate to the
       Sub-system that is installed.

59.4   Every design and documents related to the system or sub-system that
       relate to PARTNER or the Goods To Be Transferred shall be maintained for
       the prevailing Service Level Agreement period so PARTNER could generate a
       part which needs to be replaced and/or developed for a system or
       sub-system whenever required. After the termination of the prevailing
       Service Level Agreement, such design, and documents shall be submitted to
       TELKOM.

59.5   All Intellectual Property Rights related to equipment, designs,
       specifications, software, and documentation and data that is issued by
       the Parties pursuant to

                                       71
<PAGE>
        the implementation of this agreement shall remain owned by the Parties
        pursuant to this agreement.

59.6    Incompleteness related to the description mentioned in any document
        and/or which is part of this Agreement must be provided to TELKOM to be
        clarified.

59.7    As PARTNER is providing maintenance and support pursuant to this
        Agreement and prevailing SLA, updating costs for the documents shall be
        included in the cost that is paid by TELKOM to PARTNER pursuant to the
        related SLA. To avoid any doubt, the Documentation cost shall be paid
        based on the general service pursuant to Article 33.

59.8    All documentation shall be pursuant to the requirements stated in RfP or
        as separately arranged in an approved document by the Parties. The
        standard documents which are to be provided by PARTNER are as stated in
        Schedule 22 (Documentation)

59.9    On the first JPS, PARTNER shall submit to TELKOM the PARTNER's plans to
        generate the location survey/Place which consist of, but is not limited
        to the following points:

59.9.1  Time Table;

59.9.2  Manpower Schedule; and

59.9.3  Team organization.

59.10   TELKOM shall submit the approval letter for the details location
        survey/Place that is submitted by PARTNER, after they have approved the
        proposal. PARTNER shall generate the location survey/place along with a
        team that is appointed by TELKOM as scheduled in the location
        survey/place plan.

59.11   PARTNER shall submit the location survey/place report ("Survey Report")
        for installment within two (2) weeks after the location survey/place.
        The Survey Report consists of this following points:

59.11.1 Placement of location/place which includes the guidance map, floor
        placement, and cable racking;

59.11.2 Block terminal arrangement and the existence frame distribution;

59.11.3 Sub distribution panel arrangement;

59.11.4 Providing the Supporting facility and other requirements;

59.11.5 Providing the antenna room on the existence tower;

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<PAGE>
59.11.6 Location map profile and, if required, backhaul system for PARTNER
        equipment;

59.11.7 Providing the port and link at TELKOM's telephone center; and

59.11.8 Coverage map for every BTS;

59.12   PARTNER shall submit the final operation design based on the Net
        configuration after the installment work is done.


                                   CHAPTER 6.
                            SERVICES LEVEL AGREEMENT


ARTICLE 60. SERVICES LEVEL AGREEMENT

60.1    Services Level Agreement

60.1.1  Telkom has asked PARTNER to provide services on operational assistance
        and certain maintenance, and PARTNER has agreed to provide such services
        in accordance with this Services Level Agreement.

60.1.2  Prior to the Acceptance Test on Goods To Be Transferred on First
        Delivery Order, TELKOM and PARTNER shall make a Services Level Agreement
        in the form and substance which is stated in Schedule 19 covering the
        support for operational services and maintenance, spare parts and
        software. The early period for this Services Level Agreement will be
        terminated, except where terminated in accordance with SLA, three (3)
        years on the first occurrence of: (a) date of the first Minutes of
        Integrated System Acceptance Test or (b) commercial placement for any
        Goods To Be Transferred which is provided by PARTNER. To avoid any
        uncertainty, any commercial utilization on PARTNER's equipment, provided
        it is based on initial test inter operation required under Chapter 7
        this Agreement, will be managed by this Services Level Agreement.


                                   CHAPTER 7.
                           PERFORMANCE QUALIFICATIONS
                        INTER OPERATION AND COORDINATION


ARTICLE 61. GENERAL

61.1    Required on Article 14.2.1, this Chapter is only valid for DIVRE.

61.2    PARTNER acknowledges that certain Network for this project provided by
        (other) supplier and performances for inter operation between vendor's
        equipment is a major requirement for this project based on this
        Agreement. Primarily, TELKOM requires that BSS configuration shall be
        fully

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       operational with the NSS equipment provided by (other) FWA CDMA vendor in
       accordance with Article 55. The Parties acknowledge that prior to the
       achievement of inter operation performance, DIVRE shall not start the
       operation on the condition that more than one vendor who provided the
       equipment is available. To achieve this purpose, the Parties have made a
       commitment agreement for the performance of inter-operation with a vendor
       who provides NSS equipment as set forth in Schedule 21.

61.3   In the event that the vendor could not achieve the satisfactory
       performance on inter operation in the end of the period of the
       performance test as set forth on Schedule 21, TELKOM on its sole
       discretion:

       (a)    can extend the period for the performance test for certain times
              and demand the vendor to carry on the work to achieve the
              performance of inter-operation;

       (b)    to stop the performance test until further notification; or

       (c)    to notify vendor, or vendors, as the case may be, based on fully
              technical evaluations of cause(s) which cause the failure to
              perform the inter-operation as set forth on this Agreement, TELKOM
              could execute its right to terminate this Agreement as set forth
              on Article 14.2 (compliant on Article 8 Schedule 21). In this
              case, PARTNER has no further obligation in connection with the
              performance of inter-operation.

61.4   Following the issuing of Minutes of IOP, the Parties acknowledge that
       certain amendment is needed to this Agreement for the purposes of
       obtaining advice from all vendors on JPS and DRM, and they will manage
       every instance of lateness which is caused by one or more vendor as it
       effects other vendors.


ARTICLE 62. JPS, DRM AND MONTHLY MEETINGS

62.1   In every JPS:

62.1.1 every demand and economic analysis shall be conducted by a BSS equipment
       vendor, and TELKOM together with an NSS equipment vendor shall only
       submit comments;

62.1.2 a BSS equipment vendor together with TELKOM shall have priority in
       advance location/place for network implementation on BSS equipment; and

62.1.3 every vendor together with TELKOM shall make an analysis of technology.

62.2   In every DRM:

62.2.1 every vendor shall be responsible for its own survey on location for
       network implementation;

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62.2.2 TELKOM together with BSS equipment vendor shall calculate, ensure and
       revise the Supply of Installed Lines, and the NSS equipment vendor shall
       only submit comments;

62.2.3 TELKOM together with a BSS equipment vendor shall develop, approve and
       consent to the Implementation Plan on BSS equipment for the next
       semester. Afterward TELKOM together with a NSS equipment vendor shall
       develop, approve and consent to the Implementation Plan on NSS equipment
       for the next semester;

62.2.4 TELKOM and every vendor shall develop, approve and consent to the design
       of particular network, BoQ, and each of the resources and training plans;
       and

62.2.5 TELKOM together with vendors shall discuss every amendment needed for
       Schedule For Plan And Performance Of Project Management and especially
       communicate the information regarding any possible delay or any matter
       that could effect another vendor(s) or the implementation of the Network.
       Hence, TELKOM together with vendors shall approve and consent to any
       amendment to each of the plans and the schedule in consideration with the
       information submitted by another vendor.

62.3   TELKOM from time to time has the right to request the vendors to attend a
       monthly meeting for the purposes of sharing information and having a
       discussion.


ARTICLE 63. ACCEPTANCE TEST

63.1   The Parties acknowledge that in order to verify the Network from point to
       point, every Network component (MSC, BSC and BTS) shall be connected and
       provided during the test period that has been scheduled for the
       Integrated System Acceptance Test.

63.2   Integrated System Acceptance Test shall be conducted during regular
       working hours and PARTNER, who shall conduct the performance test on its
       equipment, shall coordinate with TELKOM at least fourteen (14) days
       before the proposed date in order to determine the schedule and the
       sources needed for such a performance test, and TELKOM shall confirm at
       least forty eight (48) hours from the written notification from PARTNER
       whether the proposed time is acceptable or not. However, if TELKOM has
       given its approval to attend the Integrated System Acceptance Test but c
       cannot attend such test, TELKOM shall give written instruction as to an
       alternative for its absence and PARTNER shall immediately submit a report
       regarding the result of such test. TELKOM will cooperate with another
       vendor on such test whenever needed. PARTNER shall coordinate the date of
       such test to the related DIVRE to ensure that the test is efficiently
       scheduled.

63.3   Every vendor, after receiving direct notification, shall notify TELKOM
       and another vendor(s) whether its equipment has undergone the Sub-System

                                       75
<PAGE>
       Acceptance Test and if such test has not been conducted, the vendor shall
       notify the schedule for such test and whether such test will effect a
       delay to the approved completion date.

63.4   TELKOM, acting reasonably, can re-schedule the proposed date for the test
       for up to 1 (one) month to manage the delay that is caused by another
       vendor.

63.5   For the avoidance of doubt, test procedure and Acceptance Test will be
       contemplated as per Article 54.


IN WITNESS WHEREOF, the Parties have made this Agreement duly signed by their
authorized representative on the date and year first mentioned above.


Perusahaan Perseroan (Persero)              PT Industri Telekomunikasi Indonesia
PT Telekomunikasi Indonesia, Tbk.           (Persero)



/s/ Kristiono                               /s/ John Welly

[signed]                                    [signed and stamped]
KRISTIONO                                   JOHN WELLY
President Director                          President Director

                                       76

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.18
<SEQUENCE>18
<FILENAME>u92256exv4w18.txt
<DESCRIPTION>EX-4.18 SERVICE LEVEL AGREEMENT, AUG.26,2003
<TEXT>
<PAGE>
                                                                    Exhibit 4.18






                         PERUSAHAAN PERSEROAN (PERSERO)

                        PT TELEKOMUNIKASI INDONESIA TBK.

                                      AND

                      PT INDUSTRI TELEKOMUNIKASI INDONESIA

                            SERVICE LEVEL AGREEMENT


<PAGE>

                             SERVICE LEVEL AGREEMENT

THIS SERVICE LEVEL AGREEMENT is made as of 26 August 2003.

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)      PT. INDUSTRI TELEKOMUNIKASI INDONESIA, an Indonesian State owned
         company with limited liability, with an office at JI. Mohamad Toha 77,
         Bandung 40253, Indonesia, in this legal action duly represented by John
         Welly, in his capacity as President Director, hereinafter 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 Procurement Partnership
         Agreement of even date ("MPPA") for the procurement of radio access and
         core network assets contemplated in the FWA CDMA Partnership Program
         for Divre III and for implementing the FWA CDMA Program.

B.       TELKOM has requested PARTNER to render operation and maintenance
         support services, and PARTNER has agreed to provide these services in
         accordance with this Service Level Agreement.

C.       Accordingly, pursuant to the MPPA, the Parties agreed to enter into
         this Service Level Agreement to support the maintenance of the Network
         for at least twenty seven (27) months from the Commencement Date.

CHAPTER 1 - GENERAL TERMS AND CONDITIONS

1.       DEFINITIONS

1.1      All terms and definitions used in the MPPA (including the technical
         terms defined in Appendix 23 - Technical Terms of the MPPA) 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        means the first day after the Commissioning
               DATE"                of the Deliverables in the first Purchase
                                    Order which will

<PAGE>

                                    be Issued under the Master Procurement
                                    Partnership Agreement, or earlier as
                                    requested by TELKOM.

         (c)   "FAULT MANAGEMENT"   means all measures and procedures to prevent
                                    and/or resolve Network faults to meet the
                                    KPls as defined in this Service Level
                                    Agreement.

         (d)   "HELP DESK"          means the help-desk support service to be
                                    provided by PARTNER as set out in article
                                    10.1.

         (e)   "KPI" (KEY PERFORMANCE

               INDICATORS)          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, PDN's NEM (these mentioned
                                    equipment are grouped as PDN) and other
                                    similar or related equipment supplied by
                                    PARTNER, including all associated software
                                    and components acquired from PARTNER.

         (h)   "SYSTEM"             means two or more Sub-systems forming a
                                    network that is ready for commercial
                                    service.

         (i)   "SERVICES"           means tire 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 document issued by PARTNER'S
                                    support desk identifying the problem
                                    alerted.

         (l)   "TSC1"               means TELKOM's support personnel located at
                                    each Location dealing with operation and
                                    maintenance activities.

         (m)   "TSC2"               means PARTNER'S support infrastructure
                                    located in Bandung and/or PARTNER'S
                                    specialized technical support staff and
                                    designers who have the capability of
                                    evaluating complex network problems.

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.

<PAGE>

1.4      Plural; Gender; Persons. Words importing the singular include the
         plural and vice versa; words importing a gender include every gender,
         and references to persons include bodies corporate or 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) initiated 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 otherwise defined or the
         context otherwise inquires, references to a "day" shall mean a calendar
         day covering 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 manufacture, deliver or perform when caused by any of
         the following which are beyond the reasonable control of the delayed
         Party, including but not limited to acts of God, acts of the public
         enemies, acts of civil or military authority, 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.

2.2      Any occurrence belonging to a Force Majeure category shall be notified
         immediately to the other party not later than fourteen (14) days after
         such occurrence.

2.3      In the event that due to Force Majeure the implementation of this
         Service Level Agreement or relevant agreement, acceptance test,
         integration, drive test or other matters provided for in this Service
         Level Agreement 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
<PAGE>

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), transfer its
         obligations under this Service Level Agreement. Notwithstanding this
         agreement, TELKOM hereby agrees that PARTNER may assign or sub-contract
         the in country Services portion of this Agreement to PT Motorola
         Indonesia, but only to the extent that such assignment or
         sub-contracting (i) does not prejudice PARTNERS's Local Content
         obligations under the MPPA, (ii) does not relieve PARTNER of
         responsibility under this Service Level Agreement; and (iii) does not
         encumber any of the moneys due or becoming due under this Service
         Level Agreement. The Parties agree that TELKOM shall not he required to
         give its consent to any encumbrance of moneys due or becoming due under
         this Service Level Agreement if by reason or consequence of such
         consent the assignee shall have director indirect recourse to TELKOM.

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
         10. 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 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 Bahasa Indonesia and or in
         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.

                                       4
<PAGE>

5.       SETTLEMENT OF DISPUTES

5.1      If any disputes arising between TELKOM and PARTNER in connection with
         or arising out of this Agreement or the breach, termination of validity
         thereof (a "Dispute"), the Parties shall attempt for a period of thirty
         (30) days after receipt by one Party of a notice from the other Party
         of the existence of the dispute, to settle such Dispute in the first
         instance by mutual discussions between senior executives of the
         Parties.

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 Indonesian arbitration (BANI) in
         accordance with the Arbitration Rules of the Republic of Indonesia 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 in
         English and or Bahasa Indonesia.

5.4      The three (3) person arbitration panel shall be selected as follows:


         (i)      each arbitrator shall be fluent in English and or Bahasa
                  Indonesia 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 BANI (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.

5.8      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 result of the Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by Article 5.

5.9      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 termination shall become effective. The provisions contained in
         this Article 5 shall survive the termination and/or expiration of this
         Agreement.

                                       5
<PAGE>

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 time to time notified in writing:

         For TELKOM:

         Perusahaan Peseroan (Persero) PT Telekomunikasi Indonesia Tbk.
         JI. Japati No. 1, Bandung 40133
         Attention   : President Director
         Fax         : (022)440-313

         For PARTNER:

         PT. Industri Telekomunikasi Indonesia
         Jalan Mohamad Toha 77
         Bandung 40253, Indonesia
         Fax         :  (62-22) 520 5394
         Attention   :  Ka,SBU FNA

         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 TELKCOM. 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:
         Operation Manager
         SBU FNA
         PT. Industri Telekomunikasi Indonesia
         Jalan Mohamad Toha 77
         Bandung 40253, Indonesia
         Tel    : (022)-5212005
         Fax    : (022)-5212005
         E-mail : ion@inti.co.id

         TELKOM Point of Contact:
         Head of Fixed Wireless Division (as Project Manager)
         JI Kebun Sirih, Kav. 12
         Jakarta, Indonesia

         Tel    :  (021) 385-7777
         Fax    :  (021) 344-0707
         E-mail :  alex_is@telkom.co.id

                                       6
<PAGE>

         Mobile : (0811) 965-500

7.       TERMINATION

7.1      This Service Level Agreement shall come into effect on the Commencement
         Date and shall continue to remain in force for an initial period of 27
         (twenty seven) months, 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 the 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 of 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;

         (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;

                                       7
<PAGE>

         (c)      an event of Force Majeure continues for a period in excess of
                  6 months; or

         (d)      termination 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).

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

                                       8
<PAGE>


         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 Service Level Agreement shall ensure to
         the benefit of and be binding upon the Parties and their respective
         successors and permitted assigns.

8.8      This Agreement does not establish an employer-employee relationship and
         PARTNER is for all purposes, an independent contractor.

8.9      No modification, amendment or other change may be made to this
         Agreement or any part thereof unless reduced to writing and executed by
         authorized representatives of both Parties.

8.10     TELKOM agrees to comply with all applicable export laws and
         regulations of the United States of America, the United Kingdom, or
         such other country of origin. Specifically, but without limitation,
         TELKOM agrees that it will not resell or re-export Motorola products or
         technical data in any form without obtaining appropriate export or
         re-export licenses from the respective governmental authority of the
         United States of America, the United Kingdom or other country of
         origin.

8.11     The Parties agree that to their knowledge there are no laws or
         regulation specifically applicable to sales to an entity owned or
         partly owned by a government entity which would apply to the Parties in
         the specific circumstances of this Service Level Agreement.

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 mutually agree that PARTNER's personnel within
         Indonesia will be based at Bandung, provided that PARTNER will also
         provide support services throughout DIVRE III during the period of this
         Service Level Agreement.

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 suitably assigned and PARTNER shall ensure the Deliverables
         meet with the KPls under this Agreement. All replacements must be
         qualified and appropriate for the provision of the Services.

                                       9
<PAGE>

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;

         (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 he 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, subject to the terms of this Agreement.

9.7      In the event a defect occurs during the period of this Service Level
         Agreement, PARTNER will repair or replace the product or take other
         appropriate remedial actions, provided that in taking any such actions
         the extent of PARTNER'S liability shall be as stated in this Service
         Level Agreement.

9.8      In connection with the Services to be provided by PARTNER under this
         Service Level Agreement, PARTNER shall take the appropriate remedial
         actions but shall not incur financial liability and TELKOM agrees to
         waive all penalties that may arise under this Service Level Agreement
         in respect of the following:

         (a)      acts of vandalism;

         (b)      acts or omissions amounting to negligence or intentional
                  misconduct of TELKOM employees; or

         (c)      events of force majeure.

         The costs and other terms and conditions of the remedial action
         required to be taken pursuant to this Article 9.8 shall be as mutually
         agreed between the Parties.

9.9      Neither Party shall in any circumstance be liable to the other for
         indirect or consequential losses or damages.

9.10     Article 36 Of the MPPA (Change Request Procedures) shall apply, mutatis
         mutandis, to this Service Level Agreement.

                                       10
<PAGE>

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 Bandung. The Help-Desk will
                  be operational between 8:00 am and 5:00 pm Mondays to Fridays
                  (Indonesia - Bandung local time) and Emergency Support Service
                  (by phone call only) 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 of 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 actual 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 in accordance with Appendix B (to be more or
                  less critical) after consultation with PARTNER.

         (h)      After notification to TELKOM, the PARTNER Help Desk will close
                  the corresponding Trouble Ticket when one of the following
                  conditions is met:

                  (i)      TELKOM agrees to close B Trouble Ticket; or

                  (ii)     the resolution proves to work and is confirmed by
                           TELKOM; or

                  (iii)    initial diagnosis has been completed, the suggestion
                           or data collection far a possible next occurrence
                           has been provided but the problem does not occur
                           for thirty (30) days; or

                  (iv)     an investigation action is pending with TELKOM but
                           the action has not been completed within Fourteen
                           (14) days, unless otherwise agreed; or

                  (v)      a reasonable resolution has been provided but TELKOM
                           does not implement it within thirty (30) days, unless
                           otherwise agreed.

         (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 formals as may be reasonably required

                                       11
<PAGE>

                  by TELKOM, WHICH include without limitation separate reports
                  covering help desk activity and fault status.

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)      Except with respect to Critical faults which shall be analyzed
                  and discussed with TELKOM immediately after being resolved,
                  PARTNER shall hold meetings with TELKOM at least monthly 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 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 at the Help Desk relating to an
                  emergency problem.

                                       12
<PAGE>

         (e)      PARTNER will provide a Temporary Fix within sixty (60) minutes
                  (after arriving at the site of the problem, if remote support
                  is not capable of resolving the problem).

         (f)      Except in circumstances where a software patch is required
                  necessitating a longer period of time, PARTNER will provide a
                  Permanent Fix within 24 hours of receiving the call.

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 that
                  have occurred within the past month based on TELKOM requests.

                                       13

<PAGE>

         (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 facility or a
                  mutually agreed location.

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 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 needed to fully operate the Network 24 hours a day, 7
                  days a week, 365/366 (as relevant) days a year and PARTNER
                  shall supply critical spare parts 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. PARTNER will supply the required spares and
                  TELKOM will arrange to stock the spares at TELKOM offices in
                  each city where Sites will be located, provided that PARTNER
                  staff will be responsible for inventory maintenance and
                  transport of spares from the city offices to any Sites.

         (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, provided
                  that upon PARTNER delivering a notice to TELKOM of the end of
                  life of a particular hardware product, PARTNER shall continue
                  to provide at least repair and return support for that product
                  for a period of five (5) years from the date of such
                  end-of-life notice, such support period to extend, as
                  applicable, beyond the period of the Service Level Agreement
                  and provided further that in its end-of-life notification to
                  TELKOM, PARTNER shall inform TELKOM of the proposed date
                  through which TELKOM shall be able to buy additional spares.

         (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.

                                       14
<PAGE>

         (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, subject to the Software License.

         (b)      PARTNER shall provide software services under this Agreement
                  that shall consist of software updates (including bug fixes,
                  software release updates, patches and software maintenance
                  services) required for the proper functioning of the Network.
                  Additionally PARTNER shall achieve inter-operability with the
                  applicable NSS vendor at no extra cost to TELKOM. For the
                  avoidance of doubt, any farther inter-operability required of
                  PARTNER by TELKOM subsequent to the first case of successfully
                  achieving inter-operability shall be performed by PARTNER,
                  provided that PARTNER'S obligations in such instance shall be
                  subject to agreement on the terms and conditions, including
                  payment of costs for the services provided PARTNER will bear
                  all of its costs for achieving inter-operability until the
                  first successful inter-operability has been achieved in
                  accordance with the Inter-Operability Commitment Agreement.

                  (i)      Software updates. PARTNER shall implement all
                           software release updates, bug fixes and patches
                           released by PARTNER with support from TELKOM, 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 system(s) to determine the software
                                    customization required to achieve
                                    interoperability;

                                       15
<PAGE>

                           -        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 13.1(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.

13.2     The Software Upgrade Support Service

         (a)      When software upgrades are available, and subject to Article
                  13.2, PARTNER will provide such software upgrades when
                  requested by TELKOM to meet its internal and external business
                  requirements.

         (b)      TELKOM may require (he 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 and in circumstances where full backward
                           compatibility does not exist, PARTNER shall provide
                           full disclosure to TELKOM of all technical aspects of
                           such incompatibility. In circumstances where existing
                           hardware may need to be upgraded or replaced, such
                           hardware upgrades will be done as per manually agreed
                           terms,

                                       16
<PAGE>

                           conditions and prices. 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 (he 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 with 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, the following actions have been agreed:

                  (i)      if the discontinuance of software support is the
                           result of a software maintenance policy mandated by
                           PARTNER, then PARTNER shall provide an upgrade to the
                           next version within three (3) months of the notice of
                           end of life, at no extra cost to TELKOM;

                  (ii)     if the discontinuance of software support is
                           necessitated because the software has reached its end
                           of life, and in circumstances where TELKOM has
                           notified PARTNER in writing that it does not wish an
                           upgrade to the new version, then [A) if these
                           circumstances occur within the initial 3-year period
                           of this Service Level Agreement, PARTNER shall
                           continue to provide software support until the end of
                           such initial 3-year period, or (B) if these
                           circumstances occur outside the initial 3-year period
                           of this Service Level Agreement, then the software
                           support to be provided by PARTNER shall be on
                           mutually agreed terms and conditions;

                  (iii)    if the discontinuance of software support is
                           necessitated because the software has reached its end
                           of life, and in circumstances where TELKOM has
                           notified PARTNER in writing that it wishes an upgrade
                           to the new version, then PARTNER shall provide the
                           next version upgrade within three (3) months of the
                           notice of end of life, and the cost of the upgrade
                           software (but not the cost of the services to perform
                           the upgrade, such costs being included in the cost of
                           the Services) shall be on mutually agreed terms and
                           conditions.

         (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.l(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

                                       17
<PAGE>


         (a)      Except as to costs in the circumstances referred to in Article
                  13.2(e)(i), 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.

14.      OPERATION AND MAINTENANCE ASSISTANCE

14.l     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 10 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 personnel will be provided to
                  provide operation and maintenance services on a case by case
                  basis during the period of this Agreement 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
                  competencies to ensure the Deliverables meet the required
                  tasks description as 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

                                       18
<PAGE>


                  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:

                  (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 (TSCI) will be able to solve a successively
                  higher proportion of faults by themselves. TELKOM will
                  evaluate improvements in network performance and in the
                  ability of its technicians on an annual basis pursuant to the
                  criteria specified in Appendices H and I.

         (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 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, within thirty (30) days of correct invoicing as
         described below, based on calculations of a 60% Basic Fee and 40%
         Variable Fee (based on the cumulative installed lines - SLA variable
         cost per line calculated based on the deployment plan in Appendix 7 of
         the MPPA)

         (a)      Basic Fees payable in equal quarterly installments shall be
                  calculated in accordance with Appendix J. This amount shall be
                  due upon delivery to TELKOM of an invoice

                                       19
<PAGE>


                  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 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 for which TELKOM shall be liable are the actual unit price of
         replacement spare parts where the part replaced is shown to be damaged
         by reason of the events set forth in Article 9.8. 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.

16.4     In the event withholding taxes are applied to any payments made by
         TELKOM to PARTNER under this Service Level Agreement, TELKOM shall
         provide PARTNER with a copy of the withholding tax receipt within
         fourteen (14) days from the date of payments.

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.

                                       20
<PAGE>


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)             PT. INDUSTRI TELEKOMUNIKASI INDONESIA
PT TELEKOMUNIKASI INDONESIA TBK.

                                               [STAMP]

By /s/ Kristiono                           By /s/ John Welly
   ----------------------------               --------------------------------
Name  : Kristiono                          Name  : John Welly
Title : President Director                 Title : President Director

                                       21

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.19
<SEQUENCE>19
<FILENAME>u92256exv4w19.txt
<DESCRIPTION>EX-4.19 PARTNERSHIP AGREEMENT, DATED SEPT.24,2003
<TEXT>
<PAGE>
                                                                    Exhibit 4.19



                              PARTNERSHIP AGREEMENT
                         NO. K.TEL.213/HK.910/UTA-00/2003
                        --------------------------------
                           DATE : SEPTEMBER 24, 2003

                                       FOR
                       THE PROCUREMENT AND CONSTRUCTION OF
                          BACKBONE TRANSMISSION NETWORK
                            T-21 PACKAGE-I KALIMANTAN
                              & PACKAGE-II SULAWESI

                                    BETWEEN

                        PT TELEKOMUNIKASI INDONESIA, TBK

                                       AND

                               SIEMENS CONSORTIUM

<PAGE>

                                TABLE OF CONTENT

<TABLE>
<CAPTION>
                                                                                     PAGE
<S>                                                                                  <C>
CHAPTER 1 - GENERAL TERMS AND CONDITIONS ..........................................    3

ARTICLE 1        :       DEFINITIONS ..............................................    3

ARTICLE 2        :       GENERAL CONDITIONS .......................................    7

ARTICLE 3        :       SCOPE OF WORKS ...........................................    8

ARTICLE 4        :       PERIOD AND LOCATION OF WORKS IMPLEMENTATION ..............    9

ARTICLE 5        :       SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND
                         PERMITS ..................................................   10

ARTICLE 6        :       APPENDICES ...............................................   11

CHAPTER 2 - TECHNICAL REQUIREMENTS ................................................   12

ARTICLE 7        :       TECHNICAL REQUIREMENTS ...................................   12

ARTICLE 8        :       QUALITY ASSURANCE ........................................   12

ARTICLE 9        :       SURVEY, DESIGN AND PLANNING ..............................   12

ARTICLE 10       :       OUTSIDE PLANT CIVIL WORKS ................................   13

ARTICLE 11       :       INSTALLATION PROCEDURES AND STANDARDS ....................   13

ARTICLE 12       :       LOCAL SUPPORT INFRASTRUCTURE .............................   15

ARTICLE 13       :       ACCEPTANCE TEST AND HAND OVER ............................   15
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                   <C>
ARTICLE 14      :       GOODS DELIVERY PROCEDURE ..................................   20

ARTICLE 15      :       REPORTS AND MEETINGS ......................................   21

ARTICLE 16      :       PROJECT MANAGEMENT ........................................   21

ARTICLE 17      :       WARRANTY PERIOD ...........................................   27

ARTICLE 18      :       SPARE PARTS ...............................................   28

CHAPTER 3 - COMMERCIAL TERMS AND CONDITIONS .......................................   29

ARTICLE 19      :       AGREEMENT PRICE ...........................................   29

ARTICLE 20      :       INSURANCE AND SAFETY ......................................   31

ARTICLE 21      :       TAXES AND IMPORTATION .....................................   31

ARTICLE 22      :       TRANSFER OF TITLE AND RISKS ...............................   32

ARTICLE 23      :       PARTNER'S RIGHT AND OBLIGATION ............................   33

ARTICLE 24      :       TELKOM'S RIGHT AND OBLIGATION .............................   34

CHAPTER 4 - TERMS AND CONDITIONS OF FINANCE .......................................   35

ARTICLE 25      :       FINANCING .................................................   35

ARTICLE 26      :       PAYMENT'S TERMS AND CONDITIONS ............................   36

ARTICLE 27      :       MEANS OF PAYMENT ..........................................   39

ARTICLE 28      :       PERFORMANCE AND WARRANTY BONDS ............................   43
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                   <C>
CHAPTER 5 - TERMS AND CONDITIONS OF CONSORTIUM ORGANIZATIONAL .....................   45

ARTICLE 29      :       CONSORTIUM ORGANISATION CRITERIA ..........................   45

ARTICLE 30      :       ASSIGNMENT AND SUB-CONTRACTING ............................   45

ARTICLE 31      :       INVOLVEMENT OF LOCAL ENTITIES .............................   46

ARTICLE 32      :       LOGISTICS .................................................   47

ARTICLE 33      :       INVENTORY .................................................   48

ARTICLE 34      :       COMPLIANCE WITH ENVIRONMENTAL STANDARDS ...................   49

CHAPTER 6 - OTHERS TERMS AND CONDITIONS ...........................................   50

ARTICLE 35      :       DOCUMENTS .................................................   50

ARTICLE 36      :       COSTS FOR SUPERVISION AND HAND OVER .......................   52

ARTICLE 37      :       LIQUIDATED DAMAGES ........................................   52

ARTICLE 38      :       INDEMNIFICATION ...........................................   53

ARTICLE 39      :       REPRESENTATION AND WARRANTY ...............................   55

ARTICLE 40      :       TRAINING, TRANSFER KNOW HOW AND DEVELOPMENT OF
                        INTELLECTUAL PROPERTY .....................................   57

ARTICLE 41      :       TERMINATION OF AGREEMENT ..................................   57

ARTICLE 42      :       LIABILITY .................................................   60

ARTICLE 43      :       INTELLECTUAL PROPERTY RIGHT ...............................   61
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                   <C>
ARTICLE 44      :       RIGHT OF USE FOR SOFTWARE .................................   63

ARTICLE 45      :       SPECIFIC CONDITIONS .......................................   64

ARTICLE 46      :       WORKS VARIATIONS ..........................................   65

ARTICLE 47      :       NATIONAL REGULATIONS ......................................   66

ARTICLE 48      :       FORCE MAJEURE .............................................   66

ARTICLE 49      :       APPLICABLE LAW ............................................   68

ARTICLE 50      :       SETTLEMENT OF DISPUTES ....................................   68

ARTICLE 51      :       CORRESPONDENCES ...........................................   69

ARTICLE 52      :       NOMINATED SUB-CONTRACTORS .................................   69

ARTICLE 53      :       MISCELLANEOUS .............................................   70

ARTICLE 54      :       EFFECTIVE DATE OF CONTRACT (EDC) ..........................   71


APPENDICES

APPENDIX  1     :       PRICE BREAKDOWN, TERMS AND PAYMENT SCHEDULE ...............

APPENDIX  2     :       LIST OF SUB SYSTEMS AND LOCATIONS .........................

APPENDIX  3     :       SCHEDULE OF IMPLEMENTATION AND PROJECT MANAGEMENT .........

APPENDIX  4     :       MINUTES OF MEETING FROM NEGOTIATIONS ......................

APPENDIX  5     :       TECHNICAL SPECIFICATION ...................................

APPENDIX  6     :       BIDDING DOCUMENT ..........................................

APPENDIX  7     :       CONSORTIUM AGREEMENT ......................................

APPENDIX  8     :       SAMPLES OF DOCUMENTS TO BE PRESENTED ......................

APPENDIX  9     :       ANNOUNCEMENT FOR THE PACKAGE I AND PACKAGE II TO PARTNER ..

APPENDIX 10     :       PARTNER'S COMMITMENT LETTER ...............................

APPENDIX 11     :       TRAINING'S SCHEDULE AND DOCUMENT ..........................

APPENDIX 12     :       ACCEPTANCE TEST PROCEDURE .................................
</TABLE>

<PAGE>

                              PARTNERSHIP AGREEMENT
                                       FOR
                               THE PROCUREMENT AND
                                 CONSTRUCTION OF
                          BACKBONE TRANSMISSION NETWORK
                            T-21 PACKAGE-I KALIMANTAN
                              & PACKAGE-II SULAWESI
                                     BETWEEN
                        PT TELEKOMUNIKASI INDONESIA, Tbk.
                                       AND
                               SIEMENS CONSORTIUM

                      No.: K.TEL. 213 /HK.910/UTA-00/2003

THIS PARTNERSHIP AGREEMENT (the "Agreement") is made the day of WEDNESDAY dated
24 September 2003, by and between :

I.       PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA,Tbk., a
         network and services telecommunication provider, established under the
         laws of the Republic of Indonesia, having its office at Jalan Japati
         No. 1, Bandung, in this legal action duly represented by KRISTIONO in
         his capacity as President Director, hereinafter referred to as
         "TELKOM", and

II.      SIEMENS CONSORTIUM, CONSISTS OF PT SIEMENS AG (SAG), a corporation
         organized and existing under the laws of the Federal Republic of
         Germany having its registered office at Hofmannstr.51,D-81359
         Munich-Germany, PT SIEMENS INDONESIA (PTSI), a corporation organized
         and existing under the laws of the Republic of Indonesia having its
         registered office at Jl. Jendral Ahmad Yani Kav. 67-68, Pulomas,
         Jakarta - Indonesia, PT LEMBAGA ELEKTRONIK INDONESIA (LEN), a
         corporation organized and existing under the laws of the Republic of
         Indonesia having its principal office at Jl. Soekarno Hatta 442,
         Bandung - Indonesia, CORNING CABLE SYSTEM GmbH & CO.KG (CCS), a
         corporation organized and existing under the laws of the Federal
         Republic of Germany having its principal office at Kistlerhofstrasse
         170, D-81397 Munich -Germany, consortium already established under the
         Consortium Agreement dated April 1, 2002 and legalized by Iman Immanuel
         Sinaga,

                                                                               1

<PAGE>

         S.H., CN., Subtitute Notary of Dr. Irawan Soerodjo, SH, Msi., Notary in
         Jakarta on April 3, 2002 under legalization number 94/L/2002, in this
         legal action duly represented by MR. ROLF UNTERBERGER as Director of
         PT. SIEMENS INDONESIA and MR. HERBERT FETTIG as General Manager Finance
         and Business Administration, hereinafter referred to as PARTNER.

(TELKOM and PARTNER are individually hereinafter referred to as a "Party" and
collectively as the "Parties").

                                   WITNESSETH

a.       whereas TELKOM is Indonesia's pre-eminent provider of telecommunication
         services through its fixed wire line telecommunications facilities
         throughout Indonesia;

b.       whereas TELKOM has embarked on a significant investment program to
         modernize and expand its network infrastructure (the "T-21 Program);

c.       whereas PARTNER under the control of the leading technology supplier,
         SIEMENS having at least one Indonesian member with specialized
         telecommunication expertise, knowledge or infrastructure, has the
         necessary technical expertise and financial resources in the T-21
         Program implementation;

d.       whereas TELKOM, in accordance with the procedures established in the
         Request for Proposal (RfP), dated 21 February 2002 has selected and
         appointed PARTNER under the control of the leading technology supplier
         to enter into this Agreement for the purpose of implementing the T-21
         Program.

e.       whereas TELKOM trough its letter number : TEL.416/LG000/T-21/2003 dated
         28 August 2003, has appointed the SIEMENS CONSORTIUM as a PARTNER to
         execution the procurement and development of Backbone Transmission
         Package-I for Kalimantan which contract amounting of US$.3,776,269 and
         Rp.74.020.633.646 and Package-II for Sulawesi which contract

                                                                               2

<PAGE>

         amount is amounting of US$.3,815,295 and Rp.70.732.644.265 excluding
         10% VAT.

f.       whereas PARTNER through its commitment letter no.900/C3/T-21/IX/03
         dated 1 September 2003 hereby commit and agree to carry out the Works
         accordance with point e. mentioned above.

NOW THEREFORE, based upon the above- mentioned considerations, the Parties
hereto have agreed to bind each other into this AGREEMENT under the following
terms and conditions:

         CHAPTER 1.
         GENERAL TERMS AND CONDITIONS

         ARTICLE I
         DEFINITIONS

1.1.     Where the context permits, the following expressions shall have the
         following meanings:

         a.       BILL OF QUANTITIES (BoQ) means the bill of quantities set out
                  in Appendix 1, as may be modified from time to time in
                  mentioned in Articles 3.3. and 46;

         b.       BUSINESS DAY(S) means a day, other than a Saturday, Sunday or
                  official Indonesian holiday;

         c.       AGREEMENT shall mean this Agreement together with appendices
                  and amendments thereof;

         d.       WORKS shall mean any and all works which are covered in this
                  AGREEMENT including survey, design and engineering plan,
                  material calculation and procurement, manufacturing, packing
                  and transportation, construction and installation, testing,
                  integration within supplied SUB-SYSTEM(s) and between supplied
                  SUB-SYSTEM(s), integration between EXISTING SYSTEM and
                  supplied SYSTEM, documentation, warranty and transfer of the
                  works of procurement and installation of SYSTEM and
                  SUB-SYSTEM(s) of Backbone

                                                                               3

<PAGE>

                  Transmission Network in Kalimantan and Sulawesi whereby TELKOM
                  shall receive ready for use, with due regard of the volume and
                  scope of works agreed by TELKOM and PARTNER as mentioned in
                  Appendices I;

         e.       AGREEMENT PRICE shall mean amounts payable by TELKOM for the
                  fulfillment of the PARTNER's whole obligations under this
                  AGREEMENT;

         f.       SYSTEM shall mean all of the supplied SUB-SYSTEM of Backbone
                  Transmission Network in Kalimantan and Sulawesi that are
                  integrated with each other and shall work in accordance to
                  Technical Specification and which shall be handed over by
                  PARTNER to TELKOM to enable commercial operation.

         g.       SUB-SYSTEM shall mean the supplied NETWORK ELEMENTS comprised
                  of Fiber Optic Cable, Transmission Equipment, Power Supply and
                  building (for some locations only) including related
                  supporting facilities that comprise one or more operational
                  ROUTE of the Backbone Transmission Network, as well as
                  SUB-SYSTEM "S", which consist of INTEGRATION and Transmission
                  Network Management System (TNMS) as detailed in Appendix 2;

         h.       ROUTE shall mean an installation of High Performance Backbone
                  Network from one terminal to another terminal as mentioned in
                  Appendix 2;

         i.       LINK(S) shall mean an installation of NETWORK ELEMENT(s)
                  connecting two or more LOCATION(s) as mentioned in Appendix 2;

         j.       LOCATION shall mean locations where the EQUIPMENT shall be
                  delivered, installed, commissioned, tested and handed over and
                  where the WORKS shall be performed by the PARTNER as mentioned
                  in Appendix 2;

                                                                               4

<PAGE>

         k.       NETWORK ELEMENT shall mean complete and good functional
                  EQUIPMENT properly installed and set to work on a location
                  basis.

         l.       EXISTING SYSTEM shall mean all of TELKOM's existing and
                  operational backbone system in Kalimantan and Sulawesi;

         m.       EQUIPMENT shall mean all equipment (both hardware and
                  software), cables, apparatus, drawings, manuals, documents and
                  anything else which shall be provided by the PARTNER to TELKOM
                  in accordance with this AGREEMENT;

         n.       TECHNICAL SPECIFICATION shall mean technical specifications
                  mutually agreed upon by the Parties and as mentioned in the
                  Appendix 5 of this AGREEMENT;

         o.       INTEGRATION shall mean the integration between the SYSTEM and
                  EXISTING SYSTEM which properly fuction;

         p.       INFORMATION shall mean anything containing information and
                  relating to this AGREEMENT, including but not limited to
                  drawings, technology, data and so forth;

         q.       ACCEPTANCE TEST shall mean physical and visual checking of the
                  installation and materials, and testing of EQUIPMENT per
                  SUB-SYSTEM to test the proper functionality as mentioned in
                  Article 13 of this AGREEMENT of the EQUIPMENT installed;

         r.       PARTIAL ACCEPTANCE TEST shall mean an ACCEPTANCE TEST
                  conducted on specific ROUTE or LINK within a SUB-SYSTEM;

         s.       ACCEPTANCE TEST REPORT shall mean written document being made
                  and signed by Parties hereto through their respective duly
                  representatives, certifying the ACCEPTANCE TEST or the

                                                                               5

<PAGE>

                  PARTIAL ACCEPTANCE TEST has been completed and stating the
                  results.

         t.       BAST - I is the Certificate of First Hand Over certifying that
                  ACCEPTANCE TEST for a SUB-SYSTEM has been successfully
                  completed and accepted by TELKOM;

                  The issuance of each BAST - I indicates the commencement of
                  WARRANTY PERIOD of twelve (12) months for each SUB-SYSTEM;

         u.       BAST - II is the Certificate of Second Hand-over for each
                  SUB-SYSTEM certifying that PARTNER has fulfilled the warranty
                  obligation and that there is no pending items relating to
                  SUBSYSTEM's performance and reliability during the WARRANTY
                  PERIOD under this AGREEMENT;

         v.       SUB-CONTRACTOR means any party or parties (other than PARTNER)
                  to which any part or parts of the WORKS have been contracted
                  by the PARTNER, by giving written notice to TELKOM, which
                  shall include the legal personnel representative(s),
                  successor(s) of such Party or Parties;

         w.       COMMISSIONING means such activities that shall be done by the
                  PARTNER in preparation of the ACCEPTANCE TEST;

         x.       WARRANTY PERIOD means a period of twelve (12) months from BAST
                  -I;

         y.       EFFECTIVE DATE OF CONTRACT (EDC) means the date on which all
                  the provisions of Article 54 are fulfilled.

         z.       FINANCING shall mean all facilities provided by internal
                  TELKOM's fund or a bank or other body mutually agreed by the
                  parties upon with value and terms and conditions in accordance
                  with Articles 19, 25,26 and 27 of this AGREEMENT.

                                                                               6

<PAGE>

aa.      LOAN AGREEMENTS shall mean the Buyer's Credit Loan Agreement to be
         signed between TELKOM and a bank or other body mutually agreed by the
         parties upon and the Commercial Loan Agreement to be signed between
         TELKOM and bank or other body mutually agreed by the parties upon. LOAN
         AGREEMENTS shall be in accordance with the provisions contained in this
         AGREEMENT.

bb.      COMMERCIAL OPERATION shall mean operation which TELKOM provides to
         internal or external customers, in the form of services (e.g. voice,
         data or multimedia transmission) over any part or whole of the
         SUB-SYSTEM.

cc.      BUYER'S CREDIT FACILITIES shall mean the bank or other body covered
         Buyer's Credit Facility to be arranged by a bank in accordance with the
         Buyer's Credit Loan Agreement to be signed between arranged bank and
         TELKOM.

ARTICLE 2
GENERAL CONDITIONS

2.1.     If any provision of this Agreement or part thereof is rendered void,
         illegal or unenforceable by any legislation to which it is subject, it
         shall be rendered void, illegal or unenforceable only to that extent
         and it shall in no way affect or prejudice the enforceability of the
         remainder of such provision or the other provisions of this Agreement.
         The invalidity, illegality or unenforceability of any provision in this
         Agreement under the laws of any one jurisdiction shall not in itself
         affect the validity, legality and enforceability of such provision
         under the laws of any other jurisdiction.

                                                                               7

<PAGE>

2.2.     No failure on the part of either Party to exercise and no delay on the
         part of either Party in exercising any right hereunder will operate as
         a release or waiver thereof, nor will any single or partial exercise of
         any right under this Agreement preclude any other or further exercise
         of it.

2.3.     This AGREEMENT shall enure to the benefit of and be binding upon the
         Parties and their respective successors and permitted assigns.

ARTICLE 3
SCOPE OF WORKS

3.1.     The Scope of this AGREEMENT covers the procurement of a Backbone
         Transmission Network, Network Management System, spares and services
         from PARTNER in Kalimantan and Sulawesi according to the configuration,
         capacity plan, Bill of Quantity, and Technical Specification as set out
         in Appendix 5 (Technical Specification).

3.2.     For the purpose of the implementation of the WORKS, PARTNER shall carry
         out the followings:

         a.       Survey, design and engineering plan;

         b.       Procurement and/or manufacturing of EQUIPMENT and delivery of
                  the EQUIPMENT to the LOCATIONS;

         c.       Implementation, INTEGRATION of SUB-SYSTEM and SYSTEM to
                  EXISTING SYSTEM;

         d.       Warranty for one (1) year period after BAST -I; and After
                  Sales Service;

         e.       All risks insurance; Testing and Commissioning; and Training &
                  On the Job Training;

3.3.     The Scope of WORKS shall be adjusted and executed under an Amendment to
         this AGREEMENT:

                                                                               8

<PAGE>

         a.       after the detailed survey, design and engineering is completed
                  and approved by TELKOM; and

         b.       after the final As-Built Bill of Quantity is completed and
                  approved by TELKOM

3.4      This AGREEMENT is a contract covering various steps involved in the
         T-21 Program on a turnkey basis.

3.5.     "TURNKEY BASIS" pursuant to the Scope of Work, upon the effective date
         of this contract, PARTNER shall be fully and solely responsible for the
         survey, design, development, manufacture, delivery, supply,
         installation, integration and Commissioning of the Network, and the
         remedying of any defects, so as to make the Network ready for service.
         PARTNER shall also do everything necessary as reasonably may be
         inferred from this AGREEMENT as being required of PARTNER to perform
         all of its obligations under this Agreement.

ARTICLE 4
PERIOD AND LOCATION OF
WORKS IMPLEMENTATION

4.1.     The WORKS. The WORKS for High Performance Backbone in Kalimantan and
         Sulawesi shall be carried out and completed entirely within seventeen
         (17) months from the Effective Date of Contract.

4.2.     LOCATIONS of the WORKS. The WORKS shall be carried out in Kalimantan
         and Sulawesi area as referred to in Appendix 2 of this AGREEMENT.

4.3.     Delays. In the event PARTNER has a delay in the completion of the WORKS
         as mentioned in Article 4.1 and 4.2 above then PARTNER shall be imposed
         liquidated damages as referred to in Article 37 of this AGREEMENT.

4.4.     If such delays are due to (i) PARTNER and TELKOM agreed upon a
         variation of

                                                                               9

<PAGE>

         WORKS as mentioned in Article 46, or (ii) caused by third parties which
         are not appointed or nominated by PARTNER or (iii) Force Majeure, then
         PARTNER shall be permitted to extend the completion period of the WORKS
         based on approval from TELKOM.

ARTICLE 5
SITE PREPARATION, ACQUISITION,
RIGHTS OF WAY AND PERMITS

5.1      The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Appendix
         2 (List of Sub Systems and Locations).

5.2      PARTNER shall perform all necessary tasks to ensure Location/Site
         preparation for Network roll-out in coordination with TELKOM, as
         follows:

5.2.1.   Arrange and acquire all the permits required to perform the work for
         and on behalf of TELKOM, such as trenching/road excavation permits,
         installation permits, rights of way, building construction permit (IMB)
         and other permits necessary either from local municipality or other
         Parties. The costs for acquiring the permit have been included in the
         unit price and shall not be priced separately;

5.2.2.   Conduct the land acquisition process, subsequent to TELKOM's approval
         to construct a new building relating with the Project. The cost
         associated with the land acquisition process (but not the cost of the
         land fee itself) shall be borne by the PARTNER. The cost of the land
         itself shall be agreed in advance with TELKOM (such agreement not to be
         unreasonably withheld or delayed) and then added to the Contract Value.

         TELKOM shall pay 100% to PARTNER by full reimbursement of the land
         costs including taxes which evidenced by the Certificate of Land
         Ownership as described in Appendix I-C of this AGREEMENT.

                                                                              10

<PAGE>

5.3      In the event omission of or delay in providing licenses, clearances, or
         permits by public authorities occurs, which affects the implementation
         schedule, provided all requirements have been fulfilled by PARTNER, and
         after TELKOM provides its assistance, then the Parties shall agree to
         extend the implementation period.

ARTICLE 6
APPENDICES

6.1.     Appendices. The following documents shall be attached and constitute as
         integral parts of this AGREEMENT:

         Appendix 1  : Price Breakdown, Terms and Payment Schedule;

         Appendix 2  : List of SUB-SYSTEMS and LOCATIONS;

         Appendix 3  : Schedule of Implementation and Project Management;

         Appendix 4  : Minutes of Meetings from negotiations;

         Appendix 5  : Technical Specification;

         Appendix 6  : Bidding Document;

         Appendix 7  : Consortium Agreement;

         Appendix 8  : Samples of documents to be presented.

         Appendix 9  : Announcement for the Package-I and Package-II to PARTNER

         Appendix 10 : PARTNER's Commitment Letter

         Appendix 11 : Training's Schedule and Document

         Appendix 12 : Acceptance Test Procedure

6.2.     Discrepancies. In the event of discrepancies between the provisions of
         this AGREEMENT with Appendices thereof, then the provisions of this
         AGREEMENT shall prevail.

                                                                              11

<PAGE>

CHAPTER 2.
TECHNICAL TERMS AND CONDITIONS

ARTICLE 7
TECHNICAL REQUIREMENTS

The WORKS shall be carried out under this AGREEMENT in accordance with TECHNICAL
SPECIFICATIONS as referred to in Appendix 1 and 5 of this AGREEMENT;

ARTICLE 8
QUALITY ASSURANCE

8.1.     PARTNER shall make all reasonable efforts to ensure TELKOM, is entitled
         to inspect and/or audit the production and installation phases of the
         processes of all members of PARTNER's consortium and its
         sub-contractors. PARTNER shall co-operate with TELKOM in case TELKOM
         elects at own expense to conduct such inspections and/or audits.

8.2.     PARTNER warrant any equipment or a component thereof is produced by a
         sub-contractor working for PARTNER, PARTNER shall include similar
         provisions in its contract with the sub-contractor in order to enable
         TELKOM to perform inspections of a similar nature.

8.3.     PARTNER warrant that the good performance of SYSTEM of the Backbone
         Transmission Network in Kalimantan and Sulawesi until the expiry of
         WARRANTY PERIOD through repair or replacement as necessary as detailed
         in Appendix 5.

ARTICLE 9
SURVEY, DESIGN, AND PLANNING

9.1.     The planning and design activities for the Project shall be able to
         fully accommodate the DRM mechanisms as described in Article 15 of this
         AGREEMENT.

                                                                              12

<PAGE>

9.2.     The planning and design works shall consist of Survey of the Location /
         Site(s) that PARTNER and TELKOM together to determine the optimum
         location/site for installation of the equipment, provided that the
         Location has been determined by TELKOM.

ARTICLE 10
OUTSIDE PLANT CIVIL WORKS

10.1     PARTNER shall apply flat rate for the trenching and reinstatement
         (assembly unit: BC-TR) works. TELKOM's payment to PARTNER associated
         with the works shall be determined only by the actual length of the
         fiber optic cable route. The actual conditions of the soil (soft soil,
         macadam, hotmix) will not determine the cost of the trenching and
         reinstatement works. TELKOM will pay only as according to the actual
         length of fibre optic routes as shall be agreed in the Design Review
         Meeting.

10.2     The flat rate for trenching and reinstatement shall refer to Level 5 of
         the OSP Civil Work Price Schedule as detailed in Appendix 1.

10.3     PARTNER shall install the Fiber Optic at a depth level of 130 cm.

ARTICLE 11
INSTALLATION PROCEDURES AND
STANDARDS

11.1.    PARTNER shall provide all services to ensure proper installation of all
         equipment, provide optimal operating conditions and maximize its long
         term viability. PARTNER shall provide all tools and equipment necessary
         to install and commission their equipment.

11.2.    PARTNER shall provide equipment installation services and shall consist
         of the following activities:

         a.       provision of materials, labor, equipment, tools and machinery
                  for installation;

                                                                              13

<PAGE>

         b.       materials delivery and storage;

         c.       transportation of goods;

         d.       installation of the equipment;

         e.       cleaning-up sites; and

         f.       site preparation plan and drawings.

11.3.    Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

         a.       PARTNER's contractor shall provide all materials, labor,
                  tools, transportation, telecommunication facilities
                  (telephone, facsimile, etc.) and everything else necessary for
                  completion of work in accordance with this AGREEMENT;

         b.       PARTNER's contractor shall employ an adequate supervisory
                  force and an adequate staff of experienced engineers
                  consisting of technicians and workmen to complete the work in
                  a satisfactory and workman like manner within the time
                  specified in this AGREEMENT;

         c.       PARTNER's contractor shall itemize and provide all equipment,
                  tools, measuring equipment, machinery and electricity
                  necessary for execution of the Scope of Work in Indonesia; and

11.4.    Installation of the equipment shall consist of the following
         activities:

         a.       PARTNER's contractor shall be responsible for providing
                  connection and integrating sub-components into system units,
                  i.e. Transmission Equipment and Outside Plant (OSP);

         b.       PARTNER's contractor shall be responsible for system unit
                  check and shall ensure the each system units functions as
                  required.

11.5.    Cleaning-up at each Location/site shall be conducted during
         installation periods and consist of the following activities:

                                                                              14

<PAGE>

         a.       PARTNER's contractor shall keep the work and storage areas
                  clean and tidy and shall remove daily all combustible rubbish
                  from inside and near the buildings, structures and plant;

         b.       Upon completion of each installation, PARTNER's contractor
                  shall remove from the Location/site as early as possible all
                  tools, appliances, packing cases and plant not constituting an
                  integral part of this AGREEMENT.

         c.       PARTNER's contractor shall either remove or level as required
                  by TELKOM's Project Manager, all excess earth or spoils
                  resulting from any excavation.

         d.       PARTNER's contractor shall make good to the satisfaction of
                  TELKOM's Project Manager at his own expense, all damages to
                  buildings, plants, finishes etc caused by contractor, his
                  subcontractor(s) and/or their employees.

ARTICLE 12
LOCAL SUPPORT INFRASTRUCTURE

PARTNER shall provide TELKOM access to its local technical staff to ensure
effective deployment, operations and timely problem solving. PARTNER shall
ensure such local support is timely, cost effective, and of high quality in
order to meet TELKOM's desired service levels.

ARTICLE 13
ACCEPTANCE TEST AND HAND OVER

13.1.    ACCEPTANCE TEST. The list of items to be tested and the test procedure
         shall be completed and agreed upon by the Parties prior to the first
         ACCEPTANCE TEST. ACCEPTANCE TEST shall be carried out after the
         SUB-SYSTEM is commissioned by PARTNER and is ready for ACCEPTANCE TEST.
         PARTNER shall carry out ACCEPTANCE TEST over the whole WORKS as
         referred to in this

                                                                              15

<PAGE>

         AGREEMENT, at the LOCATIONS of installation in accordance with
         ACCEPTANCE TEST schedule which shall be submitted by PARTNER to TELKOM.
         The ACCEPTANCE TEST shall be carried out in the presence of both
         parties' authorized representatives.

13.2.    Prior Notice to ACCEPTANCE TEST. PARTNER shall give notification to
         TELKOM within fourteen (14) calendar days prior to the date of the
         ACCEPTANCE TEST. Within seven (7) calendar days after receipt of such
         notification, TELKOM shall notify PARTNER of its approval for such
         ACCEPTANCE TEST schedule or TELKOM may propose another ACCEPTANCE TEST
         schedule which shall not be later than seven (7) calendar days after
         PARTNER's proposed date. In the event TELKOM does not respond to
         PARTNER's notification within seven (7) calendar days, then TELKOM
         shall be deemed to approve such ACCEPTANCE TEST schedule.

13.3.    PARTIAL ACCEPTANCE TEST. TELKOM shall have the option to request
         PARTNER to perform PARTIAL ACCEPTANCE TEST for certain ROUTES and/or
         LINKS or will be determined within a particular SUB-SYSTEM under
         construction.

         In the event PARTIAL ACCEPTANCE TEST has been performed, and the ROUTES
         and/or LINKS is functioning properly and good cooperation in the
         technical accordance with the technical specification of this Agreement
         and commercial aspects, then TELKOM will issue BAST-Partial covering
         only ROUTES and/or LINKS that have been completed. BAST-Partial shall
         be treated as BAST-I for the accepted WORKS.

         The WARRANTY PERIOD for the accepted WORKS based on this Article shall
         commence after the issuance of BAST-Partial and shall end after twelve
         (12) months, whether or not the BAST-I will be issued for the relevant
         SUB-SYSTEM later.

                                                                              16

<PAGE>

13.4.    ACCEPTANCE TEST implementation. Subsequent to the implementation of all
         parts of the SUB-SYSTEM, due for ACCEPTANCE TEST, the ACCEPTANCE TEST
         shall be carried out to test the compatibility within the SUB SYSTEM
         that has been completed and EQUIPMENT being installed, with TECHNICAL
         SPECIFICATIONS agreed by PARTNER and TELKOM. Further, PARTNER shall
         deliver the ACCEPTANCE TEST REPORT to TELKOM.

13.5.    Error rectification obligations. Should there be any non-compliance
         with the TECHNICAL SPECIFICATIONS (hereinafter referred to as "Error")
         during ACCEPTANCE TEST period, TELKOM and PARTNER shall record such
         Error in writing and PARTNER shall start to rectify such Error at the
         earliest.

13.6.    Major Remaining Errors. If the result on ACCEPTANCE TEST indicates
         EQUIPMENT which is not operable, or causes damage or loss of data or
         software, or causes corrupted data (hereinafter referred to as "Major
         Remaining Errors"), then PARTNER 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, PARTNER shall
         notify TELKOM seven (7) calendar days before conducting re-testing.

13.7.    Minor Remaining Errors. If ACCEPTANCE TEST result indicates the
         EQUIPMENT shall cause failures other than Major Remaining Errors that
         do not affect the fundamental operation of any parts of the SUB-SYSTEM,
         then PARTNER shall rectify such Minor Remaining Errors within three (3)
         months after the issuance of BAST-I.

13.8.    Stability Test. Upon the completion of ACCEPTANCE TEST, PARTNER shall
         conduct a stability test for the period of ten

                                                                              17

<PAGE>

         (10) calendar days to observe the performance of the SUB SYSTEM
         thoroughly and to ensure that the WORKS related to the SUB-SYSTEM has
         been technically achieved in accordance with TECHNICAL SPECIFICATIONS
         under this AGREEMENT. During such observance period, Parties are not
         allowed to conduct any adjustments in the event of any abnormality
         arising within any parts of the SUB-SYSTEM.

13.9.    Checking on Acceptance Test Report and Stability Test Reports. Upon the
         completion of such tests as referred to in this Article and PARTNER has
         submitted reports on the SUB-SYSTEM, and any other requirements have
         been made available in accordance with the provisions of this
         AGREEMENT, TELKOM shall check all such reports of PARTNER. In the event
         any part of functionality is not in compliance with TECHNICAL
         SPECIFICATION under this AGREEMENT or incomplete, TELKOM shall notify
         PARTNER in writing within seven (7) calendar days from the presentation
         by PARTNER of said reports.

13.10.   Cost for Corrections. All costs incurred in connection with corrections
         as referred to in this Article shall become the full responsibility of
         PARTNER.

13.11.   BAST-I for SUB-SYSTEMS 1 up to 3 for Kalimantan and SUB-SYSTEM 1 up to
         4 for Sulawesi shall be issued if the following activities are
         fulfilled:

         a.       installation is completed;

         b.       each SUB-SYSTEM has been tested and is functioning properly in
                  accordance to the TECHNICAL SPECIFICATION without pending
                  items that are detrimental to the functional operation;

         c.       each SUB-SYSTEM is possible to be commercially operated.

BAST-I for SUB-SYSTEM "S" shall be issued after INTEGRATION and Transmission
Network Management System have been completed, tested and is

                                                                              18

<PAGE>

         functioning properly without Major Remaining Error.

13.12.   The issuance of BAST I (First Hand-Over Certificate); Minor Remaining
         Error. The SUB-SYSTEM shall be accepted if PARTNER has shown to TELKOM
         all requirements in accordance with the TECHNICAL SPECIFICATIONS as
         referred to in Appendix 5 have been fulfilled under the following
         conditions:

         a.       Within 7 (seven) calendar days after result of stability test,
                  TELKOM will notify PARTNER whether the SUB SYSTEM has been
                  accepted or not;

         b.       In the event such reports indicate each SUB-SYSTEM has been
                  tested and is functioning properly in accordance to the
                  TECHNICAL SPECIFICATION without pending items that are
                  detrimental to the functional operation, then TELKOM c.q.
                  Project Manager will issue First Hand-Over Certificate
                  (BAST-I) for the relevant SUB SYSTEM within seven (7) calendar
                  days after submission of ACCEPTANCE TEST REPORT and Stability
                  Test Report.

                  Should TELKOM for whatsoever reason neither inform PARTNER of
                  non-acceptance in writing, nor issue the BAST-I within the
                  above mentioned seven (7) days period or TELKOM commercially
                  operate the SUB-SYSTEM, then the SUB-SYSTEM shall be
                  deemed_accepted and the BAST-I shall be issued.

         c.       The issuance of First Hand-Over Certificate (BAST-I) by TELKOM
                  shall not be withheld due to Minor Remaining Errors by taking
                  into consideration that (i) such deficiency shall not
                  adversely affect normal operation and maintenance work of the
                  SUB SYSTEM in accordance

                                                                              19

<PAGE>

                  with the Technical Specifikation as referred to in Appendix 5;
                  (ii) such deficiency will be put as an attachment to the First
                  Hand-Over Certificate (BAST -1) in order for PARTNER to
                  rectify in accordance with Article 13.7.

13.13.   Second Hand-Over Certificate ("BAST-II) shall be Issued by TELKOM cq.
         Project Manager, twelve (12) months After the date of BAST I provided
         PARTNER has fulfilled the following conditions:

         a.       all remaining errors have been rectified and reported;

         b.       all warranty obligations have been fulfilled;

         c.       as-built documentation has been completed and submitted.

ARTICLE 14
GOODS DELIVERY PROCEDURE

14.1.    All physical deliveries of deliverables covered by this agreement
         shall be accompanied by a consignment note, which includes:

         a.       Name and registered office of PARTNER;

         b.       Partnership Agreement Number,

         c.       Date of shipment and delivery;

         d.       Quantities and type of goods included; and

         e.       Certificate of Origin.

14.2.    Delivery of equipment to the intended Location/Site shall be
         implemented by reference to complete Systems or Sub-systems and not
         piecemeal, except as otherwise mutually agreed between the Parties.

14.3.    PARTNER shall be responsible for  delivery of the equipment,
         components and software from the country of origin to the point of
         landing in Indonesia, and from the point of landing to the intended
         Location/Site as specified in this AGREEMENT in accordance with
         Appendix 3 (Implementation Schedule and Project Management). PARTNER
         and

                                                                              20

<PAGE>

         shall be responsible for all inland transportation shipping costs to
         the intended Location/Site.

14.4.    PARTNER represents and warrants that all equipment and components
         delivered are type-approved by the relevant authorities in Indonesia
         and have passed quality assurance by TELKOM in accordance with the
         quality assurance as mentioned in Article 8 and in Appendix 12
         (Acceptance Test Procedures) of this AGREEMENT.

14.5.    PARTNER shall be responsible for the provision and cost of any of the
         following facilities, equipment and services may be required by PARTNER
         and its staff.

14.6.    The terms as stipulated in this Article 4 will be applied in this
         AGREEMENT in the event the payment of the project which executed based
         on this AGREEMENT will provided by internal TELKOM's fund.

ARTICLE 15
REPORTS AND MEETINGS

15.1     Written reports. PARTNER shall give written reports (progress report)
         on any stage of the WORKS in accordance with Schedule of Works
         Implementation as provided in Appendix 3, at least once in a month,
         which shall be made in five (5) copies, four (4) shall be sent to
         TELKOM c.q. Project Manager and another one shall be submitted to HEAD
         OF LONG DISTANCE DIVISION.

15.2     Periodical meetings. For the purpose of the smoothness of the WORKS and
         to cope with any technical obstacle, TELKOM and PARTNER agree to
         convene periodical meetings at least once a month or any other time
         interval as agreed by both Parties from time to time.

ARTICLE 16
PROJECT MANAGEMENT

16.1.    PARTNER shall propose a Project Management Plan ("PMP"), in a form as

                                                                              21

<PAGE>

         mentioned in Appendix 3. TELKOM and PARTNER shall discuss and mutually
         agree on the details of the PMP.

16.2.    Prior to start-up of Project activities, the Parties shall have agreed
         on a PMP containing at least the following:

         a.       Role and responsibility;

         b.       Project organization and personnel;

         c.       Reporting of progress and issues.

16.3.    PARTNER shall appoint the Project personnel as described in the PMP
         including a Project Manager who shall be responsible for contact with
         TELKOM with respect to resolving issues arising in the course of
         Project implementation.

16.4.    The identity and qualifications of all Project personnel proposed by
         PARTNER to work on the Project, including the Project Manager as
         mentioned in the PMP shall be notified in writing by PARTNER to TELKOM
         before appointment. The Project Manager shall only be appointed with
         TELKOM's prior approval. For all other Project personnel, TELKOM shall
         inform PARTNER of any objections within seven (7) Days of notification
         and any Project personnel to whom TELKOM objects shall not be
         appointed. Replacements must be equally well qualified and appropriate
         for the Project

16.5.    At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom PARTNER Project personnel shall maintain close cooperation
         and communication at all times. TELKOM may also appoint local
         supervisors with whom PARTNER'S local Project personnel shall maintain
         close cooperation and communication at all times.

         The Project Manager as appointed by TELKOM for the execution of the
         WORKS under this AGREEMENT shall be HEAD OF TELKOM

                                                                              22

<PAGE>

         CONSTRUCTION CENTRE, however the owner of the Project which has been
         appointed in this AGREEMENT is LONG DISTANCE DIVISION.

16.6.    TELKOM may object to and, after consultation with PARTNER direct
         PARTNER to remove from any site immediately any person employed by
         PARTNER or any sub-contractor at the site who, in the reasonable
         opinion of TELKOM, misconducts himself, has proved to be unsuitable
         under the terms of the Scope of Work or is incompetent or negligent in
         the performance of his duties, and such person shall not be employed
         again at any Project site except with the prior written approval of
         TELKOM.

16.7.    PARTNER shall submit to TELKOM the required progress report as
         mentioned in the Scope of Work. With respect to any period covered by a
         progress report, in the event that PARTNER fails to inform TELKOM of
         any problem, TELKOM shall be entitled to presume that no such problem
         arose during such period. However, submission by PARTNER to TELKOM of
         the specified progress reports will not alter, amend or modify PARTNER
         obligations pursuant to any provision of this Agreement.

16.8.    PARTNER shall provide complete project management support to the
         Project including without limitation, managing the constituents members
         of PARTNER, subcontractors and other suppliers, as well as managing the
         acquisition of required sites, permits and rights of way.

16.9.    PARTNER shall immediately deliver newest Performance Schedule to
         TELKOM. The newest Performance Schedule shall contain important
         progress step (milestones) including:

         a.       Starting performance on any

                                                                              23

<PAGE>

         location;

         b.       Starting detail survey on any location;

         c.       Finishing installation, development design, related drawing
                  with Project;

         d.       Date of readiness, for commisioning, and Acceptance Test for
                  any location/Site;

16.10.   Deliver of equipment, component, software and service by PARTNER shall
         fulfill provisions of this AGREEMENT include schedule and progress step
         (milestones) as set out in Appendix 3 (Schedule of Implementation and
         Project Management).

16.11.   Any changes of Schedule of Implementation shall be based on mutually
         agreement of the Parties and be legally if its done as Variation duly
         signed by legal representation from each Party.

16.12.   Site Survey

         1.       After the Effective Date of this AGREEMENT award, the PARTNER
                  shall carry out a detailed site survey and engineering taking
                  into consideration the detailed design standard provided by
                  the PARTNER and approved by TELKOM. The Partner shall justify
                  the installation/construction designs together with the
                  associated bill of quantities.

         2        Upon completing the site surveys, PARTNER shall report, survey
                  findings to TELKOM. In addition, PARTNER will be required to
                  baseline all existing infrastructure that can be utilized for
                  T-21 backbone transmission and incorporate it into
                  implementation plans.

         3        Site Surveys shall aim to include, but not limited to, the
                  following activities:

                  (i)      Determining fiber optic installation route, new
                           building

                                                                              24

<PAGE>

                           and its supporting facilities including assessing
                           reusability of existing duct systems

                  (ii)     Baselining reusable supporting facilities, including
                           power supply, buildings.

                  (iii)    Determining lay-out/placement of the transmission
                           equipment within TELKOM's STO or other TELKOM's
                           building.

                  (iv)     Determining the exact location/ address for new
                           repeater buildings,

                  (v)      Determining the exact quantity and length of cable
                           bridges and duct attachments to bridge.

         4.       PARTNER shall take responsibility for the organizational and
                  administrative activities required to conduct the Site
                  Surveys. PARTNER shall be responsible for all reasonable costs
                  of performing the Site Surveys, including personnel,
                  transportation, accommodation, communications; and shall fund
                  at its own expense the cost of other related party in
                  performing any of the work or analyses contemplated as
                  mentioned in Article 16.12. TELKOM shall only be responsible
                  for the costs of providing accommodations and transport for
                  TELKOM staff involved in the Site Surveys.

16.13.   Design Review Meeting (DRM)

         1.       After the performance detailed survey, TELKOM dan PARTNER
                  shall perform Design Review Meeting.

         2.       The first DRM shall be conducted within ten (10) Business Days
                  after detailed survey. Further DRMs only intended to be held
                  in case there is any modification design.

         3.       At the DRM, TELKOM and PARTNER jointly shall conduct and/or
                  agree on at least the following activities:

                                                                              25

<PAGE>

                  (i)      review and finalize list of reusable infrastructure
                           based on result of Site Survey

                  (ii)     finalize detailed route;

                  (iii)    finalize trenching depth level along the route;

                  (iv)     finalize detailed bills of quantity;

                  (v)      agree and approve adjustments, if any, to the Project
                           Management Plan and the Implementation Schedule;

         4.       PARTNER shall take responsibility for the organizational and
                  administrative activities required to organize all DRMs.
                  PARTNER shall be responsible for all reasonable costs of
                  convening the DRM and shall fund at its own expense the
                  analysis as mentioned in Article 16.13 TELKOM shall only be
                  responsible for the costs of providing accommodations and
                  transport for TELKOM staff attending a DRM.

         5.       The Parties shall produce minutes of each DRM in which any
                  substantive agreements shall be recorded as agreements of the
                  Parties, as evidenced by signature of the minutes by the
                  authorized representative of each Party.

         6.       In the conduct of each DRM, the Parties shall always refer to
                  maximum Agreement Price as stated in the Article 19 of this
                  AGREEMENT.

         If the Parties cannot reach agreement at the DRM, the matters shall be
         escalated to senior management of each Party for resolution.

16.14.   Representation at Site Survey and DRM

         TELKOM and PARTNER shall notify each other from time to time regarding
         their appointments (and any changes to such appointments) of authorized

                                                                              26
<PAGE>

         representatives who have authority to execute or make agreements in any
         DRM and/or monthly meeting on their behalf.

ARTICLE 17
WARRANTY PERIOD

17.1.    The WARRANTY PERIOD a period of 12 months starting from the date of
         BAST-I for each relevant SUBSYSTEM or the date the EQUIPMENT has been
         used commercially by TELKOM, whichever date comes earlier.

17.2.    PARTNER warrants the EQUIPMENT shall work properly and stable in
         accordance with TECHNICAL SPECIFICATION during the WARRANTY PERIOD. In
         the event of any damage, error or technical malfunction in normal
         operation during the WARRANTY PERIOD, PARTNER shall repair and/or
         replace the damage, error and technical malfunction at its own cost.
         PARTNER warrants for the period as mentioned in paragraph I, the
         hardware is free from manufacture's defect and shall comply to the
         function as described in TECHNICAL SPECIFICATION. TELKOM's exclusive
         remedy for breach of the warranty is the repair or replacement of the
         defective EQUIPMENT.

17.3.    Defects during WARRANTY PERIOD. In the event of major defect or
         disruption to the SUB SYSTEM within twelve (12) months period, save to
         the extent of Force Majeure events and/or events for which PARTNER not
         liable under this AGREEMENT, which cumulatively shall exceed or equal
         to 24 (twenty four) hours of non availability of SUB SYSTEM, then the
         issuance of the BAST II (Second Hand-Over Certificate) shall be
         postponed and the WARRANTY PERIOD of such SUB-SYSTEM shall be extended
         to the number of days of such disruption. PARTNER shall use its best
         commercially reasonable efforts to provide alternative solution at its
         own

                                                                              27
<PAGE>

        cost.

17.4.   PARTNER shall have no obligation and/or responsibility to rectify any
        errors and/or non-compliances or subsequent errors and non-compliances
        if these have been caused by TELKOM or third parties which are not
        nominated or appointed by PARTNER.

ARTICLE 18
SPARE PARTS

18.1.    During WARRANTY PERIOD, all parts that are required to be replaced,
         shall be supplied by PARTNER without charge unless PARTNER is released
         from this obligation in accordance to Article 39.3. of this AGREEMENT.

18.2.    PARTNER shall provide prices and suppliers (local or overseas)
         information, regarding spare parts, sub assemblies, etc., and advise
         the required quantities to be purchased and stocked for the successful
         maintenance of the SYSTEM.

18.3.    PARTNER shall provide a list of spare part, description and quantity of
         EQUIPMENT, module and sub module level as appropriate.

18.4.    PARTNER shall agree to supply the spare parts to TELKOM and TELKOM
         shall have the right to purchase these spare parts from PARTNER for
         TELKOM's maintenance requirements at a price to be agreed upon. The
         spare parts or suitable equivalents with the same performance should be
         available throughout the EQUIPMENT-design-lifetime of the SYSTEM.

18.5.    PARTNER shall agree to provide a list of spare part and consumable
         items, to the best of its knowledge, to be purchased and stocked by and
         to be property of TELKOM for maintenance and usage for the SYSTEM for a
         period of six (6) years after BAST-II.

                                                                              28
<PAGE>

18.6.    PARTNER shall provide spare parts and consumable items to be purchased
         and stocked by TELKOM for a minimum period of six (6) years after the
         final production of each EQUIPMENT, unless suitable equivalents for
         spare parts and consumables are available. Subsequent to this, should
         supplies of any spare parts relevant to the SYSTEM be discontinued,
         PARTNER shall notify TELKOM at least one (1) year in advance of such
         discontinuation.

18.7.    Spare part and tools as quoted in the Bill of Quantity according to
         Appendix I of this AGREEMENT shall be delivered by PARTNER upon the
         BAST-I of relevant SUB SYSTEM where the spare part pool are located.

CHAPTER 3
COMMERCIAL TERMS AND CONDITIONS

ARTICLE 19
AGREEMENT PRICE

19.1     The Contract Value excluding VAT currently at 10%, but including income
         tax, other taxes, duties and costs in accordance with the prevailing
         laws and regulations for execution of the Project under this AGREEMENT
         is US$ 7,591,564 (Seven Million Five Hundred Ninety One Thousand Five
         Hundred Sixty Four US Dollar) and Rp. 144,753,277,911 (One Hundred
         Forty Four Billion Seven Hundred Fifty Three Million Two Hundred
         Seventy Seven Thousand Nine Hundred Eleven Rupiahs) with the details as
         mentioned in Appendix 1 this AGREEMENT.

19.2.    The detail of Agreement Price as mentioned in Article 19.1 above as
         follows:

                                                                              29
<PAGE>

<TABLE>
<CAPTION>
                                                         CURRENCY
                                             --------------------------------
 No    PACKAGE              LOCATION         IDR PORTION          USD PORTION
 --    -------              --------         -----------          -----------
<S>                        <C>             <C>                    <C>
 1    Package-I            Kalimantan       74.020.633.646          3,776,269
 2    Package-II            Sulawesi        70.732.644.265(+)       3,815,295(+)
 3    Sub Total (a)                        144.753.277.911          7,591,564
 4    PPN 10% x(a)                          14.475.327.791(+)         759,156(+)
 5    Total (including
      10% VAT)                             159.228.605.702          8,350,720
</TABLE>

19.3.    However, both TELKOM and PARTNER agree in the event the Scope of Works
         is amended due to the result of the Design Review Meeting as well as
         the final survey and "As-Built Bill of Quantity" per SUB-SYSTEM, then
         the final AGREEMENT PRICE shall be calculated and adjusted accordingly
         as required.

19.4.    No further costs. AGREEMENT PRICE set forth in the breakdown of costs
         as as mentioned in Appendix 1 of this AGREEMENT shall cover the
         entirety of parts which are required for the implementation of the
         WORKS in accordance with this AGREEMENT, save to the extent any
         additional or reduced WORKS as required by TELKOM in writing as
         referred to in Article 46 (Works Variation) and Article 3.3 (Adjustment
         of Scope of Work) with respect to Additional or Reduction of the WORKS
         under this AGREEMENT.

19.5.    Unit prices quoted in Appendix 1 (Price Summary, Terms and Payment
         Schedule) are firm fixed prices and shall not be varied except as
         permitted under this AGREEMENT. Unit prices for equipment are deemed to
         include payments by PARTNER for all costs of freight, insurance,
         customs and import duties, taxes related to importation, clearance at
         the port of entry, inland transportation, warehousing and delivery to
         the Location/Site where the equipment to be installed. Unit prices for
         equipment related services shall include survey, planning, design,
         permits, rights of way, installation, integration, project management,
         insurance up to transfer of title, testing and

                                                                              30
<PAGE>

         commissioning costs, services related to land acquisition, and all
         related materials and expenses to complete the Project on a turnkey
         basis as contemplated as mentioned in Article 3.5. Import or custom
         duties are included in the unit prices as mentioned in Appendix 1
         (Price Summary, Terms and Payment Schedule) and shall remain fixed.

ARTICLE 20
INSURANCE AND SAFETY

20.1.    PARTNER shall arrange and cover the insurance at his own cost for the
         shipment, during transportation, installation until BAST-1 for all risk
         according to this AGREEMENT.

20.2.    The Insurance company to be appointed by the PARTNER for local
         transportation and terrestial installation works shall be a local
         Indonesian Insurance Company PT Jasa Indonesia (PT JASINDO) through the
         broker PT Sarana Janesia Utama (PT SJU).

20.3.    For the first invoice submission, PARTNER or its members shall attach
         the copy of original policy or cover note. The original policy or cover
         note shall be presented to TELKOM for verification if required.

20.4.    PARTNER shall arrange the Social Security (ASTEK) insurance for his own
         employees at his own cost.

ARTICLE 23
TAXES AND IMPORTATION

21.1.    Taxes and Importation. All taxes (excluding VAT), stamp duty and other
         duties in accordance with the Government regulations shall be the
         responsibility of the PARTNER Any withholding tax shall be deducted
         directly by TELKOM from the payment to be made to PARTNER in accordance
         with the prevailing laws which is applicable to this AGREEMENT. VAT and
         other related taxes shall be settled with the Government directly by
         TELKOM. Upon settlement of VAT and other related taxes between TELKOM
         and the Government, TELKOM will submit

                                                                              31
<PAGE>

         original receipts of settlement to PARTNER, to enable PARTNER to refund
         the VAT and other related taxes.

21.2.    Importer. All the EQUIPMENT (both hardware and software) imported based
         upon this AGREEMENT shall be conducted under DDP (Delivered Duty Paid)
         as referred to in Incoterm 2000. Therefore, it is agreed by the Parties
         hereto that: (i) the Party who acts as the importer shall be PARTNER;
         and (ii) PARTNER shall use its Import Licence or (Agent's) Master List
         in conducting custom clearance of the EQUIPMENT from Custom Authority.

21.3.    Additional devices. In the event PARTNER 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 PARTNER.

21.4.    PARTNER, shall be responsible at its own cost, for obtaining in a
         timely fashion all necessary export permits, licenses and approvals
         from the country of origin and any intermediate locations, including
         the payment of any and all levies for freight handling and other costs
         related to such permits, licenses and approvals.

21.5.    Irregularities to importation procedures. PARTNER shall be fully
         responsible for the occurrence of irregularities to either the delivery
         of EQUIPMENT from country of origin, transport procedures or supporting
         import documents, as set forth in the Presidential Instruction Number 3
         of 1991 dated 25th July 1991 or any replacement regulations thereof, if
         any.

ARTICLE 22
TRANSFER OF TITLE AND RISKS

22.1.    Event of Transfer. Transfer of title and risk from PARTNER to TELKOM
         shall occur

                                                                              32
<PAGE>

         for each SUB-SYSTEM when (i) First Hand-Over Certificate (BAST-I) has
         been issued or deemed to have been issued by TELKOM, or (ii) the SUB
         SYSTEM has been put into commercial operation by TELKOM, whichever is
         the earliest.

22.2.    Remaining PARTNER's responsibilities. Transfer of title as referred to
         in Article 22.1 shall not impair, release or discharge PARTNER's risks
         and responsibilities towards warranty over EQUIPMENT and any other
         materials or towards Minor Remaining Errors in the EQUIPMENT as
         described in Articles 13.7 dan 13.10 of this AGREEMENT until the
         issuance of Second Hand Over Certificate (BAST - II).

ARTICLE 23
PARTNER'S RIGHT AND OBLIGATION

         Beside the rights and obligations as stated in other Articles of this
         AGREEMENT, PARTNER shall have the following rights and obligations:

23.1.    PARTNER's obligations:

           a.     To ensure the good performance of SYSTEM of the Backbone
                  Transmission Network in Kalimantan and Sulawesi until the
                  expiry of WARRANTY PERIOD through repair or replacement as
                  necessary as detailed in Appendix 5.

           b.     To ensure the service/feature quality at least to the minimum
                  requirement until the expiry of WARRANTY PERIOD through repair
                  or replacement as necessary as stated in this AGREEMENT.

           c.     Completion of the WORKS according to Article 3 of this
                  AGREEMENT such that the SYSTEM of Backbone Transmission
                  Network in Kalimantan and Sulawesi is functioning in
                  accordance with the

                                                                              33
<PAGE>

                  Technical Spesification and can be put into commercial
                  operation, in accordance to Article 4.1. of this AGREEMENT.

         d.       To conduct the NMS software up grade of Backbone Transmission
                  Network in Kalimantan and Sulawesi whenever required due to
                  additional or expansion of new equipment during the Warranty
                  Period without any costs shall be imposed to TELKOM.

23.1.    PARTNER'S right:
         To receive the payment from TELKOM in the due time for the execution of
         AGREEMENT.

ARTICLE 24
TELKOM'S RIGHT AND OBLIGATION

Beside the rights and obligations as stated in other Articles of this AGREEMENT,
TELKOM shall have the following rights and obligations:

24.1.    TELKOM'S obligations:

         a.       To make the payment to PARTNER for the execution of the WORKS
                  on schedule based on this AGREEMENT.

         b.       To issue the recommendation needed by PARTNER to proceed with
                  the permission as stipulated in Article 5 of this AGREEMENT.

         c.       To provide the LOCATIONS as well as all the necessary
                  infrastructure (including but not limited to electricity,
                  water supply, air conditioning, security, grounding, fire
                  alarm, fire extinguisher, access road) at the LOCATIONS for
                  the installation of EQUIPMENT in accordance with
                  implementation schedule and the result of Design Review
                  Meeting.

24.2.    TELKOM'S rights:

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<PAGE>

         a.       To get the system performance of the Jaringan Transmisi
                  Backbone in Kalimantan and Sulawesi through repair or
                  replacement as necessary until the expiry of the WARRANTY
                  PERIOD, as detailed in Appendix 5.

         b.       To get the service/feature quality at least to the minimum
                  requirement through repair or replacement as necessary until
                  the expiry of the WARRANTY PERIOD, as stated in this
                  AGREEMENT.

CHAPTER 4
TERMS AND CONDITIONS OF FINANCE

ARTICLE 25
FINANCING

25.1.    The Parties shall give their best endeavour to do what is under their
         relevant competence and possibility to put in place the FINANCING
         within three (3) months from the date of this AGREEMENT.

25.2.    Reffering to the Article 25.1. as mentioned above, TELKOM shall
         authorize a nominated bank (BANK) to work with the PARTNER to obtain
         any necessary information related to the Transmission Backbone
         Kalimantan and Sulawesi project to file an application to the
         respective Export Credit Agencies ("ECAs") which is HERMES of Germany,
         to obtain their approvals to extend their insurance or guarantee
         support to the project.

25.3.    If BANK is successful in its application and negotiations with the
         ECAs, TELKOM agrees to appoint BANK to exclusively arrange the ECA
         supported financing, subject to mutual agreement on the detailed terms
         and conditions.

25.4.    Up to 85% of all USD portion eligible under ECA-cover of the AGREEMENT
         PRICE as detailed in Appendix 1 (Price

                                                                              35
<PAGE>

         Summary and Payment Schedule) shall be paid by means of Buyer Credit
         Facilities to be provided by BANK. All USD portion not eligible under
         ECA-cover, shall be paid by means of Commercial Loan or other financing
         which will be decided by TELKOM under conditions as detailed in Article
         27.2. Terms and conditions of FINANCING shall be regulated by the Loan
         Agreement (s) to be signed between TELKOM and BANK and shall be in
         accordance with the provisions contained in this AGREEMENT.

25.5.    PARTNER engage themselves to obtain from their Head Offices in Germany
         all possible help to do what is under their relevant competence and
         possibility to work with BANK to facilitate and speed up the
         application and the negotiations with the ECAs.

25.6.    TELKOM shall on demand pay or reimburse the other parties (including
         the Bank) for all costs and expenses incurred in connection with the
         financing including but not limited to the filing of the necessary
         applications with the relevant ECAs.

25.7.    After three (3) months have been elapsed as described in Article 25.1.
         of this AGREEMENT, financing has not been realized as required by the
         Parties then financing of the project under this AGREEMENT will be
         provided by internal TELKOM's fund.

ARTICLE 26
PAYMENT'S TERMS AND CONDITIONS

26.1.    The Terms and Condition of this WORKS based on this AGREEMENT will be
         made by TELKOM to PARTNER with Cash on Delivery upon 2 alternatives
         payment, as follows:

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<PAGE>

         a.       Payment shall affected out of the buyer's credit facilities
                  and other credit facilities, or

         b.       Payment shall be provided from internal TELKOM's fund.

26.2.    In the event the payment of Agreement Price will use the buyer's credit
         facilities and other credit facilities as stated in Article 26.1.a,
         then the terms of payment will be made by the following conditions:

         a.       For the Foreign currency portion which will be funded by
                  Export Credit Agency (ECA) the payment will be made as
                  follows :

                  i.       Prelimenary payment as of fifteen percent (15%) of
                           Agreement Price of Ex imported Goods (excluding the
                           services) will be made after the Goods has been
                           arrived at LOCATION for related SUB SYSTEM after
                           issued Goods Arrival Certificate.

                  ii.      Final payment as of eighteen percent (85%) of
                           Agreement Price of Ex imported Goods and a hundred
                           percent (100%) of Services Agreement Price after
                           PARTNER has completed the Project related SUB SYSTEM
                           basic after issued BAST-I.

         b.       For the Rupiah currency portion shall follows the conditions
                  as stated in Article 26.3. of this AGREEMENT.

26.3.    In the event the payment of Agreement Price will use the Internal
         TELKOM funds as stated in Article 26.1.b., then the terms of payment
         will be made by the following conditions:

         a.       First Stage equivalent to ten percent (10%) of the Agreement
                  Price of Goods (excluding services) after the Goods has been
                  arrived at LOCATION for related SUB SYSTEM after issued Goods
                  Arrival Certificate.

         b.       Second stage equivalent to ninety

                                                                              37
<PAGE>

                  percent (90%) of Agreement Price of Ex imported Goods and a
                  hundred percent (100%) of Services Agreement Price after
                  PARTNER has completed the Project related SUB SYSTEM basic
                  after issued BAST-I.

26.4.    The detail of terms of payment as specified in Appendix 1 of this
         AGREEMENT.

26.5.    Period of Payment
         Each of payment shall be made within twenty one (21) calendar days
         after receipt of complete and correct documents by TELKOM.

26.6.    Address of invoicing.
         Any invoices and related documents under this AGREEMENT shall be
         submitted to the following addresses:

         TO:-TELKOM
         PT Telekomuniukasi Indonesia,Tbk
         1. Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No. 1, 2nd Floor
         Bandung 40133

         2. Att. VP Perbendaharaan
         Jalan Japati No. 1, 5th Floor
         Bandung 40133

         CC: BANK and /or other Bank as
         necessary

26.7.    Completeness and Correctness
         Documents shall be correct and complete, when fulfil the criteria as
         stated in the "Required Document Verification for Procurement and
         Construction of Backbone Transmission Network Kalimantan and Sulawesi"
         which shall be attached to this AGREEMENT.

26.8.    The payment shall be made by TELKOM to PARTNER though direct transfer
         which to be addressed to:

                                                                              38
<PAGE>

         Bank         : Deutsche Bank AG
         Address      : JI.Imam Bonjol No.80
                        Jakarta

         For USD Portion :
         Account No.     : 000-3467-05.0
         For IDR Portion :
         Account No.     : 000-3467-00.2

         Both in favour of PT. Siemens Indonesia The transfer fee shall be
         responsibility OF PARTNER.

ARTICLE 27
MEANS OF PAYMENT

27.1     Buyer's Credit Loan Agreement

         27.1.1. Hermes-covered Buyer's Credit Facility.

         Disbursement of funds under the HERMES-covered Buyer's Credit Facility
         shall be made automatically on the 22nd calendar days after receipt of
         complete and correct documents from PARTNER to TELKOM with cc. to BANK,
         in accordance with clause 26 of this AGREEMENT, unless BANK receives
         written objection letter from TELKOM until the end of the 7th calendar
         day from the date of presentation to TELKOM as detailed in Article 26.4
         of such documents, signed by authorized personnel as to be defined in
         the Buyer's Credit Loan Agreement, from which specimen of signature
         exists, and giving valid and detailed reasons of non-conformance
         according to Article 26.5 and Appendix I-C of this AGREEMENT. If the
         written objection letter is not received by BANK within the above
         mentioned 7 (seven) days, then TELKOM waives the right to object the
         submitted documents.

         Under the Buyer's Credit Loan Agreement, Telkom shall allow BANK to
         make direct payments to PARTNER.

         27.1.2. General Terms and Conditions of the Buyer's Credit Loan
         Agreement. The Buyer's Credit Loan Agreement which is to be signed
         between TELKOM

                                                                              39
<PAGE>

         and BANK shall include, among the others, the following irrevocable
         terms and conditions:

         a.       The conditions of the Buyer's Credit L/A shall reflect the
                  same terms and conditions as set out in this AGREEMENT
                  including but not limited to automatic payment.

         b.       The Buyer's Credit L/A shall irrevocably provide for payments
                  made directly by BANK to PARTNER after receipt of complete and
                  correct documents by TELKOM as detailed in this AGREEMENT;

         c.       The Buyer's Credit L/A shall cover at a minimum an amount
                  corresponding to the eligible portion under the AGREEMENT
                  PRICE and according to the ECAs' rules (i.e. up to 85% of the
                  Final Payment to PARTNER);

         d.       The availability period for drawing under the Buyer's Credit
                  L/A shall be a minimum of 21 (twenty-one) months from EDC, and
                  shall be extendable upon written notice of PARTNER to TELKOM
                  and BANK;

27.2.    Commercial Loan Agreement (C/L)

a.       Payments of the IDR portion

         Disbursement of funds under the Commercial Loan in respect of any
         amount denominated in IDR under the CONTRACT VALUE and payable to
         PARTNER, shall be made automatically 22 calendar days after receipt of
         complete and correct documents from PARTNER to TELKOM and with cc. to
         BANK, in accordance with Article 26 of this AGREEMENT, unless BANK
         receives written objection letter from TELKOM until the end of the 7th
         calendar day from the date of presentation to TELKOM as detailed in
         26.5. of such documents, signed by authorized personnel as to be
         defined in the

                                                                              40
<PAGE>

         Commercial Loan Agreement, from which specimen of signature exists, and
         giving valid and detailed reasons of non-conformance according to
         Article 26.5 and Appendix I-C of this AGREEMENT.

         If the written objection letter is not received by BANK within the
         above mentioned 7 (seven) days, then TELKOM waives the right to object
         the submitted documents.

         Under the Commercial Loan Agreement, TELKOM shall allow BANK to make
         direct payments to PARTNER.

b.       Payments of the USD portion

         Disbursement of funds under the Commercial Loan in respect of any
         amount denominated in USD under the Agreement Price not covered through
         the Buyer's Credit Loan Agreement and payable to PARTNER and/or any
         NOMINATED SUBCONTRACTOR, shall be made automatically 22 calendar days
         after receipt of complete and correct documents from PARTNER by TELKOM
         with cc. to BANK, in accordance with clause 26 of this AGREEMENT,
         unless BANK receives written objection letter from TELKOM until the end
         of the 7th calendar day from the date of receipt by TELKOM as detailed
         in 26.5 of such documents, signed by authorized personnel as to be
         defined in the Commercial Loan Agreement, from which specimen of
         signature exists, and giving valid and detailed reasons of
         non-conformance according to Article 26.5 and Appendix I-C of this
         AGREEMENT.

         If the written objection letter is not received by BANK within the
         above mentioned 7 (seven) days, then TELKOM waives the right to object
         the submitted documents.

         Under the Commercial Loan Agreement, Telkom shall allow BANK to make
         direct payments to PARTNER.

c.       In the event that USD currency is not available at the moment of
         disbursement of funds, all payments for the USD portion not

                                                                              41
<PAGE>

         covered under the buyer's credit facilities shall be paid in IDR out of
         the CL, and shall be exchanged in US$ by BANK before payment, so that
         the paid US amount is equivalent to the amount stated in the invoice.

d.       Should the CL not contain sufficient funds, TELKOM shall make direct
         payment for any discrepancy within 21 calendar days from receipt of
         correct and complete documents by TELKOM in the currency stated in the
         invoice.

e.       In respect of all payments of the USD portion of the CONTRCAT VALUE to
         be covered through the IDR denominated C/L, PARTNER shall have the
         right to obtain, with resulting fees to be borne solely by PARTNER,
         from BANK or from any other bank or financing institution or insurance
         company acceptable to PARTNER an insurance cover in a form and
         substance satisfactory to PARTNER covering them against any risk of,
         but not limited to, non convertibility and non transferability and
         against any other risk that PARTNER might consider not acceptable.

f.       General Terms and Conditions of the Commercial Loan Agreement.

         The Commercial Loan Agreement which is to be signed between TELKOM and
         BANK Jakarta shall include, among the others, the following irrevocable
         terms and conditions:

         1)       The conditions of the Commercial Loan Agreement shall reflect
                  the same terms and conditions as set out in this AGREEMENT
                  including but not limited to automatic payment.

         2)       The C/L shall irrevocably provide for payments made directly
                  by BANK to PARTNER after receipt of complete and correct
                  documents by TELKOM as

                                                                              42
<PAGE>

              detailed in this AGREEMENT;

         3)   The IDR denominated C/L shall cover at a minimum an amount
              corresponding to the IDR and USD payable to PARTNER under the
              AGREEMENT PRICE eventually not-eligible according to the ECAs'
              rules and then not financed through the Buyer's Credit Loan
              Agreement;

         4)   The availability period for drawing under the C/L shall be a
              minimum of 21 (twenty-one) months from EDC, and shall be
              extendable upon written notice of PARTNER to TELKOM and BANK;

27.3.    Amounts not covered in above-mentioned facilities upon signature of
         this AGREEMENT.

         Amounts which are not covered through the above mentioned Buyer's
         Credit Loan Agreement and/or Commercial Loan Agreement upon signature
         of this AGREEMENT, like but not limited to Amendments to the CONTRCAT
         VALUE due to addition or reduction in the BoQ, shall be paid directly
         by TELKOM. TELKOM will pay all direct payments within 21 calendar days.

ARTICLE 28
PERFORMANCE AND WARRANTY BONDS

28.1     The Performance Bond and Warranty Bond shall be in form of a Bank
         Guarantee issued by the Government Bank or International Bank operated
         in Indonesia and accepted by TELKOM amounting to 5 % (five percent) of
         the total CONTRACT VALUE as stated in Article 19, which shall be USD
         417,536 (Four Hundred Seventeen Thousand Five Hundred Thirthy Six US
         Dollars) -and Rp 7,961,430,285 (Seven Billion Nine

                                                                              43
<PAGE>

         Hundred Sixty One Million Four Hundred Thirty Thousand Two Hundred
         Eighty Five Rupiahs).

         The Performance bond shall be valid from the Effective Date of Contract
         until the last BAST-I while the Warranty Bonds shall be valid from the
         last BAST-I up to the last BAST-II.

28.2     The Performance Bond shall be submitted by PARTNER to TELKOM within 14
         (fourteen) days from signing of this AGREEMENT while the Warranty Bond
         shall be submitted on the last BAST-I. Both of the bonds submitted to:

         PT Telekomunikasi Indonesia, Tbk.
         Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No. 1, 2nd Floor
         Bandung 40133

28.3     In case either the combined Performance/ Warranty Bond, and Preliminary
         payment Bond expires before the WORKS is completed, PARTNER shall
         extend the validity of the bonds at the latest within fourteen (14)
         calendar days before its expiration and submit it to:

         PT Telekomunikasi Indonesia, Tbk
         Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No. 1, 2nd Floor
         Bandung 40133

28.4     The Performance Bond as stipulated in Article 28.1. shall be released
         to PARTNER upon submission of the last First Hand Over Certificate
         (BAST - I). The Warranty Bond as stipulated in Article 28.1 shall be
         released to PARTNER upon submission of the last Second Hand Over
         Certificate (BAST - II).

28.5     In the event PARTNER fails to accomplish the WORKS or its parts in
         accordance with the terms and conditions of this AGREEMENT, due to
         gross negligence and/or willful misconduct of

                                                                              44
<PAGE>

         PARTNER, then PARTNER and TELKOM shall meet to review the situatation.
         If no mutual agreement reached, then TELKOM is entitled to forfeit the
         Performance/ Warranty Bond and become to property of TELKOM.

CHAPTER 5
TERMS AND CONDITIONS OF CONSORTIUM ORGANIZATIONAL

ARTICLE 29
CONSORTIUM ORGANIZATION
CRITERIA

29.1     The Consortium of which PARTNER is a part shall have at least one (I)
         Indonesian member.

29.2     The Consortium leader shall be required to be the leading technology
         supplier for the Project Backbone Transmission)

29.3     All substitutions, replacements or other changes to the composition of
         the membership of PARTNER's Consortium must be submitted to and
         approved by TELKOM in writing.

ARTICLE 30
ASSIGNMENT AND SUB-CONTRACTING

30.1.    PARTNER shall not, without the prior written consent of TELKOM, assign
         this Agreement, or assign or encumber any of the moneys due or becoming
         due under it. TELKOM reserves the right to assign this Agreement,
         without prior approval of PARTNER to an Investor provided the Investor
         gives PARTNER satisfactory payment assurances in accordance to this
         AGREEMENT.

30.2.    TELKOM reserves the right to assign this Agreement, with the prior
         approval of PARTNER which such approval shall not be unreasonably
         withheld, to any of TELKOM's subsidiaries or related companies.

                                                                              45
<PAGE>

30.3.    A schedule of each proposed sub-contractor and the part of the Scope of
         Work proposed to be performed by such sub-contractor will be submitted
         on DRM session. In case of any plan to change 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 seven (7) Business Days if it has substantive objections to the
         appointment of any of such proposed sub-contractors and/or the work
         they were intended to do, and PARTNER shall take such objections into
         account so as to meet with TELKOM's approval.

30.4.    The use of sub-contractors shall in no way relieve PARTNER from its
         responsibility to deliver the Deliverables to TELKOM (in particular to
         ensure that any Deliverables comply with all requirements of this
         AGREEMENT) or to perform necessary tasks such as project management.

30.5.    PARTNER shall ensure that the addition or removal of any
         sub-contractors shall not impact the agreed Contract Value or
         implementation of the Scope of Work.

ARTICLE 31
INVOLVEMENT OF LOCAL ENTITIES

31.1.    PARTNER shall use all reasonable efforts to maximize involvement of
         entities in Indonesia in its provision of Deliverables, the objective
         being to maximize financial benefits as well as transfer of knowledge
         and learning in Indonesia and thereby reduce TELKOM's exposure to
         foreign exchange risk. In this connection, "all reasonable efforts"
         shall be defined by reference to a minimum threshold level of local
         Indonesian involvement in executing the Project, comprising a
         percentage of the total contract value of the Project, which consist of
         minimum 20% of the Contract Value as mentioned in Article 19 of this

                                                                              46
<PAGE>

         AGREEMENT.

31.2.    The Local Content requirement can be fulfilled by reference to the
         Contract Value of the Project executed through Local Indonesian
         Entities, whether as members of PARTNER, key subcontractors or through
         other external Indonesian parties.

31.3.    The undertaking required by TELKOM shall state that PARTNER will, over
         the duration of the Project, procure certain materials and services
         within Indonesia (stating all categories of materials and services) to
         support the local operations of the overseas companies in the
         Consortium. Further, that all such procurements will be in accordance
         with this AGREEMENT.

ARTICLE 32
LOGISTICS

32.1.    PARTNER shall provide all logistical requirements from the point of
         origin of the any equipment, components or other Project goods to the
         applicable Project Location/Site, Including of all charges, such as
         transport and transit, demurrage, storage, insurance, fees, levies,
         taxes, etc.

32.2.    PARTNER shall provide all arrangements for shipping / transportation,
         forwarding and servicing equipment, components or other Project goods
         from point of origin to the Project Location/Site where they are
         finally deployed.

32.3.    PARTNER shall provide all warehousing requirements and explain the
         locations of the facilities to be used for this purpose. PARTNER will
         also be required to arrange for warehousing and storage facilities at
         installation sites to ensure proper storage and protection of all
         equipment, components or other Project goods. PARTNER shall ensure all
         equipment is adequately packaged and stored to avoid any damage. While
         in such warehousing, the equipment and material shall be the sole
         responsibility of PARTNER.

                                                                              47
<PAGE>

32.4.    PARTNER shall provide all required protection, insurance and other
         services to ensure safe delivery of the all equipment, components or
         other Project goods. PARTNER shall be responsible for any damage or
         loss of goods.

ARTICLE 33
INVENTORY

33.1.    PARTNER shall provide all services to ensure proper installation of
         equipment, components or other goods according to this AGREEMENT,
         provide optimal operating conditions PARTNER shall provide all tools
         and equipment necessary to install and commission any Project equipment
         procured under this AGREEMENT.

33.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

         a.       PARTNER's contractor shall provide all materials (including
                  cables, connectors and other miscellaneous materials), labor,
                  tools, transportation, telecommunication facilities
                  (telephone, facsimile, etc.) and everything else necessary for
                  completion of work in accordance with this AGREEMENT;

         b.       PARTNER's contractor shall employ an adequate supervisory
                  force and an adequate staff of experienced technicians and
                  workmen to complete the Scope of Work in a satisfactory and
                  workman like manner within the time as mentioned in this
                  AGREEMENT.

33.3     PARTNER and its sub-contractors provide all equipment, tools, measuring
         equipment, machinery and electrical power equipment necessary for
         execution of the Scope of Work in Indonesia; and

                                                                              48
<PAGE>

33.4     Delivery and storage of Project equipment and materials shall consist
         of the following activities:

         a.       PARTNER and its sub-contractors shall be responsible for
                  storage arrangements during the interval from the delivery of
                  equipment until it is required for installation;

         b.       PARTNER and its sub-contractors shall be responsible for
                  loading and unloading as well as handling of any equipment and
                  materials at all stages up to Commissioning;

         c.       PARTNER and its sub-contractors shall also be responsible for
                  unpacking (and repacking where necessary), identification and
                  checking of materials and relevant invoices or other
                  documents; and

         d.       PARTNER and its sub-contractors shall be responsible for
                  handling and storage of any goods during transportation and at
                  the site.

ARTICLE 34
COMPLIANCE WITH ENVIRONMENTAL STANDARDS

34.1.    The Deliverables supplied by PARTNER shall comply with all applicable
         legal requirements and shall not contain any legally prohibited
         substances and/or preparations. The Deliverables shall not contain any
         substances and/or preparations that cannot be processed by means of a
         normal waste processing method.

34.2.    PARTNER shall allow TELKOM to examine its degree of environmental care
         and provide reasonable assistance to TELKOM in examining that of the
         manufacturers concerned.

34.3.    PARTNER shall provide TELKOM with the information early enough to give
         TELKOM reasonable time to pass it on to

                                                                              49
<PAGE>

         all Parties involved before Deliverables are received:

         a.       Such substances and/or preparations present in the equipment
                  are harmful to people, property or the environment, including
                  soil, water and air;

         b.       Such substances and/or preparations are located in the
                  equipment and the components concerned shall be treated at the
                  end of their useful life and at the end of the useful life of
                  the equipment, and how such components can be removed from the
                  equipment safely and correctly;

         c.       Regulations are applicable to the transport, storage,
                  installation, use, dismantling and processing of the substance
                  in connection with the harm it is capable of causing; and

         d.       To improve the information distribution /acquisition process
                  at and by TELKOM to a reasonable extent without its costs.

34.4.    PARTNER shall state which components of the equipment are suitable for
         re-use or recycling other than by incineration at the end of its useful
         life.

34.5.    PARTNER shall provide TELKOM with the above-mentioned information,
         either via an electronic information carrier or electronically in a
         commonly used computer program and in a format requested by TELKOM.

34.6     PARTNER shall warrant all of the information which provided to TELKOM
         is complete and correct to the best of its knowledge.

CHAPTER 6
OTHERS TERMS AND CONDITIONS

ARTICLE 35
DOCUMENTS

35.1.    Notwithstanding any other documents to

                                                                              50
<PAGE>

         be provided in other articles of this AGREEMENT, PARTNER shall submit
         five (5) copies of documents relating to this AGREEMENT for each SUB
         SYSTEM, consists of:

         (i)      As-Built Drawing (original, hard copy and soft copy), within
                  two (2) month after BAST-1;

         (ii)     Technical documentation of EQUIPMENT as detailed in the Scope
                  of Works before the issuance of BAST-I;

35.2.    PARTNER shall provide an adequate number of handbooks and drawings that
         shall be required to support equipment maintenance, installation, and
         test function. Handbooks and drawings shall include assembly drawings,
         wiring information, schematics, drawings, circuit diagrams/descriptions
         and complete instruction for familiarization, installation, operation,
         theory, maintenance, and parts replacements, as well as appropriate
         system drawings. Instruction handbooks for each piece of equipment
         shall be prepared separately, and submitted to TELKOM. Instruction
         handbooks to be supplied shall include the following:

         a.       Installation and system handbooks;

         b.       Equipment handbook including Standard Operating Procedure
                  (SOP) and Standard Maintenance Procedure (SMP);

         c.       Repair handbooks including circuit diagrams;

35.3.    Documents retention. Upon the completion of the WORKS, any drawings and
         documents with respect to the SYSTEM owned by PARTNER related to the
         WORKS shall be kept for the EQUIPMENT-design-lifetime of such SYSTEM.
         This is purportedly to enable PARTNER to supply any parts which need
         replacement and/or expansion of such SYSTEM as agreed by the Parties
         during the EQUIPMENT-

                                                                              51
<PAGE>

         design-lifetime of the SYSTEM.

35.4.    Intellectual Property Rights documents. Any intellectual property
         rights with respect to any drawings, specifications and data issued by
         the respective Party hereto in regard of this AGREEMENT shall remain
         the possession of such relevant Parties.

35.5.    Clarification on documents. Any incompleteness, doubts with respect to
         breakdown and/or elaboration contemplated in any documents, which
         constitute parts of this AGREEMENT, shall be presented to TELKOM for a
         clarification.

ARTICLE 36
COSTS FOR SUPERVISION AND HAND OVER

36.1.    TELKOM's responsibilities. TELKOM shall bear all costs incurred in
         connection with its representative in the implementation of
         supervision, ACCEPTANCE TEST and hand over of each SUB-SYSTEM as
         referred to this AGREEMENT, save to extent all matters concerning
         utilities and work space in PARTNER's premises which shall become the
         responsibility of PARTNER.

36.2.    PARTNER's responsibilities. PARTNER shall at its own costs, provide all
         equipment and own staff which are required for the implementation of
         test, supervision, and inspection in accordance with its requirements
         until the accomplishment of the BAST - 1 (First Hand-Over Certificate).

ARTICLE 37
LIQUIDATED DAMAGES

37.1.    Liquidated Damages Amount. For any delay in the completion of WORKS
         implementation, TELKOM shall be entitled to impose penalty to PARTNER
         amounting to 1 0 / 00 (one per mil) of the delayed SUB-SYSTEM WORKS
         value excluding 10 % VAT for every day delay

                                                                              52
<PAGE>

         up to a maximum of five per cent (5%) of the CONTRACT VALUE.

37.2.    The sum or sums of money to be paid under Article 37.1 shall be paid as
         liquidated damages and payable by PARTNER to TELKOM in respect of the
         loss or damages sustained by reason of such delay and any sum of money
         paid shall be TELKOM's sole remedy for the delay for which the sums are
         paid, without prejudice to TELKOM's right of termination AGREEMENT
         under section 41 of this AGREEMENT.

37.3.    Time of payment for Liquidated Damage. Liquidated Damage as mentioned
         in Article 37.1, if any, shall be payable by PARTNER to TELKOM no later
         than thirty (30) calendar days upon written notice of the imposition of
         such Liquidated Damages.

37.4.    Payment deduction. In the event PARTNER shall fail to make payment on
         Liquidated Damages referred to above, then TELKOM shall be entitled to
         Liquidated Damages amounts so imposed by means of deducting forthwith
         from payment of AGREEMENT PRICE.

ARTICLE 38
INDEMNIFICATION

38.1     Without prejudice to any other provisions of this Agreement, PARTNER
         shall indemnify TELKOM and hold TELKOM harmless from all damages, cost
         and expenses arising from any Claims (as defined below), if Claims
         arise:

         a.       as a result of a failure by PARTNER to perform its obligations
                  pursuant to this AGREEMENT or other specific agreement related
                  to this AGREEMENT;

                                                                              53
<PAGE>

         b.       in connection with the work carried out pursuant to its
                  obligations under this AGREEMENT, unless the occurrence of the
                  damage is not attributable to PARTNER;

         c.       in connection with the faulty design of the equipment or any
                  other material or supplies which are supplied by PARTNER;

         d.       in connection with an infringement of any Intellectual
                  Property Rights or industrial property right belonging to a
                  third party in relation to Article 43;

         e.       In connection with any Claims including any fines or other
                  penalties suffered by TELKOM as a result of the violation by
                  PARTNER or any of its employees or agents of any laws or
                  regulations in Indonesia related to Article 49;

         f.       for personal injury to and death of any persons and damage to
                  any property arising out of the performance of this AGREEMENT
                  due to acts or omissions whether negligent or otherwise of
                  PARTNER, its employees, agents or sub-contractors;

         g.       In connection with termination by TELKOM for non-delivery of
                  contracted equipment, components or software.

         Provided that TELKOM:

         1.       Gives PARTNER prompt written notice of such Claim;

         2.       Permits PARTNER to defend or settle the Claim;

         3.       Does not at any time admit liability in respect of the whole
                  or any part of the Claim or agrees to settle or

                                                                              54
<PAGE>

                  dispose of the Claim; and

         4.       Provides all reasonable assistance to PARTNER in defending or
                  settling the Claim.

38.2.    "Claims" shall mean any demands, claims, actions, liabilities, losses,
         damages awarded by a court or arbitration tribunal against TELKOM,
         costs (including legal and other professional costs), penalties and
         expense incurred by TELKOM as a result of a breach by PARTNER or any
         sub-contractor of any of its obligations, representations, undertakings
         or warranties under this AGREEMENT.

ARTICLE 39
REPRESENTATION AND WARRANTY

39.1.    PARTNER warrants that the EQUIPMENT and SYSTEM to be delivered to
         TELKOM are new, shall not contain any refurbish parts, having no hidden
         defect and shall not be originated illegally. PARTNER shall further
         undertake that all EQUIPMENT (both hardware and software) delivered to
         TELKOM under this AGREEMENT shall have EQUIPMENT design-life time of
         product at least ten (10) years as of the date of issuance of BAST - 1
         (First Hand-Over Certificate), or from the time the EQUIPMENT has been
         used commercially by TELKOM, whichever occurs first.

39.2.    Detriment. In the event during WARRANTY PERIOD i.e. twelve (12) months
         as of BAST - I (First Hand-Over Certificate) due to fault in design,
         negligence of workmanship or other similar causes, a detriment or
         damage to the EQUIPMENT occurs then PARTNER shall start the activities
         to rectify or replace it with the replaced or rectified ones at
         PARTNER's costs, within fourteen (14) calendar days after a written
         notice has been received by PARTNER from

                                                                              55

<PAGE>

         TELKOM.

39.3.    Release of obligation. PARTNER shall be fully released from obligations
         to rectify or replace defective material during WARRANTY PERIOD, if
         such detriment or damage is caused by the operation of EQUIPMENT which
         does not follow the procedures determined in the operating manuals or
         any other reasons which PARTNER can proves that such detriment or
         damage shall not constitute PARTNER's fault.

39.4.    Transportation costs. All costs for transportation with respect to
         re-export and import, import duties and custom clearance in connection
         with or due to the rectification or replacement of the damaged
         EQUIPMENT during the WARRANTY PERIOD shall become the responsibility of
         PARTNER subject to provisions of Article 17.

39.5.    Maintenance of EQUIPMENT after WARRANTY PERIOD. If, upon the expiry of
         WARRANTY PERIOD of 12 (twelve) months, TELKOM requires maintenance
         assistance for the EQUIPMENT from PARTNER, then PARTNER shall agree to
         carry out such maintenance including replacement of the same or
         comparable spare parts within the EQUIPMENT-design-life time of the
         EQUIPMENT as mentioned in Article 18 with costs thereof as mutually
         agreed.

39.6.    Failure by PARTNER. If PARTNER fails to accomplish the WORKS, which is
         due to PARTNER's default, and after the elapse of the agreed
         implementation schedule, and after the full liquidated damages as
         stipulated in Article 37 is applied, PARTNER shall be given a
         reasonable time, which shall be mutually agreed upon, to complete the
         WORKS. If PARTNER still fails to complete the WORKS after such period,
         then TELKOM shall be entitled to the following cumulatively: (a) to
         terminate this AGREEMENT by issuing a Termination Notice (b) to appoint
         any third party to continue this AGREEMENT

                                                                              56

<PAGE>

         on condition that any reasonable excess amounts incurred for continuing
         such WORKS shall be borne by PARTNER.

39.7.    Undertaking by PARTNER. PARTNER undertakes that all EQUIPMENT, supplied
         to TELKOM and the execution of the WORKS in accordance with this
         AGREEMENT and shall meet the slate of the art technology, owned by
         PARTNER or licence to him as agreed upon in the Scope of Work at the
         date of entering into this AGREEMENT.

ARTICLE 40
TRAINING, TRANSFER OF KNOW HOW AND DEVELOPMENT OF INTELLECTUAL PROPERTY

 40.1  PARTNER shall provide training to TELKOM employees and TELKOM shall
       provide qualified employees for training programs provided by PARTNER
       under this AGREEMENT.

 40.2  Training shall be conducted both domestic and overseas (Germany) and
       PARTNER shall propose detailed schedules for both types of training based
       on TELKOM's requirements.

 40.3. The Terms of Payment, Conditions, Schedule and Syllabus of Training as
       specified in Appendices 1, 2, 3 and 11 of this AGREEMENT.

  ARTICLE 41
  TERMINATION OF AGREEMENT-

41.1.    PARTNER's Default. PARTNER shall be deemed to be in default if:

         a.       PARTNER is not materially executing the WORKS in accordance
                  with this AGREEMENT or is neglecting to perform his
                  obligations thereunder so as to seriously affect the carrying
                  out of the WORKS and fails to remedy the deficiencies, or

                                                                              57

<PAGE>

         b.       PARTNER becomes subject to bankruptcy, insolvency, liquidation
                  or winding-up proceedings in any jurisdiction, or is otherwise
                  insolvent or unable to pay its debts, or if a receiver is
                  appointed over or steps are taken to enforce any security
                  interest against the whole or a part of its assets; or

         c.       PARTNER is in material breach of its obligations as stipulated
                  under this AGREEMENT; or

         d.       PARTNER repudiates this AGREEMENT

41.2.    TELKOM shall then immediately dispatch default notice to PARTNER.
         PARTNER shall then take a reasonable action to remedy its default and
         send to TELKOM a redemption plan, which describes PARTNER's recovery
         schedule. The form and the details of the notice shall be discussed and
         mutually agreed by Parties.

41.3.    If within thirty (30) days after the date of notice, PARTNER does not
         show its intention to remedy the default, TELKOM shall without
         prejudice to any other right PARTNER may have, terminate this AGREEMENT
         by issuing a written termination notice thirty (30) days prior to the
         termination.

41.4.    Upon termination of this AGREEMENT notice by TELKOM, PARTNER shall
         complete the SUB-SYSTEMS which already under construction, which will
         then be accepted and paid according to the AGREEMENT.

41.5.    TELKOM's Default. TELKOM shall be deemed to be in default if:

         a.       being in bankruptcy, insolvency, liquidation or winding-up
                  proceedings in any jurisdiction, or is

                                                                              58

<PAGE>

                  otherwise insolvent or unable to pay its debts, or if a
                  receiver is appointed over or steps are taken to enforce any
                  security interest against the whole or a part of its assets;
                  or

         b.       fails to meet its contractual obligations, or

         c.       fails to make its payment obligation within twenty one (21)
                  calendar days after the first delay occurs;

41.6.    In the event TELKOM commits such default, PARTNER shall, as soon as
         possible, give notice to TELKOM which specifies the default. TELKOM
         shall within thirty (30) days after the date of such notice diligently
         pursue to remedy such default.

41.7.    If within thirty (30) days after the date of notice, TELKOM does not
         show its intention to remedy the default, PARTNER shall have the right
         to terminate the AGREEMENT.

41.8.    Upon termination of this AGREEMENT under paragraph 7 TELKOM will pay:

         a.       any EQUIPMENT already delivered and/or installed according to
                  Bill-of-Lading or similar/comparable documents; and

         b.       any Services according to As-Built Survey; and

         c.       any materials which are under progress of manufacturing,
                  transport or other means and which are included in the
                  Progress Report upon delivery to TELKOM's premises;

         d.       Any reasonable expenses for demobilization according to Cost-
                  Report provided by PARTNER upon presentation of Cost-Report.

         Documents under Article 41.8.a automatically accepted.

         Documents under Article 41.8. b to d

                                                                              59

<PAGE>

         above shall be submitted to TELKOM by PARTNER.

         TELKOM shall respond these documents within ten (10) working days as of
         receipt of such documents.

         If TELKOM does not respond within such 10 days, then the documents will
         be deemed as accepted.

         Settlement shall be reached within 60 days. After such 60 days, the
         matter shall be taken to BANI as mentioned in Article 50

41.9.    Payment under Article 41.8 shall be effected no later than twenty-one
         (21) days after presentation of the documents. Letter of Termination of
         the AGREEMENT together with the above mentioned documents will replace
         all other documents required for receiving payment.

ARTICLE 42
LIABILITY

42.1.    PARTNER's liability. PARTNER shall, at its own costs, take all
         reasonable precautions to prevent any loss or damage to person and
         property of TELKOM. PARTNER shall be liable for losses and claims,
         which arise in connection with wilful misconduct or gross negligence of
         PARTNER or its personnels, labors or servants up to the limits stated
         in Article 42.4.

42.2.    Damage to the equipment. In the event any damage to the equipments
         belonging to TELKOM during the execution of the WORKS, due to willful
         misconduct or gross negligence of PARTNER or its personnel or its
         labors or its subordinates, then a protocol shall be made in writing
         and to be signed by PARTNER's officer and the supervisor from TELKOM
         which are appointed to supervise the WORKS. All damages or losses
         referred to in this Article shall be the responsibility of PARTNER.

                                                                              60

<PAGE>

42.3.    PARTNER shall not be liable, whether in contract, tort (including
         negligence or strict liability) or any other legal or equitable theory,
         for damage to or loss of other property or equipment, business
         interruption or lost revenue, profits or sales, loss of information and
         data, or for any special, incidental, punitive, indirect or
         consequential damages.

42.4.    For the term of this AGREEMENT, PARTNER's aggregate overall liability
         for any act or omission, whether in contract, tort (including
         negligence or strict liability), will in no event exceed a maximum
         amount of 20% (twenty percent) of contract value.

42.5.    loss or damage caused by the gross negligence or willful act, fault or
         omission of PARTNER, its employees, agents or sub-contractors,
         including any damage or interruption to TELKOM's existing Network
         during the migration to the new network to be provided by PARTNER; or

42.6.    Unless otherwise provided for by mandatory applicable law, the rights
         and remedies as mentioned in this AGREEMENT are exclusive, and the
         parties accept these remedies in lieu of any and all other rights and
         remedies available at law or otherwise, in contract or in tort, for any
         and all claims of any nature arising out of or in connection with this
         AGREEMENT or any other agreement regarding its performance.

ARTICLE 43
INTELLECTUAL PROPERTY RIGHTS

43.1.    Intellectual Property Rights. The AGREEMENT PRICE as mentioned in this
         AGREEMENT already covers the amount to be paid for the right to use for
         the EQUIPMENT. PARTNER will use

                                                                              61

<PAGE>

         its best endeavors to undertake that the use of all EQUIPMENT and
         apparatus thereof by TELKOM will not infringe any intellectual property
         rights (IPR) of any third party. The term "IPR" shall include patent,
         mark, industrial design, copyrights and neighboring rights. TELKOM
         shall inform PARTNER promptly of any third party's claim regarding IPR.

43.2.    Third Party claim. In the event any legal claims or any other legal
         actions against TELKOM in connection with the use of such patent and/or
         third party intelectual property rights, as mentioned in Article 43.1
         PARTNER shall indemnify and hold TELKOM harmless for any legal claims,
         whether in courts or any other forum, and PARTNER shall settle such
         legal claims at his own costs.

43.3.    In the event of any allegation of infringement of any third party's IPR
         which is subject to indemnification as mentioned in Article 43.2.
         PARTNER shall use its commercially reasonable efforts at its option,
         (i) to obtain a licence from the third party; (ii) to defend against
         such allegation through final judgement and all timely fields appeal;
         (iii) to redesign the allegedly infringing products in order to avoid
         infringement.

43.4.    The above Art. 43.3 states the sole and entire obligation of PARTNER
         with respect to any claim regarding the IPR of any third party.

43.5.    PARTNER will have no obligation with respect to any claim or action
         pursuant to this article unless: (i) PARTNER is promptly notified in
         writing of such third party claim by TELKOM, within maximum ten (10)
         calendar days after TELKOM receive written notification/claim from
         such third party; and (ii) TELKOM allows PARTNER sole control of the
         defence and settlement of

                                                                              62

<PAGE>

         such third party claims and (iii) TELKOM provides PARTNER with
         reasonable assistance, at PARTNER's expense, in connection with the
         settlement and defence of such third party's claims. Notwithstanding
         the above, TELKOM shall have the right, to employ counsel to
         participate in any such defense at TELKOM's expense.

43.6.    PARTNER shall have no liability for any claim of the nature referred to
         in this Article based upon: (i) use of the products in a manner other
         than for which it was intended; (ii) unauthorised modification or
         changes made to the products; (iii) operation of the products in
         combination with products not supplied by PARTNER; or (iv) PARTNER's
         compliance with TELKOM's designated designs, material usage or
         specifications furnished by TELKOM, in which case TELKOM shall defend,
         indemnify and hold PARTNER harmless against any claim of infringement
         of any such IPR.

ARTICLE 44
RIGHT OF USE FOR SOFTWARE

44.1.    PARTNER hereby grants to TELKOM subject to the terms and conditions of
         this AGREEMENT a non-exclusive, non-transferable license to use the
         Licensed Software on the Hardware and the Software Documentation for
         the TELKOM's internal purposes.

         Without limiting the foregoing, the license does in particular not
         include the right to modify, copy (other than as mentioned per
         paragraph 2 below), port, translate or sublicense the Licensed Software
         and the Software Documentation.

44.2.    TELKOM shall be entitled to produce one (1) back-up copy of each item
         of the

                                                                              63

<PAGE>

         Licensed Software, whereby the use of such back-up copy shall be
         limited to replace the original Licensed Software if the original
         Licensed Software is inoperable. TELKOM shall keep records about the
         storage of such back-up copies and present such the records to PARTNER
         on demand.

44.3.    Certain programs of the Licensed Software and/or the Software
         Documentation may be proprietary to third party licensors of PARTNER
         who may be direct and intended third party beneficiaries of certain
         terms and conditions herein relating to the protection of such third
         party proprietary Software. TELKOM agrees those third party
         beneficiaries may enforce these terms and conditions directly against
         TELKOM.

44.4.    The Licensed Software may contain freeware or shareware obtained by
         PARTNER from a third party source. No license fee has been paid by
         PARTNER for the inclusion of any such freeware or shareware, and no
         license fee is charged to TELKOM for its use. TELKOM acknowledges and
         agrees that PARTNER provides no warranties and shall have no liability
         whatsoever in respect of TELKOM's possession and/or use of the freeware
         or shareware.

ARTICLE 45
SPECIFIC CONDITIONS

45.1.    Confidentiality on INFORMATION. The Parties agree to perform their best
         efforts in keeping confidentiality on INFORMATION with respect to this
         AGREEMENT and The Parties shall ensure its directors, employees,
         agents, or servants shall not disclose information, data, documentation
         and knowledge to third parties without written approval from the other
         party, nor

                                                                              64

<PAGE>

         shall produce information, data, documentation and knowledge in the
         form of paper, cassettes, diskettes, discs or any other forms, save to
         extent that such action is performed as a report to the relevant
         Governmental agencies as required by the laws.

45.2.    Exceptions of INFORMATION. The provision as mentioned in Article 45.1
         above shall not apply in the event such INFORMATION has become public
         domain or upon the expiry of 10-year period as of the signature of this
         AGREEMENT.

ARTICLE 46
WORKS VARIATION

46.1.    Changes to the scope of Works. The Scope of Work shall be adjusted and
         executed (i) under an Amendment to this AGREEMENT after the detailed
         survey, design and engineering is completed and approved by TELKOM, and
         (ii) after the final As-Built Bill of Quantity is completed and
         approved by TELKOM.

46.2.    Upon mutual agreement between the Parties, TELKOM may alter the Scope
         of Works, Drawing, specification design, place or time of delivery,
         addition or reduction of WORKS. Changes of WORKS, can be conducted
         prior to or at the commencement of the WORKS under an implementation
         schedule, feasibility and possible Agreement Price variation as
         mutually agreed upon by Parties.

46.3.    Cost addition/reduction. If such alteration shall cause cost addition
         or reduction and/or changes of completion period of WORKS, then an
         adjustment shall be made to the AGREEMENT Price and/or completion
         period of WORKS based upon mutual agreement of the Parties;

46.4.    Agreement variation. Any variations to the content of this AGREEMENT,
         whether

                                                                              65

<PAGE>

         with respect to Scope of Works, Agreement Price, Period or any other
         parts of this AGREEMENT shall bind TELKOM and PARTNER if it expressly
         made in writing and agreed by TELKOM and PARTNER by providing and
         signing an amendment to this AGREEMENT.

46.5.    Unit Price. The agreed unit prices for variations to the Scope of Work
         being performed under this AGREEMENT shall be the same as the unit
         prices detailed in this AGREEMENT until the last BAST-II. This does not
         include free of charge items as applicable or if no unit price is
         given.

ARTICLE 47
NATIONAL REGULATIONS

PARTNER shall obey all prevailing regulations and governmental policies in
Indonesia whether those have been expressly provided in the provisions of laws
or not.

ARTICLE 48
FORCE MAJEURE

48.1.    Definition of Force Majeure. Force Majeure shall mean events or
         circumstances which occur beyond reasonable control of the Parties
         hereto which cause the stoppage or prevention of the implementation of
         AGREEMENT such as earthquake, flood, landslides, typhoon, fires,
         explosion, sabotage, riots, disturbances, military actions, -strikes,
         changes in law, orders or regulations of public authorities.

48.2.    Notices. Any event which categorized as Force Majeure shall be informed
         to the other Party within fourteen (14) calendar days at the latest
         upon such occurrence. If such period is exceeded, the other Party is
         entitled to refuse such Force Majeure as the reasons of the delay or
         the failure to perform such party's obligation.

                                                                              66

<PAGE>

48.3.    Delays due to Force Majeure. If, due to Force Majeure, the
         implementation of manufacturing, delivery, construction, installation,
         training, ACCEPTANCE TEST or any other program shall be temporarily
         prevented, then the period of program implementation so prevented shall
         be revised by extending the implementation period of the affected
         activity/program. If this shall affect the completion period as
         mentioned in this AGREEMENT, then Parties shall agree to extend the
         completion period of the WORKS with the number of days at least equal
         to the prevention of the program implementation mentioned above plus a
         reasonable time necessary to re-mobilise and to cover the impact of the
         Force Majeure (e.g. bad weather).

48.4.    Changes to AGREEMENT PRICE. The extension period of program
         implementation or completion period of the WORKS in connection with the
         Force Majeure event as mentioned in article 48.1 shall not cause the
         increase of AGREEMENT PRICE.

48.5.    Liability in the event of Force Majeure. All damages in connection with
         the occurrence of Force Majeure shall become the responsibility of the
         respective Party hereto.

48.6.    If the WORKS are suspended, due to the occurrence of Force Majeure, for
         more than six (6) months in the aggregate, by giving 30 day prior
         notice, either Party shall have the right to terminate this AGREEMENT
         and TELKOM shall pay PARTNER for all WORKS carried out until the
         occurrence of Force Majeure, excluding any EQUIPMENT which is still
         originally packed and located at TELKOM's LOCATIONS.

48.7.    For the avoidance of doubt, in the event of termination due to Force
         Majeure, TELKOM shall pay for the followings against supporting
         documents

                                                                              67

<PAGE>

         (i)      EQUIPMENT already on site ;

         (ii)     Services already performed;

48.8.    Such termination shall not omit the rights and obligations of the
         Parties which have occurred before such Force Majeure event.

ARTICLE 49
APPLICABLE LAW

This AGREEMENT construed and under perception of law of the Republik of
Indonesia.

ARTICLE 50
SETTLEMENT OF DISPUTES

50.1.    Amicable settlement. Any discrepancies or disputes arising between
         TELKOM and PARTNER with respect to the execution of this AGREEMENT or
         all matters in connection with the implementation of this AGREEMENT or
         all related matters thereof shall be settled amicably between Parties
         based upon good faith.

50.2.    BANI. In the event that such disputes cannot be settled amicably within
         sixty (60) days, then the dispute shall be submitted to the Indonesian
         National Board of Arbitration (or "BANI") in Jakarta in accordance with
         rules and procedures of BANI. The governing law shall be the Indonesian
         law, while the proceeding language shall be in Bahasa Indonesia.

50.3.    Nature of BANI decision. 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 AGREEMENT shall remain
         valid and the respective Parties' obligations shall be completed until
         such dispute is declared to he settled.

                                                                              68

<PAGE>

ARTICLE 51
CORRESPONDENCES

All correspondences in connection with the implementation of this AGREEMENT
shall be made in Indonesian or English and addressed to:

FOR TELKOM:

1.  Head of Long Distance Division
    PT.TELEKOMUNIKASI INDONESIA, Tbk.
    TELKOM Building 2nd Floor
    Jl. Japati No.1
    Bandung 40133 - INDONESIA
    Phone     022-452 2317
    Fax       022-452 2321

2.  Head of TELKOM Construction Centre
    PT.TELEKOMUNIKASI INDONESIA, Tbk.
    TELKOM Building 2nd Floor
    Jl. Japati No.1
    Bandung 40133 - INDONESIA
    Phone     022-452 6417
    Fax       022-720 6530

FOR PARTNER:

PT. SIEMENS INDONESIA
Siemens Business Park
Building B Lantai 1
Jl. MT.Haryono Kavling 58-60
Jakarta 12780
INDONESIA
Phone    021-27509200
Fax      021-79178989
Att. Project Manager T-21 Backbone

ARTICLE 52
NOMINATED SUB-CONTRACTORS

It is agreed the parts of the WORKS of this AGREEMENT as detailed in the Scope
of Works attached hereto will be sub-contracted by PARTNER to its Nominated
Sub-Contractors.

The sub-contracted parts of the WORKS shall be invoiced by the PARTNER to TELKOM
and the payments against these invoices shall be directed to the PARTNER.

                                                                              69
<PAGE>

ARTICLE 53
MISCELLANEOUS

53.1.    Headings. All headings of the articles set forth in this AGREEMENT
         shall only be for convenience and therefore it shall not alter, add or
         affect certain meaning in the interpretation of this AGREEMENT.

53.2.    Languages. This AGREEMENT is provided in two (2) languages being
         Indonesian and English languages each of which shall have the same
         meaning, provided that in the event of discrepancy between them, then
         Indonesian language version shall prevail.

53.3.    PARTNER shall make by its own costs twenty six (26) copies of this
         AGREEMENT to be delivered to TELKOM for the control of implementation
         of the AGREEMENT and other related activities.

53.4.    The terms "PARTNER" and "PARTNERSHIP" are used for easy reference only
         and should not be interpreted or construed so as to imply the creation
         of any legal partnership between the Parties. Notwithstanding anything
         to the contrary, in no event shall either Party be deemed to be a
         partner or agent of the other party nor have any authority to act on
         behalf of the other party pursuant to this AGREEMENT.

53.5.    In the event any of the articles of this AGREEMENT is unenforceable,
         then such article shall be deleted and-shall be deemed to be of no
         force or effect. The Parties shall, to the extent possible, negotiate
         in good faith to agree upon an enforceable provision having a
         materially similar effect, and this AGREEMENT shall be amended
         accordingly.

                                                                              70

<PAGE>

ARTICLE 54
EFFECTIVE DATE OF CONTRACT (EDC)

This AGREEMENT shall be effective from the date signing of this AGREEMENT by
duly authorized Representatives of the Parties.

IN WITHNESS WHEREOF, this AGREEMENT is made in two (2) original and executed in
Jakarta by duly representatives of the Parties hereto in view of prevailing
laws, bearing sufficient stamp duties, each of which shall be binding and having
the same legal power.

                                                     For and on behalf of:
PT.TELEKOMUKASI INDONESIA, Tbk.                       SIEMENS CONSORTIUM

                                                           [STAMP]

         /s/ Kristiono                               /s/ Rolf Unterberger
         -------------                               --------------------
           KRISTIONO                                   ROLF UNTERBERGER
      PRESIDENT DIRECTOR                      DIRECTOR OF PT. SIEMENS INDONESIA

                                                     /s/ Herbert Fetting
                                                     -------------------
                                                        HERBERT FETTING
                                                 GENERAL MANAGER FINANCE AND
                                                   BUSINESS ADMINISTRATION

                                                                              71

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.21
<SEQUENCE>20
<FILENAME>u92256exv4w21.txt
<DESCRIPTION>EX-4.21 AM#1 TO THE DEVELOPMENT CONTRACT,AUG.22/02
<TEXT>
<PAGE>
                                                                    Exhibit 4.21



                                FIRST AMENDMENT
                                      FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                               JUNCTION DIVRE-II

                                    BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                         NO. PKS.155/HK.820/UTA-00/2002

                             DATED AUGUST 22, 2002
<PAGE>

                                 FIRST AMENDMENT
                                       FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-II
                                     BETWEEN
                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT. TELEKOMUNIKASI INDONESIA, Tbk.
                                       AND
                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                      NUMBER: PKS. 155 /HK.820/UTA-00/2002

On this TWENTY-SECOND day, of AUGUST, year, TWO THOUSAND TWO placed at Jakarta,
between the concerned parties:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, Tbk.,
         which has been announced in State Gazette of the Republic of Indonesia
         No. 5 dated January 17, 1992, additional State Gazette of the Republic
         of Indonesia No. 210, which has been several times changed and its
         latest announcement in State Gazette of the Republic of Indonesia No.
         92 dated November 17, 2000, supplement to State Gazette of the Republic
         of Indonesia No.336, having its address at Jalan Japati No. 1 Bandung
         40133, in this legal act represent by, TRI DJATMIKO, HEAD OF
         DEVELOPMENT DIVISION, based on the Power of Attorney of President
         Director Number : K.TEL. 107/HK510/UTA-00/02 dated 15 August 2002,
         hereinafter referred to as TELKOM.

II.      CONSORTIUM OLEX,- LUCENT - BRIMBUN, a consortium formed by Notaries
         Deed No. 9 dated 14th December 2001, in front of Notary Benny Djaja,
         SH, SE, MM., having its address at Wisma Bisnis Indonesia 15th Floor,
         Jl. Letjen S. Parman Kav. 12, Jakarta-11480 whereas in this legal act
         to be represented by FADJAR TJOANDA, as PRESIDENT DIRECTOR of PT Olex
         Cables Indonesia.

                                        1
<PAGE>

CONSORTIUM OLEX-LUCENT-BRIMBUN consists of:

a.       PT OLEX CABLES INDONESIA, having its address at Wisma Bisnis Indonesia,
         15 th Floor, Jakarta, as CONSORTIUM LEADER, hereinafter referred to as
         OLEX;

b.       PT LUCENT TECHNOLOGIES INDONESIA, having its address at Cibitung, as
         CONSORTIUM MEMBER, hereinafter referred to as LUCENT;

c.       PT BRIMBUN RAYA INDAH, having its address at Jakarta Barat, as
         CONSORTIUM MEMBER, hereinafter referred to BRIMBUN;

Hereinafter all together in this First Amendment referred to as PARTNER.

Considering the under mentioned as follows:

a.       whereas, TELKOM and PARTNER has been bound each other in Development
         Contract PSTN Excellence Regional Junction DIVRE II Number:
         PKS.14/HK810/UTA-00/2002 dated 8 February 2002, hereinafter referred to
         as "MAIN CONTRACT";

b.       whereas, based on the Official Note of DIRKUG to DIRNISJASTEL Number:
         C. Tel. 228/KU000/KUG-00/2002 dated 29 July 2002 concerning Financing
         of Project of PSTN Junction DIVRE II, the Board of Directors of TELKOM
         has decided that financing of Project of PSTN Junction DIVRE II will be
         financed by TELKOM;

c.       whereas, based on the Letter of DIRJAR to PARTNER Number: Tel.
         354/KUG-000/PEM-00/2002 dated 9 August 2002 concerning Financing of
         Project of PSTN Junction DIVRE II, PARTNER has been informed by TELKOM
         that financing of Project of PSTN Junction DIVRE II will be financed by
         TELKOM.

                                        2
<PAGE>

d.       whereas, based on the Official Note of DIRPRANTEK to KADIVPEM Number:
         C.TEL.16/LG000/TEK-30/2001 dated 7 February 2002 concerning The
         Responsibility of Project Implementation of Partnership Program of HPBB
         Sumatera, PSTN Excellence Junction Divre II and Divre V, KADIVPEM had
         been appointed to implement the development of PSTN Excelence Regional
         Junction DIVRE II;

e.       whereas, based on Minutes of Meeting dated, 21 August 2002, TELKOM and
         PARTNER agree that TELKOM will make payment at the period of 21 (twenty
         one) calendar days after date of invoice completely and valid receipt
         by TELKOM, should TELKOM fail to settle the payment in the period
         above, then TELKOM will be penaltized 17 % (seventeen percent) per year
         of the price of the delayed RING, total amount of this penalty shall
         not exceed 5 % (five percent).

Now, therefore, In consideration on the above mentioned, TELKOM and PARTNER
agree to amend some articles in the Main Contract subject to the following terms
and conditions:

                                    ARTICLE 1

TELKOM and PARTNER agree to amend letter m. sub-article (1) Article 1 of the
Main Contract, become the following condition:

m.       EFFECTIVE DATE OF CONTRACT (EDC) means the date when the last of the
         following event has occurred:

         i.       The Main Contract and this First Amendment has been signed
                  by both TELKOM and PARTNER.

         ii.      PARTNER's submission of Performance Bond to TELKOM.

         iii.     After PARTNER received a Confirmation Letter from TELKOM
                  concerning the Work should be started.

                                       3
<PAGE>

                                    ARTICLE 2

TELKOM and PARTNER agree to amend sub-article (1) Article 8 of the Main
Contract, become the following condition:

(1)      PARTNER shall give notice of the schedule of PROVISIONAL ACCEPTANCE
         TEST officially to TELKOM c.q DIVPEM at latest 14 (fourteen) calendar
         days prior to commencement of PROVISIONAL ACCEPTANCE TEST of each RING
         SYSTEM AFTER SUBMIT THE RESULT OF COMMISIONING TEST. TELKOM shall
         notify its approval for the notified schedule of PROVISIONAL
         ACCEPTENCE TEST within 7 (seven) calendar days after its receipt of
         the notice from PARTNER. TELKOM may propose other PROVISIONAL
         ACCEPTANCE TEST schedule which shall not be later than 7 (seven)
         calendar days after PARTNER's proposed date.

                                   ARTICLE 3

TELKOM and PARTNER agree to amend sub-article (2) Article 12 of the Main
Contract, become the following condition:

(2)      Authorization to supervise the Implementation during construction shall
         be done by TELKOM cq. DIVPEM.

                                    ARTICLE 4

TELKOM and PARTNER agree to amend Article 13 of the Main Contract, become the
following condition:

                                   Article 13
                                FIELD SUPERVISOR

TELKOM cq. DIVPEM will issue appointment letter of FIELD SUPERVISOR (WASPANG),
after PARTNER giving a written request to implement development:

                                       4
<PAGE>

                                    ARTICLE 5

TELKOM and PARTNER agree to amend Article 15 of the Main Contract, become the
following conditions:

                                   Article 15
                                     REPORT

(1)      PARTNER shall submit weekly report for the progress of Implementation
         which shall be approved by WASPANG (Field Supervisor) to TELKOM cq.
         DIVPEM based on implementation schedule and working weight Including
         technical problem or other problems.

(2)      PARTNER shall officially report all implementation activities every
         month to TELKOM cq. DIVPEM.

                                    ARTICLE 6

TELKOM and PARTNER agree to amend sub-article (4), (6) and (7), and delete
sub-article (8) Article 18 of the Main Contract, become the following
condition:

(4)      Payment as specified in sub-article (1), (2) and (3) of this Article
         shall be made by TELKOM to PARTNER by telegraphic transfer through;

         Bank Account, under the name of:

         PT. Olex Cables Indonesia
         Account No. : CM 052 GRBR (Rp.)
                       CM 052 GRBU(US$)
         Bank Name   : Bank Finconesla Jakarta
         Address     : Central Senayan I Lt. 6,
                       Jl. Asia Afrika No. 8
                       Jakarta - 10270

In accordance with the payment amount belongs to PARTNER's rights where the
bank transfer fee shall be imposed to PARTNER by auto deduction from the paid
amount.

In the event that PARTNER changes the Bank and Bank Account, the PARTNER should
report it in written to TELKOM cq. DIVPEM, a copy of which should be submitted
to AVP CASH MANAGEMENT CORPORATE OFFICE.

                                        5
<PAGE>

(6)      After fulfillment of above complete conditions mentioned in sub article
         (5) of the Article 18 of Main Contract, then TELKOM will make payment
         at latest 21 (twenty one) calendar days after date of invoice
         completely and valid receipt by TELKOM.

(7)      Should TELKOM fall to settle the payment as specified in sub-article
         (6) of this Article, then TELKOM will be charged 17 % (seventeen
         percent) per year of the price of the delayed RING, total amount of
         this charged shall not exceed 5 % (five percent).

                                    ARTICLE 7

TELKOM and PARTNER agree to amend sub-article (1) Article 20 of the Main
Contract, become the following condition:

(1)      PARTNER shall submit performance guarantee issued by Indonesian State
         Owned Bank or reputable International Bank amounting 5% (five percent)
         of total WORK Amount excluding 10% VAT to TELKOM c.q AVP CASH
         MANAGEMENT CORPORATE OFFICE.

                                    ARTICLE 8

TELKOM and PARTNER agree to amend sub-article (1) Article 33 of the Main
Contract, become the following condition:

(1)      Any correspondence including necessary notification shall be addressed
         to each parties concerned with following address and attention:

         TELKOM : DIVISI PEMBANGUNAN

         Adress : Gedung Grha Citra Caraka Lt. 5
                  Jl. Gatot Subroto 52
                  Jakarta-12710

         No. Tlp./Fax. : 021-5215513 / 021-5215197

                                        6
<PAGE>

         MITRA: PT. OLEX CABLES INDONESIA

         Adress : Wlsma Bisnis Indonesia Lt.5
                  JL.S. Parman Kav.12
                  Jakarta 11480

         No.Tlp./Fax.: 021-5357443 / 021-5357243

                                    ARTICLE 9

(1)      All attachment in this First Amendment shall be an unity that could not
         be separated and having equal legality and binding one to each other
         same as condition mentioned in Article of this First Amendment.

(2)      Attachment as mentioned in clause (1) of this Article consists of:

Attachment I:
       Official Note of DIRKUG to DIRNISJASTEL
       No. : C. Tel. 228/KU000/KUG-13/2002
       tanggal 29 Juli 2002.

Attachment II:
       Letter of DIRJAR to Consortium OLB No.:
       Tel. 354/KUG-000/PEM-00/2002 dated 9
       August 2002.

Attachment III:
       Official Note of DIRPRANTEK to KADIVPEM
       No. : C.TEL. 16/LG000/TEK-30/2001
       tanggal 7 Februari 2002.

Attachment IV:
       Minutes of Meeting dated 21 August 2002.

                                   ARTICLE 10

(1)      This First Amendment shall be effect as of the date after signing by
         both parties.

(2)      Articles and / or Attachments of the Main Contract which are not
         amended by this First Amendment, shall remain prevail and legally
         binding by both parties.

                                        7
<PAGE>

(3)      Copy from this Original Amendment was made in 25 (twenty five) copies
         by PARTNER on PARTNER's own cost for the purpose of supervision of
         implementation and others.

<Table>
<S>                                                      <C>
         PT. TELEKOMUNIKASI INDONESIA, Tbk,                     KONSORSIUM
                                                           OLEX-LUCENT-BRIMBUN,
                  /s/ Tri Djatmiko
              -----------------------                             [STAMP]

                    TRI DJATMIKO                            /s/ Fajar Tjoanda
             -------------------------                   -----------------------
             KEPALA DIVISI PEMBANGUNAN
                                                                FAJAR TJOANDA
                                                         -----------------------
                                                           PIMPINAN KONSORSIUM
</Table>










                                       8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.22
<SEQUENCE>21
<FILENAME>u92256exv4w22.txt
<DESCRIPTION>EX-4.22 AM#2 TO THE DEVELOPMENT CONTRACT,OCT.25/02
<TEXT>
<PAGE>
                                                                    Exhibit 4.22



                                SECOND AMENDMENT
                                      FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                               JUNCTION DIVRE-II

                                    BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                         NO. PKS.192/HK.820/UTA-00/2002

                             DATED October 25, 2002
<PAGE>

                                SECOND AMENDMENT
                                       FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-II
                                     BETWEEN
                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT. TELEKOMUNIKASI INDONESIA, TBK.
                                       AND
                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                      NUMBER : PKS. 192/HK.820/UTA-00/2002

On this TWENTY FIVE day, of OCTOBER year TWO THOUSAND TWO placed at Jakarta,
between the concerned parties:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, Tbk.,
         which has been announced in State Gazette of the Republic of Indonesia
         No. 5 dated January 17, 1992, additional State Gazette of the Republic
         of Indonesia No. 210, which has been several times changed and its
         latest announcement in State Gazette of the Republic of Indonesia No.
         45 dated May 4, 2002, supplement to State Gazette of the Republic of
         Indonesia No. 5495, having its address at Jalan Japati No. 1 Bandung
         40133, in this legal act represent by, TRI DJATMIKO, HEAD OF
         DEVELOPMENT DIVISION, based on the Power of Attorney of President
         Director Number : K.TEL. 107/HK510/UTA-00/02 dated 15 August 2002,
         hereinafter referred to as TELKOM.

II.      CONSORTIUM OLEX - LUCENT - BRIMBUN, a consortium formed by Notaries
         Deed No. 9 dated 14th December 2001, in front of Notary Benny Djaja,
         SH, SE, MM., having its address at Wisma Bisnis Indonesia 15th Floor,
         Jl. Letjen S. Parman Kav. 12, Jakarta-11480 whereas in this legal act
         to be represented by FADJAR TJOANDA, as President Director of PT. Olex
         Cables Indonesia,

                                       1
<PAGE>
         CONSORTIUM OLEX - LUCENT - BRIMBUN consist of:

         PT. OLEX CABLES INDONESIA, having its address at Wisma Bisnis Indonesia
         15th Floor, Jakarta, as CONSORTIUM LEADER, hereinafter referred to as
         OLEX.

         PT LUCENT TECHNOLOGIES INDONESIA, having its address at Tifa Building
         3th Floor, Jakarta, as CONSORTIUM MEMBER, hereinafter referred to as
         LUCENT.

         PT. BRIMBUN RAYA INDAH, having its address at Jakarta Barat, as
         CONSORTIUM MEMBER, hereinafter referred to as BRIMBUN.

         hereinafter all together in this Amendment referred to as PARTNER.

Considering the under mentioned as follows:

a.       whereas, TELKOM and PARTNER has been bound each other in Development
         Contract PSTN Excellence Regional Junction DIVRE II Number :
         PKS.14/HK810/UTA-00/2002 dated 8 February 2002, hereinafter referred to
         as "MAIN CONTRACT";

b.       whereas, TELKOM and PARTNER has changed some articles in the Main
         Contract as described in First Amendment for Development Contract PSTN
         Excellence Junction Divre-II Number : PKS.155/HK820/UTA-00/2002 dated
         22 August 2002, hereinafter referred to as "FIRST AMENDMENT";

c.       whereas, PARTNER has submitted the Performance Bond for PSTN Excellence
         Regional Junction Divre-II Project to TELKOM dated 19 September 2002
         (ATTACHMENT II);

d.       whereas, TELKOM has decided that the Work shall be effective as
         described in the letter Number : Tel. 144/TK000/PEM-40/2002 dated 16
         September 2002 (ATTACHMENT III);

                                        2

<PAGE>

e.       whereas, TELKOM and PARTNER has implemented Pre - Design Review Meeting
         (Pre-DRM) as described in ATTACHMENT XIII;

f.       whereas TELKOM and PARTNER has implemented Pre - Design Review
         Meeting (Pre-DRM) as described in ATTACHMENT XIV;

g.       whereas, TELKOM has agreed that the Work price based on the result of
         DRM as stated in letter Number : TEL606/LG270/PRM-00/2002 dated October
         21, 2002 (ATTACHMENT I);

Now, therefore, in consideration on the above mentioned, TELKOM and PARTNER
agree to amend some articles in the Main Contract and First Amendment subject to
the following terms and conditions:

                                    ARTICLE 1

To amend letter a. and delete letter f. sub-article (2) Article 2 (Scope of
Work) of the Main Contract, become the following condition :

a.       Implementation of PSTN Excellence Junction DIVRE -II in accordance with
         the result of survey, design and Design Review Meeting (DRM) as
         specified in ATTACHMENT XIV of this Amendment, which in principal,
         consists of development of System RINGs and other work:

         1)       RING X,

         2)       RING Y,

         3)       RING 1,

         4)       RING 2,

         5)       RING 3,

         6)       RING 4,

         7)       RING 5,

         8)       RING 6,

         9)       RING 7,

         10)      RING 8,

         11)      RING 9,

         12)      RING 10,

         13)      RING 11

         14)      RING 12

         15)      RING 13

                                        3

<PAGE>

         16)      RING 14

         17)      RING 15

         18)      Training (SDH & DXC)

         19)      Network Management Systems (NMS)

         20)      Spare

         21)      Supporting Facilities

                                    ARTICLE 2

To amend sub-article (1) and (2) Article 3(Contract Amount) of the Main
Contract, become the following condition:

(1)      Value of WORK for this Amendment is amounting US $ 26,240,958.85
         (TWENTY SIX MILLION, TWO HUNDRED FORTY THOUSAND, NINE HUNDRED FIFTY
         EIGHT AND EIGHTY FIVE CENTS US DOLLARS) and Rp. 110.762.409.000,- (ONE
         HUNDRED AND TEN BILLION, SEVEN HUNDRED AND SIXTY TWO MILLION, FOUR
         HUNDRED AND NINE THOUSAND RUPIAH) EXCLUDING 10% VAT, consists of:

<TABLE>
<CAPTION>
                                        US D                IDR               US D             IDR
                                      SEBELUM          SEBELUM PPn          SESUDAH        SESUDAH PPn
NO         (SCOPE OF WORK)            PPn 10%              10%              PPn 10%            10%
- --      ---------------------      -------------     ----------------    -------------  -----------------
<S>     <C>                        <C>               <C>                 <C>            <C>
 1      Ring X                      8,177,564.39     21,808,724,500,-     8,995,320.83   23.989.596.950,-
 2      Ring Y                      4,204,047.86     19.883.460.800,-     4.624.452,64   21.871.806.880,-
 3      Ring l                      2,754,164.26     16.461.817.700,-     3,029,580.69   18.107.999.470,-
 4      Ring 2                      1,134,022.00      2.330.941.700,-     1,247,424.20    2.564.035.870,-
 5      Ring 3                      1,105,277.00      2.406.408.500,-     1.215.804,70    2.647.049.350,-
 6      Ring 4                      1,755,768.00      3.119.467.500,-     1.931.344.80    3.431.414.250,-
 7      Ring 5                      1,439,308.62     13.938.915.500,-     1,583,239.49   15.332.807.050,-
 8      Ring 6                        318,340.00      1.046.903.200,-       350,174.00    1.151.593,520,-
 9      Ring 7                        480,409.00      2.380.266.900,-       528,449.90    2.618.293.590,-
10      Ring 8                         51,122.86      1.003.281.100,-        56,235.15    1.103.609.210,-
11      Ring 9                        286,296.00      1.009.257.500,-       314,925.60    1.110.183.250,-
12      Ring 10                       242,580.42      1.630.089.300,-       266,838.46    1.793.098.230,-
13      Ring 11                       526,171.29      1.448.933.100,-       578,788.42    1.593.826.410,-
14      Ring 12                       345,060.11      1.946.302.900,-       379,566.12    2.140.933.190,-
15      Ring 13                       264,170.24      1.528.089.700,-       290,587.27    1.680.898.670,-
16      Ring 14                       500,096.63      5.897.287.300,-       550,106.29    6.487.016.030,-
17      Ring 15                       760,960.16      7.766.009.900,-       837,056.17    8.542.610.890,-
18      Training SDH                  118,394.00                            130,233.40
19      Training DXC                                    312.000.000,-                       343.200.000,-
20      NMS                         1,364,093.00      4.602.492.100,-     1,500,502.30    5.062.741.310,-
21      Spare                         413,113.00         55.459.600,-       454,424.30       61.005.560,-
22      Supporting Facilities                           186.300.200                         204.930.220,-
                                   -------------     ---------------     -------------  ---------------
        TOTAL PROYEK               26,240,958.85     110.762.409.000,    28,865,054.73  121.838.649.900
                                   -------------     ---------------     -------------  ---------------
</TABLE>

                                        4
<PAGE>

(2)  Value of WORK for this Amendment is ON SITE price basis and LANDED COST,
     includes fee for delivery of GOODS and SERVICES under PARTNER'S
     responsibility, also includes packing fee, freight, insurance, Taxes,
     Stamp-duty, and other duties in accordance with Government Rules as
     specified in detailed in ATTACHMENT XI of this Amendment.

                                    ARTICLE 3

To amend sub-article (1) and add 1 (one)sub-article, become sub-article (2) of
Article 4 (Contract Implementation Period) of the Main Contract, become the
following condition:

(1)  TELKOM and PARTNER agree to implement the WORK under the main Contract,
     First Amendment and this Amendment, based on schedule as specified in
     ATTACHMENT IV, which finalization of the Work as summarized below:

<TABLE>
<CAPTION>
NO        SCOPE OF WORK                            FINISH
- --        -------------                            ------
<S>       <C>                                  <C>
 1          Ring X                             27 Desember 2002
 2          Ring Y                               26 Maret 2003
 3          Ring 1                               27 Juni 2003
 4          Ring 2                              22 Agustus 2003
 5          Ring 3                              22 Agustus 2003
 6          Ring 4                              7 November 2003
 7          Ring 5                               18 Juli 2003
 8          Ring 6                             19 Desember 2003
 9          Ring 7                              9 Januari 2004
10          Ring 8                             14 November 2003
11          Ring 9                             20 Februari 2004
12          Ring 10                            20 Februari 2004
13          Ring 11                            20 Februari 2004
14          Ring 12                              12 Maret 2004
15          Ring 13                              19 Maret 2004
16          Ring 14                              19 Maret 2004
17          Ring 15                              19 Maret 2004
18          Training SDH                         25 Juni 2003
19          Training DXC                       22 Januari 2003
20          NMS                                  31 Maret 2003
21          Spare                                26 Maret 2004
22          Supporting Facilities              20 November 2002
</TABLE>

                                       5
<PAGE>
     a.   Acceptance test and integration of WORK to existing equipment in
          accordance with agrred test procedure by both parties as specified in
          ATTACHMENT XIV this Amendment.

(2)  The completion of the whole work as described in sub-article (1) of this
     Article is stated by signing of documents as follows:

     a.   Provisional Acceptance Certificate (PAC), for acceptance of each RING
          system, Network or Management System (NMS) or Supporting Facilities,

     b.   Provisional Acceptance Certificate (PAC) for acceptance of Spare,

     c.   Completion Certificate of Training.

                                    ARTICLE 4

To amend letter c. sub-article (1) Article 1 and letter a. sub-article (2)
Article 5 (Right and Obligation) of the Main Contract, become the following
condition:

(1)  c.  To make the payment of the development in accordance with Article 2 of
         this Amendment.

(2)  a.  To receive the payment of the development in accordance with Article 2
         of this Amendment.

     c.  To conduct a training for TELKOM's employees as specified in
         ATTACHMENT VIII of this Amendment in which the training cost has
         already included in this Contract.

                                    ARTICLE 5

To amend sub-article (7) Article 6 of the First Amendment, become the following
condition :

(7)  Should TELKOM fail to settle the payment as specified in sub-article (2) of
     this Amendment, then TELKOM will be charged with on interest rate 17 %
     (seventeen percent) per year of the price excluding VAT 10 % of the delayed
     payment of the

                                       6
<PAGE>
     RING, Network Management System (NMS), Training, Spare or Supporting
     Facilities, total amount of this charged shall not exceed 5 % (five
     percent).

                                    ARTICLE 6

To amend letter a. Article 7 (Conditions for Implementation Development) of the
Main Contract, become the following condition :

a.   Technical Specificationsn aand TELKOM's requirements according to
     ATTACHMENT X of this Amendment.

                                    ARTICLE 7

To amend sub-article (2) Article 8 (Acceptance Test) of the Main Contract,
become the following condition:

(2)  Acceptance Test will be conducted in accordance with agreed procedure and
     measurement / parameter as specified in ATTACHMENT XIV of this Amendment.
     TELKOM will issue the Provisional Acceptance Test based on good and
     acceptable result.

                                    ARTICLE 8

To amend sub-article (1) Article 11 (Warranty Period) of the Main Contract,
become the following condition:

(1)  Warranty Period of the WORK for each RING, Network Management System (NMS)
     or Supporting Facilities under the Main Contract, First Amendment and this
     Amendment is 1 (one) year from signing date of Provisional Acceptance Test
     (PAC).

                                    ARTICLE 9

To amend sub-article (1), delete sub-article (3), amend sub-article (4), and
amend letters a, d, e, sub-article (5) Article 18 (Payment) of the Main
Contract, become the following condition:

                                       7
<PAGE>

(1)  Payment will be made by TELKOM CQ. GM AREA II DIVPEM after each RING as
     specified in sub-article (1) Article 3 of this Amendment has been completed
     and will be operated, also after the issuance of PAC for relevant RING,
     Network Management System (NMS) or Supporting Facilities which has been
     completed, and PAC for Spare and Completion Certificater of Training as
     specified in ATTACHMENT IV of this Amendment.

(4)  In accordance with PARTNER'S request as specified in ATTACHMENT VI of this
     Amendment, payment as specified In Article 2 of this Amendment shall be
     made by TELKOM cq, Divpem via Corporate Office's account to PARTNER by
     telegraphic transfer through :

     a.   BANK ACCOUNT, on behalf OF:

          PT Olex Cables Indonesia
          Account No. : 102-0102001309 (IDR)
          Bank name   : Bank Mandiri
          Address     : Sub - Jakarta Sudirman

          Account No. :  070-0002156268 (USD)
          Bank name   :  Bank Mandiri
          Address     :  Plaza Mandiri Branch
                         Jakarta

     b.   Bank Account, on behalf of:

          PT LucentTechnologies Network Systems
          Indonesia
          Account No. : 103248035 (IDR)
                        103248515 (USD
          Bank Name   : CITIBANK
          Address     : Landmark, Jakarta

     c.   Bank Account, on behalf of:

          PT Brimbun Raya Indah
          Account No  : 60.000001420.001 (IDR)
          Bank Name   : BNI
          Address     : Dukuh Bawah Branch
                        Jakarta

In accordance with the payment amount belongs to the right of the names above,
where the bank transfer fee shall be imposed to the names above by auto
deduction from the paid amount as specified in ATTACHMENT V and XI of this
Amendment.

                                       8
<PAGE>

In the event that each name changes the Bank and Bank Account, they should
report it in written to TELKOM cq. KA DIVPEM cq. Kabid Adkug Divpem.


(5)  a. 1 (one) Original and 2 (two) copies Simple Receipt;

     d.   1 (one) copy of Quality Assurance Guarantee for relevant RING, or
          Network Management System (NMS) or Supporting Facilities.

     e.   1 (satu) Original and 3 (three) copies PAC for relevant RING, or
          Network management System (NMS) or Supporting facilities, PAC for
          Spare or Completion Certificate for Training;

                                   ARTICLE 10

To amend sub-article (1) Article 19 (Taxes and Duties) of the Main Contract,
become the following condition :

(1)  CONTRACT amount as mentioned in sub-article (1) Article 2 of this Amendment
     EXCLUDING VAT 10 %.

                                   ARTICLE 11

To amend sub-article (1) Article 7 of the First Amendment, become the fallowing
condition :

(1)  PARTNER shall submit. Performance Guarantee issued by an Indonesia State
     Owned Bank or a reputable International Bank or Lost Insurance Company
     amounting 5 % (five percent) of total WORK amount to TELKOM cq. KABID ADKUG
     DIVPEM:

                                   ARTICLE 12

To amend sub-article (1) Article 21 (Quality Assurance Guarantee) of the main
Contract, become the following condition:

                                       9
<PAGE>

(1)      PARTNER is responsible to submit Maintenance Guarantee Bond to TELKOM
         cq. Kabid Adkug DIVPEM issued by an Indonesian State Owned Bank or a
         reputable International Bank amounting 5 % (five percent) excluded VAT
         10 % of the RING, Network Management System or Supporting Facilities
         which has been completed totally, and having validity for 1 (one) year
         after signing date of Provisional Acceptance Certificate (PAC).

                                   ARTICLE 13

TELKOM and PARTNER agree to amend sub-article (1) and (3), and delete
sub-article (2) Article 22 (Insurance) of the Main Contract, become the
following condition:

(1)      PARTNER is responsible to cover all risks of delivery, storage and
         installation of GOODS and SERVICES until the issuance of PAC for and on
         behalf of TELKOM as beneficiary.

(3)      At the time of submission of payment, copy of Insurance Policy or Cover
         Note should be attached.

                                   ARTICLE 14

To add 1 (one) sub-article in Article 23 (Quality Assurance) of the Main
Contract, shall be sub-article (5), become the following condition:

(5)      PARTNER is responsible to submit a Statement for all guarantee as
         specified in sub-article (1), (2), (3), and (4) Article 23 of the main
         Contract to TELKOM cq. KADIVPEM.

                                   ARTICLE 15

To amend sub-article (1) Article 38 (Penalty) of the Main Contract, become the
following condition:

(1)      In case PARTNER could not complete the WORK per RING, Network
         Management System, Spare, Training or Supporting Facilities as its
         obligation in accordance with

                                       10
<PAGE>

         the implementation schedule as specified in Article 3 of this
         Amendment, then PARTNER will be penaltized 10/00 (one per thousand) per
         day of the delayed work. However, total amount of this penalty shall
         not exceed 5 % (five percent.)

                                   ARTICLE 16

To delete Article 30 (System Support) of the Main Contract.

                                   ARTICLE 17

All attachment as follows shall be an unity that could not be separated of this
Amendment, consist of:

Attachment I :
         TELKOM'S approval letter

Attachment II:
         Performance Guarantee

Attachment III:
         TELKOM's Letter of Intent

Attachment IV :
         Time Schedule

Attachment V
         Disbursement Schedule

Attachment VI :
         OLB'S Letter

Attachment VII :
         Minutes of Meeting of Clarification and Negotiation of New Item

Attachment VIII :
         Training Document

Attachment IX :
         Specimen of Signature

Attachment X :
         Scope of Work

Attachment XI :
         Price Table

                                       11
<PAGE>

Attachment XII :
         Site Survey Report

Attachment XIII:
         Result of Pre-DRM

Attachment XIV:
         Result of DRM

                                   ARTICLE 18

(1)      This Amendment shall be effect as of the date after signing by both
         parties.

(2)      Articles and / or Attachments of the Main Contract and First Amendment
         which are not amended by this Amendment, shall remain prevail and
         legally binding by both parties.

(3)      Copy from this Original Amendment was made in 25 (twenty five) copies
         by PARTNER on PARTNER's own cost for the purpose of supervision of
         implementation and others.

<Table>
<S>                                                        <C>

          PT. TELEKOMUNIKASI INDONESIA, Tbk,                     KONSORSIUM
                                                            OLEX-LUCENT-BRIMBUN,
                   /s/ Tri Djatmiko
                   ----------------                                [STAMP]

                     TRI DJATMIKO                            /s/ Fadjar Tjoanda
               ------------------------                      ------------------
               KEPAL DIVISI PEMBANGUNAN
                                                               FADJAR TJOANDA
                                                             -------------------
                                                             PIMPINAN KONSORSIUM
</Table>

                                       12

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.23
<SEQUENCE>22
<FILENAME>u92256exv4w23.txt
<DESCRIPTION>EX-4.23 AM#3 TO THE DEVELOPMENT CONTRACT,DEC.20/02
<TEXT>
<PAGE>
                                                                    Exhibit 4.23


                                THIRD AMENDMENT
                                      FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                               JUNCTION DIVRE-II

                                    BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                         NO. PKS.121/HK.820/PEM-00/2002

                            DATED DECEMBER 20, 2002
<PAGE>

                                 THIRD AMENDMENT
                                       FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-II
                                     BETWEEN
                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT. TELEKOMUNIKASI INDONESIA, TBK.
                                       AND
                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                       NUMBER: PKS.121/HK.820/PEM-00/2002

On this TWENTIETH day of DECEMBER year TWO THOUSAND TWO placed at Jakarta,
between the parties :

I.       PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, Tbk.,
         telecommunications services and network provider established and
         incorporated under the law of the Repbulic of Indonesia having its
         registered office at Jalan Japati Number 1 Bandung 40133, based on the
         Power of Attorney of President Director Number : K.TEL
         107/HK510/UTA-00/02 dated 15 August 2002 in this Amendment duly
         represented by TRI DJATMIKO, in his capacity AS HEAD OF DEVELOPMENT
         DIVISION, hereinafter referred to as TELKOM.

II.      CONSORTIUM OLEX - LUCENT - BRIMBUN, a consortium formed by Notaries
         Deed No. 9 dated 14th December 2001, in front of Notary Benny Djaja,
         SH, SE, MM., having its address at Wisma Bisnis Indonesia 15th Floor,
         Jl. Lerjen S. Parman Kav. 12, Jakarta-11480 whereas in this legal act
         to be represented by FADJAR TJOANDA, as President Director of PT. Olex
         Cables Indonesia,

         CONSORTIUM OLEX - LUCENT - BRIMBUN consist of:

<PAGE>

         PT. OLEX CABLES INDONESIA, having its address at Wisma Bisnis Indonesia
         15th Floor, Jakarta, as CONSORTIUM LEADER, hereinafter referred to as
         OLEX.

         PT LUCENT TECHNOLOGIES INDONESIA, having its address at Tifa Building
         3th Floor, Jakarta, as CONSORTIUM MEMBER, hereinafter referred to as
         LUCENT.

         PT. BRIMBUN RAYA INDAH, having its address at Jakarta Barat, as
         CONSORTIUM MEMBER, hereinafter referred to as BRIMBUN.

         hereinafter all together in this Amendment referred to as PARTNER.

By first taking into consideration of the following matters:

a.       whereas, TELKOM and PARTNER has been bound each other in Development
         Contract PSTN Excellence Regional Junction DIVRE II Number:
         PKS.14/HK.810/UTA-00/2002 dated 8 February 2002, hereinafter referred
         to as "MAIN CONTRACT";

         b.       whereas, TELKOM and PARTNER has changed some articles in the
                  Main Contract as described in First Amendment for Development
                  Contract PSTN Excellence Regional Junction Divre-II Number :
                  PKS. l55/HK.820/UTA-00/2002 dated 22 August 2002, hereinafter
                  referred to as "FIRST AMENDMENT";

         c.       whereas, TELKOM and PARTNER has changed some articles in the
                  Main Contract and First Amendment as described in Second
                  Amendment for Development Contract PSTN Excellence Regional
                  Junction Divre-II Number: PKS. l92/HK.820/UTA-00/2002 dated 25
                  October 2002, hereinafter referred to as "SECOND AMENDMENT";

                                        2

<PAGE>

         d.       whereas, in the implementation of it and in order to optimize
                  the Project, some additions and reductions of works are
                  avoidable as have been depicted in the Minute of Meeting of
                  ATTACHMENT III AND ATTACHMENT IV.

After having taken into consideration the above matters, TELKOM and PARTNER have
agreed to amend the provisions stipulated in the Main Contract, First Amendment,
and Second Amendment in accordance with the following terms and conditions:

                                    ARTICLE 1
                                  SCOPE OF WORK

To Amend letter a sub Article ( 2 ) Article 1 (Scope of Work) of the second
Amendment become the following condition:

a.       Implementation of PSTN Excellence Junction DIVRE-II in accordance with
         the result of survey, design and Design Review Meeting (DRM) as
         specified in ATTACHMENT I of this Amendment, which in principal,
         consists of development of System RINGs and other work:

         1)       RING   X,
         2)       RING   Y,
         3)       RING   1,
         4)       RING   2,
         5)       RING   3,
         6)       RTN6   4,
         7)       RING   5,
         8)       RING   6,
         9)       RING   7,
         10)      RING   8,
         11)      RING   9,
         12)      RING  10,
         13)      RING  11
         14)      RING  12
         15)      RING  13
         16)      RING  14
         17)      RING  15
         18)      Network Management Systems (NMS)
         19)      Spare
         20)      Training DXC
         21)      Training SDH
         22)      Supporting Facilities

                                        3

<PAGE>

                                    ARTICLE 2
                                 CONTRACT AMOUNT

To amend sub-article (1) and (2) Article 2 (Contract Amount) of the Second
Amendment become as follows;

(1)      Value of WORK for this Amendment is amounting USD$26,244,788.53 (TWENTY
         SIX MILLION TWO HUNDRED FORTY FOUR THOUSAND SEVEN HUNDRED EIGHTY EIGHT
         US DOLLAR AND FIFTY THREE CENTS) AND RP. 110,281,732,400 (ONE HUNDRED
         TEN BILLION TWO HUNDRED EIGHTY ONE MILLION SEVEN HUNDRED THIRTY TWO
         THOUSAND FOUR HUNDRED RUPIAH) EXCLUDING 10% VAT consists of:

                                        4

<PAGE>

<TABLE>
<CAPTION>
                                 US D                  IDR                   US D               IDR
                               SEBELUM              SEBELUM PPn             SESUDAH          SESUDAH PPn
NO      (SCOPE OF WORK)        PPn 10%                  10%                 PPn 10%             10%
- -----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>                 <C>                      <C>             <C>
1    Ring X                  8,163,779.07        21,841,279,800.00        8,980,156.98    24,025,407,760.00
2    Ring Y                  4,327,516.66        19,312,515,100.00        4,760,268.54    21,243,766,610.00
3    Ring 1                  2,704,036.26        16,447,514,600.00        2,974,439.89    18,092,266,060.00
4    Ring 2                  1,134,022.00         2,330,941,700.00        1,247,424.20     2,564,035,870.00
5    Ring 3                  1,105,277.00         2,406,408,500.00        1,215,804.70     2,647,049,350.00
6    Ring 4                  1,755,768.00         3,119,467,500.00        1,931,344.80     3,431,414,250.00
7    Ring 5                  1,439,308.62        13,935,903,500.00        1,583,239.49    15,329,493,850.00
8    Ring 6                    290,477.00         1,045,649,800.00          319,524.70     1,150,214,780.00
9    Ring 7                    452,546.00         2,379,013,500.00          497,000.60     2,616,914,850.00
10   Ring 8                     51,122.86         1,003,281,100.00           56,235.15     1,103,609,210.00
11   Ring 9                    286,296.00         1,009,257,500.00          314,925.60     1,110,183,250.00
12   Ring 10                   242,580.42         1,630,089,300.00          266,838.46     1,793,098,230.00
13   Ring 11                   526,171.29         1,448,933,100.00          578,788.42     1,593,826,410.00
14   Ring 12                   345,060.11         1,946,302,900.00          379,566.12     2,140,933,190.00
15   Ring 13                   264,170.24         1,528,089,700.00          290,587.27     1,680,898,670.00
16   Ring 14                   500,096.63         5,897,287,300.00          550,106.29     6,487,016,030.00
17   Ring 15                   760,960.16         7,766,009,900.00          837,056.17     8,542,610,890.00
18   NMS                     1,364,093.00         4,602,492,100.00        1,500,502.30     5,062,741,310.00
19   Spare                     413,113.00            55,459,600.00          454,424.30        61,005,560.00
20   Supporting Facilities              -           263,835,900.00                   -       290,219,490.00
21   Training SDH              118,394.00                        -          130,233.40                    -
22   Training DXC                       -           312,000,000.00                   -       343,200,000.00
                            -------------       ------------------       -------------   ------------------
     TOTAL PROYEK           26,244,788.53       110,281,732,400.00       28,869,267.38   121,309,905,640.00
                            -------------       ------------------       -------------   ------------------
</TABLE>

(2)  Value of the WORK for this Amendment is as specified in detailed in
     Attachment I of this Amendment.

                                       5
<PAGE>

                                   ARTICLE 3
                         CONTRACT IMPLEMENTATION PERIOD

         To amend sub-article (1) of Article 3 (Contract Implementation Period)
of the Second Amendment, becomes as follows:

(1)      TELKOM and PARTNER agree to implement the WORK under Article 1(Scope of
         Work) of this Amendment, which finalization of the Work as summarized
         below:

<TABLE>
<CAPTION>
 No          Scope of Work                                 Finish
- -----------------------------------------------------------------------
<S>       <C>                                        <C>
 1        Ring X                                     27 December 2002
 2        Ring Y                                       26 March 2003
 3        Ring 1                                       27 June 2003
 4        Ring 2                                      22 August 2003
 5        Ring 3                                      22 August 2003
 6        Ring 4                                      7 November 2003
 7        Ring 5                                       18 July 2003
 8        Ring 6                                     19 December 2003
 9        Ring 7                                      9 January 2004
10        Ring 8                                     14 November 2003
11        Ring 9                                     20 February 2004
12        Ring 10                                    20 February 2004
13        Ring 11                                    20 February 2004
14        Ring 12                                      12 March 2004
15        Ring 13                                      19 March 2004
16        Ring 14                                      19 March 2004
17        Ring 15                                       19 March 2004
18        NMS                                          31 March 2003
19        Spare                                        26 March 2004
20        Supporting Facilities                      30 November 2002
21        Training SDH                                 25 July 2003
22        Training DXC                               05 February 2003
</TABLE>

                                   ARTICLE 4
                                    PAYMENT

To amend sub-article (4) latest sentence of Article 9 (Payment) of the Second
Amendment, become as follows:

In accordence with the payment amount belongs to the right of the names above,
where the bank transfer fee shall be imposed to the names above by auto
deduction from the paid amount as specified in Attachment I and Attachment VI of
this Amendment.

<PAGE>

                                    ARTICLE 5
                           QUALITY ASSURANCE GUARANTEE

To amend sub-article (1) Article 12 (Quality Assurance Guarantee) or the second
Amendment, become the following condition :

(1)      PARTNER is responsible to submit Maintenance Guarantee Bond to TELKOM
         cq. GM DIVPEM AREA II Jakarta issued by an Indonesian State Owned Bank
         or a reputable International Bank amounting 5 % (five percent) of
         Contract Amount excluded VAT 10 % of the Work of the RING, Network
         Management System (NMS) or Supporting Facilities which has been
         completed totally as discribed in Article 2 of this Amendment and
         having validity for 1 (one) year after signing date or Provisional
         Acceptance Certificate (PAC).

                                    ARTICLE 6
                                   ATTACHMENT

All attachment as follows shall be an unity that could not be separated of this
Amendment, consist of :

Attachment I:
         BoQ and Price Table of DRM

Attachment II:
         Telkom's approval letter

Attachment III :
         Minutes OF Meetings and Clarification of Supporting Facilities

Attachment IV:
         Clarifications of Addition and Reduction of Work

Attachment V:
         Telkom's approval on Extention Implementation for Supporting Facilities
         and Training DXC/LC

Attachment VI :
         Disbursement Plan

                                        7

<PAGE>

                                    ARTICLE 7
                                     OTHERS

(1)      This Amendment shall become effective as of the date after signing by
         both parties.

(2)      Articles and / or Attachments of the Main Contract, first Amendment and
         Second Amendment which are not emended by this Amendment, shall remain
         prevail and legally binding to both parties.

(3)      Copy from this Original Amendment was made in 25 (twenty five) copies
         by PARTNER on PARTNER's own cost for the purpose of supervision of
         Implementation and others.

In witness whereof, both parties have agreed to sign this Amendment as the Third
Amendment.

Signed by, for and on behalf of:

<TABLE>
<S>                                               <C>
PT. TELEKOMUNIKASI INDONESIA, Tbk,                     KONSORSIUM
                                                  OLEX-LUCENT-BRIMBUN,
        /s/ Tri Djatmiko
        ----------------                                [STAMP]

          TRI DJATMIKO                             /s/ Fadjar Tjoanda
    ------------------------                       ------------------
    KEPAL DIVISI PEMBANGUNAN
                                                     FADJAR TJOANDA
                                                   -------------------
                                                   PIMPINAN KONSORSIUM
</TABLE>

                                        8


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.24
<SEQUENCE>23
<FILENAME>u92256exv4w24.txt
<DESCRIPTION>EX-4.24 AM#4 TO THE DEVELOPMENT CONTRACT,MAR.20/03
<TEXT>
<PAGE>
                                                                    Exhibit 4.24


                                FOURTH AMENDMENT
                                      FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                               JUNCTION DIVRE-II

                                    BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                         NO. PKS.21/HK.820/PEM-00/2003

                              DATED MARCH 20, 2003
<PAGE>

                                FOURTH AMENDMENT
                                       FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-II
                                     BETWEEN
                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT. TELEKOMUNIKASI INDONESIA, TBK.
                                       AND
                         CONSORTIUM OLEX-LUCENT-BRIMBUN
                       NOMOR: PKS. 21/HK.820/PEM-00/2003

On this TWENTIETH day of MARCH, year TWO THOUSAND THREE placed at jakarta,
between the concerned parties:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, TBK.,
         telecommunications services and network provider established and
         incoporated under the law of Republic of Indonesia, having its address
         at jalan japati No. 1 Bandung 40133, in this legal act represent by,
         TRI DJATMIKO, HEAD OF DEVELOPMENT DIVISION, based on the Power of
         Attorney of President Director Number : K.TEL. 107/HK510/UTA-00/02
         dated 15 August 2002, hereinafter referred to as TELKOM.

II.      CONSORTIUM OLEX - LUCENT - BRIMBUN, a consortium formed by Notaries
         Deed No. 9 DATED 14th December 2001, in front OF Notary Benny Djaja,
         SH, SE, MM., having its address at Wisma Bisnis Indonesia 15th Floor,
         JL. Letjen S. Parman Kav. 12, Jakarta-11480 whereas in this legal act
         to be represented by FADJAR TJOANDA, as President Director OF PT. Olex
         Cables Indonesia,

         CONSORTIUM OLEX - LUCENT - BRIMBUN consist of:

         PT. OLEX CABLES INDONESIA, having its address at Wisma Bisnis Indonesia
         15th Floor, Jakarta, as CONSORTIUM LEADER, hereinafter referred to as
         OLEX.

                                        1
<PAGE>

         PT LUCENT TECHNOLOGIES INDONESIA, having its address at Tifa Building
         3rd Floor, Jakarta, as CONSORTIUM MEMBER, hereinafter referred to as
         LUCENT.

         PT. BRIMBUN RAYA INDAH, having its address at Jakarta Barat, as
         CONSORTIUM MEMBER, hereinafter referred to as BRIMBUN.

         hereinafter all together in this Amendment referred to as PARTNER.

By first taking into Consideration of the following matters:

a.       whereas, TELKOM and PARTNER has been bound each other in Development
         Contract PSTN Excellence Regional Junction DIVRE II Number:
         PKS.14/HK810/UTA-00/2002 dated 8 February 2002, hereinafter referred to
         as "MAIN CONTRACT".

b.       whereas, TELKOM and PARTNER has changed some articles in the Main
         Contract with the first Amendment Nomor PKS. 155/HK-820/UTA-00/2002
         dated August 22, 2002, hereinafter referred to as "FIRST AMENDMENT";
         Second Amendment Nomor PKS. 192/HK-820/UTA-00/2002 dated October 25,
         2002, hereinafter referred to as "SECOND AMENDMENT"; Third Amendment
         Nomor PKS. 121/HK-820/PEM-00/2002 dated December 20, 2002, hereinafter
         referred to as "THIRD AMENDMENT".

c.       whereas, TELKOM and PARTNER have agreed to amend the Scope of Work and
         the Period of Implementation Time for several RINGs;

d.       whereas TEKOM with it's Letter number : Tel. 232/LG.270/PEM-99/2003
         dated March 19,2003 has agreed with Amendment IV;

                                        2
<PAGE>

After having taken into consideration the above matters, TELKOM and PARTNER
have agreed to amend the provisions stipulated in the Main Contract, First
Amendment, Second Amendment and third Amendment in accordance with the following
terms and conditions :

                                    ARTICLE 1
                                  SCOPE OF WORK

(1)      TELKOM and PARTNER have agreed to amend the Bill of Quantity (BoQ) of
         the scope of work and added the new RING that was ACCELERATED OF RING
         Y;

(2)      Scope of Work based on this Amendment as specified in detail as stated
         in attachment-II of this Amendment.

                                    ARTICLE 2
                                 CONTRACT AMOUNT

(1).     The contract price based on this Amendment including VAT, insurance and
         other taxes based on the law of Indonesia as follows :

         -    US $ 28,806,714.68 (Twenty eight million eight hundred six
              thousand seven hundred forteen United States Dollar and
              sixty-eight cents) and

         -    RP. 122.488.631.870,- (One hundred twenty-two billion four hundred
              eighty-eight million six hundred thirty-one thousand eight hundred
              seventy Indonesian Rupiah)

(2).     The contract price per-ring system and it's breakdown as stated in
         appendix II of this Amendment.

                                        3
<PAGE>

                                    ARTICLE 3
                           TIME IMPLEMENTATION PERIOD

(1)      TELKOM and PARTNER have agreed to amend the Period of Time
         Implementation for several RINGs, and the last RING should be completed
         on March 19, 2004.

(2)      The Schedulle of Time implementation for each RINGS as specified in
         detail as mentioned in Attachment-III of this Amendment.

                                    ARTICLE 4
                                   ATTACHMENT

All attachment as follows shall be an unity that could not be separated of this
Amendment consist of:

Attachment-I :

         Approval letter from TELKOM

Attachment-II :

         Price summary Schedule

Attachment-III :

         Implementation Schedule

Attachment-IV:

         Disburment Plan

Attachment-V:

         Minutes of Meeting (Design Review Meeting, Clarification & Negotiation)

                                    ARTICLE 5
                                     OTHERS

(1)      This Amendment shall become effective as of the date after signing by
         both parties.

(2)      Articles and / or Attachments of the Main Contract and its Amendments
         which are not amended by this Amendment, shall remain prevail and
         legally binding by both parties.

                                        4
<PAGE>

(3)      Copy from this Original Amendment was made in 25 (twenty five) copies
         by PARTNER on PARTNER'S own cost for the purpose of supervision of
         implementation and others.

  PT. TELEKOMUNIKASI INDONESIA, Tbk                       KONSORSIUM
                                                     OLEX-LUCENT BRIMBUN,

                                                          [STAMPED]

  By: /s/ Tri Djatmiko                                By: /s/ Fadjar Tjoanda
      -------------------                                 ----------------------
       TRI DJATMIKO                                         FADJAR TJOANDA
 KEPALA DIVISI PEMBANGUNAN                                PIMPINAN KONSORSIUM

                                        5

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.25
<SEQUENCE>24
<FILENAME>u92256exv4w25.txt
<DESCRIPTION>EX-4.25 AM#5 TO THE DEVELOPMENT CONTRACT,JUNE26/03
<TEXT>
<PAGE>
                                                                    EXHIBIT 4.25



                                FIFTH AMENDMENT
                                      FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                               JUNCTION DIVRE-II

                                    BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                         No. PKS.50/HK.820/TCC-00/2003

                              DATED JUNE 26, 2003

<PAGE>

                                 FIFTH AMENDMENT
                                       FOR
                              DEVELOPMENT CONTRACT
                            PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-II
                                     BETWEEN
                         PERUSAHAAN PERSEROAN (PERSERO)
                       PT. TELEKOMUNIKASI INDONESIA, Tbk.
                                       AND
                         CONSORTIUM OLEX-LUCENT-BRIMBUN

                       NUMBER: PKS. 50/HK.820/TCC-00/2003

On this TWENTY-SIXTH day of JUNE, year TWO THOUSAND THREE, placed at Jakarta,
between the concerned parties:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, Tbk.,
         telecommunications services and network provider established and
         incorporated under the law of Republic of Indonesia, having its address
         at Jalan Japati No. 1 Bandung 40133, in this legal act represent by,
         TRI DJATMIKO, HEAD OF CONSTRUCTION CENTER, based on the Power of
         Attorney of President Director Number : K.TEL. 107/HK510/UTA-00/02
         dated 15 August 2002, hereinafter referred to as TELKOM.

II.      CONSORTIUM OLEX - LUCENT - BRIMBUN, a consortium formed by Notaries
         Deed No. 9 dated 14th December 2001, in front of Notary Benny Djaja,
         SH, SE, MM., having its address at Wisma Bisnis Indonesia 15th Floor,
         Jl. Letjen S. Parman Kav. 12, Jakarta-11480 whereas in this legal
         act to be represented by FADJAR TJOANDA, as President Director of
         PT. Olax Cables Indonesia, based on the Letter of Authorization from
         PT Lucent Technologies Indonesia and PT Brimbun Raya Indah dated 23
         December 2001.

                                        1
<PAGE>

         CONSORTIUM OLEX - LUCENT - BRIMBUN consist of:

         PT. OLEX CABLES INDONESIA, having its address at Wisma Bisnis Indonesia
         15th Floor, Jakarta, as CONSORTIUM LEADER, hereinafter referred to as
         OLEX.

         PT LUCENT TECHNOLOGIES INDONESIA, having its address at Tifa Building
         3rd Floor, Jakarta, as CONSORTIUM MEMBER, hereinafter referred to as
         LUCENT.

         PT. BRIMBUN RAYA INDAH, having its address at Jakarta Barat, as
         CONSORTIUM MEMBER, hereinafter referred to as BRIMBUN.

         hereinafter all together in this Amendment referred to as PARTNER.

By first taking into Consideration of the following matters:

a.       whereas, TELKOM and PARTNER has been bound each other in Development
         Contract PSTN Excellence Regional Junction DIVRE II Number :
         PKS.14/HK810/UTA-00/2002 dated 8 February 2002, hereinafter referred to
         as "MAIN CONTRACT".

b.       whereas, TELKOM and PARTNER has changed some articles in the Main
         Contract with the first Amendment Nomor PKS. 155/HK-820/UTA-00/2002
         dated August 22, 2002, hereinafter referred to as "FIRST AMENDMENT";

c.       whereas, TELKOM and PARTNER has changed some articles in the Main
         Contract and first Amendment Nomor PKS. 155/HK-820/UTA-00/2002 dated
         August 22, 2002, with the "Second Amendment" Nomor PKS.
         192/HK-820/UTA-00/2002 dated October 25, 2002, hereinafter referred to
         as "SECOND AMENDMENT";

d.       whereas, TELKOM and PARTNER has changed some articles in the Main
         Contract, the first Amendment Nomor PKS. 155/HK-820/UTA-

                                       2
<PAGE>

         00/2002 dated August 22, 2002, and the "Second Amendment" Nomor PKS.
         192/HK-820/UTA-00/2002 dated October 25, 2002, with the "the Third
         Amendment" Nomor PKS. 121/HK-820/PEM-00/2002 dated December 20, 2002,
         hereinafter referred to as "THIRD AMENDMENT";

e.       whereas, TELKOM and PARTNER has changed some articles in the Main
         Contract, the first Amendment Nomor PKS. 155/HK-820/UTA-00/2002 dated
         August 22, 2002, the "Second Amendment" Nomor PKS.
         192/HK-820/UTA-00/2002 dated October 25, 2002, and "the Third
         Amendment" Nomor PKS. 121/HK-820/PEM-00/2002 dated December 20, 2002,
         with the "Fourth Amendment" Nomor PKS. 21/HK-820/PEM-00/2003 dated 20
         March 2003, hereinafter referred to as "FOURTH AMENDMENT";

f.       whereas, TELKOM and PARTNER have agreed to amend the Scope of Work and
         the Period of Implementation Time for SEVERAL RINGS;

g.       whereas TELKOM with it's Letter number : TEL, 533/LG.270/TCC-00/2003
         DATED JUNE 25, 2003 has agreed with AMENDMENT V;

After having taken into consideration the above matters, TELKOM and PARTNER
have agreed to amend the provisions - stipulated in the Main Contract, First
Amendment, Second Amendment, Third Amendment and Fourth Amendment in accordance
with the following terms and conditions:

                                    ARTICLE 1
                                  SCOPE OF WORK

(1)      TELKOM and PARTNER have agreed to amend the Bill of Quantity (BoQ)
         of the scope of work

                                       3
<PAGE>

(2)      Scope of Work based on this Amendment as specified in detail as stated
         in Attachment II of this Amendment.

                                    ARTICLE 2
                                 CONTRACT AMOUNT

(l).     The contract price based on this Amendment including VAT, insurance and
         other taxes based on the law of Indonesia as follows:

         - US $ 28,791,892.10 (Twenty eight million seven hundred ninety one
           thousand eight hundred ninety two United States dollar and ten cents)
           and

         - Rp. 122.485.262.790,- (One hundred twenty two billion four hundred
           eighty five million two hundred sixty two thousand seven hundred
           ninety Indonesian Rupiah)

(2).     The contract price per-ring system and it's breakdown as stated in
         Attachment II of this Amendment.

                                    ARTICLE 3
                           TIME IMPLEMENTATION PERIOD

(1)      TELKOM and PARTNER have agreed to amend the Period of Time
         Implementation for several RINGs, and the last RING should be completed
         on March 19, 2004.

(2)      The Schedule of Time implementation for each RINGS as specified in
         detail as mentioned in Attachment III of this Amendment.

                                       4
<PAGE>

                                   ARTICLE 4
                                   ATTACHMENT

All attachment as follows shall be an unity that could not be separated of this
Amendment, consist of:

Attachment-I:
     Approval letter from TELKOM

Attachment-II:
      Price summary Schedule

Attachment-III:
      Implementation Schedule

Attachment-IV:
      Disburment Plan

Attachment-V:
      Minutes of Meeting (Design Review Meeting, Clarification & Negotiation)

                                   ARTICLE 5
                                     OTHERS

(1)      This Amendment shall become effective as of the date after signing by
         both parties.

(2)      Articles and / or Attachments of the Main Contract and its Amendments
         which are not amended by this Amendment, shall remain prevail and
         legally binding by both parties.

(3)      TELKOM and PARTNER have agreed that every word of "Divisi Pembangunan"
         is the same as the word "TELKOM CONSTRUCTION CENTER" and every word of
         "Kepala Divisi Pembangunan" is the same as the word "KEPALA PUSAT
         CONSTRUCTION CENTER".

                                       5
<PAGE>

(4)      Copy from this Original Amendment was made in 25 (twenty five) copies
         by PARTNER on PARTNER's own cost for the purpose of supervision of
         implementation and others.

<Table>
<S>                                                       <C>
         PT TELEKOMUNIKASI INDONESIA, Tbk,                     KONSORSIUM
                                                          OLEX-LUCENT-BRIMBUN,


                                                                [STAMPED]

                /s/ TRI DJATMIKO                            /s/ Fadjar Tjoanda
              --------------------                        ----------------------

                 TRI DJATMIKO                                 FADJAR TJOANDA
              -------------------                           -------------------
         KEPAL PUSAT CONSTRUCTION CENTER                    PIMPINAN KONSORSIUM
</Table>

                                       6

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.26
<SEQUENCE>25
<FILENAME>u92256exv4w26.txt
<DESCRIPTION>EX-4.26 MASTER PROCUREMENT PARTNERSHIP AGREEMENT
<TEXT>
<PAGE>
                                                                    Exhibit 4.26



                    MASTER PROCUREMENT PARTNERSHIP AGREEMENT
                        NO.K.TEL.34/HK.910/UTA-00//2003

                                     BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA, TBK.

                                       AND

                                 MOTOROLA, INC.

                              DATED MARCH 24, 2003
<PAGE>
                               TABLE OF CONTENTS

<TABLE>
<S>               <C>                                                                                     <C>
CHAPTER 1.        GENERAL TERMS AND CONDITIONS...........................................................  2

Article 1.        Definitions............................................................................  2

Article 2.        Commencement and Duration of Agreement................................................. 11

Article 3.        Project Description.................................................................... 12

Article 4.        Scope of Work and Deliverables......................................................... 13

Article 5.        Procurement Partnering Covenants....................................................... 15

Article 6.        Importation; Local Facilities; Compliance with Licenses and Permits.................... 18

Article 7.        Delivery Procedures.................................................................... 20

Article 8.        Intellectual and Industrial Property Rights............................................ 22

Article 9.        Force Majeure.......................................................................... 26

Article 10.       Transfer of Risk and Title............................................................. 27

Article 11.       Indemnification........................................................................ 28

Article 12.       Equipment Maintenance and Support...................................................... 31

Article 13.       Liquidated Damages for Delay........................................................... 32

Article 14.       Termination of the Agreement........................................................... 34

Article 15.       Governing Law.......................................................................... 38

Article 16.       Settlement of Disputes................................................................. 38

Article 17.       Language............................................................................... 41

Article 18.       Corporate Representations and Warranties............................................... 42

Article 19.       Confidential Information............................................................... 42

Article 20.       Notice................................................................................. 43

Article 21.       General Provisions..................................................................... 44

Article 22.       Contract Value......................................................................... 47
</TABLE>

                                       i
<PAGE>
<TABLE>
<S>            <C>                                                         <C>
Article 23.    Prices, Fees..............................................  47

Article 24.    Taxes and Duties..........................................  49

Article 25.    Insurance and Safety......................................  49

CHAPTER 3.     FINANCIAL TERMS AND PAYG..................................  51

Article 26.    Joint Planning Sessions, Design Review Meetings and
               Monthly Meetings..........................................  51

Article 27.    Installed Line Procurements...............................  60

Article 28.    Purchase Orders and Procedures............................  61

Article 29.    Performance Bond..........................................  65

Article 30.    Termination of Purchase Orders............................  66

Article 31.    Terms of Payment..........................................  71

Article 32.    PAYG Payments.............................................  74

Article 33.    General Services Payments.................................  79

Article 34.    Invoicing.................................................  80

Article 35.    Financing.................................................  81

Article 36.    Change Request Procedures.................................  81

Article 37.    Relocation of Equipment...................................  83

Article 38.    Details of PARTNER's Bank Accounts........................  84

CHAPTER 4.     PROJECT ORGANIZATIONAL MATTERS............................  84

Article 39.    Local Indonesian Entities, Subcontractors, Suppliers......  84

Article 40.    Assignment and Subcontracting.............................  85

Article 41.    Involvement of Local Entities.............................  87

Article 42.    Logistics.................................................  88

Article 43.    Inventory.................................................  89

Article 44.    Local Support Infrastructure..............................  91
</TABLE>

                                       ii


<PAGE>
<TABLE>
<S>            <C>                                                         <C>
Article 45.    Project Management......................................     91

Article 46.    Research and Development................................     95

Article 47.    Training, Transfer of Know How..........................     95

Article 48.    Management Forum........................................     99

Article 49.    Development of Indonesian Industry......................     99

CHAPTER 5.     TECHNICAL PROVISIONS....................................     99

Article 50.    General Requirement for Equipment.......................     99

Article 51.    Quality Assurance.......................................    101

Article 52.    Survey, Design, and Planning............................    101

Article 53.    Site Preparation, Acquisition, Rights of Way and Permits    103

Article 54.    Installation Procedures and Standards...................    104

Article 55.    Testing and Commissioning...............................    106

Article 56.    Integration, Inter-Operability and Compatibility........    115

Article 57.    Cut Over Procedures.....................................    116

Article 58.    Compliance with Environmental Standards.................    117

Article 59.    Development of Mediation Device.........................    118

Article 60.    Documentation...........................................    118

CHAPTER 6.     SERVICE LEVEL AGREEMENTS................................    122

Article 61.    Service Level Agreements................................    122

CHAPTER 7.     INTER-OPERABILITY AND CO-ORDINATION REQUIREMENTS FOR
               PACKAGE 1 (MODULE 1) (DIVRE 1)..........................    122

Article 62.    General.................................................    122

Article 63.    JPS, DRMs and monthly meetings..........................    124

Article 64.    Commissioning Tests.....................................    125
</TABLE>

                                      iii



<PAGE>
APPENDICES

<TABLE>
<S>               <C>
Appendix 1        Details of Local Partners/Suppliers/Subcontractors

Appendix 2        [not used]

Appendix 3        Scope of Work

Appendix 4        Price Schedule

Appendix 5        Technical Specifications

Appendix 6        Demand Forecast

Appendix 7        Deployment Plan

Appendix 8        Project Management Plan

Appendix 9        Implementation Schedule

Appendix 10       Local Infrastructure

Appendix 11       Pay As You Grow (PAYG)

Appendix 12       Purchase Orders

Appendix 13       Bill of Quantities

Appendix 14       Technical and Engineering Norms

Appendix 15       [not used]

Appendix 16       Project Schematic

Appendix 17       Quality Assurance Guidelines/Acceptance Test Procedures

Appendix 18       Change Request

Appendix 19       Training

Appendix 20       Service Level Agreement

Appendix 21       Inter-Operability Commitment Agreement

Appendix 22       Documentation

Appendix 23       Technical Terms
</TABLE>

                                       iv
<PAGE>
<TABLE>
<S>               <C>
Appendix 24       Non-Disclosure Agreement

Appendix 25       Performance Bond

Appendix 26       Software License

Appendix 27       Bank Guarantee
</TABLE>

                                       v
<PAGE>

                         MASTER PROCUREMENT PARTNERSHIP
                                    AGREEMENT
                        NO.K.TEL.34/HK.910/UTA-00//2003,
                                  24 MARCH 2003

THIS MASTER PROCUREMENT PARTNERSHIP AGREEMENT (the "Agreement") is made as of 24
March 2003

BETWEEN:

(1)      PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, TBK., a
         limited liability public State-owned company established under the laws
         of the Republic of Indonesia, having its head office at Jalan Japati
         No. 1, Bandung, in this legal action duly represented by Kristiono in
         his capacity as President Director, hereinafter referred to as
         "TELKOM";

and

(2)      MOTOROLA, INC., a corporation established under the laws of the State
         of Delaware, U.S.A., by and acting through its Global Telecom Solutions
         Sector, having offices at 1501 Shure Drive, Arlington Heights, IL60004,
         U.S.A., for the purpose of signing of this Agreement being duly
         represented by Allen Ma, in his capacity as Vice President & General
         Manager, Asia, hereinafter referred to as "PARTNER".

(TELKOM and PARTNER are individually hereinafter referred to as a "Party" and
collectively as the "Parties").

WHEREAS

(A)      TELKOM is a telecommunications network and service provider which
         provides fixed telecommunications services (fixed wireline and fixed
         wireless) and telecommunications infrastructure throughout Indonesia;

(B)      TELKOM has embarked on a significant investment program to modernize
         and expand its network infrastructure (the "T-21 Program");

                                       1

<PAGE>

(C)      PARTNER, the BSS supplier and turnkey contractor for DIVRE 1 and
         proposing to develop contractual relationships with a number of local
         subcontractors/suppliers each with specialized telecommunications
         expertise, knowledge or infrastructure, has the necessary technical
         expertise, financial resources and strategic business interest in
         establishing a long term business partnership with TELKOM for the
         procurement of core network assets contemplated in the T-21 Program.
         Details of each of the local subcontractors/suppliers involved with
         PARTNER in this Project are set out in Appendix 1;

(D)      TELKOM, in accordance with the procedures established in the RfP dated
         21 February 2002 has selected and appointed PARTNER as the leading
         technology supplier to enter into this Agreement for the purpose of
         implementing the T-21 Program in accordance with the terms and
         conditions set out on this Agreement.

                                   CHAPTER 1.
                          GENERAL TERMS AND CONDITIONS

ARTICLE 1. DEFINITIONS

1.1      Where the context permits, the following expressions shall have the
         following meanings:

         "AGREEMENT" means this Agreement and the Appendices, including any
         amendments thereto;

         "BASELINE BILL OF QUANTITIES" ("BoQ") means the baseline bill of
         quantities set out in Appendix 13, as may be modified from time to time
         in accordance with Articles 26 and 36;

         "BUSINESS DAY(S)" means a day, other than a Saturday, Sunday or
         official Indonesian holiday, on which commercial banks in Jakarta are
         open for business during normal working hours;

         "CHANGE REQUEST" means the forms attached as Appendix 18, which in
         accordance with Article 36 shall be used to make any and all
         amendments, among others, to the contents of a Purchase Order;

                                       2
<PAGE>

         "COMMISSIONING" means the successful testing, integration and
         acceptance testing of the Deliverables in a state ready for full
         commercial operation by PARTNER as certified by TELKOM's issuance of
         either an Integrated System Acceptance Test Certificate or a Partial
         Integrated System Acceptance Test Certificate in accordance with the
         terms of this Agreement. "Commission" or "Commissioned" shall be
         construed accordingly;

         "CONTRACT VALUE" means with respect to the overall value of the
         procurement contract contemplated by this Agreement, the sum of all of
         the Purchase Orders and with respect to each Purchase Order, the total
         payment (in USD and IDR as the case may be) to be made by TELKOM to
         PARTNER under each Purchase Order for all Deliverables to be supplied
         under the said Purchase Order(s) and for the full and diligent
         performance by PARTNER of all of its obligations and covenants under
         this Agreement, including all amounts payable to PARTNER for use or
         license rights to software and Documentation, and for costs of
         insurance, freight and all other costs specified by this Agreement,
         subject to any variations expressly permitted under this Agreement or
         the respective Purchase Order(s);

         "CUT OVER PERIOD" means the time period set forth in Article 57.2;

         "DELIVERABLES" means the equipment, components, software and
         Documentation to be delivered and all related services to be performed
         by PARTNER pursuant to Purchase Order(s);

                                       3
<PAGE>

         "DEMAND FORECAST" means the demand forecast set out in Appendix 6 as
         updated from time to time by the Parties during a JPS or DRM;

         "DESIGN REVIEW MEETING" ("DRM") means a design review meeting conducted
         in accordance with Article 26.2;

         "DEPLOYMENT PLAN" means the number of installed lines/subscriber
         targets that are projected to be deployed in each year based on
         subscriber targets as set out in Appendix 7, as may be amended from
         time to time in accordance with Article 26 and this Agreement;

         "DIVRE" means a TELKOM Regional Division and "DIVRE 1" means the
         TELKOM Regional Division for Sumatra;

         "DOCUMENTATION" means the documentation listed in Appendix 22;

         "DOCUMENTATION ACCEPTANCE CERTIFICATE" means the certificate signed by
         TELKOM indicating that it is satisfied the documentation provided by
         PARTNER complies with the requirements of this Agreement;

         "FISCAL YEAR" means the financial year of TELKOM commencing January 1
         and ending December 31 of each calendar year;

         "GOODS DELIVERY CERTIFICATE" means the certificate signed by TELKOM
         indicating that the goods as delivered by PARTNER have been checked and
         inspected by TELKOM in accordance with Article 7.3;

         "IMPLEMENTATION SCHEDULE" means the time schedule and milestones set
         out in Appendix 9 as amended from time to time in accordance with
         Article 26;

         "INSTALLED LINE PROCUREMENTS" means the number of installed lines that
         will be procured by TELKOM as agreed by the Parties in accordance with
         the flexible procurement methodology contemplated in Article 27;

                                       4
<PAGE>

         "INTEGRATED SYSTEM ACCEPTANCE TEST" or "ISAT" means the integrated
         system test to be performed upon completion of all Sub-systems and
         other tests (including tests on measuring equipment and spare parts),
         in accordance with Article 55 and Appendix 17 (Quality Assurance
         Guidelines/ Acceptance Test Procedures);

         "INTEGRATED SYSTEM ACCEPTANCE TEST CERTIFICATE" means the acceptance
         certificate to be issued and signed by TELKOM after successful
         completion of an Integrated System Acceptance Test or as otherwise
         issued in accordance with Article 55.8.9;

         "INTELLECTUAL PROPERTY RIGHTS" means patents, registered designs,
         designs, copyrights, semiconductor mask works, and other forms of
         intellectual or industrial property, know-how, inventions, formulae,
         confidential or secret processes, trade secrets and confidential
         information, and any other protected rights and assets, and any
         licenses and permits in connection therewith, in each case in any part
         of the world and whether or not registered or registerable and for the
         full period thereof and all extensions and renewals thereof, and all
         applications for registration in connection with the foregoing;

         "IOP AGREEMENT" means the Inter-Operability Commitment Agreement
         attached as Appendix 21;

         "IOP CERTIFICATE" means the certificate or statement issued and signed
         by TELKOM confirming that PARTNER's equipment has passed all required
         inter-operability tests in accordance with IOP Agreement;

         "JOINT PLANNING SESSION" ("JPS") means a joint planning session to be
         conducted in accordance with Article 26.1;

                                       5
<PAGE>

         "LOCAL CONTENT" means the equipment and services to be provided through
         Local Indonesian Entities in the Indonesian currency (IDR) amounting to
         at least 20% of the total Contract Value in accordance with Article 41;

         "LOCAL INDONESIAN ENTITIES" means individuals that are Indonesian
         nationals, proprietary concerns or partnerships owned by Indonesian
         nationals, or companies in which Indonesian nationals hold more than
         51% shares. Subsidiaries of international companies, their
         representative offices and agencies or agents operating in Indonesia
         will not be considered as "Local Indonesian Entities" for this purpose;

         "LOCATION" means a location within a Project area relating to a TELKOM
         PSTN switch (STO);

         "NETWORK" means the telecommunications network/system to be designed,
         built and supplied by PARTNER pursuant to this Agreement, more
         particularly described in Appendix 3 (Scope of Work);

         "PACKAGE 1 (MODULE 1)" means the regional package of BSS procurement
         for DIVRE I;

         "PACKAGE LEVEL REQUIREMENT" means the constituent requirements of
         Package 1 (Module 1);

         "PARTIAL INTEGRATED SYSTEM ACCEPTANCE TEST" means the integrated system
         test to be performed upon completion of one or more Sub-systems and
         other tests (including tests on measuring equipment and spare parts),
         in accordance with Article 55 and Appendix 17) (Quality Assurance
         Guidelines/ Acceptance Test Procedures);

         "PARTIAL INTEGRATED SYSTEM ACCEPTANCE TEST CERTIFICATE" means the
         acceptance certificate to be issued and signed by TELKOM after
         successful completion of a Sub-system Acceptance Test pursuant to
         Article 55.8 for which an Integrated System Acceptance Test cannot be
         conducted within a period of thirty (30) calendar days by reason of
         delays in testing of a Sub-system which TELKOM is responsible to
         provide;

                                       6
<PAGE>

         "PAYG PAYMENT PERIOD" means a period calculated in relation to the
         Purchase Orders aggregated on a DIVRE basis in the same Quarter, such
         period commencing from the last date of the Quarter in which the
         relevant Integrated System Acceptance Test Certificate issued by TELKOM
         in relation to Commissioning of the Deliverables in the relevant
         Purchase Order(s) issued in that Quarter and ending four (4) years
         later, or upon TELKOM'S payment of the last PAYG payment due (of the
         last Purchase Order issued), if earlier;

         "PAYG VALUE" means the proportionate value of each Purchase Order
         payable pursuant to Article 31.4;

         "PERCENTAGE INDEX" means the index expressed as a percentage calculated
         in accordance with Article 27.4;

         "PERFORMANCE BOND" means the performance bond required to be delivered
         by PARTNER to TELKOM pursuant to Article 29;

         "PROJECT MANAGEMENT PLAN" ("PMP") means the project management plan to
         be provided by PARTNER pursuant to Appendix 8;

         "PROJECT" means the work to be undertaken by PARTNER for Package 1
         (Module 1) of the T-21 Program pursuant to this Agreement for the
         regional package of BSS procurement for DIVRE I;.

         "PURCHASE ORDER" means a document issued by TELKOM from time to time
         pursuant to Article 28 and acknowledged by PARTNER for the

                                       7
<PAGE>

        supply and Commissioning by PARTNER of all or parts of the Network
        and/or for the provision of services. Any attachments or appendices to a
        Purchase Order and any amendments to a Purchase Order in accordance with
        Article 36 shall form an integral part of the Purchase Order;

        "QUARTER" means a calendar three month period, ending on March 31, June
        30, September 30, and December 31 of each calendar year;

        "RfP" means the Request for Proposals for the T-21 Program dated 21
        February 2002;

        "SCOPE OF WORK" means the scope of work set forth in Appendix 3;

        "SITE" means site within a Location where a BTS is to be installed;

        "SLA" or "SERVICE LEVEL AGREEMENT" means the 3-year service level
        agreement to be entered into between the Parties on Commissioning as set
        forth in Article 61;

        "SUBSCRIBER RECORDER" means TELKOM's database system in the MSC/NSS in
        the related DIVRE;

        "SUBSCRIBER TARGET" means projected portion of the number of lines to be
        deployed on an annual basis in the DIVRE/Location for the relevant
        Quarter based on the Deployment Plan as updated and determined at the
        related DRM in relation to the Installed Line Procurements agreed for
        the DIVRE/Location in the relevant Quarter;

        "SUB-SYSTEM" means a BSC, BTS, transmission equipment, BSS NEM
        (equipment grouped as BSS); PDSN, AAA, HA, DNS, Fire wall, PDN's NEM
        (equipment grouped as PDN), and other similar or related equipment
        supplied by the PARTNER, including all associated software and
        components;

                                       8
<PAGE>

        "SYSTEM" means two or more Sub-systems forming a network that is ready
        for commercial service;

        "SUB-SYSTEM ACCEPTANCE TESTS" means the tests to be performed upon
        completion of particular Sub-systems in accordance with Appendix 17;

        "TECHNICAL SPECIFICATIONS" means collectively, the technical
        specifications set out in Appendix 5, and the respective manufacturer's
        current published specifications and all specifications agreed pursuant
        to amendments to Agreement or on a Purchase Order;

        "TRAINING ACCEPTANCE CERTIFICATE" means the certificate signed by TELKOM
        indicating that the training provided by PARTNER complies with the
        requirements of this Agreement;

1.2     Technical Terms. Technical terms used in this Agreement (e.g., BTS,
        PDN) are defined in Appendix 23.

1.3     Writings. References in this Agreement to writings shall include
        typewriting, printing, lithography, photography, telefax, facsimile,
        e-mail and telex messages and any mode of reproducing words in a legible
        and non-transitory form.

1.4     Plural; Gender; Persons. Words importing the singular include the
        plural and vice versa; words importing a gender include every gender;
        and references to persons include bodies corporate or unincorporate.

1.5     Agreement. Any document expressed to be "in the agreed form" or "agreed
        means a document approved by TELKOM and PARTNER and (for the purpose of
        identification) initialed on behalf of each of them.

1.6     Headings. Headings in this Agreement are used for convenience only and
        shall not affect the construction of this contract.

                                       9
<PAGE>

1.7      Days. In this Agreement, unless otherwise defined or the context
         otherwise requires, references to a "day" shall mean a calendar day
         covering a period of twenty-four (24) hours ending at 12 midnight.
         Whenever in this Agreement a period of time is referred to, the day
         upon which that period commences shall be the day after the day from
         which the period is expressed to run, or the day after the day upon
         which the event occurs which causes the period to start running.

1.8      References. References to Articles and Appendices are references to the
         Articles of and the Appendices to this Agreement. References to any
         laws or regulation shall be construed as references to those laws and
         regulations as from time to time amended or re-enacted.

1.9      Priority of Documents. In the event of any inconsistency between this
         Agreement and the Appendices, the terms and conditions in this
         Agreement shall prevail.

1.10     General and Specific Provisions. In the event of ambiguity or
         inconsistency over the application of any provision of this Agreement,
         this Agreement shall be interpreted to favour the specific provision,
         meaning and/or application over the general provision, meaning and/or
         application.

1.11     Appendices

         Appendix 1    Details of Local Partners/Suppliers/Sub-contractors
         Appendix 2    [not used]
         Appendix 3    Scope of Work
         Appendix 4    Price Schedule
         Appendix 5    Technical Specifications
         Appendix 6    Demand Forecast
         Appendix 7    Deployment Plan
         Appendix 8    Project Management Plan
         Appendix 9    Implementation Schedule
         Appendix 10   Local Infrastructure
         Appendix 11   Pay As You Grow (PAYG)

                                       10
<PAGE>

         Appendix 12   Purchase Orders
         Appendix 13   Bill of Quantities
         Appendix 14   Technical and Engineering Norms
         Appendix 15   [not used]
         Appendix 16   Project Schematic
         Appendix 17   Quality Assurance Guidelines / Acceptance Test Procedures
         Appendix 18   Change Request
         Appendix 19   Training
         Appendix 20   Service Level Agreement
         Appendix 21   Inter-Operability Commitment Agreement
         Appendix 22   Documentation
         Appendix 23   Technical Terms
         Appendix 24   Non-Disclosure Agreement
         Appendix 25   Performance Bond
         Appendix 26   Software License
         Appendix 27   Bank Guarantee

ARTICLE 2. COMMENCEMENT AND DURATION OF AGREEMENT

2.1      This Agreement shall become effective upon signing of this Agreement,
         and shall continue in effect until PARTNER and TELKOM have fully
         performed their respective obligations under this Agreement, unless
         earlier terminated in accordance with Article 14.

2.2      The Scope of Work related to Network deployment shall be carried out
         and completed within 42 months, subject to the terms of this Agreement.
         The period for completion includes Sundays and government holidays,
         days for consultancies (meeting and documents approval) with TELKOM and
         the day for signing an Integrated System Acceptance Test Certificate.

2.3      TELKOM's obligations regarding payment for the Deliverables shall end
         upon TELKOM's payment of the last PAYG payment due, subject to the
         performance of TELKOM's obligations under this Agreement.

2.4      The initial term of the SLA to be

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<PAGE>

         entered into by the Parties pursuant to Article 61 shall be for a
         period expiring three (3) years from (i) the date of Commissioning of
         the equipment supplied under the first Purchase Order or (ii) an
         earlier date at TELKOM's request.

ARTICLE 3. PROJECT DESCRIPTION

3.1      This Agreement is an umbrella contract covering the various steps
         involved in the T-21 Program, from demand forecasting, Network design,
         issuance of Purchase Orders, shipping and receiving, installation and
         commissioning, operation and maintenance support, customer utilization
         of the equipment, to the Pay As You Grow payment scheme as illustrated
         in the schematic in Appendix 16 (Project Schematic). Subject to
         agreement of the Parties on procurement requirements for Installed Line
         Procurements in accordance with any adjustments agreed under the
         flexible procurement methodology contemplated for each JPS and DRM as
         set forth in Article 26, PARTNER shall be obligated to undertake and be
         jointly responsible for the demand forecast and solely responsible for
         the survey, design, development, manufacture, delivery, supply,
         installation, integration and Commissioning of the Network, including
         all project management, training and other related services, on a
         turnkey basis in accordance with the terms of this Agreement.

3.2      "Turnkey basis" means that pursuant to the Scope of Work, once PARTNER
         receives a Purchase Order PARTNER shall be fully and jointly
         responsible for the demand forecast and solely responsible for the
         survey, design, development, manufacture, delivery, supply,
         installation, integration and Commissioning of the Network, and the
         remedying of any defects, so as to make the Network ready for service
         in accordance with the terms of this Agreement. PARTNER shall also do
         everything necessary as reasonably

                                       12
<PAGE>

         may be inferred from this Agreement as being required of PARTNER to
         perform all of its obligations under this Agreement. PARTNER shall
         provide all personnel, goods, consumables and other things and
         services, whether of a temporary or permanent nature, required in and
         for the design, execution, completion of the Network and the remedying
         of defects in accordance with the terms of this Agreement. TELKOM shall
         cooperate with PARTNER as it performs its obligations under this
         Agreement on a turnkey basis.

ARTICLE  4. SCOPE OF WORK AND DELIVERABLES

4.1      The Scope of Work for this Project is set out in Appendix 3 (Scope of
         Work).

4.2      PARTNER agrees and undertakes to:

4.2.1    carry out the Scope of Work in a good and workmanlike manner in
         accordance with the Technical Specifications using materials necessary
         for the completion of the said works which are of the quality
         and standards specified in Appendix 5 (Technical Specifications);

4.2.2    be solely responsible for the correct design, quality and adequacy of
         the works and for the correct quantities of materials, articles and
         goods necessary for completion of the said works in accordance with
         Appendix 3 (Scope of Work) and Appendix 5 (Technical Specifications);

4.2.3    to provide the Deliverables as specified in Appendix 3 (Scope of Work),
         Appendix 5 (Technical Specifications) and Appendix 4 (Price Schedule)
         and all cables, connectors and other miscellaneous materials required
         for completion of the Network in accordance with the terms of this
         Agreement. All such Deliverables shall conform in all respects with the
         technical, capacity, functionality, design

                                       13
<PAGE>

         features and performance specifications set out in Appendix 5
         (Technical Specifications);

4.2.4    conduct a survey, design, plan, develop, manufacture, deliver, install,
         test, Commission, and interconnect the Deliverables and provide all
         other services relevant or relating to the Network in accordance with
         Appendix 3 (Scope of Work), Appendix 5 (Technical Specifications) and
         Appendix 9 (Implementation Schedule), and otherwise in accordance with
         this Agreement;

4.2.5    perform the works under each Purchase Order in accordance with Appendix
         9 (Implementation Schedule) and complete each stage of the works by the
         relevant dates or times specified;

4.2.6    provide the Documentation to TELKOM in accordance with this Agreement;

4.2.7    provide land acquisition and frequency licence application services in
         accordance with this Agreement;

4.2.8    provide services to TELKOM upon request from TELKOM by the issue of a
         Purchase Order in accordance with the unit prices stated in Appendix 4
         (Price Schedule);

4.2.9    provide technical personnel as specified in the Purchase Order in
         accordance with the prices stated in Appendix 4 (Price Schedule);

4.2.10   provide training in accordance with Article 47 of this Agreement; and

4.2.11   perform and comply with all its other obligations under this Agreement
         and the respective Purchase Orders.

4.3      PARTNER shall ensure the proper

                                       14
<PAGE>

         interworking, interfacing and integration of the Network with the
         equipment, components and software of any third party vendor or other
         licensed operators in Indonesia which are connected to Network
         Deliverables specified in Appendix 3 (Scope of Work), Appendix 5
         (Technical Specifications) and Appendix 21 (Inter-Operability
         Commitment Agreement), or if not so specified, then in accordance with
         best practice industry standards as agreed by the Parties.

4.4      PARTNER shall design the Network in such a way that, unless otherwise
         agreed in writing:

4.4.1    individual Sub-systems (including all services) are deployable
         regardless of the deployment status of other Systems or Sub-systems;

4.4.2    the Network can be readily scaled up or down to meet changing customer
         demand;

4.4.3    the Network is capable of being migrated from a fixed or limited
         mobility network (allowing a subscriber to move within one BTS coverage
         area only) to a full mobility network in the future;

4.4.4    the Network is capable of being migrated to a third generation (3G)
         based network in the future.

ARTICLE 5. PROCUREMENT PARTNERING COVENANTS

5.1      The Parties agree to be guided by certain principles during
         implementation of this Agreement. The general principles set out below
         are intended to be implemented in good faith and are without prejudice
         to the rights and obligations of each Party contained in this
         Agreement:

5.1.1    TELKOM's objective to achieve the optimum performance of its
         telecommunications networks in order to provide the best possible
         service for its customers shall not be deemed

                                       15
<PAGE>

         incompatible with PARTNER's objective to sell its equipment and
         services on commercial terms for a sustained period;

5.1.2    The Parties agree that a key mutual objective is to support the
         development of the Indonesian telecommunications industry and economy
         through maximizing the amount of equipment, materials, manpower and
         services procured locally within Indonesia;

5.1.3    The Parties agree to conduct regular consultations to discuss the
         respective performance of the Network deployment with the aim of
         resolving amicably and promptly any disputes that may arise from time
         to time in the spirit of building joint business opportunities and
         creating mutual value together so as to create a responsive and stable
         commercial relationship between themselves;

5.1.4    PARTNER shall inform TELKOM as effectively and fully as possible, in
         good time, of possible problems with any Deliverables which have been
         delivered or which are to be delivered and of permitted material
         changes in costs, deliveries and developments previously agreed upon
         which may be relevant to TELKOM;

5.1.5    The Parties agree to inform each other as fully as possible of any
         circumstance relevant to the Deliverables affecting the
         telecommunication networks of TELKOM, so as to enable one another to
         respond quickly to technology or commercial developments. With respect
         to future equipment purchases for potential use in Package 1 (Module
         1), PARTNER shall notify TELKOM of its estimated prices in relation to
         new telecommunications technology adaptable to Indonesia which has been
         developed by PARTNER or by its affiliated companies, at least as early
         as the time such technology is offered to other telecommunications
         operators in Indonesia;

                                       16
<PAGE>

5.1.6    Subject to Chapter 7 of this Agreement, PARTNER undertakes to consult
         and co-operate with other relevant suppliers of equipment and/or
         services relevant to this Agreement or to the Deliverables, in order to
         achieve optimum functioning of the Deliverables before, during and
         after delivery. Such consultation shall start at the earliest possible
         time and shall include technical support with the aim of achieving the
         optimum operation of the telecommunication networks of TELKOM;

5.1.7    The Parties shall pursue quality improvement and a degree of
         standardisation suitable for the integrated management of the
         telecommunication networks of TELKOM. To that end, PARTNER shall be
         capable of adapting the Network under the T-21 Program to
         state-of-the-art technology over the period of this Agreement;

5.1.8    One of TELKOM's key objectives in the T-21 Program is the purchase of
         equipment and services that conform to international standard while
         minimizing major capital expenditures. PARTNER shall work with TELKOM
         to bring its know-how and expertise to bear in meeting this objective.
         This means, for instance, that PARTNER must use its best endeavours to
         analyze and take into account the financial and technical consequences
         of introducing its technology developments for TELKOM, especially in
         relation to hardware and software delivered by PARTNER and that which
         is already in place in the telecommunication networks of TELKOM;

5.1.9    PARTNER shall take all reasonable measures necessary to communicate

                                       17
<PAGE>

         to TELKOM the advantages and disadvantages of new technology
         developments, including the newest tested technology offered by PARTNER
         or by its affiliated companies. PARTNER shall agree from time to time
         with TELKOM on additions or improvements to the "road map" of
         technological development and evolution contemplated for the Project
         which can be implemented during the course of the Project in a timely
         manner;

5.1.10   PARTNER has agreed that it shall not have exclusive rights in its
         Package Package 1 (Module 1) (BSS) area to install, deploy equipment
         and/or provide services over the duration of the T-21 Program, in
         consideration of which TELKOM has agreed to procure from PARTNER at
         least the minimum Installed Line Procurements as provided in Chapter 3.

ARTICLE 6. IMPORTATION; LOCAL FACILITIES; COMPLIANCE WITH LICENSES AND PERMITS

6.1      Except as may otherwise be agreed between the Parties, Deliverables
         which are imported into Indonesia shall be imported in the name of
         TELKOM but under the physical arrangement and management of PARTNER.
         All importation of Deliverables under this Agreement shall be
         calculated on a cost at Location/Site basis and shall be delivered at
         the agreed time and place and in accordance with applicable Indonesian
         regulations and this Agreement. PARTNER shall initially make the
         payment of any import VAT, sales tax on luxury goods, if applicable,
         income tax (Article 22) on imports, import or customs duties and all
         customs clearance costs in relation to all imports. PARTNER shall at
         its own cost obtain all required Indonesian import permits and
         approvals necessary to import Deliverables into Indonesia in the name
         of TELKOM. TELKOM shall cooperate with PARTNER in this process and
         provide PARTNER with all documents reasonably requested by PARTNER in

                                       18
<PAGE>

         connection with any import application required to include TELKOM's
         name for purposes of importation. TELKOM shall ensure prompt signature
         and delivery of documents required by the competent authorities for
         such purposes.

6.2      TELKOM shall reimburse PARTNER for its prepayment of import VAT and
         income tax Article 22 on imports within twenty-one (21) Business Days
         after receipt of complete related claim documents from PARTNER. Customs
         duties are included in the Contract Value and will be paid by TELKOM in
         accordance with Articles 31 and 32. In the event a waiver is not
         forthcoming and sales tax on luxury goods is assessed against any
         Deliverables imported into Indonesia, the cost of such tax shall be
         added to the Contract Value and be paid by TELKOM in accordance with
         Articles 31 and 32.

6.3      PARTNER shall maintain complete and accurate inventory records of the
         movement of such equipment after importation into Indonesia in
         accordance with recognised industry practices and ensure that all
         equipment imported into Indonesia pursuant to any Purchase Orders shall
         be stored separately from all other equipment to facilitate inspections
         by Indonesian customs authorities. Any imposition of customs duties or
         penalties due to any act, default or omission of PARTNER in breach of
         this provision shall be borne by PARTNER.

6.4      PARTNER shall comply with the requirements of all local laws,
         regulations, and decrees and with the lawful requirements of other
         authorities in any way affecting any Deliverables procured under this
         Agreement.

                                       19
<PAGE>

6.5      PARTNER will be responsible, at its own cost, for obtaining in a timely
         fashion all necessary export permits, licenses, and approvals from the
         country of origin and any intermediate locations, including the payment
         of any and all levies for freight handling and other costs related to
         such permits, licenses and approvals.

ARTICLE 7. DELIVERY PROCEDURES

7.1      All physical deliveries of Deliverables covered by Purchase Orders
         shall be accompanied by a consignment note, which includes:

7.1.1    Name and registered office of PARTNER;

7.1.2    Purchase Order number;

7.1.3    Date of shipment and delivery;

7.1.4    Quantities included; and

7.1.5    Shipping documents (such as bill of lading or air way bills) and/or
         inland delivery documents.

7.2      Delivery of equipment to the intended Location/Site shall be
         implemented by reference to complete Systems or Sub-systems and not
         piecemeal, except as otherwise mutually agreed between the Parties.

7.3      TELKOM shall conduct a goods delivery inspection pursuant to Article
         55.5 on delivery of goods at the intended Location/Site.

7.4      PARTNER shall be responsible for delivery of the Deliverables from the
         country of origin to the point of landing in Indonesia, and from the
         point of landing to the intended Location/Site as specified in the
         applicable Purchase Order in accordance with Appendix 9 (Implementation
         Schedule). PARTNER shall be responsible for all inland transportation
         shipping costs to the intended Location/Site.

                                       20
<PAGE>

7.5      PARTNER represents and warrants that all Deliverables installed are
         type-approved by the relevant authorities in Indonesia and have passed
         quality assurance by TELKOM in accordance with the quality assurance
         guidelines set forth in Appendix 17 (Quality Assurance Guidelines/
         Acceptance Test Procedures).

7.6      PARTNER shall be responsible for the provision and cost of any of the
         following facilities, equipment and services that may be required by
         PARTNER and its staff:

7.6.1    all locally engaged skilled and unskilled personnel, including
         electricians, wiremen, laborers, tradesmen, artisans, and their
         equipment and tools;

7.6.2    any work and/or entry permits, licenses, visas, etc., necessary for
         personnel employed or temporarily engaged by PARTNER and its
         sub-contractors, and any income taxes incurred by such personnel or
         corporate income taxes;

7.6.3    transportation (including, without limitation, to and from any
         Location/Site), housing and medical facilities for such personnel as
         may be necessary;

7.6.4    equipment, tools and other resources necessary for such personnel to
         complete the works;

7.6.5    telephone, telegram, telex, modem, internet and facsimile services;

7.6.6    security, warehousing, storage and office facilities; and

7.6.7    customs and/or excise duties on tools, equipment and personal effects
         of PARTNER staff.

                                       21
<PAGE>

ARTICLE 8. INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS

8.1      PARTNER warrants:

8.1.1    that it has or will obtain prior to installation all Intellectual
         Property Rights necessary to enable PARTNER to meet its obligations
         under this Agreement; and

8.1.2    that the Contract Value includes all amounts paid or payable for the
         rights to use the software and Documentation, and all Deliverables
         forming a part of any Deliverables.

8.2      PARTNER shall grant or shall cause to be granted to TELKOM a
         royalty-free, irrevocable (except as set forth in the Software
         License), non-transferable (except as set forth in this Article),
         non-exclusive and perpetual license or sub-license, as the case may
         be in the Republic of Indonesia to use the software (excluding any
         source code) and Documentation of PARTNER or its constituent members or
         any third party (including the employees or agents of PARTNER and any
         sub-contractors) to enable TELKOM to use such software and
         Documentation in connection with the repair, maintenance, operation and
         use of the relevant System, Sub-systems and the Deliverables to the
         extent contemplated by this Agreement.

8.3      PARTNER further warrants that the supply or undertaking of any item of
         the Deliverables will not infringe (or cause TELKOM to infringe) any
         third party Intellectual Property Rights. PARTNER shall indemnify and
         hold harmless TELKOM at all times from all direct damages, costs and
         expenses arising from any claim or demand based on an allegation of
         such infringement. PARTNER shall, at the request of TELKOM. defend at
         PARTNER's own cost any or all such claims or demands, provided TELKOM:

                                       22
<PAGE>

         (a)      gives PARTNER prompt written notice of such claim;

         (b)      PARTNER has sole control of the defense and all related
                  settlement negotiations;

         (c)      does not admit liability in respect of the whole or any part
                  of the claim or agrees to settle or dispose of the claim; and

         (d)      provides all reasonable assistance to PARTNER in defending or
                  settling the claim.

         This indemnity shall not apply where the liability arises:

         (a)      solely as a result of modifications to the Deliverables or
                  written instructions made by TELKOM without the approval of
                  PARTNER;

         (b)      from the combination of the Deliverables with any equipment
                  not supplied by PARTNER, and if without TELKOM having made
                  that combination the claim of infringement would not have been
                  valid; the indemnification shall, however, be applicable if
                  PARTNER has provided the system integration services which
                  caused the infringement;

         (c)      use of the Deliverables by TELKOM other than as contemplated
                  in this Agreement;

         (d)      TELKOM'S continued use of the Deliverables after

                                       23
<PAGE>

                  notification by PARTNER of any modification or changes in the
                  Deliverables required to avoid infringement claims.

8.4      TELKOM agrees that it shall use the applicable license for software and
         Documentation pursuant to this Agreement only for its business
         purposes, and shall not market or otherwise commercialize it. The
         license for software and Documentation so granted shall authorize
         TELKOM to undertake all activities related to and/or as reasonably
         required for the intended use of the relevant equipment. The license
         for software and Documentation shall become effective at the latest
         upon TELKOM's issuance of the integrated System Acceptance Test
         Certificate related to the applicable software and Documentation and
         shall be limited to the right to use the Documentation and software to
         operate the related equipment. TELKOM shall not assign, transfer or
         sub-license such software without the prior written consent of PARTNER,
         which consent shall not unreasonably be withheld or delayed. Further
         terms relating to the licensed software are contained in the Software
         License attached as Appendix 26.

8.5      TELKOM shall be entitled to make copies of the applicable software for
         back-up purposes only. TELKOM shall be entitled to make copies of
         software Documentation for internal use and for archival purposes, and
         when making permitted copies TELKOM shall transfer to the copy/copies
         any copyright or other marking on the software or related
         documentation. Use by TELKOM's affiliates in Project-related
         activities, shall be with

                                       24
<PAGE>
         PARTNER'S approval. TELKOM may not de-compile the software, except as
         agreed in writing by PARTNER. Further terms relating to the software
         are contained in the Software License attached as Appendix 26.

8.6      If, owing to the relevant equipment or its use, a right of a third
         party is infringed or an unlawful act is committed against a third
         party, PARTNER shall, at its option and own expense and in consultation
         with TELKOM:

8.6.1    replace the equipment or part of the equipment with equivalent
         equipment or parts of the equipment which do not infringe a right of a
         third party or whose use does not in any other way constitute an
         unlawful act against a third party; or

8.6.2    acquire a license in respect of the said right; or

8.6.3    modify the equipment in such a way that the infringement or unlawful
         act is terminated, provided that modification and/or replacement shall
         not cause the functionality and/or quality of the equipment to be
         materially reduced.

8.7      PARTNER and/or its sub-contractors shall provide TELKOM with the
         interface specification of the applicable software and with all
         Documentation and information in order to enable TELKOM to make
         external enhancements and/or modifications to the relevant equipment or
         add additional functionality to the equipment and/or to achieve inter-
         operability and compatibility. PARTNER shall be relieved from its
         indemnification obligations to the extent the claim is caused by TELKOM
         enhancements and/or modifications.

                                       25

<PAGE>

8.8      If the central processing unit on which the applicable software is
         installed becomes temporarily unavailable, such software may be
         temporarily transferred to an alternative central processing unit. If
         TELKOM desires to use the software in a service bureau mode (i.e., to
         provide computing services to another supplier of similar services),
         TELKOM shall request a meeting with PARTNER in which the Parties shall
         discuss the required terms and conditions under which PARTNER would
         enter into a written agreement permitting such use.

8.9      The provisions of this Article 8 shall in substance be included in the
         BOT arrangements contemplated in Articles 28.10-28.14.

ARTICLE 9. FORCE MAJEURE

9.1      Neither Party shall be liable for delays in delivery or performance, or
         for failure to manufacture, deliver or perform when caused by any of
         the following which are beyond the reasonable control of the delayed
         Party, including but not limited to acts of God, acts of the public
         enemies, acts of civil or military authority, 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.

9.2      Any occurrence belonging to a Force

                                       26

<PAGE>

         Majeure category shall be notified immediately to the other Party not
         later than fourteen (14) days after such occurrence. If an event of
         Force Majeure causes TELKOM to fail to pay any amounts due for a period
         of more than ninety (90) days, any of the Parties may terminate this
         Agreement. Any other event of Force Majeure continuing for a period in
         excess of 6 months shall entitle any of the Parties to terminate this
         Agreement.

9.3      In the event that due to Force Majeure the implementation of this
         Agreement or relevant agreement, acceptance test, integration, drive
         test or other matters provided for in this Agreement are suspended, the
         implementation period shall be extended by the numbers of days equal to
         the duration of such suspended implementation.

9.4      Neither Party shall be liable for any losses suffered by the other
         Party arising as a result of Force Majeure, provided that in the event
         of termination of this Agreement by PARTNER by reason of Force Majeure
         pursuant to Article 9.2, the provisions of Articles 31 and 32 shall
         apply with respect to losses involving Commissioned Deliverables and
         the provisions of Articles 14.4, 14.5 and 14.6 shall apply with respect
         to losses involving non-Commissioned Deliverables.

ARTICLE 10. TRANSFER OF RISK AND TITLE

10.1     Notwithstanding any transfer of legal title pursuant to the provisions
         of Article 10.2, the transfer of operational risk with respect to the
         relevant Deliverables from PARTNER to TELKOM shall only take place when
         the respective Deliverables have been installed, and the relevant
         Integrated System Acceptance Test Certificate has been issued by
         TELKOM.

                                       27

<PAGE>

10.2     Legal title and other rights to the relevant Deliverables shall only
         pass to or vest in TELKOM (i) at the time the related Integrated System
         Acceptance Test Certificate is issued for Deliverables procured in
         Indonesia, and (ii) delivery per FCA (Incoterms 2000) (port of
         shipment) for Deliverables procured outside of Indonesia.
         Notwithstanding anything to the contrary in this Agreement, title to
         the software shall not pass to TELKOM at any time.

ARTICLE 11. INDEMNIFICATION

11.1     Without prejudice to any other provisions of this Agreement, PARTNER
         shall indemnify and hold TELKOM harmless from all direct damages, cost
         and expenses arising from any Claims (as defined below), if Claims
         arise:

11.1.1   as a result of a failure by PARTNER to perform its obligations pursuant
         to this Agreement, Purchase Orders or other specific agreement related
         to these agreements;

11.1.2   in connection with the work carried out pursuant to its obligations
         under this Agreement, unless the occurrence of the damage is not
         attributable to PARTNER;

11.1.3   in connection with the faulty design of the equipment or any other
         material or supplies which are supplied by PARTNER;

11.1.4   in connection with an infringement of any Intellectual Property Rights
         or industrial property right belonging to a third party in relation to
         Article 8.3;

11.1.5   in connection with any Claims including, without limitation, any fines
         or other penalties suffered by TELKOM as a result of the violation by

                                       28

<PAGE>

         PARTNER or any of its employees or agents of any laws or regulations in
         Indonesia related to Article 6;

11.1.6   in connection with any interruption to the Network under Article 57.4;

11.1.7   for personal injury to and death of any persons and damage to any
         property arising out of the performance of this Agreement due to acts
         or omissions whether negligent or otherwise of PARTNER, its employees,
         agents or sub-contractors;

11.1.8   for loss or damage caused by the gross negligence or wilful act, fault
         or omission of PARTNER, its employees, agents or sub-contractors,
         including without any limitation any damage or interruption to TELKOM's
         existing Network during the migration to the new network to be provided
         by PARTNER; or

11.1.9   in connection with termination by TELKOM for non-delivery of contracted
         Deliverables.

         Provided that TELKOM:

         (a)      gives PARTNER prompt written notice of such Claim;

         (b)      permits PARTNER to defend or settle the Claim;

         (c)      does not at any time admit liability in respect of the whole
                  or any part of the Claim or agrees to settle or dispose of the
                  Claim; and

         (d)      provides all reasonable assistance to PARTNER in

                                       29

<PAGE>
         defending or settling the Claim.

11.2     "Claims" shall mean any demands, claims, actions, liabilities, losses,
         damages awarded by a court or arbitration tribunal against TELKOM,
         costs (including legal and other professional costs), penalties and
         expense incurred by TELKOM as a result of a breach by PARTNER or any
         sub-contractor of any of its obligations, representations, undertakings
         or warranties under this Agreement.

11.3     Notwithstanding any provision of this Agreement to the contrary, the
         liability of PARTNER to TELKOM under this Agreement shall in no
         circumstances exceed in any one case, an amount equal to 100% of the
         Contract Value of the relevant Purchase Order, subject to in aggregate
         (after taking into account amounts previously paid under those clauses)
         an amount equal to 10% of the total Contract Value of all Purchaser
         Orders which have been issued and accepted up to the date on which the
         liability falls due.

11.4     Neither Party shall in any circumstance be liable to the other for
         indirect or consequential losses or damages, whether or not such losses
         or damages are subject to this indemnity.

11.5     It is agreed that TELKOM shall indemnify and hold PARTNER harmless from
         all direct damages, cost and expenses arising from any Claims if Claims
         arise for personal injury to and death of any person and damage to any
         property arising out of the performance of this Agreement due to acts
         or omissions whether negligent or otherwise of TELKOM, its employees,
         agents or sub-contractors.

                                       30

<PAGE>

ARTICLE 12. EQUIPMENT MAINTENANCE AND SUPPORT

12.1     PARTNER undertakes that the Scope of Work will be executed in
         accordance with the terms and conditions of this Agreement and any
         Purchase Orders.

12.2     PARTNER shall deliver all equipment and Network Systems and Sub-systems
         to TELKOM in 100% (one hundred per cent) new condition, having no
         latent defects (excluding software latent defects) or other latent
         defects which PARTNER is incapable of remedying pursuant to the Service
         Level Agreement and provided that such Service Level Agreement is in
         force upon discovery, and shall not have originated through unlawful
         procurement or manufacturing practices. PARTNER shall further
         undertake, subject to the Service Level Agreement, that all equipment
         (both hardware and software) delivered to TELKOM under this Agreement
         shall have a service life of at least ten (10) years from the date of
         issuance of the respective Integrated System Acceptance Test
         Certificate, or from the time the equipment is used commercially by
         TELKOM, whichever occurs first, provided that TELKOM has:

         (a)      materially complied with the terms of the SOP and SMP (as
                  referred to in Article 60.1.2); and

         (b)      not made any material modifications or changes to the
                  equipment (both hardware and software) delivered to TELKOM.

12.3     If, upon the expiry of any applicable SLA period, TELKOM requires
         maintenance assistance for the equipment from PARTNER, PARTNER agrees
         to carry out such maintenance including replacement of the same or
         comparable spare parts within the life

                                       31

<PAGE>

         time of the equipment as referred to in Article 12.2, with costs
         thereof as agreed at least ninety (90) days prior to the expiration of
         the applicable SLA.

12.4     Up to the date of issuance of the relevant Integrated System Acceptance
         Test Certificate (including issuance pursuant to Article 55.8.9), all
         equipment supplied to TELKOM shall be in accordance with Appendix 3
         (Scope of Work) and Appendix 5 (Technical Specifications). PARTNER
         shall execute the works in accordance with this Agreement and best
         practice standards (as agreed by the Parties).

12.5     Except as otherwise provided in this Agreement, all warranties express
         or implied are excluded, including warranties of merchantability or
         fitness for a particular purpose.

ARTICLE 13. LIQUIDATED DAMAGES FOR DELAY

13.1     PARTNER shall be deemed to have failed to perform an obligation under
         this Agreement for reasons for which it can be held responsible, if
         after the performance has become due and PARTNER has been given due
         notification of non-performance with a reasonable time allowance not
         exceeding thirty (30) days to rectify or correct the failure to perform
         condition, it has not fulfilled the obligation or has not fulfilled it
         in time or in accordance with what has been agreed upon. Without
         limitation, among other examples of delays by PARTNER are the
         following:

13.1.1   the Deliverables stated in the respective Purchase Order or specific
         agreement have not met the acceptance criteria at the agreed date on a
         per Location/Site basis;

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<PAGE>

13.1.2   the contracted Deliverables to be delivered are not available at the
         time and place committed by PARTNER in accordance with the terms and
         schedules of the respective Purchase Order, including without
         limitation where the delay results from damage or loss of goods during
         shipment.

13.2     PARTNER shall not be responsible to TELKOM for non-performance if the
         non-performance is a result of (i) late or non-performance of TELKOM,
         or the Investor pursuant to Article 28.10 or other Network equipment
         suppliers, or (ii) delays in acquiring land, provided PARTNER has been
         diligent and used its reasonable endeavours during the land acquisition
         process, it being agreed that the cost of the land acquisition process
         itself for which PARTNER is responsible shall not be a reason for
         PARTNER seeking to excuse its delayed performance, or (iii) force
         majeure in accordance with Article 9. In such events, PARTNER shall be
         entitled to an appropriate extension of time for the performance of its
         obligations. PARTNER shall take all reasonable steps to minimize the
         impact of the delay and shall promptly notify TELKOM in writing, with
         supporting details, of the extension of time required. PARTNER's
         entitlement to extension of time shall be limited to the time which
         would have been due if it had given prompt notice and had taken all
         reasonable steps.

13.3     The liquidated damages for each day of delay shall be calculated on the
         basis of a percentage of the Contract Value specified in the respective
         Purchase Order related to the delayed Location in the amount of 6% per
         annum, up to a maximum of 5% of the said Contract Value in the
         applicable Purchase Order. For the avoidance of doubt, if
         non-performance is not remedied within the remedial period

                                       33

<PAGE>

         permitted under Article 13.1, or as otherwise agreed by the Parties,
         then liquidated damages shall be calculated and payable starting from
         the first day following the remedial period.

13.4     Liquidated damages assessed for delays in performance pursuant to
         Article 13 shall be without prejudice to any other non-financial claims
         TELKOM may have in respect of delays for which PARTNER is responsible.
         Subject to Article 11.3, these include without limitation, TELKOM's
         right: (i) to terminate this Agreement in accordance with Article 14;
         and (ii) following discussions with PARTNER and acting reasonably with
         respect to the selection of a third party, to appoint the third party
         to continue this Agreement with respect to such works as may be able to
         be completed by third parties on condition that any excess amounts
         reasonably incurred for continuing such works as required shall be
         borne by PARTNER. Payment of such excess amounts shall be in lieu of
         liquidated damages payable from the time the third party is appointed.

ARTICLE 14. TERMINATION OF THE AGREEMENT

14.1     If PARTNER is in material breach of any of its obligations under this
         Agreement, which failure is not capable of being cured, or if it can be
         cured, and PARTNER shall have failed to cure such default within thirty
         (30) days or an agreed lapse of time after written notice requiring
         that such default be made good (given either under this Article 14.1 or
         pursuant to Article 13.1 and 13.2), then TELKOM shall have the right,
         at its election and without prejudice to other rights and remedies
         provided in this Agreement to terminate this Agreement and recover
         damages from PARTNER.

                                       34

<PAGE>

14.2     Subject to the cure provisions of Article 14.1, TELKOM shall be
         entitled to terminate all or part of this Agreement, and/or all or part
         of the Purchase Orders and/or any related agreement upon any of the
         following events:

14.2.1   PARTNER's material breach of the Inter-Operability Commitment
         Agreement;

14.2.2   PARTNER declares or clearly states that the Scope of Work, or any
         substantial part thereof, will not or cannot be completed;

14.2.3   PARTNER takes or has taken or instituted against it any action or
         proceeding, whether voluntary or compulsory, which has as an object or
         may result in the winding up of PARTNER (other than a voluntary winding
         up by members for the purpose of reconstruction or amalgamation), or is
         placed under official management or enters into a compromise or other
         arrangement with its creditors or any class of them or an
         administrative receiver or an administrator or receiver is appointed to
         carry on its business or to take control or possession of any of its
         assets for the benefit of its creditors or any of them;

14.2.4   PARTNER violates any law relating to the prevention of corruption or
         bribery in PARTNER's home country or any jurisdiction in which PARTNER
         is carrying out any of the works;

14.2.5   Pursuant to Article 9.

14.3     PARTNER shall only be entitled to terminate or abandon this Agreement
         in the event that TELKOM is in material breach and has failed to remedy
         the default (provided that the default is capable of being remedied)
         within thirty (30) days or an agreed lapse of time

                                       35

<PAGE>

         after written notice from PARTNER requiring that such default be
         remedied in the context of the following events;

14.3.1   TELKOM takes or has taken or instituted against it any action or
         proceeding, whether voluntary or compulsory, which has as an object or
         may result in the winding up of TELKOM (other than a voluntary winding
         up by members for the purpose of reconstruction or amalgamation), or is
         placed under official management or enters into a compromise or other
         arrangement with its creditors or any class of them or an
         administrative receiver or an administrator or receiver is appointed to
         carry on its business or to take control or possession of any of its
         assets for the benefit of its creditors or any of them; or

14.3.2   TELKOM fails to pay any amounts due, or becomes unable to pay amounts
         to become due, for a period of more than six (6) months and during
         discussions with TELKOM during such period the Parties cannot agree on
         a satisfactory mechanism for payment and/or security for payments owed,
         including the provision of a bank guarantee by TELKOM acceptable to
         PARTNER; or

14.3.3   Pursuant to Article 9.2; or

14.3.4   TELKOM, (a) without PARTNER's prior written approval: (i) transfers or
         assigns the license for software and Documentation granted in Article
         8, or (ii) transfers PARTNER's proprietary software or equipment
         outside the Republic of Indonesia, (iii) commercializes or manufactures
         the applicable software, equipment and Documentation or uses the
         Deliverables in a manner not permitted in this Agreement; or (iv)
         encumbers PARTNER's Intellectual Property Rights; or (v) is otherwise
         in material

                                       36

<PAGE>

         breach of the terms and conditions of the Software License; or (b) is
         in material breach of Article 21.10; or (c) is in material breach of
         its confidentiality obligations under a duly executed Appendix 24
         (Non-Disclosure Agreement); or (d) is in material breach of applicable
         laws and regulations, which breach as a direct consequence imposes on
         PARTNER a legal obligation to cease performing its obligations under
         this Agreement.

14.4     Termination of this Agreement shall be without prejudice to any accrued
         rights of the Parties up to the date of termination.

14.5     The termination of this Agreement or other specific agreement shall not
         affect or prejudice any provisions of those agreements which are
         expressly or by implication provided to continue in effect after such
         termination.

14.6     If this Agreement is terminated by either Party as provided in this
         Article 14. TELKOM, in addition to any other rights provided in this
         Article, may require PARTNER to transfer title and to deliver to TELKOM
         in the manner and to the extent directed by them upon full payment, any
         completed equipment, material or supplies, and such partially completed
         cable and materials, parts, tools, dies, jigs, fixtures, plans,
         drawings, information, and contract rights as PARTNER has had
         specifically produced or specifically acquired for the performance of
         such part of this Agreement as may have been terminated and which if
         this Agreement had been completed, would have been required to have
         been furnished to TELKOM. In addition, PARTNER shall, upon the
         direction of TELKOM, protect and preserve property in its possession in
         which TELKOM have an interest. PARTNER shall be paid the prices
         specified in Appendix 4 (Price Schedule) for completed equipment,
         material and

                                       37

<PAGE>

         supplies delivered and services performed, and the amounts agreed upon
         by TELKOM and PARTNER for the manufacturing materials delivered to
         TELKOM by PARTNER, and for the protection and preservation of property
         in which TELKOM has an interest.

14.7     If this Agreement is terminated in accordance with Article 14.2, TELKOM
         may elect to take over and to complete the work. In such event,
         PARTNER, shall, without prejudice to any other rights or remedies of
         TELKOM hereunder, be liable to TELKOM for all reasonable excess costs
         so incurred by them taking into account any sums due under this
         Agreement to PARTNER for work commenced, partly executed or completed
         and accepted by TELKOM or materials, plant, machinery, tools and
         implements and other things purchased, used or to be used in connection
         with the work.

14.8     In the event of termination, the Parties agree to waive the provisions
         of Article 1266 of the Indonesian Civil Code to the extent necessary to
         effect termination of this Agreement in accordance with Article 14
         without the need for a court decision.

ARTICLE 15. GOVERNING LAW

         This Agreement shall be interpreted and governed in accordance with the
         laws of the Republic of Indonesia.

ARTICLE 16. SETTLEMENT OF DISPUTES

16.1     If any disputes arising between TELKOM and PARTNER in connection with
         or arising out of this Agreement or the breach, termination of validity
         thereof (a "Dispute"), the Parties shall attempt for a period of thirty
         (30) days

                                       38

<PAGE>

         after receipt by one Party of a notice from the other Party of the
         existence of the dispute, to settle such Dispute in the first instance
         by mutual discussions between senior executives of the Parties.

16.2     Any Dispute which cannot be resolved by amicable settlement between the
         Parties arising out of or in connection with this Agreement, including
         any question regarding its existence, validity or termination, shall be
         referred to and finally resolved by arbitration in Singapore in
         accordance with the Arbitration Rules of the Singapore International
         Arbitration Centre ("SIAC") for the time being in force which rules are
         deemed to be incorporated by reference to this clause.

16.3     The arbitration shall be conducted before an arbitral tribunal composed
         of three (3) arbitrators. The language of the arbitration shall be
         English.

16.4     The three (3) person arbitration panel shall be selected as follows:

         (a)      each arbitrator shall be fluent in English and shall be
                  experienced with legal matters concerning the
                  telecommunications industry.

         (b)      each of (A) the Party initiating the arbitration and (B) the
                  respondent Party or Parties to the Dispute shall nominate one
                  (1) arbitrator within thirty (30) days of the written notice
                  of the Dispute described above. The relevant Parties shall
                  within (30) days of the appointment of the two (2) arbitrators
                  seek to appoint a third arbitrator. If any relevant Party does
                  not nominate an arbitrator or if the relevant Parties cannot
                  agree on the choice of the third arbitrator, in each case
                  within the relevant period, then each unappointed arbitrator
                  shall be selected by the Chairman of the SIAC (provided that
                  the

                                       39

<PAGE>

                  requirements in Article 16.4(a) are satisfied).

16.5     The award rendered shall be in writing and shall set out the facts of
         the Dispute and the reasons for the arbitration panel's decision. The
         award shall apportion the costs of the arbitration as the arbitration
         panel deems fair.

16.6     The Parties agree that the arbitration award shall be final and binding
         on the Parties. The Parties agree that no Party shall have any right to
         commence or maintain any suit or legal proceedings until the Dispute
         has been determined in accordance with the arbitration procedure
         provided herein and then only for enforcement of the award rendered in
         the arbitration. Judgment upon the arbitration award may be rendered in
         any court of competent jurisdiction or application may be made to such
         court for a judicial acceptance of the award and an order of
         enforcement, as the case may be.

16.7     Each of the Parties hereby expressly waives any Indonesian laws and
         regulations, decrees or policies having the force of law that would
         otherwise give a right to appeal against the decision of the
         arbitration panel, and the Parties agree that no Party shall appeal to
         any court against the award or decision contained therein. The Parties
         agree that any dispute in connection with or arising out of this
         Agreement or the breach, termination of validity thereof under is of a
         commercial nature.

16.8     Each of the Parties waives the applicability of Article 48(1) of the
         Indonesian Law on Arbitration and Alternative Dispute Resolution (the
         "Arbitration Law") and agrees that no

                                       40

<PAGE>

         arbitration need be completed within a specific time. For purposes of
         Article 5 paragraph 1 of the Arbitration Law, the Parties agree that
         the relationship among the Parties is commercial in nature and any
         Dispute related to this Agreement shall be deemed commercial.

16.9     No Party or person involved in any way in the creation, coordination or
         operation of the arbitration of any Dispute may disclose the existence,
         content or results of the Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by Article 19.

16.10    This Agreement and the rights and obligations of the Parties shall
         remain in full force and effect pending the award in such arbitration
         proceeding, which award, if appropriate shall determine whether and
         when termination shall become effective. The provisions contained in
         this Article 16 shall survive the termination and/or expiration of this
         Agreement.

ARTICLE 17. LANGUAGE

17.1     All data, documents, Purchase Orders, invoices, descriptions, diagram,
         books, catalogues, instructions, marking for easy identification of
         major items of the material and most correspondence shall be in the
         English language and in the metric system of weights and measures.

17.2     PARTNER's personnel shall be proficient in English both written and
         spoken, for the purpose of providing instruction, offering advisory
         services, training and any other submission as required.

17.3     This Agreement is concluded in both English and Bahasa Indonesia. In
         the event of any inconsistency or contradiction between the Bahasa
         Indonesia and English texts, the Parties shall first endeavor to
         resolve

                                       41

<PAGE>

         such inconsistencies through negotiations, failing which the Bahasa
         Indonesia text shall govern and prevail.

ARTICLE 18. CORPORATE REPRESENTATIONS AND WARRANTIES

18.1     Each Party (including each constituent member of PARTNER) represents
         and warrants that (i) it has obtained all necessary approvals, consents
         and authorizations of third parties and governmental authorities to
         enter into this Agreement and to perform and carry out its obligations
         under it; (ii) the persons executing the Agreement on its behalf have
         express authority to do so, and, in doing so, to bind the party to it;
         (iii) the execution, delivery, and performance of this Agreement does
         not violate any provision of any bylaw, charter, regulation, or any
         other corporate governing authority of the Party; (iv) the execution,
         delivery and performance of the Agreement has been duly authorized by
         all necessary corporate action; (v) the execution, delivery and
         performance by it of this Agreement constitute private and commercial
         acts rather than public or governmental acts; and (vi) the obligations
         of the Parties under the Agreement are valid and binding obligations of
         such Party, enforceable in accordance with its terms.

ARTICLE 19. CONFIDENTIAL INFORMATION

19.1     TELKOM and PARTNER shall enter into a Non-Disclosure Agreement in the
         form set out in Appendix 24 (Non-Disclosure Agreement) which details
         the terms and conditions related to permitted uses and disclosures of
         confidential information in the development (if applicable) operation,
         use and maintenance of the relevant Systems in the T-21 Program.

                                       42

<PAGE>

ARTICLE 20. NOTICE

20.1     All notifications required or permitted under this Agreement shall be
         sufficiently given if made in writing and delivered personally by hand
         or by courier or sent by prepaid registered post or by facsimile to the
         addresses of the Parties as from time to time notified.

20.2     All notification required in connection with the implementation of this
         Agreement shall be addressed as follows:

         To TELKOM:
         Perusahaan Perseroan (Persero) PT
         Telekomunikasi Indonesia Tbk.
         Jl. Japati No. 1, Bandung 40133
         Attention : President Director
         Fax       : (022)440-313

         To PARTNER:
         Motorola, Inc.
         c/o PT Motorola Indonesia
         Gedung BRI II, Suite 3001
         Jl. Jend. Sudirman Kav. 44-46
         Jakarta 10210, Indonesia
         Attention : General Manager
         Fax       : (021) 571-9064

         Cc: Motorola Electronics Pte. Ltd.
         12 Ang Mo Kio St 64
         Motorola Innovation Centre Level 3A
         Ang Mo Kio Industrial Park 3
         Singapore 569088

         Fax   : (65) 6484-0933
         Attn. : Commercial Contracts Manager

20.3     PARTNER shall appoint a point of contact or designated representative
         authorized to act on behalf of PARTNER, and whose instructions and
         requests shall be binding for PARTNER as to all matters pertaining to
         implementation of the Project brought to his attention by TELKOM.
         TELKOM shall also appoint a point of contact or designated
         representative authorized to act on behalf of TELKOM whose instructions
         and requests shall be binding for TELKOM as to all matters pertaining
         to implementation of the Project. The initial point of contact

                                       43

<PAGE>

         for each Party is listed below:

         PARTNER's Point of Contact:
         Project Manager
         c/o PT Motorola Indonesia
         Gedung BRI II, Suite 3001
         Jl. Jend. Sudirman Kav. 44-46
         Jakarta 10210, Indonesia
         Tel: (021) 251-3050
         Fax: (021) 515-4624
         Email: didit.herawan@motorola.com
         Mobile: 62811174066

         TELKOM's Point of Contact:
         PT Telekomunikasi Indonesia Tbk.
         Head of Fixed Wireless Division (as
         Project Manager)
         Jl. Kebon Sirih, Kav. 12
         Jakarta
         Indonesia
         Tel    : (021) 385-7777
         Fax    : (021) 344-0707
         E-mail : alex_is@telkom.co.id
         Mobile : (0811) 965-500

20.4     A Party may change its address by giving prior written notice to the
         other Party. Notices and other communications may be in the Indonesian
         or English language. All notices shall be effective (i) in the case of
         delivery by personal delivery or courier, on the date of receipt as
         evidenced by a delivery receipt from the recipient or confirmation of
         delivery received by the sender from the courier, and (ii) in the case
         of transmission by facsimile transmission or electronic mail or other
         electronic transmission, on the date of receipt as promptly
         acknowledged by the recipient, failing which acknowledgement then on
         the date of such transmission as evidenced by the convention applicable
         to such transmission.

ARTICLE 21. GENERAL PROVISIONS

21.1     If any provision of this Agreement or part thereof is rendered void,
         illegal or unenforceable by any legislation to which it is subject, it
         shall be rendered void, illegal or unenforceable only to that extent
         and it shall in no way affect

                                       44

<PAGE>

         or prejudice the enforceability of the remainder of such provision or
         the other provisions of this Agreement. The invalidity, illegality or
         unenforceability of any provision in this Agreement under the laws of
         any one jurisdiction shall not in itself affect the validity, legality
         and enforceability of such provision under the laws of any other
         jurisdiction.

21.2     No remedy conferred by any of the provisions of this Agreement is
         intended to be exclusive of any other remedy that is otherwise
         available at law or otherwise, and each and every other remedy shall be
         cumulative and shall be in addition to every other remedy given
         hereunder or now or hereafter existing at law or otherwise. The
         election of any one or more of such remedies by either Party shall not
         constitute a waiver by such Party of the right to pursue any other
         available remedies.

21.3     No failure on the part of either Party to exercise and no delay on the
         part of either Party in exercising any right hereunder will operate as
         a release or waiver thereof, nor will any single or partial exercise of
         any right under this Agreement preclude any other or further exercise
         of it. The rights and remedies provided in this Agreement are
         cumulative and not exclusive of any right or remedy provided by law.

21.4     This Agreement embodies all the terms and conditions agreed upon
         between the Parties as to the subject matter of this Agreement, and
         supersedes all prior representations, arrangements, understandings and
         agreements between the Parties whether written or oral (including
         without limitation, the RfP, except as provided otherwise under this
         Agreement).

                                       45

<PAGE>

21.5     This Agreement may be executed in any number of counterparts, each of
         which shall constitute an original and take effect without reference to
         any other counterpart, and together the counterparts shall be deemed as
         one and the same agreement.

21.6     Notwithstanding the reference to the terms "Partner" and/or
         "partnership" in this Agreement, the relationship between the Parties
         shall not constitute a legal partnership. Neither Party has the power
         or the right to bind, commit or pledge the credit of the other Party.

21.7     This Agreement shall enure to the benefit of and be binding upon the
         Parties and their respective successors and permitted assigns.

21.8     This Agreement does not establish an employer-employee relationship and
         PARTNER is for all purposes, an independent contractor.

21.9     No modification, amendment or other change may be made to this
         Agreement or any part thereof unless reduced to writing and executed by
         authorized representatives of both Parties.

21.10    TELKOM agrees to comply with all applicable export laws and regulations
         of the United States of America, the United Kingdom, or such other
         country of origin. Specifically, but without limitation, TELKOM agrees
         that it will not resell or re-export Motorola products or technical
         data in any form without obtaining appropriate export or re-export
         licenses from the respective governmental authority of the United
         States of America, the United Kingdom or other country of origin.

21.11    TELKOM further agrees to perform and comply with its obligations under
         this Agreement and the respective Purchase Orders.

                                       46

<PAGE>

21.12    The Parties agree that where the context of any provision indicates an
         intent that it shall survive the expiry or termination of this
         Agreement, such provision shall survive. Specifically, the following
         Articles shall survive expiry or termination: 8, 11.3, 11.4, 15, 16,
         19, 21.10 and Appendix 26.

21.13    The Parties agree that to their knowledge there are no laws or
         regulations specifically applicable to sales to an entity owned or
         partly owned by a government entity which would apply to the Parties in
         the circumstances of this Agreement.

                                   CHAPTER 2.
                         COMMERCIAL TERMS AND CONDITIONS

ARTICLE 22. CONTRACT VALUE

22.1     Based on the unit prices referred to in Article 23.3, the initial
         Contract Value (excluding VAT and excluding the fees under the Service
         Level Agreement) for execution of the Project under this Agreement is
         US$ 20,686,855 (primarily for goods and services purchased outside
         Indonesia) and IDR 61,268,263,751 (primarily for goods and services
         procured within Indonesia). This Contract Value may be adjusted from
         time to time in accordance with the mechanism provided in Article 27.

ARTICLE 23. PRICES, FEES

23.1     The prices, and fees as listed under Appendix 4 (Price Schedule) are
         the agreed prices and applicable to the relevant Purchase Orders. Such
         prices and fees shall be deemed to include all costs, expenses and
         customs and import duties which are deemed necessary to carry out this
         Agreement, but excluding VAT, income tax Article 22 on imports and
         sales tax on luxury goods.

                                       47

<PAGE>

23.2     The prices and fees payable by TELKOM under this Agreement shall be
         denominated in United States of America Dollars (USD) or in Indonesian
         Rupiah (IDR), as applicable or as may be required under this Agreement
         to satisfy Local Content requirements. All payments made under or
         pursuant to this Agreement by TELKOM shall be made in the currency
         specified. In the event that any such payments are unable to be made in
         the currency specified for whatsoever reason, then at the option of
         PARTNER such payments may be made by TELKOM by payment of an equivalent
         amount (at the then prevailing exchange rates) of such other currency
         as is permissible. If so requested by PARTNER, TELKOM shall pay the
         relevant amount in the name of PARTNER or a third party designated by
         PARTNER at a bank within Indonesia.

23.3     Unit prices quoted in Appendix 4 (Price Schedule) are firm fixed prices
         and shall not be varied except as permitted under this Agreement. Unit
         prices for equipment are deemed to include payments by PARTNER for all
         costs of freight, insurance, customs and import duties, clearance at
         the port of entry, inland transportation, warehousing and delivery to
         the Location/Site where the equipment is to be installed. Unit prices
         for equipment related services shall include survey, planning, design,
         permits, rights of way, installation, integration, project management,
         insurance up to transfer of title, testing and commissioning costs,
         services related to land acquisition, frequency licence application
         services and all related materials and expenses to complete the Project
         on a turnkey basis as contemplated in Article 3. Import or custom
         duties are included in the unit prices set out in Appendix 4 (Price
         Schedule) and shall remain fixed. Variations in unit price shall only
         be subject to change if specifically agreed upon by the Parties
         pursuant to a Change Request.

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<PAGE>

ARTICLE 24. TAXES AND DUTIES

24.1     The Contract Value excludes VAT, sales tax on luxury goods, and
         prepayment of income tax (Article 22) on imports, but includes
         customs/import duties imposed by the government of Indonesia on the
         Deliverables in connection with the Project. Each Party shall be
         responsible for all taxes which it is required to pay, withhold or
         collect as the case may be, in accordance with prevailing laws and
         regulations, it being acknowledged by PARTNER that in relation to VAT
         administration TELKOM is a designated VAT collector under applicable
         regulations. In the event withholding taxes are applied on any payments
         made by TELKOM to PARTNER, TELKOM shall provide PARTNER with a copy of
         the withholding tax receipt within fourteen (14) days from the date of
         payments.

ARTICLE 25. INSURANCE AND SAFETY

25.1     PARTNER shall at its own expense take out an all risk (or equivalent
         coverage) insurance policy ("All Risk Policy") to cover any works to be
         carried out pursuant to any Purchase Order. The insurance shall cover
         all risks against losses, damages (including accidents caused by the
         work performed by PARTNER, its employees, agents or sub-contractors) at
         a minimum until the transfer of title to the relevant Deliverables
         pursuant to Article 10.2. The All Risk Policy shall also cover any
         plant, machinery, tools, goods, vehicles or property belonging to
         PARTNER, its employees, agents or sub-contractors which have been
         placed at any relevant Location/Site where any works are being
         executed, all risks during transportation, warehousing, storage,
         delivery, installation and testing, whether by fire, theft,
         earthquake/flood, natural

                                       49
<PAGE>

         disaster, consequence of fault in construction, or otherwise, and legal
         liability to third parties during construction, installation and
         operation periods including PARTNER's loss of revenue and damage to
         surrounding property. PARTNER shall provide evidence of this All Risk
         Policy to TELKOM upon request. Subject to the conditions that PARTNER
         retains full responsibility for its obligations under this Article 25,
         and that TELKOM is not required to execute the policy document, PARTNER
         may at its option procure that the All Risk Policy name TELKOM as a
         co-insured and beneficiary of such policy.

25.2     PARTNER shall at its own expense replace any lost, damaged and/or
         destroyed Deliverables while such are in the process of being delivered
         and installed.

25.3     Notwithstanding the procurement of an All Risk Policy, PARTNER's
         liability in respect of loss or damage attributable to the acts,
         omission or negligence of PARTNER shall not be limited to the amount of
         the insurance coverage under the All Risk Policy.

25.4     PARTNER shall take full responsibility for the adequacy, stability and
         safety of all works carried out at the relevant Locations/Sites in
         accordance with the provisions of any law, order, regulation, decree,
         directive or standards now or hereinafter in force in Indonesia.
         PARTNER shall ensure that all equipment, tools, facilities and other
         items used by PARTNER or its sub-contractor in the execution of the
         works shall be safe, sound, in good working condition which shall, at a
         minimum,

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<PAGE>

         conform to acceptable standards in the industry. PARTNER shall at its
         own expense provide the necessary safety equipment, protective
         clothing, footwear and such other appliances as may be necessary or
         required by law or regulation for proper and safe execution of the
         works. PARTNER shall ensure that all personnel provided are fully
         trained and qualified and properly certified by the relevant
         authorities or bodies if such certification is required under the
         applicable laws, rules or regulations or directive of any governmental
         body.

                                   CHAPTER 3.
                            FINANCIAL TERMS AND PAYG

ARTICLE 26. JOINT PLANNING SESSIONS, DESIGN REVIEW MEETINGS AND MONTHLY MEETINGS

26.1     Joint Planning Session or JPS

26.1.1   The Parties agree to conduct systematic, periodic and comprehensive
         joint planning exercises as described below.

26.1.2   TELKOM and PARTNER shall conduct annual Joint Planning Sessions ("JPS")
         in October or November at the end of each Fiscal Year to plan for the
         following Fiscal Year's Package Level Requirements. The first of these
         JPSs shall be conducted at a time to be mutually determined after the
         Parties have executed this Agreement and shall cover the period
         immediately following the execution of this Agreement up to the end of
         Fiscal Year 2003. The JPS may also be convened at such other times as
         the Parties may agree. TELKOM and PARTNER shall jointly conduct and/or
         agree on at least the following activities as applicable to the
         following Fiscal Year:

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         (a)      demand forecasting (which in this Agreement shall refer to a
                  minimum of one (1) year time horizon) at DIVRE 1 level
                  considering various macro economic factors;

         (b)      economic analysis to assess the business feasibility of
                  deploying the intended Network; and

         (c)      development of the details of the Deployment Plan and
                  Implementation Schedule on a quarterly basis with
                  prioritization of Locations for Network deployment.

26.1.3   At each subsequent JPS, TELKOM and PARTNER shall conduct jointly and/or
         agree on at least the following activities as applicable to the
         following Fiscal Year.

         (a)      demand forecasting for DIVRE 1 considering various macro
                  economic factors;

         (b)      economic analysis to assess the business feasibility of
                  deploying the intended Network; and

         (c)      development of details of the Deployment Plan and
                  Implementation Schedule on a quarterly basis with
                  prioritization of Locations for Network deployment;

         (d)      review of future technology deployment strategies, considering
                  availability and suitability of the latest technologies,
                  equipment or software; and

         (e)      resolve issues referred to it by a DRM or otherwise and agree
                  on corrective actions.

26.1.4   PARTNER shall take responsibility for the organizational and
         administrative activities required to convene the JPSs.

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         PARTNER shall be responsible for all reasonable costs of convening the
         JPS and shall fund at its own expense the cost of external consultants,
         if needed, in performing any of the work or analyses contemplated under
         Article 26.1. TELKOM shall only be responsible for the costs of
         providing accommodations and transport for TELKOM staff attending a
         JPS.

26.1.5   The Parties shall produce minutes of the JPS meetings in which any
         substantive agreements shall be recorded as agreements of the Parties,
         as evidenced by signature of the minutes (or the applicable sections
         thereof) by the authorized representative of each Party.

26.1.6   At each JPS and subject to either or both Parties first reporting
         unresolved issues to the respective senior executives of each Party for
         consideration, TELKOM shall be entitled to make the final decisions on
         such matters as revision of the Deployment Plan and adjustments to the
         calculation of Installed Lines Procurements, after taking into account
         PARTNER's inputs concerning, among others, demand forecasts, market
         outlook and take-up of the capacity deployed.

26.2     Design Review Meeting or DRM

26.2.1   TELKOM and PARTNER shall conduct systematic, periodic and comprehensive
         Design Review Meetings ("DRM") on a quarterly basis at a DIVRE level
         throughout the term of this Agreement.

26.2.2   The first DRM shall be conducted within ten (10) Business Days after
         the first JPS or within such timeframe agreed at the first JPS.
         Thereafter, DRMs are intended to be held at the end of each Quarter
         with an agenda which looks forward to the contemplated activities of
         the following Quarter.

26.2.3   Before the first DRM, TELKOM and PARTNER jointly shall conduct at least
         the following activities:

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         (a)      survey the planned deployment Location/Site(s) to ensure the
                  readiness of the Location/Site(s);

         (b)      calculate Installed Line Procurements (reasonably equating to
                  Subscriber Targets) required by Location and Site (BTS);

         (c)      based on the Subscriber Targets, develop a detailed network
                  design, agree and approve the detailed BoQ and the value of
                  the detailed BoQ by Location and Site (BTS);

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

         (f)      update the Deployment Plan for the next Quarter if necessary.

26.2.4   At the first DRM, TELKOM and PARTNER jointly shall conduct and/or agree
         on at least the following activities:

         (a)      check and update the calculation of Installed Line
                  Procurements (reasonably equating to Subscriber Targets) by
                  Location and Site (BTS);

         (b)      based on the Subscriber Target, agree and approve the detailed
                  Network design;

         (c)      based on the Subscriber Target, agree and approve the detailed
                  BoQ and the total value of the detailed BoQ by Location and
                  Site (BTS);

         (d)      agree and approve the detailed resource plan;

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         (e)      agree and approve the detailed training plan;

         (f)      agree and approve adjustments, if any, to the Project
                  Management Plan and the Implementation Schedule; and

         (g)      agree and approve the updated Deployment Plan for the
                  following Quarter if necessary.

26.2.5   Following the first DRM and after each subsequent DRM, upon agreement
         of the Parties on the relevant terms and conditions, TELKOM shall
         promptly issue Purchase Order(s) signed by the TELKOM Project Manager
         or other person authorized by TELKOM based on the results of the
         related DRM.

26.2.6   With respect to the quarterly DRM which coincides with a JPS each
         fiscal year, the DRM shall be convened immediately after the completion
         of such JPS, with an agenda which is designed not to repeat or
         duplicate JPS activities in such DRM, unless necessary.

26.2.7   Before each subsequent DRM, TELKOM and PARTNER jointly shall conduct
         and/or agree on at least the following activities:

         (a)      survey the planned deployment Location/Site(s) to ensure the
                  readiness of the Location/Site(s), to assess the demand;

         (b)      update the Deployment Plan for that Quarter by calculating the
                  Installed Line Procurement (reasonably equating to Subscriber
                  Targets) required by Location and Site (BTS);

         (c)      based on the Subscriber Targets, develop a detailed

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                  Network design, a detailed BoQ and the total value of the
                  detailed BOQ by Location and Site (BTS);

         (d)      develop a detailed resource plan;

         (e)      develop a detailed training plan; and

         (f)      assess market demand and update deployment plan for the
                  following Quarter if necessary.

26.2.8   At each subsequent DRM, TELKOM and PARTNER jointly shall conduct and/or
         agree on at least the following activities for the following Quarter:

         (a)      check and update the calculation of Installed Line
                  Procurements (reasonably equating to Subscriber Targets) by
                  Location and Site (BTS);

         (b)      based on the Subscriber Target, agree and approve the detailed
                  Network design;

         (c)      based on the Subscriber Target, agree and approve the detailed
                  BoQ and the total value of the detailed BoQ by Location and
                  Site (BTS);

         (d)      agree and approve the detailed resource plan;

         (e)      agree and approve the detailed training plan;

         (f)      agree and approve adjustments, if any, to the Project
                  Management Plan and Implementation Schedule;

         (g)      evaluate performance of the Project in the previous Quarter
                  and revise implementation procedures to take account of
                  failures or other unsatisfactory

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                  performance;

         (h)      agree and approve the updated Deployment Plan for the
                  following Quarter if necessary; and

         (i)      resolve issues referred to it by a monthly meeting or
                  otherwise and agree on corrective actions.

26.2.9   PARTNER shall take responsibility for the organizational and
         administrative activities required to organize all DRMs. PARTNER shall
         be responsible for all reasonable costs of convening the DRM and shall
         fund at its own expense the analysis, if needed, contemplated under
         Article 26.2. TELKOM shall only be responsible for the costs of
         providing accommodations and transport for TELKOM staff attending a
         DRM.

26.2.10  The Parties shall produce minutes of each DRM in which any substantive
         agreements shall be recorded as agreements of the Parties, as evidenced
         by signature of the minutes (or the applicable section thereof) by the
         authorized representative of each Party.

26.2.11  The following additional agreements apply to the DRMs:

         (a)      TELKOM and PARTNER jointly will design and calculate the exact
                  BoQ to support the intended number of Subscriber Targets based
                  on the design rules in Appendix 14 (Technical and Engineering
                  Norms);

         (b)      the design rules in Appendix 14 (Technical and Engineering
                  Norms) are based on technical and engineering norms current at
                  the date of this Agreement and may be adjusted by written
                  agreement of the Parties during the planning process based on
                  the evolution of the market to avoid any over or
                  under-estimation of the equipment required;

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         (c)      in case there are any major issues that need urgent attention
                  or cause any significant deviation from the original
                  Deployment Plan, PARTNER shall bring it to the attention of
                  TELKOM and, if mutually agreed, promptly convene a special DRM
                  to address such issues;

         (d)      if necessary, any activities mandated by a JPS meeting may be
                  executed in conjunction with a DRM meeting;

         (e)      in the event that terms of a particular Purchase Order are
                  inconsistent with agreements reached in a DRM, the Parties
                  shall review and if necessary amend any mistakes or
                  discrepancies in the Purchase Order or BoQ;

         (f)      At each DRM, decisions on such matters as revision of the
                  Deployment Plan and calculation of Installed Line Procurements
                  shall be mutually agreed by the Parties after taking into
                  account all inputs of both Parties concerning, among others,
                  demand forecasts, market outlook, equipment production
                  capacity, and take up of the capacity deployed; and

         (g)      TELKOM and PARTNER agree that the Deployment Plan for the
                  following Quarter for a particular Location shall be
                  calculated based on Installed Line Procurements that
                  realistically can be provisioned within a period of a

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                  minimum of three (3) years if new common equipment is
                  deployed, and a minimum of one (1) year for each module such
                  as racks, sub-racks and cards.

         Notwithstanding anything to the contrary in this Agreement, a Purchase
         Order shall only be issued if the terms and conditions of the Purchase
         Order are agreed in writing, either at the relevant DRM or
         subsequently, by the authorized person of each Party, as notified to
         each Party from time to time in accordance with Article 20.3. If the
         Parties cannot reach agreement at a DRM on matters such as the terms of
         a particular Purchase Order or other critical issue, the matter shall
         first be referred to senior management of each Party for resolution,
         failing which the provisions of Article 16 shall apply.

26.3     Monthly Meetings

26.3.1   PARTNER through its authorized representatives shall conduct monthly
         meetings with the relevant TELKOM staff in the Location to be developed
         to ensure smooth execution of Project operations and to raise and
         discuss issues in a timely manner.

26.3.2   The first of these meetings will be conducted at a time to be mutually
         determined after the first DRM has been conducted. Thereafter, these
         meetings shall be held on a monthly basis throughout the term of this
         Agreement.

26.3.3   At each monthly meeting, PARTNER shall be responsible for at least the
         following activities: preparation of progress reports from site
         managers, site supervisors, and other staff to the TELKOM Project
         Manager or his authorized representative, updates on any relevant
         developments, and discussion of any problems or

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         unresolved issues arising in the previous month.

26.3.4   Monthly meetings may be held anywhere at such times and places as
         mutually convenient to the Parties.

26.4     Representation at JPS, DRM and Monthly Meetings

26.4.1   TELKOM and PARTNER shall notify each other from time to time regarding
         their appointments (and any changes to such appointments) of authorized
         representatives who have authority to execute or make agreements in any
         JPS and/or DRM and/or monthly meeting on their behalf.

26.4.2   Agreements of the Parties reached at a JPS and/or DRM and/or monthly
         meeting shall be signed by authorized representatives of each of the
         Parties as notified to each other from time to time.

ARTICLE 27. INSTALLED LINE PROCUREMENTS

27.1     The planned number of lines to be installed in each Quarter (the "Base
         Line") as set out in Appendix 7 (Deployment Plan) shall be used as a
         fixed number from which to calculate the amount by which planned
         Installed Line Procurements can be adjusted from time to time at a DRM
         or JPS in accordance with the flexible procurement methodology
         contemplated in this Article 27.

27.2     Based on the Deployment Plan for the following Quarter, the calculation
         of Installed Line Procurements contemplated in the following Quarter
         will be adjusted in accordance with the following formula:

         Installed Line Procurements = Base Line x (1+ Percentage Index)

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27.3     The Percentage Index shall be 0% for the first Quarter. For subsequent
         Quarters, TELKOM may at its sole discretion vary the Percentage Index
         by a maximum of 15%, up or down, from the Percentage Index adopted for
         the previous Quarter, i.e., the Percentage Index = Percentage Index for
         the previous Quarter +/- 15%, provided that over the term of this
         Agreement, the minimum Installed Line Procurements shall be 60% of the
         total cumulative Base Line.

27.4     The Parties may also agree to change the Percentage Index by more than
         15% for a particular Quarter, provided that for purposes of calculating
         the applicable maximum limits of the Percentage Index for the following
         Quarter, the Percentage Index for the previous Quarter will be deemed
         to have been varied by a maximum of 15% only, and the Percentage Index
         for the following Quarter calculated from that limit rather than from
         the actual Percentage Index of the previous Quarter in which the
         applicable maximum limits were exceeded.

27.5     For the avoidance of doubt, once the commitment volumes set forth in
         Article 27.3 have been reached, TELKOM shall have no further commitment
         to increase the Installed Line Procurements.

ARTICLE 28. PURCHASE ORDERS AND PROCEDURES

28.1     PARTNER shall deliver all Deliverables to TELKOM in response to
         Purchase Orders issued by TELKOM from time to time, generally on a
         quarterly basis in conjunction with a DRM.

28.2     TELKOM through the TELKOM Project Manager (preferably) or other
         authorized TELKOM representative and/or authorized BOT representatives
         agreed by the Parties (for particular geographical areas as notified in
         writing by TELKOM from time to time) will issue Purchase Orders based
         on deployment at a particular DIVRE level.

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28.3     A Purchase Order will be valid only if it is: (a) made in writing in
         the form set out in Appendix 12 (Purchase Orders), and (b) signed by
         the TELKOM Project Manager or his designated representative, and (c)
         accompanied by the written undertaking which complies with Article
         32.10(b).

         Each Purchase Order shall include necessary and appropriate attachments
         to clearly describe:

28.3.1   Subscriber Target numbers defined per Location and Site (BTS);

28.3.2   Value of Purchase Order defined per Location and Site (BTS);

28.3.3   Local Content items and value;

28.3.4   Project Locations/Site;

28.3.5   Detailed Network Design;

28.3.6   Detailed BoQ; and

28.3.7   The overall Implementation Schedule and the breakdown for each
         Location.

28.4     The Subscriber Target for a Purchase Order shall be the Installed Line
         Procurement for the DIVRE/Location for the relevant Quarter based on
         the Deployment Plan as updated and determined at the related DRM.

28.5     The Subscriber Recorder is TELKOM's database system in the NSS/MSC in
         the related DIVRE.

28.6     Within five (5) Business Days from receipt of a Purchase Order, PARTNER
         through its authorized representative shall either:

28.6.1   accept the Purchase Order by countersigning on the space provided on
         the Purchase Order or a copy thereof and returning the same to TELKOM
         by way of facsimile, followed by mail or hand delivery or by courier.

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         Countersigning of the Purchase Order by authorized representatives of
         PARTNER shall be deemed to constitute acceptance of the Purchase Order
         without conditions by PARTNER and any terms and conditions accompanying
         such acceptance shall be null and void; or

28.6.2   notify TELKOM by way of facsimile, followed by mail or hand delivery or
         by courier that the Purchase Order has not been accepted.

         PARTNER shall be entitled to refuse to accept a Purchase Order if: (a)
         the Purchase Order is incomplete or does not have the required
         attachments; or (b) the Purchase Order does not reflect the written
         decision of the relevant DRM pursuant to Article 26.2.11.

28.7     TELKOM shall not be legally bound to purchase more than its minimum
         obligations under this Agreement, based on the maximum reduction to the
         Installed Line Procurements allowable under Article 27.

28.8     TELKOM may issue one or more new Purchase Orders as appropriate in
         conjunction with a DRM relating to the Installed Line Procurement
         requirements for the following Quarter.

28.9     TELKOM may issue one or more new Purchase Orders for general services
         or combine them with Purchase Orders for Installed Line Procurement
         with a separate breakdown for the general services component.

28.10    The T-21 Program includes elements which may be covered by Build
         Operate and Transfer ("BOT") arrangements between TELKOM and other
         local entities (each an "Investor"). The procurement volumes under
         these BOT arrangements are included within the overall T-21 procurement
         volumes and are to be planned as part of the JPS and DRM meetings, but
         will not be

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         paid in accordance with the PAYG payment method set forth in Article
         32, but shall be paid 100% on Commissioning unless otherwise agreed
         with an Investor. An Investor shall: (a) provide PARTNER evidence of
         its bona fides as a financially sound company of good reputation; and
         (b) enter into a separate agreement with PARTNER on terms and
         conditions acceptable to PARTNER.

28.11    The Purchase Orders may be issued by one or more Investors directly
         and, if accepted by PARTNER, shall constitute separate contract(s)
         between PARTNER and the Investor for the equipment and services to be
         supplied. TELKOM shall provide PARTNER with a list of authorised
         representatives of the Investors for each region who can issue such
         Purchase Orders.

28.12    The Parties shall exercise their reasonable efforts to ensure that the
         maximum prices of the equipment and services and other commercial terms
         of these BOT arrangements shall be as provided in Chapter 2 of this
         Agreement, but the actual prices shall be subject to negotiation to the
         extent of the interest or other savings achieved by virtue of payment
         on Commissioning, or as otherwise agreed, rather than by the PAYG
         payment method. Title in the equipment shall be transferred upon full
         payment by the Investor (to eventually be transferred to TELKOM at the
         end of the BOT arrangement by virtue of the agreement between TELKOM
         and the Investor) except that title to the software shall not pass at
         any time. Payment guarantee will be made by Investor pursuant to one of
         the following payment mechanisms: (i) payment to an escrow account at a
         bank in Indonesia with terms and conditions acceptable to PARTNER; (ii)
         opening of an L/C issued by a bank in Indonesia with terms and
         conditions acceptable to PARTNER; or (iii) issuance of a bank guarantee
         from a bank in Indonesia with terms and conditions acceptable to
         PARTNER.

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28.13    A three year Service Level Agreement in form and substance as set forth
         in Appendix 20 (Service Level Agreement) shall apply to the equipment
         procured under the BOT arrangement upon Commissioning. The equipment
         will be operated by TELKOM on behalf of the Investor during the term of
         the BOT arrangement pursuant to a separate agreement and TELKOM shall
         work together with PARTNER as if the BOT equipment were part of
         TELKOM's network.

28.14    The substance of Chapters 1 and 5 of this Agreement, appropriately
         adjusted to the circumstances, shall be included in the contract
         between PARTNER and the Investor, unless otherwise agreed.

ARTICLE 29. PERFORMANCE BOND

29.1     As security for the performance of the work to be undertaken by PARTNER
         for Package 1 (Module 1) of the T-21 Program, within ten (10) Business
         Days following TELKOM's issuance and PARTNER's acceptance of the first
         Purchase Order, PARTNER shall deliver to TELKOM a performance bond in
         favor of TELKOM in the amount of 5% of the total value of the first
         Purchase Order, in form and substance as appears in Appendix 25
         (Performance Bond). The Parties agree that it is a condition precedent
         to the first Purchase Order and any subsequent Purchase Orders becoming
         a binding contract between the Parties that the Performance Bond
         covering the work to be performed under the relevant Purchase Order(s)
         is in full force and effect.

29.2     As each new Purchase Order following the first Purchase Order is issued
         and accepted, the value of the then existing Performance Bond shall be
         adjusted to reflect the aggregate value of: (i) 5% of the total value
         of that Purchase Order; plus (ii) 5% of the total value of that

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         portion of the previous Purchase Order(s) relating to Deliverables not
         yet Commissioned as of that date. This process of adjustment may only
         be made at the end of each Quarter at the relevant DRM so as to ensure
         that as each new Purchase Order is issued and accepted, PARTNER will
         adjust the value of the Performance Bond to the appropriate level,
         taking into account the value of all Deliverables not yet Commissioned
         at that time under the relevant Purchase Orders (new or prior). PARTNER
         shall maintain the Performance Bond at the appropriate value levels for
         a period terminating on a date which is six (6) months from the first
         to occur of the issuance of the first Integrated System Acceptance Test
         Certificate by TELKOM pursuant to this Agreement or commercial
         deployment of any of the Deliverables.

ARTICLE 30. TERMINATION OF PURCHASE ORDERS

30.1     A Purchase Order may be terminated by TELKOM in whole or in part and
         from time to time, by TELKOM acting reasonably under the circumstances.
         TELKOM shall deliver to PARTNER a written notice, the "Notice of P.O.
         Termination", signed by authorized signatories of TELKOM, specifying
         the reasons for its action, the extent to which performance of work
         under the Purchase Order is terminated and the date (which shall be not
         less than five (5) Business Days from the date of Notice of P.O.
         Termination) upon which such termination becomes effective.

30.2     On receipt of such a Notice of P.O. Termination, unless otherwise
         directed by TELKOM in the notice, PARTNER shall:

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30.2.1   stop work under the Purchase Order on the date and to the extent
         specified in the Notice of P.O. Termination (except to the extent
         reasonably required by considerations of security or safety);

30.2.2   place no further orders or contracts for materials, services, or
         facilities except as may be necessary for completion of any portion of
         the work under the Purchase Order which is not terminated;

30.2.3   use reasonable efforts to terminate all orders and contracts to the
         extent that they relate to the performance of work terminated by the
         Notice of P.O. Termination;

30.2.4   subject to payment by TELKOM in accordance with Article 30.3, as
         reasonably requested assign to TELKOM (where possible under the orders
         and contracts), in the manner, at the time and to the extent directed
         by TELKOM, PARTNER's rights, title and interest under the orders and
         contracts so terminated;

30.2.5   use reasonable efforts to mitigate any damages caused by the
         termination of the Purchase Order and settle outstanding liabilities
         and claims arising out of such termination of orders and contracts,
         with TELKOM's approval or ratification to the extent they may require,
         which approval or ratification shall be final for all the purposes of
         this Article 30;

30.2.6   subject to payment by TELKOM in accordance with Article 30.3 and as
         reasonably requested by TELKOM, (i) transfer title and deliver to
         TELKOM in the manner, at the time, and to the

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         extent (if any) directed by TELKOM the fabricated or unfabricated
         parts, work in progress, completed work, supplies, and other material
         produced as part of, or acquired in connection with the performance of
         the work terminated by the Notice of P.O. Termination, and (ii) deliver
         to TELKOM the completed or partially completed plans, drawings,
         information and other property which, if the Purchase Order had been
         completed, would have been required to be furnished to TELKOM;

30.2.7   complete performance of such part of the Scope of Work as may not have
         been terminated by the Notice of P.O. Termination; and

30.2.8   take such action as may be necessary, or which TELKOM may direct, for
         the protection and preservation of the property related to the Purchase
         Order which is in PARTNER's possession and in which TELKOM has or may
         acquire an interest, provided that if it complies with TELKOM's
         directions, PARTNER shall have no liability to TELKOM for loss or
         damage to such property.

30.3     After reception of a Notice of P.O. Termination PARTNER shall submit to
         TELKOM a written termination claim. Such claim shall be submitted
         promptly, but in no event later than ninety (90) calendar days from the
         Notice of P.O. Termination. Payment of claimed amounts under such
         termination claim agreed by TELKOM to be payable in accordance with
         performance by PARTNER of its obligations under Article 30.2, shall be
         payable to PARTNER pursuant to issuance of a special Purchase Order and
         payment within twenty-one (21) Business Days of approval by TELKOM
         (such approval not to be unreasonably withheld or delayed) of

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         the claim. For the avoidance of doubt, for purposes of TELKOM's payment
         obligations under this Article 30, any Deliverables related to a
         Purchase Order for which Notice of P.O. Termination has been given
         shall be inspected and checked to the satisfaction of TELKOM, which
         inspection shall be deemed to constitute Commissioning. In such event
         the Subscriber Target for the terminated portion of the Deliverables
         will be adjusted to zero and the value of that portion of the Purchase
         Order terminated shall not be taken into account for the purposes of
         Article 32.2.

30.4     In the settlement of any such partial or total termination claim,
         TELKOM's payment to PARTNER shall be limited to the following:

30.4.1   the price for completed work, based on Appendix 4 (Price Schedule);

30.4.2   a fair and reasonable sum in respect of partially completed work
         prorated where practicable based on Appendix 4 (Price Schedule);

30.4.3   the cost of supplies and materials reasonably and necessarily purchased
         in respect of the terminated portion of the Purchase Order, but not
         incorporated into completed or partially completed work;

30.4.4   the cost of settling and paying claims arising out of the termination
         of the work under contracts and orders, as provided above, which are
         properly chargeable to the terminated portion of the Purchase Order;

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30.4.5   the reasonable costs of accounting, legal and clerical expenses
         reasonably necessary for the preparation of settlement claims and
         supporting data with respect to the terminated portion of the Purchase
         Order and for the termination and settlement of contracts thereunder,
         together with reasonable storage, transportation, and other costs
         incurred in connection with the protection or disposal of property
         allocable to the Purchase Order.

30.5     Notwithstanding the above, the total payment to PARTNER pursuant to
         this Article 30, taken together with any other payment, shall not
         exceed the value applicable to the work or to part therefore so
         terminated. TELKOM shall not be responsible for any costs or charges
         beyond those costs which have been claimed and validated in accordance
         with Article 30.4. TELKOM shall not be liable to PARTNER in the event
         of such termination for any loss of profit or consequential damages
         whatsoever.

30.6     In arriving at the amount due to PARTNER under this Article 30, there
         shall be deducted from all monies paid or due to be paid to PARTNER,
         any amounts then due and owing by PARTNER to TELKOM and the agreed
         price for or the proceeds of sale of any materials, supplies or other
         things acquired by PARTNER or sold, pursuant to the provisions of this
         Article, and not otherwise recovered by or credited to TELKOM. If this
         results in PARTNER having a net liability towards TELKOM, such sum
         shall be payable by PARTNER to TELKOM within thirty (30) calendar days
         after written demand.

30.7     For a period of one (1) year after final settlement under the Purchase
         Order, PARTNER shall preserve and make available to TELKOM at all
         reasonable times at PARTNER's premises, but without charge to TELKOM,
         all books, records and documents bearing on

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         costs and expenses under the Purchase Order relating to the work
         terminated under this Article 30.

ARTICLE 31. TERMS OF PAYMENT

31.1     Payments by TELKOM shall be made to PARTNER in accordance with the
         terms of this Agreement. The Parties contemplate that TELKOM will pay
         for equipment procured pursuant to this Agreement in three instalments:
         upon delivery, following Commissioning as evidenced by issuance of the
         respective Integrated System Acceptance Test Certificate, followed by
         payment during the PAYG Period, in accordance with the terms and
         conditions of this Article 31.

31.2     TELKOM will pay 10% of the value of a particular Purchase Order upon
         delivery of the Deliverables (and equipment related services but not
         including general services for operation and maintenance, spare parts,
         software upgrades, Documentation and training) to the Location
         specified in the Purchase Order. This amount shall be due and payable
         upon delivery to TELKOM of an invoice for the relevant sum, accompanied
         by the following documents, or such additional documents as may
         reasonably be required by TELKOM:

31.2.1   Invoice covering letter;

31.2.2   Original shipping documents (bill of lading or A/W bill) for imported
         equipment;

31.2.3   Packing list for equipment;

31.2.4   Detailed BoQ and the value of the detailed BoQ by Location and Site;

31.2.5   Tax invoice (Faktur Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak");

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31.2.6   Original Goods Delivery Certificate ("Berita Acara Barang Tiba") issued
         by TELKOM for equipment; and

31.2.7   Simple receipt ("Kuitansi");

31.2.8   Insurance documentation (consisting of a copy of the relevant policy
         and a statement letter from PARTNER confirming that the Deliverables
         referred to in the relevant invoice are covered by said policy).

31.3     TELKOM will pay 15% of the proportionate value of a particular Purchase
         Order upon successful Commissioning of all or part of the Deliverables
         in a particular Purchase Order as evidenced by TELKOM's issuance of the
         related Integrated System Acceptance Test Certificate or Partial
         Integrated System Acceptance Test Certificate, or commercial deployment
         of any of the Deliverables, whichever is earlier. This amount shall be
         due and payable upon delivery to TELKOM of an invoice for the relevant
         sum, accompanied by the following documents, or such additional
         documents as may reasonably be required by TELKOM:

31.3.1   Invoice covering letter;

31.3.2   Detailed BoQ and the value of the detailed BoQ by Location and Site;

31.3.3   As-built drawings (as then available);

31.3.4   Original Integrated System Acceptance Test Certificate and/or Partial
         Integrated System Acceptance Test Certificate, certified by TELKOM;

31.3.5   Tax invoice ("Faktur Pajak") and tax payment slip (SSP) ("Surat Setoran
         Pajak"); and

31.3.6   Simple receipt ("Kuitansi");

31.3.7   Insurance documentation (consisting of a copy of the relevant policy
         and a statement letter from PARTNER confirming that the Deliverables
         referred to in the relevant invoice are covered by said policy).

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31.4     The remaining value of each Purchase Order, constituting 75% of the
         total value of a particular Purchase Order (the "PAYG Value"), shall be
         invoiced (a "PAYG Value Invoice") only upon issuance of the associated
         Integrated System Acceptance Test Certificate(s) (and not Partial
         Integrated System Acceptance Test Certificates) or any issuance
         pursuant to Article 55.8.9, whichever is earlier, and shall be payable
         in accordance with the provisions of Article 32. PAYG Value Invoices
         shall be accompanied by the following documents, or such additional
         documents as may reasonably be required by TELKOM:

31.4.1   Invoice covering letter;

31.4.2   Simple receipt ("Kuitansi");

31.4.3   Copy of Integrated System Acceptance Test Certificate(s) certified by
         TELKOM; and

31.4.4   A worksheet showing the PAYG Value of the Purchase Order.

31.5     To request quarterly payments during the PAYG Payment Period under PAYG
         Value Invoices issued in accordance with the provisions of Article 32,
         PARTNER shall deliver to TELKOM a "PAYG payment request" in form and
         substance as shall be agreed between the Parties, each such request to
         be accompanied by a tax invoice ("Faktur Pajak") and tax payment slip
         (SSP) ("Surat Setoran Pajak") and shall include at least the following
         data:

         (a)      the total additional number of T-21 Program CDMA subscribers
                  in the relevant DIVRE at the end of the Quarter;

         (b)      the total Subscriber Target number attributable to the
                  Deliverables that have been Commissioned in the relevant DIVRE
                  in the Quarter;

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         (c)      the total PAYG Value of all Deliverables that have been
                  Commissioned in the Quarter; and

         (d)      the requested quarterly payment calculated in accordance with
                  the provisions of Article 32.

ARTICLE 32. PAYG PAYMENTS

32.1     For the purposes of implementing the Pay As You Grow (PAYG) concept
         contemplated in the T-21 Program, all Purchase Orders relating to all
         or any part of the Deliverables components that have been Commissioned
         (excluding those in relation to general services for operation and
         maintenance, spare parts, software upgrades, Documentation and
         training) in the same Quarter shall be grouped together on a DIVRE
         level basis, provided also that a group of Purchase Orders may be
         segmented by types of Deliverables and scope of services, if necessary.
         For the purposes of administration, each Purchase Order shall at the
         end of the relevant Quarter be treated as if comprised of two parts as
         appropriate, one part comprising all Commissioned Deliverables and one
         part comprising the Deliverables not yet Commissioned.

32.2     Subject to the provisions of Article 32, PAYG payments for that part of
         each Purchase Order comprising Commissioned Deliverables shall become
         due at the end of each Quarter based on the net increase in subscribers
         in the DIVRE at the end of each Quarter as stated in the Subscriber
         Recorder. The initial calculation of PAYG payments in the case where
         there are no outstanding Purchase Orders will be as follows:

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<TABLE>
<S>                                                 <C>   <C>
Total number of T-21 Program CDMA subscribers in
that DIVRE at the end of that Quarter minus the
total number of T-21 Program CDMA subscribers
in that DIVRE at the end of previous Quarter              Total PAYG Value of
- ------------------------------------------------    X     all Deliverables
Total Subscriber Target number attributable to            Commissioned in that Quarter
the Deliverables that have been Commissioned
in that DIVRE in that Quarter
</TABLE>


         The detailed methodology to calculate PAYG payments under various
         circumstances is provided in Appendix 11.

32.3     Where only part of the equipment (e.g., a BTS or card) in a
         Location/Site referred to in a Purchase Order has been Commissioned,
         (i) the Subscriber Target shall be based on the Commissioned BTS or
         cards; and (ii) the PAYG Value attributable to that Deliverables shall
         be based on the value of said Commissioned BTS or cards including the
         associated software and components.

32.4     The PAYG Value of Deliverables such as BSC, PDN, and other equipment in
         relation to a particular Purchase Order containing such equipment shall
         be calculated at the end of the relevant Quarter by using the total
         value of such Deliverables Commissioned in that Quarter multiplied, by
         the ratio of the Subscriber Target of all BTS Commissioned in that
         Quarter divided by the total Subscriber Target of all BTS in the
         related Purchase Order.

32.5     Purchase Orders signed by TELKOM will be paid off sequentially
         commencing with the earliest in time. Non-Commissioned Deliverables in
         a Purchase Order issued in a particular Quarter will be carried forward
         into the Purchase Order(s) aggregated in the following Quarter, until
         Commissioned,

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         and if Commissioned in that Quarter, will be accounted for in the
         calculation of the PAYG payment in that Quarter. To facilitate this
         calculation, the particular Purchase Order from which non-Commissioned
         Deliverables have been carried forward into the following Quarter shall
         be deemed amended by mutual agreement of the Parties by way of
         inclusion of such non-Commissioned Deliverables in a subsequent
         Purchase Order issued in that following Quarter. Thereafter, without
         further action of the Parties, such Purchase Order previously comprised
         of both Commissioned and non-Commissioned Deliverables shall be deemed
         to be comprised only of Commissioned Deliverables and, as such, shall
         become payable under the PAYG payment mechanism set out in this Article
         32.

32.6     The net subscriber increase within the second and/or following Quarter
         will be counted first towards the cumulative subscribers related to the
         Deliverables Commissioned in the first Quarter to the extent such
         portion of such Purchase Order relating to the Deliverables
         Commissioned in the relevant Quarter have not been paid fully, and then
         towards the cumulative subscribers related to the Deliverables
         Commissioned in the second and/or following Quarter.

32.7     If there is a decrease in the number of subscribers due to churn or
         other reasons in the following Quarter, then no PAYG payments shall be
         due until the current number of subscribers has exceeded the number of
         subscribers at the time the last PAYG payment became due.

32.8     If the PAYG Value of a Purchase Order has not been paid by the end of
         its

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         PAYG Payment Period, the remaining unpaid amount shall be due upon
         delivery to TELKOM of a PAYG payment request, for that amount.

32.9     In order to calculate the PAYG Value applicable to each Quarter, TELKOM
         shall within ten (10) Business Days of the end of each Quarter, provide
         to PARTNER the net number of new subscribers added and the total number
         of subscribers per DIVRE as recorded by the Subscriber Recorder.
         PARTNER shall within ten (10) Business Days of receipt of the
         Subscriber Recorder numbers, submit to TELKOM a calculation showing the
         PAYG payments due by DIVRE and Purchase Order number (or amended
         Purchase Order number) for that Quarter.

32.10    As security for its obligation to pay PARTNER the PAYG Value of a
         particular PAYG Value Invoice issued from time to time. TELKOM shall
         procure the issuance of a separate bank guarantee(s) in connection with
         each of such invoices as provided in Article 32.10(b). The Parties have
         agreed the following in connection with issuance of such bank
         guarantees:

         (a)      it is agreed that the security to be provided by TELKOM in the
                  form of a bank guarantee is not intended to secure quarterly
                  PAYG Value payments owed to PARTNER, but rather any PAYG
                  Value payments still outstanding at the end of the relevant
                  PAYG Payment Period;

         (b)      each time TELKOM issues a Purchase Order, it shall submit a
                  written statement addressed to PARTNER in the form of an
                  undertaking to the effect that at the end of the relevant
                  Quarter in which any Deliverables under that

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                  Purchase Order are Commissioned, TELKOM will ensure the prompt
                  issuance following the end of the relevant Quarter of a bank
                  guarantee in accordance with this Article 32.10 for the
                  aggregate amount of the PAYG Value of all Deliverables
                  Commissioned in that Quarter;

         (c)      each bank guarantee accompanying each PAYG Value Invoice
                  issued pursuant to this Article 32 shall:

                  (i)      be denominated in the currency in which TELKOM's
                           payment obligation is denominated;


                  (ii)     be issued by a bank acceptable to PARTNER; and

                  (iii)    be valid for at least sixty (60) days after the end
                           of the relevant PAYG Period; and

                  (iv)     be issued in form and substance and on terms and
                           conditions acceptable to PARTNER, substantially in
                           the form of Appendix 27 (Bank Guarantee), provided
                           that in all events each bank guarantee shall provide
                           a covenant that the PARTNER shall not demand payment
                           under that bank guarantee until at least thirty (30)
                           days have elapsed after the end of the relevant PAYG
                           Payment Period applicable to the Deliverables
                           Commissioned in the respective PAYG Value Invoice
                           covered by that bank guarantee;

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         (d)      all bank charges and fees arising in connection with the
                  issuance and maintenance of any bank guarantee under this
                  Article 32.10 shall be borne by PARTNER, and PARTNER shall pay
                  the required amounts directly to the bank on behalf of TELKOM
                  upon instructions of TELKOM or the bank, as the case may be;
                  and

         (e)      as each quarterly payment of a PAYG Value Invoice is made,
                  the Parties agree to co-operate with the relevant bank to
                  adjust the value of the corresponding bank guarantee
                  accordingly, in accordance with the procedures of the bank
                  issuing the bank guarantee.

ARTICLE 33. GENERAL SERVICES PAYMENTS

33.1     General services for training provided under this Agreement are not
         under the PAYG payment scheme set out in Article 32 and shall be
         invoiced by PARTNER supported by a copy of the Training Acceptance
         Certificate issued by TELKOM after the services have been completed.
         General services invoices for training shall be payable by TELKOM
         thirty (30) days after the date the invoice is received by TELKOM.

33.2     All general services for Documentation to be provided by PARTNER under
         this Agreement shall be invoiced by PARTNER supported by a copy of a
         Documentation Acceptance Certificate issued by TELKOM and shall be paid
         25% on delivery and the remaining 75% shall be paid in accordance with
         the PAYG payment scheme set out in Article 32, by adding the amount due
         to the Contract Value of the group of Purchase Orders for Deliverables
         Commissioned in the relevant Quarter and paid in accordance with the
         PAYG Payment Period for that group of Purchase Orders.

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 33.3    Payments for operation and maintenance, spare parts, software updates
         and upgrades shall be made and paid in accordance with the terms of the
         applicable Service Level Agreement.

ARTICLE 34. INVOICING

34.1     Payments by TELKOM shall be made to PARTNER based on the issuance and
         delivering of invoices to TELKOM. PARTNER at its option may issue
         invoices in the name of PARTNER for Deliverables procured outside of
         Indonesia and/or by the Indonesian office of PARTNER for Deliverables
         and services procured in Indonesia.

34.2     All invoices shall be submitted in triplicate, shall be sent by courier
         and shall be accompanied by the relevant documentation listed in
         Article 31 showing the acknowledgement by TELKOM or its agent of the
         relevant equipment or services delivered and/or such other supporting
         documents as may be required by TELKOM. All invoices shall be addressed
         to:

         PT Telekomunikasi Indonesia Tbk.
         Head of Fixed Wireless Division (as Project Manager)
         Jalan Kebon Sirih, Kav. 12
         Jakarta
         Indonesia

34.3     TELKOM shall have (a) fifteen (15) Business Days from receipt of an
         invoice to dispute the amounts due by notice in writing or (b) thirty
         (30) calendar days to pay PARTNER unless otherwise agreed in this
         Agreement. If TELKOM disputes the invoice, PARTNER shall have five (5)
         Business Days to reissue a further invoice and the provisions of
         sub-paragraph (a) and (b) shall again apply.

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34.4     TELKOM shall pay interest at the rate of 6% per annum, on any
         undisputed payment due and unpaid for a period of three (3) months, up
         to a maximum of 5% of the undisputed and unpaid portion of the Contract
         Value referenced in the applicable Purchase Order, commencing from the
         end of such 3-month period.

ARTICLE 35. FINANCING

35.1     Notwithstanding anything to the contrary in this Agreement, the Parties
         agree that PARTNER is not arranging for financing of TELKOM's payment
         obligations under this Agreement in respect of the Installed Line
         Procurements as provided in Chapter 3. In the event such procurement is
         exceeded and as reasonably requested by TELKOM, the Parties agree to
         meet to discuss mutually acceptable terms and conditions for financing
         of such additional procurements.

ARTICLE 36. CHANGE REQUEST PROCEDURES

36.1     During implementation of the Scope of Work, a Party may request at any
         time that a change be made to (without limitation) the Deliverables,
         Purchase Orders, the Installed Line Procurements, the Implementation
         Schedule, the Deployment Plan or other Appendix to this Agreement, as
         the case may be. Such request shall be made in the form of a "Change
         Request" and must be in writing.

36.2     The Change Request form shall be completed by the requesting party in
         accordance with Appendix 18 (Change Request);

36.3     Within ten (10) Business Days after receipt of a Change Request, or
         within such other period as may be agreed, PARTNER will evaluate the
         Change Request and provide a full written quotation or cost reduction
         estimate

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         specifying the form that the proposed amendment will take and detailing
         the cost impact and effect on the works, including the Implementation
         Schedule.

36.4     In the event that the Change Request is processed and agreed in the
         required form, the relevant Deliverables, Purchase Order(s), Installed
         Line Procurements, Implementation Schedule, Deployment Plan or other
         Appendix to this Agreement, as the case may be, shall be deemed amended
         accordingly.

36.5     In the event that the Change Request cannot be agreed, there shall be
         notification of the reasons in writing within ten (10) Business Days of
         receiving the Change Request. Otherwise, when the Parties agree to
         implement the Change Request, the details of such change shall be
         specified and agreed in writing.

36.6     At the same time as giving the Change Request, the requesting Party
         shall provide the other Party such information as may reasonably be
         required to assess the impact of the Change Request on the overall
         Scope of Work. If there is a reasonable possibility that there will
         need to be a material amount of time and effort spent in dealing with a
         Change Request, additional payment or payment reduction, as
         appropriate, for that time and effort may be negotiated, but
         compensation for any work to deal with the Change Request shall be
         contingent on prior written agreement between TELKOM and PARTNER.

36.7     PARTNER shall make such changes and implement the Change Request only
         upon execution by the Parties of a written document specifying the
         agreed changes, the scope of the changes, the adjustments to the
         Implementation Schedule, if any, the additional costs or reduction of
         costs, if any.

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36.8     Where immaterial changes in the overall size, scope or functionality of
         the Deliverables or to the Scope of Work or Technical Specifications
         result in an amendment of a Purchase Order and/or this Agreement, such
         changes will not affect the Contract Value or the Implementation
         Schedule. The cost of any minor amendments or variations or amendments
         required by reason of any defect or deficiency in any design or
         Documentation or any Deliverables made or provided by PARTNER shall be
         borne solely by PARTNER.

36.9     In the event TELKOM and PARTNER cannot reach agreement on the scope and
         impact of a Change Request, the matter shall first be referred to the
         respective managements of both TELKOM and PARTNER, and failing
         agreement, the provisions of Article 16 shall apply.

36.10    Only the designated TELKOM and PARTNER Project Managers or
         representatives authorized by them in writing shall be authorized to
         sign a Change Request.

ARTICLE 37. RELOCATION OF EQUIPMENT

37.1     Following discussion between the Parties of costs and benefits, TELKOM
         may decide to re-locate equipment within a DIVRE if it decides that
         initial demand projections or forecast in a given Location were not
         accurate and the equipment to be procured pursuant to a Purchase Order
         is not likely to generate the revenue that was expected.

37.2     Upon written request of TELKOM, PARTNER shall assist with and supervise
         such relocation including redesigning the Network and conducting

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         all appropriate tests to put the redeployed equipment into service.

37.3     PARTNER shall bear the costs for the relocation of modular equipment
         such as sub-racks and cards which the Parties have agreed do not entail
         substantial costs. In all other cases, TELKOM and PARTNER shall conduct
         a cost benefit analysis prior to any relocation. All reasonable costs
         and risk of loss associated with the relocation of all other equipment
         shall be borne by TELKOM. Any relocation of equipment conducted by
         TELKOM shall be supervised by PARTNER. PARTNER shall bear the costs of
         providing the supervision service, provided that the Service Level
         Agreement is in force. TELKOM shall bear the costs of any additional
         equipment required.

ARTICLE 38. DETAILS OF PARTNER's BANK ACCOUNTS

38.1     Details of PARTNER's bank accounts into which all payments from TELKOM
         shall be paid into are set out below:

         For invoices raised by Motorola Inc.:

         Citibank N.Y.
         Account of Motorola Inc.
         Account No. 3849 - 2274
         Routing: 021000089

         For invoices raised by the Indonesian office of Motorola Inc.:

         Citibank N.A.
         USD A/C   :   0-104015-522
         IDR A/C   :   0-104015-018

                                   CHAPTER 4.
                         PROJECT ORGANIZATIONAL MATTERS

ARTICLE 39. LOCAL INDONESIAN ENTITIES, SUBCONTRACTORS, SUPPLIERS

39.1     PARTNER shall enter into contractual relationships with one or more
         Local Indonesian Entities and local subcontractor/suppliers as required
         to

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         meet its Local Content obligations under this Agreement.

39.2     PARTNER shall be the leading technology supplier for the Project,
         although it is understood and accepted by TELKOM that wherever in this
         Agreement there is reference to the PARTNER taking responsibility for
         the manufacture of any equipment, or PARTNER manufacturing the
         equipment, or PARTNER being the radio network manufacturer, that the
         equipment may actually be manufactured by an affiliate of PARTNER (such
         as Motorola Ltd. or Motorola China Electronics Ltd.).

39.3     All substitutions, replacements or other changes to PARTNER's planned
         usage of local subcontractors, suppliers and other Local Indonesian
         Entities as set out in Appendix 1 must be submitted to and approved by
         TELKOM in writing (such consent not to be unreasonably withheld) before
         being implemented.

ARTICLE 40. ASSIGNMENT AND SUBCONTRACTING

40.1     PARTNER shall not, without the prior written consent of TELKOM (which
         consent shall not be unreasonably withheld or delayed), transfer its
         obligations under this Agreement. Notwithstanding this agreement of the
         Parties, TELKOM hereby agrees that PARTNER may assign or sub-contract
         the in-country services portion of this Agreement to its subsidiary, PT
         Motorola Indonesia, but only to the extent that such assignment or
         sub-contracting (i) does not prejudice PARTNER's Local Content
         obligations under this Agreement, (ii) does not relieve PARTNER of
         responsibility under this Agreement, and (iii) does not encumber any of
         the moneys due or becoming due under this Agrement. The Parties agree
         that TELKOM shall not be required to give its consent to any
         encumbrance (for the avoidance of doubt, the Parties agree that the
         bank guarantee issued in accordance with Article 32.10 shall not be
         deemed a form of encumbrance) of money due or

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         becoming due under this Agreement if by reason or consequence of such
         consent the assignee shall have direct or indirect recourse to TELKOM.
         TELKOM reserves the right to assign this Agreement, without prior
         approval of PARTNER to an Investor, as contemplated in Articles
         28.10 - 28.14 provided the Investor gives PARTNER satisfactory payment
         assurances under Article 28.12 of this Agreement.

40.2     TELKOM reserves the right to assign this Agreement, with the prior
         written consent of PARTNER (such consent not to be unreasonably
         withheld or delayed), to any of TELKOM's subsidiaries or related
         companies, provided the subsidiaries or related companies provide
         satisfactory payment assurances.

40.3     A schedule of each proposed sub-contractor and the part of the Scope of
         Work proposed to be performed by such sub-contractor is attached in
         Appendix 1. In case of any plan to change and/or to add a
         sub-contractor, PARTNER shall notify TELKOM in writing immediately
         before the proposed sub-contractor is appointed. TELKOM shall advise
         within ten (10) Business Days if it has substantive objections to the
         appointment of any of such proposed sub-contractors and/or the work
         they were intended to do, and PARTNER shall take such objections into
         account so as to meet with TELKOM's approval.

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40.4     The use of sub-contractors shall in no way relieve PARTNER from its
         responsibility to deliver the Deliverables to TELKOM (in particular to
         ensure that any Deliverables comply with all requirements of this
         Agreement) or to perform necessary tasks such as project management
         related to this responsibility in accordance with this Agreement.

40.5     PARTNER shall ensure that the addition or removal of any sub-
         contractors shall not impact the agreed Contract Value or
         implementation of the Scope of Work.

ARTICLE 41. INVOLVEMENT OF LOCAL ENTITIES

41.1     PARTNER shall use all reasonable efforts to maximize involvement of
         entities in Indonesia in its provision of Deliverables, the objective
         being to maximize financial benefits as well as transfer of knowledge
         and learning in Indonesia and thereby reduce TELKOM's exposure to
         foreign exchange risk. In this connection, "all reasonable efforts"
         will be defined by reference to a minimum threshold level of local
         Indonesian involvement in executing the Project, comprising a
         percentage of the total contract value of the Project, which is a
         minimum of 20% of the Contract Value (quoted in Indonesian currency) of
         Package 1 (Module 1).

41.2     The Local Content requirement can be satisfied by reference to the
         total contract value of the Project executed through Local Indonesian
         Entities, whether as key subcontractors of PARTNER or through other
         external Indonesian parties.

41.3     TELKOM agrees that expenses of non-Local Indonesian Entities in
         Indonesia supporting the Project may be included in the calculation of
         total contract value for these purposes, including salaries paid to
         staff located in Indonesia

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         (Indonesian nationals or residents only), property rental and other
         operational expenses of Indonesia offices, administrative materials and
         services acquired in Indonesia, provided that PARTNER executes an
         undertaking to TELKOM as provided below.

41.4     The undertaking required by TELKOM shall state that PARTNER will, over
         the duration of the Project, procure certain materials and services
         within Indonesia (stating all categories of materials and services) to
         support the local operations of the overseas companies in the Project.
         Further, that all such procurements will be in accordance with the
         requirements stated by TELKOM in the RfP for the T-21 Program to the
         extent not inconsistent with this Agreement and in aggregate equate to
         or exceed the minimum threshold amount required to be quoted in
         Indonesian currency as set forth in Article 41.1.

41.5     TELKOM reserves the right to verify, accept or reject all claims in
         part or in full regarding execution of the Project through Local
         Indonesian Entities, expenses of overseas companies and in regard to
         the claimed transfer of skills, technology and financial benefits.

ARTICLE 42. LOGISTICS

42.1     PARTNER shall provide all logistical requirements from the point of
         origin of any Deliverables or other Project goods to the applicable
         Project Location/Site, inclusive of all charges, such as transport and
         transit, demurrage, storage, insurance, fees and levies. In addition,
         pursuant to the Scope of Work, PARTNER shall provide all equipment
         related services (covering survey, design, planning, permits, right of
         way, services related to land acquisition, installation, integration,
         project management, insurance up to

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         transfer of title in accordance with Article 10.2, testing and
         commissioning, and all related materials and expenses) for both
         imported and local goods.

42.2     PARTNER shall provide all arrangements for shipping/transportation,
         forwarding and servicing Deliverables or other Project goods from their
         point of origin to the Project Location/Site where they are finally
         deployed.

42.3     PARTNER shall provide all warehousing requirements and explain the
         locations of the facilities to be used for this purpose. PARTNER will
         also be required to arrange for warehousing and storage facilities at
         installation sites to ensure proper storage and protection of all
         Deliverables or other Project goods. PARTNER shall ensure that all
         equipment is adequately packaged and stored to avoid any damage. While
         in such warehousing, the equipment and material will be the sole
         responsibility of PARTNER.

42.4     PARTNER shall provide all required protection, insurance and other
         services to ensure safe delivery of the all Deliverables or other
         Project goods. PARTNER shall be responsible for any damage or loss of
         goods.

ARTICLE 43. INVENTORY

43.1     PARTNER shall provide all services to ensure proper installation of
         Deliverables or other Project goods, provide optimal operating
         conditions and maximize the long term viability of the foregoing.
         PARTNER must provide all tools and equipment necessary to install and
         commission any Project equipment procured under this Agreement.

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43.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

43.2.1   PARTNER's contractor shall provide all materials (including cables,
         connectors and other miscellaneous materials), labor, tools,
         transportation, telecommunication facilities (telephone, facsimile,
         etc.) and everything else necessary for completion of work in
         accordance with this Agreement;

43.2.2   PARTNER's contractor shall employ an adequate supervisory force and an
         adequate staff of experienced engineers, technicians and workmen to
         complete the Scope of Work in a satisfactory and workmanlike manner
         within the time specified in the this Agreement;

43.2.3   with the cooperation of TELKOM staff, all work at any Location/Site
         shall be carried out in such a manner as to minimize any obstructions
         to the operation of TELKOM's staff at such Location/Site;

43.2.4   PARTNER and its sub-contractors shall itemize and provide all
         equipment, tools, measuring equipment, machinery and electrical power
         equipment necessary for execution of the Scope of Work in Indonesia;
         and

43.2.5   PARTNER and its sub-contractors shall provide a list of equipment,
         tools, measuring equipment, machinery and electrical power equipment
         which is used for installation purpose only.

43.3     Delivery and storage of Project equipment and materials shall consist
         of the following activities:

43.3.1   PARTNER and its sub-contractors shall be responsible for storage
         arrangements during the interval from the delivery of equipment until
         it is required for installation;

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<PAGE>

43.3.2   PARTNER and its sub-contractors shall be responsible for loading and
         unloading as well as handling of any equipment and materials at all
         stages up to Commissioning;

43.3.3   PARTNER and its sub-contractors shall also be responsible for unpacking
         (and repacking where necessary), identification and checking of
         materials and relevant invoices or other documents; and


43.3.4   PARTNER and its sub-contractors shall be responsible for handling and
         storage of any goods during transportation and at the site.

ARTICLE 44. LOCAL SUPPORT INFRASTRUCTURE

44.1     PARTNER shall have local (Indonesian) infrastructure in place to
         support the T-21 Program as set out in Appendix 10. PARTNER shall
         provide TELKOM access to its local technical staff to ensure effective
         deployment, operations and timely problem solving. PARTNER shall use
         its best endeavours to ensure that such local support is timely, cost
         effective, and of high quality in order to meet TELKOM's desired
         service levels.

ARTICLE 45. PROJECT MANAGEMENT

45.1     PARTNER shall propose a Project Management Plan ("PMP"), in a form as
         provided in Appendix 8 (Project Management Plan). TELKOM and PARTNER
         shall discuss and mutually agree on the details of the PMP.

45.2     Prior to start-up of Project activities, the Parties shall have
         agreed on a PMP containing at least the following:

45.2.1   Scope of work;

45.2.2   Project organization and personnel;

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<PAGE>

45.2.3   Project activity plan and schedule by Location;

45.2.4   Reporting of progress and issues.


45.3     PARTNER shall appoint the Project personnel as described in the PMP
         including a Project Manager who will be responsible for contact with
         TELKOM with respect to resolving issues arising in the course of
         Project implementation. The Project Manager may also serve as one of
         the Project personnel referenced in the PMP.

45.4     The identity and qualifications of all key Project personnel proposed
         by PARTNER to work on the Project in Indonesia, including the Project
         Manager as described in the PMP shall be notified in writing by PARTNER
         to TELKOM before appointment. The Project Manager shall only be
         appointed with TELKOM's prior approval. For all other key Project
         personnel, TELKOM shall inform PARTNER of any objections within ten
         (10) Business Days of notification and any Project personnel to whom
         TELKOM objects shall not be appointed. Replacements must be equally
         well qualified and appropriate for the Project.

45.5     TELKOM shall appoint its Project Manager with whom PARTNER Project
         personnel shall maintain close cooperation and communication at all
         times. TELKOM may also appoint local supervisors with whom PARTNER's
         local Project personnel shall maintain close cooperation and
         communication at all times.

45.6     TELKOM may object to and, after consultation with PARTNER direct
         PARTNER to remove from any site immediately any person employed by
         PARTNER or any sub-contractor at the site who, in the reasonable
         opinion of TELKOM, misconducts himself, has proved to be unsuitable
         under the terms of the Scope of Work or is incompetent or negligent in
         the performance of his duties, and such person shall not be employed
         again at any Project site except with the prior written approval of
         TELKOM.

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<PAGE>

45.7     PARTNER shall submit to TELKOM the required progress report described
         in the Scope of Work. With respect to any period covered by a progress
         report, in the event that PARTNER fails to inform TELKOM of any
         problem, TELKOM shall be entitled to presume that no such problem arose
         during such period. However, submission by PARTNER to TELKOM of the
         specified progress reports will not alter, amend or modify PARTNER
         obligations pursuant to any other provision of this Agreement.

45.8     PARTNER shall provide complete project management support to the
         Project including without limitation, managing the constituents members
         of PARTNER, subcontractors and other suppliers, as well as managing the
         acquisition of required sites, licenses, permits and rights of way.

45.9     PARTNER shall provide comprehensive and up-to-date reporting to TELKOM
         management at all appropriate levels to track progress of the Scope of
         Work, monitor key requirements, identify and address issues and ensure
         high quality of deployment achieved within budget.

45.10    PARTNER shall provide the following types of reports to TELKOM during
         the period of deployment of the Network on a monthly basis:

         (a)      Deployment Status Update;

         (b)      Updated Issues Log;

         (c)      Shipment Tracking Report.

45.11    PARTNER shall at intervals of two (2) months submit an updated
         Implementation Schedule to TELKOM. The updated Implementation Schedule
         shall contain important milestones including:

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<PAGE>

45.11.1  Commencement of implementation of each Location;

45.11.2  Commencement of the detailed survey for each Location;

45.11.3  Completion of installation, construction designs, drawings associated
         with the Project;

45.11.4  Readiness dates for interim inspections, PARTNER own tests, and
         Commissioning tests for each Location/Site;

45.11.5  Manufacturing and transportation schedules of materials for each Sub-
         system per each Location including the times of factory performance
         tests.

45.12    Delivery of Deliverables and services by PARTNER, shall be in
         conformity with the provisions of this Agreement and/or the respective
         Purchase Order, including the time schedule and milestones set forth in
         Appendix 9 (Implementation Schedule).

45.13    Each alteration to the implementation Schedule shall be upon mutual
         agreement of the Parties and valid only if executed as a Change Request
         signed by the authorized representative of each of the Parties.

45.14    PARTNER shall keep records of (without limitation) the general business
         administration of the Project, i.e.:

45.14.1  Invoicing and records of TELKOM payments;

45.14.2  Personnel management;

45.14.3  Taxes; and

45.14.4  Insurance.

45.15    PARTNER shall report on the Project's progress, including any
         significant difficulties encountered, to TELKOM at monthly meetings in
         accordance with Article 26.3.

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<PAGE>

45.16    PARTNER shall liaise with TELKOM in each DIVRE for deployment
         coordination and with regional authorities, public utilities and third
         parties in the areas for permits and Network roll-out. The liaison
         shall be arranged during regular monthly meetings with TELKOM and the
         following parties during Network rollout: (i) TELKOM in the regional
         division area; (ii) other TELKOM contracting parties; and (iii)
         subcontractors.

45.17    In addition, the Parties shall arrange ad-hoc meetings as required on
         reasonable notice to deal with coordination and implementation related
         issues.

ARTICLE 46. RESEARCH AND DEVELOPMENT

46.1     PARTNER shall from time to time at TELKOM's request consider
         participating in joint development efforts in the field of software and
         services enhancement. Any such joint development activities shall be
         mutually agreed upon as to the scope, responsibilities of each Party,
         allocation of costs, ownership of Intellectual Property Rights and
         other mutually agreed items. TELKOM employees shall be actively
         involved in such development efforts.

46.2     Pursuant to Article 5.1.9, PARTNER shall provide timely notice to
         TELKOM of its newest tested technologies relevant to the Project and
         any improvements it deems advantageous to TELKOM in the current Project
         "road map" of technology development.

ARTICLE 47. TRAINING, TRANSFER OF KNOW HOW

47.1     PARTNER shall provide training in accordance with this Article 47 and
         the detailed training requirements and

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<PAGE>

         schedule specified in Appendix 19 (Training). TELKOM shall provide
         qualified engineers for training programs provided by PARTNER under
         this Agreement.

47.2     Training shall be conducted in two (2) parts, one in PARTNER's training
         center overseas (at a location to be advised to TELKOM at least
         forty-five (45) calendar days prior to such training), and the other in
         Indonesia. For both training locations, PARTNER shall provide
         class-room training ('Class') and On-the-job training ('Job'). PARTNER
         shall propose detailed schedules for both types of training based on
         TELKOM's requirements.

47.3     The training course shall cover three (3) areas of expertise, i.e.:

         (a)      System Engineering

                  PARTNER shall conduct training in an efficient manner to
                  produce well trained proficient personnel capable of
                  engineering. The course is intended to train personnel to have
                  basic knowledge of CDMA network planning and system design
                  engineering.

         (b)      Operation and Maintenance

                  The course is intended to train personnel to have basic
                  knowledge of system operation and maintenance and who shall be
                  required to provide guidance and instruction, necessary to the
                  entire operation team after completion.

         (c)      Business Development and Marketing

                  The course is intended to train personnel to have basic
                  knowledge on how to develop

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<PAGE>

                  the CDMA FWA business and will include training on product
                  knowledge and marketing.

47.4     Overseas Training

47.4.1   The overseas training requirement for BSS is summarized below.

<TABLE>
<CAPTION>
                                                             NUMBER OF TRAINEES PER
                                                                    TRAINING
                                     NUMBER OF                      --------
                                     TRAINING    DURATION    CLASS             JOB
                                     --------    --------    -----             ---
<S>                                  <C>         <C>         <C>               <C>
System Engineering                    2 times     2 weeks      10              N/A
Operation and Maintenance             2 times     2 weeks      10               10
Business Development and Marketing    2 times     2 weeks      10              N/A
</TABLE>

47.4.2   For overseas training, the following costs are included in the unit
         price:

         (a)      Daily allowance for accommodation and meals of $200 per
                  trainee including Saturday and Sunday and 2 days for travel
                  (arrival and departure)

         (b)      Airport tax, excess baggage and fiscal $500 per person

         (c)      Insurance, $50 per person

         (d)      Tuition Fee (including training materials)

         (e)      Roundtrip airfares from Indonesia to PARTNER's Main Training
                  Center, according to the following rates:

                  (i)   Europe          :    $3,500/
                                             PAX
                  (ii)  United States   :    $3,500/
                                             PAX
                  (iii) Asia            :    $1,500/
                                             PAX
                  (iv)  Australia       :    $2,000/
                                             PAX

47.5     In-Country Training

47.5.1   The in-country training requirement for

                                       97
<PAGE>

         BSS is summarized below:

<TABLE>
<CAPTION>
                                                             NUMBER OF TRAINEES PER
                                                                    TRAINING
                                     NUMBER OF                      --------
                                     TRAINING    DURATION    CLASS             JOB
                                     --------    --------    -----             ---
<S>                                  <C>         <C>         <C>               <C>
System Engineering                    2 times     2 weeks      10              N/A
Operation and Maintenance             2 times     2 weeks      10               10
Business Development and Marketing    2 times     2 weeks      10              N/A
</TABLE>

47.5.2   For local training, the following costs per trainee are included in the
         unit price:

         (a)      Divlat (TELKOM's training center) fee: $350 per week for
                  accommodation, meals and training venue (not required for
                  on-the-job training)

         (b)      Tuition fee (including training materials)

47.6     Training Materials and Tools

47.6.1   PARTNER shall provide materials and tools for the following classroom
         training:

         (a)      Introduction of CDMA FWA including supported services;

         (b)      System Engineering, Operation and Maintenance Procedures;

         (c)      Network Planning, which includes Traffic Engineering and Link
                  Budget;

         (d)      Installation and Test Procedures; and

         (e)      Troubleshooting.

47.6.2   PARTNER shall propose training material and tools, for the following
         on-the-job training:

         (a)      Operation and maintenance procedure of CDMA FWA;

         (b)      System performance measurement; and

         (c)      Trouble shooting by measuring equipment

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<PAGE>

ARTICLE 48. MANAGEMENT FORUM

The Parties shall establish a regular channel of communication between their
respective managements and shall hold meetings on a semi-annual basis to discuss
the progress of the T-21 Program.

ARTICLE 49. DEVELOPMENT OF INDONESIAN INDUSTRY

The Parties agree to support the development of the Indonesian
telecommunications industry and to maximise the benefit of the T-21 Program to
local industry. In additional to providing economic benefit through maximising
local procurement. TELKOM and PARTNER have agreed on other steps that they will
take together, including setting up educational or training centres, and working
with TELKOM to develop business models to promote new local business
opportunities arising out of the deployment of T-21 Program technologies such as
new CDMA content development. PARTNER has also agreed to consider supplying CDMA
2000 1x test bed systems and trainers to the planned educational or training
centers for CDMA 2000 1x, EV-DO/EV-DV and other CDMA technology training of
TELKOM and other Project staff. The Parties agree to discuss the technical and
financial aspects of such joint actions and within ninety (90) days after the
effective date of this Agreement, agree on an implementation plan for
development of the Indonesian telecommunication industry in accordance with
PARTNER's commitments in its response to the RfP.

                                   CHAPTER 5.
                              TECHNICAL PROVISIONS

ARTICLE 50. GENERAL REQUIREMENT FOR EQUIPMENT

50.1     All equipment installed by PARTNER to TELKOM shall:

50.1.1   meet the agreed requirements in Appendix 5 (Technical Specifications);

50.1.2   function in accordance with the technical documentation in the
         Technical Specifications;

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<PAGE>

50.1.3   have obtained type approval, if required, from DGPT and met TELKOM's
         quality assurance standards;

50.1.4   at delivery meet the requirements prescribed by or pursuant to the
         applicable laws, rules, regulations, guidelines, and standards of all
         applicable jurisdictions;

50.1.5   conform to the Technical Specifications and be free of material,
         production, construction and design faults;

50.1.6   be manufactured from new and sound material;

50.1.7   at a minimum comply with the MTBF (Mean-Time-Between-Failures) values
         submitted by PARTNER and as updated from time to time;

50.1.8   be packed adequately; and

50.1.9   be accompanied by the agreed upon Documentation in English.


50.2     Until Commissioning of the relevant Deliverables in any Purchase Order
         in which software is included, software delivered by PARTNER shall not
         contain viruses or any improper additions or modifications. "Viruses"
         includes time bombs, worms, 'trojan horses', drop dead devices, back
         door devices or any other components, which may fully or partly affect
         the intended functioning of the software. "Additions and modifications"
         mean software components which modify the functionality in a different
         way from that set forth in the applicable specifications. PARTNER shall
         not be entitled to activate a virus to the detriment of TELKOM. If
         PARTNER detects a virus or addition/modification or symptoms of a virus
         prior to Commissioning and during the SLA period, it shall immediately
         inform TELKOM and undertake its best efforts to eliminate the virus or
         the addition/modification and prevent damage for TELKOM at no charge.

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<PAGE>

ARTICLE 51. QUALITY ASSURANCE

51.1     PARTNER shall make all reasonable efforts to ensure that TELKOM at its
         discretion, upon reasonable notice and during business hours, is
         entitled to inspect and/or audit the production and installation phases
         of the processes of all PARTNER's sub-contractors and suppliers.
         PARTNER shall co-operate with TELKOM in case TELKOM elects at its
         expense to conduct such inspections and/or audits.

51.2     PARTNER shall make a final inspection of all Deliverables prior to
         delivery to TELKOM and a report containing the results of the final
         inspection shall be supplied to TELKOM on delivery.

51.3     If and in so far as any equipment or a component thereof is produced by
         a sub-contractor working for PARTNER, PARTNER shall make all reasonable
         endeavors to include similar provisions in its contract with the
         sub-contractor in order to enable TELKOM to perform inspections of a
         similar nature.

ARTICLE 52. SURVEY, DESIGN, AND PLANNING

52.1     The planning and design activities for the Project must be able to
         fully accommodate the JPS, DRM and monthly meeting mechanism described
         in Article 26 and the flexible procurement mechanism as described in
         Article 27 of this Agreement.

52.2     The planning and design works shall consist of the following
         activities:

52.2.1   Survey of the Location/Site(s)

         PARTNER shall determine the optimum Location/Site for installation of
         the equipment, provided that the optimum Location/Site should
         preferably be in the premises of TELKOM or its subsidiaries in order to
         ease network integration and

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<PAGE>

         maintenance.

52.2.2   Maximizing use of existing infrastructure

         Based on the information acquired during site surveys and data provided
         by TELKOM, PARTNER will be required to maximize and optimize all
         reusable infrastructure and incorporate it into the equipment
         requirements. The underlying objective shall be to maximize the asset
         turnover of TELKOM while ensuring that current infrastructure or future
         development/expansion will not be impacted adversely. TELKOM shall
         review and agree to the list proposed by PARTNER before PARTNER may
         utilize it to support network roll-out.

52.2.3   Proposing more efficient solutions

         PARTNER shall propose a more efficient solution, if available, after
         TELKOM's review of PARTNER initial roll-out plan. Such solution shall
         highlight areas of improvement from the original plan.

52.2.4   Network optimization planning

         PARTNER will be required to conduct Network optimization planning
         together with TELKOM considering both existing and future Network
         requirements. Network optimization planning must be able to fully
         accommodate the JPS, DRM and monthly meeting mechanism and the
         flexibility procurement mechanism provided for in Articles 26 and 27,
         respectively, of this Agreement. Network optimization planning shall
         consist of the proposed plan and improvement of the current plan
         including potential implication to the overall network performance.
         Network optimization planning shall take into account the following
         technical aspects:

         (a)      ease of maintenance/operation;

         (b)      network reliability (diversity to important subscriber);

         (c)      flexibility to demand fluctuation

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<PAGE>

                  (capacity and features);

         (d)      expandability of the Network;

         (e)      ease of construction and integration; and

         (f)      inter-operability.

ARTICLE 53. SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

53.1     The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Appendix
         3 (Scope of Work).

53.2     PARTNER shall perform all necessary tasks to ensure Location/Site
         preparation for Network roll-out in coordination with TELKOM, as
         follows:

53.2.1   arrange and acquire all the permits required to perform the work, such
         as (but not limited to) installation permits, rights of way, and other
         permits necessary either from local municipality or other parties. The
         cost for acquiring the permit is included in the unit price and shall
         not be priced separately, while the actual cost of the permit itself
         shall be borne by TELKOM;

53.2.2   acquire the right of use of land on a rental basis, subsequent to
         TELKOM's approval to install towers for mounting the antennas or for
         other needs relating to the Project;

53.2.3   conduct the land acquisition process, in the event rental is not
         possible, subsequent to TELKOM's approval to install towers for
         mounting the antennas or for other needs relating with the Project.
         TELKOM shall provide and procure that its subsidiaries provide all
         reasonable assistance to PARTNER in relation to this land acquisition
         process. The cost associated with the land acquisition process (but not
         the cost of the land, rental and lease fee itself) shall be borne by
         the PARTNER. The cost of the land itself shall be agreed in advance
         with TELKOM (such agreement not to be unreasonably

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         withheld or delayed). TELKOM shall make payment to the landowner or
         lessor, as the case may be, for the cost of the land, rental or lease
         promptly upon execution of the sale and purchase of land deed or upon
         execution of the applicable rental or lease contract. The procedures
         for implementing such payments shall be agreed upon within one (1)
         month of the execution of this Agreement.

53.3     PARTNER shall arrange and acquire a frequency license from Directorate
         General of Post and Telecommunication (DGPT) on behalf of TELKOM.
         TELKOM will assist PARTNER by issuing the appropriate cover letter to
         DGPT. For the avoidance of doubt, PARTNER shall not own the license,
         but will simply support TELKOM by providing technical assistance and
         consulting services (which are included in the unit prices). The cost
         associated with the frequency acquisition process (but not the cost of
         the license itself) shall be borne by PARTNER. TELKOM shall make
         payment to DGPT for the actual cost of the license itself promptly upon
         TELKOM's receipt from PARTNER of the appropriate documentation to
         effect such payment.

ARTICLE 54. INSTALLATION PROCEDURES AND STANDARDS

54.1     PARTNER shall provide all services to ensure proper installation of all
         equipment, provide optimal operating conditions and maximize its long
         term viability. PARTNER shall provide all tools and equipment necessary
         to install and commission their equipment.

         PARTNER shall provide equipment installation services that shall
         consist of the following activities:

54.1.1   provision of materials, labor, equipment, tools and machinery for

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<PAGE>

         installation;

54.1.2   materials delivery and storage;

54.1.3   transportation of goods;

54.1.4   installation of the equipment;

54.1.5   cleaning-up sites; and

54.1.6   site preparation plan and drawings.

54.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

54.2.1   PARTNER's contractor shall provide all materials, labor, tools,
         transportation, telecommunication facilities (telephone, facsimile,
         etc.) and everything else necessary for completion of work in
         accordance with this Agreement;

54.2.2   PARTNER's contractor shall employ an adequate supervisory force and an
         adequate staff of experienced engineers, technicians and workmen to
         complete the work in a satisfactory and workmanlike manner within the
         time specified in this Agreement;

54.2.3   with the cooperation of TELKOM staff, all work at each Location/Site
         shall be carried out in such a manner as to minimize any obstructions
         to the operation of TELKOM's staff at site.

54.2.4   PARTNER's contractor shall itemize and provide all equipment, tools,
         measuring equipment, machinery and electricity necessary for execution
         of the Scope of Work in Indonesia; and

54.2.5   PARTNER's contractor shall provide a list of equipment, tools,
         measuring equipment, machinery and electricity which is used for
         installation purpose only.

54.3     Installation of the equipment shall consist of the following
         activities:

54.3.1   PARTNER's contractor shall be responsible for providing connection and
         integrating sub-components into

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         Sub-system units;

54.3.2   PARTNER's contractor shall be responsible for Sub-system unit checks
         and shall ensure the each Sub-system unit functions as required.

54.4     Cleaning-up at each Location/Site shall be conducted during
         installation periods and consist of the following activities:

54.4.1   PARTNER's contractor shall keep the work and storage areas clean and
         tidy and shall remove daily all combustible rubbish from inside and
         near the buildings, structures and plant;

54.4.2   upon completion of each installation, PARTNER's contractor shall remove
         from the Location/Site as early as possible all tools, appliances,
         packing cases and plant not constituting an integral part of this
         Agreement.

54.5     PARTNER shall cause its contractors to either remove or level all
         excess earth or spoils resulting from any excavation.

54.6     PARTNER shall cause its contractors to make good at their own expense,
         all damages to buildings, plants, finishes, etc., caused by contractor,
         any subcontractor(s) and/or their employees.

ARTICLE 55. TESTING AND COMMISSIONING

55.1     BTS Pre-Commissioning Activities

55.1.1   Prior to PARTNER's personnel being dispatched to a Location/Site where
         the BTS is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location/Site will be
         declared "Location/Site Ready".

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<PAGE>

55.1.2   Once the Location/Site is declared "Location/Site Ready", PARTNER
         shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      install and connect all batteries and circuit packs delivered
                  to the relevant Location/Site

         (d)      provide, place and terminate all RF cables from (i) the BTS to
                  the antenna cables(s)/feeder cables brought to BTS equipment
                  room by PARTNER's sub-contractor and (ii) from the BTS to the
                  GPS, including all clamps, connectors, etc; and

         (e)      install all required amplifiers and other elements as
                  necessary for adding carriers to an existing BTS Cabinet.

55.2     BSC Pre-Commissioning Activities

55.2.1   Prior to PARTNER's personnel being dispatched to a Location where the
         BSC is being installed, PARTNER shall cause its sub-contractor to
         provide to PARTNER and TELKOM a completed Location/Site Readiness
         Checklist. The completed checklist shall be verified and signed off by
         PARTNER's designated representative assigned to the wireless network in
         which the work is being performed. Upon the successful completion of
         the Location/Site Readiness Checklist the Location will be declared
         "Location/Site Ready".

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<PAGE>

55.2.2   Once the Location is declared "Location/Site Ready", PARTNER shall:

         (a)      provide a Commissioning team to execute the PARTNER's Own
                  Tests and the Commissioning tests after obtaining approval
                  from PARTNER's sub-contractor, who shall be notified
                  reasonably in advance of the commencement of Commissioning;

         (b)      provide all tools and test equipment (including handsets in
                  sufficient numbers) required to Commission the Cell Site
                  Cabinet/Carrier;

         (c)      provide, place and terminate, as applicable, all the cables
                  from:

                  (i)      Tx equipment

                  (ii)     PDN

                  (iii)    other BSCs, including all clamps, connectors, etc.

55.3     Testing and Equipment Certification

55.3.1   PARTNER shall be required to perform and facilitate system tests for
         all equipment and components delivered under this Agreement.

55.3.2   The Commissioning tests shall comprise of the Sub-system Acceptance
         Tests and the Integrated System Acceptance Tests. A summary of the
         testing, commissioning and certification conditions are summarized in
         the table provided below:

<TABLE>
<CAPTION>
       NAME OF TEST               CERTIFICATE              CONDITION FOR CERTIFICATION
- --------------------------------------------------------------------------------------
<S>                        <C>                             <C>
Factory Performance Test   No certification issued, but    None
                           TELKOM should have access
                           to the results of the test
- --------------------------------------------------------------------------------------
Goods Delivery Test        Goods Delivery Certificate      Passes visual inspection
- --------------------------------------------------------------------------------------
</TABLE>

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<PAGE>

<TABLE>
<CAPTION>
                                                                                       KETENTUAN SERTIFIKASI/CONDITION
        NAME OF TEST                           CERTIFICATE                                     FOR CERTIFICATION
- -------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>                                             <C>
PARTNER Own Test                No certification issued, but TELKOM             None
                                should be provided with the results of
                                the test prior to the Sub-system
                                Acceptance Test.
- -------------------------------------------------------------------------------------------------------------------------------
Sub-system Acceptance Test      No certification issued, but TELKOM should
                                be provided with the results of the test
                                prior to the Integrated System Acceptance
                                Test.
- -------------------------------------------------------------------------------------------------------------------------------
Integrated System Acceptance    Partial Integrated System Acceptance Test       A system test has been completed for
Test                            Certificate                                     the equipment, satisfying all relevant
                                                                                requirements under this Agreement except
                                                                                for end to end connectivity
- -------------------------------------------------------------------------------------------------------------------------------
                                Integrated System Acceptance Test Certificate   All system tests have been completed
                                                                                for the equipment, satisfying all relevant
                                                                                requirements, including end to end connectivity
- -------------------------------------------------------------------------------------------------------------------------------
Civil Work Acceptance Test      Certificate (for foundation)                    Passed PARTNER and TELKOM quality checks

                                Certificate (for tower)

                                Certificate (others)
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>

55.4     Factory Performance Test

55.4.1   PARTNER shall perform factory performance tests of all equipment to be
         deployed to ensure that the equipment is complete in all respects and
         complies with the terms of the Agreement. Details of the factory
         performance test are set out in Appendix 17 (Quality Assurance
         Guidelines/Acceptance Test Procedures).

55.4.2   PARTNER shall provide TELKOM with full access to the results of the
         factory performance tests including without limitation evidence in the
         form of certification letter provided by the

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         factory.

55.4.3   Successful completion of the factory acceptance tests are a
         pre-requisite for Sub-system Acceptance Tests.

55.5     Goods Delivery Test

55.5.1   TELKOM shall visually inspect the equipment on delivery to the
         installation Location/Site based on a copy of the goods shipping
         documents and TELKOM's Project Manager shall promptly (and no later
         than five (5) Business Days) issue a Goods Delivery Certificate if
         there is no obvious physical damage to the equipment and the quantity
         of equipment delivered is correct according to the supporting
         Documentation provided.

55.5.2   Issue of a Goods Delivery Certificate shall not constitute acceptance
         of the equipment nor shall it affect TELKOM's rights under this
         Agreement.

55.6     PARTNER Own Test

55.6.1   PARTNER shall perform on-Location/Site tests of each individual
         Network Sub-system (BSS) following installation.

55.6.2   Successful completion of PARTNER's Own Tests are a pre-requisite for
         Sub-system Acceptance Tests.

55.6.3   The tests for BSS shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.6.4   The tests for PDN shall comprise of tests to determine the overall
         equipment functionality of:

         (a)      Packet Data Serving Node (PDSN) device;

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

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         (d)      Domain Name System (DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.6.5   PARTNER shall provide TELKOM with the results of PARTNER's Own Tests
         when it requests TELKOM to attend the Commissioning.

55.7     Commissioning : Sub-system Acceptance Test

55.7.1   Upon completion of PARTNER Own Tests, PARTNER shall conduct tests of
         each individual Sub-system in the presence of TELKOM as a witness.

55.7.2   The tests shall be conducted during normal weekday working hours and
         PARTNER shall notify TELKOM at least fourteen (14) calendar days before
         the proposed test date to fix the timing and resources required for the
         test. PARTNER shall co-ordinate the test dates across the relevant
         DIVRE to ensure that the tests are scheduled efficiently.

55.7.3   Successful completion of the Sub-system Acceptance Tests are a pre-
         requisite for Integrated System Acceptance Tests.

55.7.4   The tests for BSS shall comprise all tests necessary to verify the
         overall equipment functionality of:

         (a)      Base Station Controller (BSC);

         (b)      Base Transceiver System (BTS);

         (c)      Antenna;

         (d)      Transmission Equipment;

         (e)      BSS Network Element Manager (BSS NEM).

55.7.5   The tests for PDN shall comprise tests to verify the overall equipment
         functionality of:

         (a)      Packet Data Serving Node (PDSN);

         (b)      Authentication, Authorization and Accounting (AAA);

         (c)      Home Agent (HA);

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         (d)      Domain Name System ( DNS);

         (e)      Fire Wall;

         (f)      PDN Network Element Manager (PDN NEM).

55.7.6   In addition the following on-Location tests shall be conducted for each
         Sub-system:

         (a)      Mechanical, quantity and appearance checks;

         (b)      Workmanship checks;

         (c)      Construction, installation, cabling, wiring, fixing, equipment
                  foundation, painting and galvanizing, appearance and
                  mechanical strength and labeling checks;

         (d)      Meter and Alarm Indication check;

         (e)      Power supply checks;

         (f)      Losses contact checks.

55.7.7   PARTNER shall provide TELKOM with full access to the results of any
         Sub-system Acceptance Tests before initiating any Integrated System
         Acceptance Tests.

55.8     Commissioning : Integrated System Acceptance Test

55.8.1   PARTNER (in cooperation with the NSS supplier) shall conduct Integrated
         System Acceptance Tests in the presence of TELKOM as a witness upon
         completion of the Sub-system Acceptance Tests (including tests on
         measuring equipment and spare parts) to ensure that a System is
         functioning as designed and ready for acceptance by TELKOM.

55.8.2   PARTNER shall prepare a comprehensive testing plan and test procedure
         for TELKOM's approval.

55.8.3   The smallest Network element that may be System tested shall be a BTS
         and its associated equipment. All System tests must be carried out on a
         end to end basis (i.e., PSTN to MSC to BSC to BTS to test subscribers)
         to

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         verify that:

         (a)      the installed system complies with the Technical
                  Specifications of the Agreement;

         (b)      the System has been demonstrated to be compatible with the
                  existing NSS and other Systems.

55.8.4   The tests shall be conducted during normal weekday working hours and
         PARTNER shall notify TELKOM at least ten (10) Business Days before the
         proposed test date to fix the timing and resources required for the
         test. PARTNER shall co-ordinate the test dates across the relevant
         DIVRE to ensure that the tests are scheduled efficiently.

55.8.5   In addition, PARTNER shall provide TELKOM with details of all
         transmission links and assistance to be provided by TELKOM. TELKOM may
         postpone the test date if the transmission links required cannot be
         provisioned in time.

55.8.6   TELKOM shall within ten (10) Business Days issue a Integrated System
         Acceptance Test Certificate for the equipment tested once:

         (a)      all the relevant System tests have been successfully
                  completed;

         (b)      all required test equipment and necessary tools have been
                  supplied; and

         (c)      all handbooks, as-built drawings, inventory list and other
                  information necessary for maintenance of the relevant System
                  have been supplied.

         The Integrated System Acceptance Test Certificate shall be issued on a
         per Location basis. In the event that any Sub-system or Site within the

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         Location cannot be tested caused by any reason, a Partial Integrated
         System Acceptance Test Certificate may be issued for the Location
         covering only the Commissioned Sub-system(s) or Site(s). Integrated
         System Acceptance Test Certificates and Partial Integrated System
         Acceptance Test Certificates shall not be withheld for defects which
         are minor or cosmetic.

55.8.7   In the event that TELKOM is unable to provide, where required, the
         necessary transmission links and/or an E1 link at the PSTN switch to
         connect the Network elements to each other, but it is shown that the
         relevant System otherwise fulfils all the requirements above, TELKOM
         shall issue a Partial Integrated System Acceptance Test Certificate
         within ten (10) Business Days.

55.8.8   15% of the applicable Contract Value for the equipment tested shall be
         payable on TELKOM's issuance of the Integrated System Acceptance Test
         Certificate or Partial Integrated System Acceptance Test Certificate,
         as the case may be.

55.8.9   If TELKOM offers a System which has not yet received an Integrated
         System Acceptance Test Certificate, for commercial service, i.e., such
         System is functional and is connected to one or more-revenue-generating
         subscribers, then this System shall be deemed to have been tested and
         Commissioned and TELKOM shall issue the relevant Integrated System
         Acceptance Test Certificate in accordance with Article 55.8.6.

55.9     Civil Work Tests

55.9.1   PARTNER shall regularly inspect all civil works in progress on a
         continuous and/or interim basis, based on the civil work test plan
         submitted to and agreed by TELKOM. The test plan shall include the
         proposed frequency of the inspections and the test protocol to be
         used. The test protocol shall be in the

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         form of worksheets to be used on Location/Site as the work progresses.

55.9.2   TELKOM will issue certificates at each stage of work once the civil
         work tests are successfully completed based on the agreed test
         protocol. Such certificates shall not be withheld for defects which are
         minor or cosmetic.

ARTICLE 56. INTEGRATION, INTER-OPERABILITY AND COMPATIBILITY

56.1     Integration and Interconnection

56.1.1   The CDMA Network consisting of BSS shall interface with TELKOM's data
         network via a PDSN (Packet Data Serving Node) device as part of the PDN
         (Packet Data Network) supplied by PARTNER.

56.1.2   In particular, PARTNER in cooperation with the NSS supplier shall
         ensure without limitation that:

         (a)      the BSS/BSC as supplied by PARTNER is integrated with TELKOM's
                  NSS and PDN (Packet Data Network) equipment; and

         (b)      all related Sub-systems within the BSS and PDN to be delivered
                  by PARTNER are integrated with each other.

56.2     Inter-Operability Requirement

56.2.1   The BSS equipment must be interoperable with NSS equipment provided by
         other CDMA FWA vendor(s) and compatible with CDMA IOS version 4.0
         standards.

56.2.2   PARTNER shall provide TELKOM with supporting evidence in the form of a
         written statement or certificate from operators, certification body, or
         PARTNER stating operator's name and contact information, location,
         types of BSS equipment, and examples where inter-operability occurs.
         TELKOM shall issue an IOP Certificate to PARTNER in accordance with the
         Inter-Operability

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         Commitment Agreement following successful completion of its own
         interoperability (IOP) tests.

56.3     Compatibility

56.3.1   New software releases or versions shall be backwards compatible with
         the previous release and/or version and such other previous releases
         and/or versions where technically and commercially feasible.

ARTICLE 57. CUT OVER PROCEDURES

57.1     PARTNER shall ensure that the cut over of any equipment on the Network
         (for example, where a BTS is to be disconnected from an existing BSC
         and reconnected to a new BSC being installed or where a BSC is to be
         disconnected from an existing NSS and reconnected to a new NSS being
         installed) does not interfere with the operation of the Network.

57.2     PARTNER shall liaise with TELKOM as to the procedures and timing for
         the cut over and any cut over should take place during the hours of
         2:00 am - 4:00 am (the "Cut over Period"), unless otherwise agreed by
         TELKOM.

57.3     Unless otherwise agreed by the Parties, Network interruption during a
         cut over operation shall not exceed fifteen (15) minutes in any given
         instance.

57.4     PARTNER shall ensure that the previous connections can be re-
         established without any interruption to the Network in the event that
         the cut over does not work properly or perform satisfactorily. In the
         event that the cut over appears unlikely to be completed during the Cut
         over Period, PARTNER shall re-establish the previous connection and
         re-attempt the cut over the following day.

57.5     PARTNER shall indemnify TELKOM against any loss or damage suffered as a
         result of any interruption to the Network (including without limitation

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         any service interruption or system downtime) occurring outside the Cut
         over Period caused by a cut over that results in a revenue loss for
         TELKOM, in accordance with Article 11.

57.6     These cut over procedures shall be applicable to Package 1 (Module 1).

ARTICLE 58. COMPLIANCE WITH ENVIRONMENTAL STANDARDS

58.1     The Deliverables supplied by PARTNER shall comply with all applicable
         legal requirements and shall not contain any legally prohibited
         substances and/or preparations. The Deliverables shall not contain any
         substances and/or preparations that cannot be processed by means of a
         normal waste processing method.

58.2     PARTNER shall allow TELKOM to examine its degree of environmental care
         and provide reasonable assistance to TELKOM in examining that of the
         manufacturers concerned.

58.3     PARTNER shall provide TELKOM with the following information early
         enough to give TELKOM reasonable time to pass it on to all parties
         involved before Deliverables are received;

58.3.1   which substances and/or preparations present in the equipment are
         harmful to people, property or the environment, including soil, water
         and air;

58.3.2   where such substances and/or preparations are located in the equipment
         and how the components concerned must be treated at the end of their
         useful life and at the end of the useful life of the equipment, and how
         such components can be removed from the equipment safely and correctly;

58.3.3   which regulations are applicable to the transport, storage,
         installation, use, dismantling and processing of the substance in
         connection with the harm it is capable of causing; and

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58.3.4   how to improve the information distribution/acquisition process at and
         by TELKOM to a reasonable extent without raising its costs.

58.4     PARTNER shall state which components of the equipment are suitable for
         re-use or recycling other than by incineration at the end of its useful
         life.

58.5     PARTNER shall provide TELKOM with the above-mentioned information,
         either via an electronic information carrier or electronically in a
         commonly used computer program and in a format as reasonably requested
         by TELKOM.

58.6     PARTNER shall warrant that all of the information provided to TELKOM is
         complete and correct to the best of its knowledge.

ARTICLE 59. DEVELOPMENT OF MEDIATION DEVICE

PARTNER shall at TELKOM's request develop and provide interfaces to TELKOM's
customer care, billing and NMS. The cost of the development shall be agreed in
advance with TELKOM and then added to the Contract Value of the Purchase Order
associated with the equipment with which the mediation device will be used. 25%
of the development costs shall be paid on commissioning of the mediation device,
and the remaining 75% paid by TELKOM in accordance with the PAYG payment scheme
for the associated equipment.

ARTICLE 60. DOCUMENTATION

60.1     PARTNER shall provide an adequate number of handbooks and drawings that
         shall be required to support equipment maintenance, installation, and
         test function. Handbooks and drawings shall include assembly drawings,
         wiring information, schematics, drawings, network diagrams, block
         diagrams and complete instruction for familiarization, installation,
         operation, theory, maintenance, and parts replacements, as well as
         appropriate system drawings. Instruction handbooks for

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         each piece of equipment shall be prepared separately, and submitted to
         TELKOM. Instruction handbooks to be supplied shall include but not be
         limited to the following:

60.1.1   Installation and system handbooks;

60.1.2   Equipment handbook including Standard Operating Procedure (SOP) and
         Standard Maintenance Procedure (SMP);

60.1.3   Troubleshooting handbooks including block diagrams;

60.1.4   Customer handbooks for the fixed terminal shall include assembly
         drawings, wiring information, and complete instruction for
         familiarization, installation, maintenance, and parts replacement;

60.1.5   Customer handbooks for the mobile handset shall include only complete
         instruction for familiarization, maintenance and part replacement. All
         handbooks shall be prepared in English and the metric system of weights
         and measures should be used.

60.2     PARTNER shall maintain and keep updated a Project library in Indonesia
         containing all relevant documents related to the Project, including
         without limitation, minutes of each JPS, DRM and monthly meeting, all
         Purchase Orders, demand forecasts, Change Requests, each agreed
         revision of the Implementation Plan and all correspondence between
         PARTNER, its sub-contractors and TELKOM. The Project library shall be
         accessible by TELKOM and its representatives during normal working
         hours and TELKOM may from time to time request copies of all or parts
         of the Project library to be supplied to it at no further cost. The
         Project library shall be handed over to TELKOM on termination of the
         applicable Service Level Agreement.

60.3     PARTNER shall submit drawings and documents (including as-built,
         assembly, connection and allocation drawings) related to the relevant
         Sub-systems installed.

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<PAGE>

60.4     Any drawings and documents with respect to the relevant Systems or
         Sub-systems owned by PARTNER related to the relevant Deliverables shall
         be kept in safekeeping for the duration of the applicable Service Level
         Agreement to enable PARTNER to procure any parts which need replacement
         and/or expansion of such System or Sub-system if so required at any
         time. Following the expiration or termination of the applicable Service
         Level Agreement, such drawings and documents shall be delivered to
         TELKOM.

60.5     Any Intellectual Property Rights with respect to any equipment,
         drawings, specifications, software and Documentation and data which are
         issued by the respective Parties pursuant to the implementation of this
         Agreement shall remain the property of the respective Parties in
         accordance with this Agreement.

60.6     Any incompleteness, doubts with respect to breakdown and/or elaboration
         contemplated in any documents and/or those which constitute parts of
         this Agreement shall be presented to TELKOM for clarification.

60.7     As long as PARTNER is providing maintenance and support in accordance
         with this Agreement and the applicable SLA, the cost of updates to the
         Documentation shall be included in the fees paid by TELKOM to PARTNER
         pursuant to the relevant SLA. For the avoidance of doubt, the initial
         costs of the Documentation shall be payable under general services
         pursuant to Article 33.

60.8     All Documentation shall be in accordance with the requirements stated
         in the RfP or as separately compiled in a document approved by the
         Parties. The standard documents required to be provided by PARTNER are
         listed in Appendix 22 (Documentation).

60.9     At the first JPS, PARTNER shall submit to TELKOM its plan to execute
         the Location/Site survey consisting, without

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         limitation, of the following items:

60.9.1   time schedule;

60.9.2   manpower schedule;

60.9.3   team organization;

60.10    TELKOM will provide a letter of approval of the detailed Location/Site
         survey plan submitted by PARTNER, after it has agreed to the proposed
         content. PARTNER shall perform the Location/Site survey accompanied by
         TELKOM's assigned team as scheduled in the Location/Site survey plan.

60.11    PARTNER shall provide a Location/Site survey report ("Survey Report")
         for installation within two (2) weeks of the Location/Site survey. The
         Survey Report shall consist of the following items:

60.11.1  Location/Site layout, that shall include guide map, floor lay out and
         cable racking;

60.11.2  arrangement of terminal block and existing distribution frame;

60.11.3  arrangement of the sub distribution panel;

60.11.4  availability of supporting facility and other requirements;

60.11.5  availability of antenna space at the existing tower;

60.11.6  map of the site's path profile and, if required, the backhaul system
         for PARTNER's equipment;

60.11.7  availability of port and link at TELKOM's exchanges; and

60.11.8  coverage map of each BTS;

60.12    PARTNER shall submit its final as-built drawings based on the Network
         configuration upon completion of the installation work.

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<PAGE>

                                   CHAPTER 6.
                            SERVICE LEVEL AGREEMENTS

ARTICLE 61. SERVICE LEVEL AGREEMENTS

61.1     Service Level Agreement

61.1.1   TELKOM has requested PARTNER to render certain operation and
         maintenance support services, and PARTNER has agreed to provide these
         services in accordance with a Service Level Agreement.

61.1.2   Prior to Commissioning of the Deliverables in the First Purchase Order,
         TELKOM and PARTNER shall enter into a Service Level Agreement in form
         and substance as set out in Appendix 19 to cover operation and
         maintenance, spareparts and software services support. The initial term
         of the Service Level Agreement shall expire, unless earlier terminated
         in accordance with the SLA, three (3) years from the earliest to occur
         of: (a) the date of the first Integrated System Acceptance Test
         Certificate; or (b) commercial deployment of any of the Deliverables
         supplied by PARTNER. For the avoidance of doubt, any commercial use of
         PARTNER's equipment supplied under the initial inter-operability
         testing required under Chapter 7 shall be covered under the Service
         Level Agreement.

                                   CHAPTER 7.
                       INTER-OPERABILITY AND CO-ORDINATION
                           REQUIREMENTS FOR PACKAGE 1
                               (MODULE 1)(DIVRE 1)

ARTICLE 62. GENERAL

62.1     Subject to Article 14.2.1, this Chapter shall apply to Package 1
         (Module 1) (DIVRE I) only.

62.2     PARTNER acknowledges that certain Network equipment for Package 1
         (Module 1) is being supplied by other equipment vendor(s) and that
         achieving inter-operability between each vendor's equipment is a key
         requirement of the T-21 Program. In particular, TELKOM requires that
         the BSS configuration be fully

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<PAGE>

         interoperable with NSS equipment from other CDMA FWA vendor(s) in
         accordance with Article 56. The Parties recognise that until
         inter-operability has been achieved, service cannot begin in the DIVREs
         where more than one vendor is providing equipment. To achieve this aim,
         the Parties have entered into a separate inter-operability commitment
         agreement with the NSS equipment vendor in Package 1 (Module 1) as
         specified in Appendix 21.

62.3     In the event that the vendors are unable to achieve satisfactory inter-
         operability by the end of the testing period as specified in Appendix
         21, TELKOM may at its sole discretion:

         (a)      extend the testing period for such period as it thinks fit and
                  request the vendors to continue working towards inter-
                  operability;

         (b)      stop further testing until further notice;

         (c)      notify either of the vendors, or both as the case may be, that
                  based on a comprehensive technical review of the cause or
                  causes resulting in the failure of achieving inter-operability
                  as contemplated in this Agreement. TELKOM intends to exercise
                  its right to terminate this Agreement pursuant to Article 14.2
                  (subject to clause 8 of Appendix 21). In this event, PARTNER
                  shall have no further liability to TELKOM with respect to
                  achieving inter-operability.

62.4     Following issuance of the IOP Certificate, the Parties acknowledge

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         that certain additional modifications are required to this Agreement to
         allow inputs from each vendor at the JPS and DRMs and that they will
         deal expeditiously with any delays caused by one or more vendors which
         affect the other vendors.

ARTICLE 63. JPS, DRMs AND MONTHLY MEETINGS

63.1     At each JPS:

63.1.1   the demand forecasting and economic analysis shall be conducted by the
         vendor of the BSS equipment and TELKOM jointly, with the vendor of the
         NSS equipment providing comments only;

63.1.2   the prioritisation of Locations/Sites for network deployment of the BSS
         equipment shall first be conducted by the vendor of the BSS equipment
         and TELKOM jointly. The prioritisation of Locations for Network
         deployment of the NSS equipment shall follow on and be conducted by the
         vendor of the NSS equipment and TELKOM jointly; and

63.1.3   the technology review shall be conducted by all vendors and TELKOM
         jointly.

63.2     At each DRM:

63.2.1   each vendor shall be responsible for surveying their own deployment
         sites;

63.2.2   TELKOM and the vendor of the BSS equipment shall jointly calculate,
         check and update the Installed Line Procurements, with the vendor of
         the NSS equipment providing comments only;

63.2.3   the Deployment Plan for the BSS equipment for the next Quarter shall
         first be jointly developed, agreed and approved by the vendor of the
         BSS equipment and TELKOM; then the Deployment Plan for the NSS
         equipment for the next Quarter shall be jointly developed, agreed and
         approved by the vendor of the NSS equipment and TELKOM;

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<PAGE>

63.2.4   TELKOM and each vendor shall develop, agree and approve their
         respective detailed network designs, BoQ, resource plans and training
         plans;

63.2.5   TELKOM and the vendors shall jointly discuss any changes which may be
         required to the Project Management Plans and Implementation Schedule,
         and in particular shall provide information on any potential delays or
         other matters which could affect the other vendor(s) or the overall
         deployment of the Network. TELKOM and each vendor shall then jointly
         agree and approve any adjustments to their respective plans and
         schedules taking into account the information provided by the other
         vendor(s).

63.3     TELKOM may from time to time request the vendors to attend together the
         monthly meetings to allow information sharing and joint discussions to
         take place.

ARTICLE 64. COMMISSIONING TESTS

64.1     The Parties acknowledge that in order to test the Network end to end,
         each Network component (MSC, BSC and BTS) must be interconnected and be
         available for testing during the period scheduled for the Integrated
         System Acceptance Tests.

64.2     The Integrated System Acceptance Tests shall be conducted during normal
         weekday working hours and PARTNER seeking to test its equipment shall
         co-ordinate with TELKOM at least fourteen (14) calendar days before the
         proposed test date to fix the timing and resources required for the
         test and TELKOM shall confirm within 48 hours of written notice by
         PARTNER whether such date is acceptable. In the event that TELKOM has
         expressed its firm intention to attend at Integrated System Acceptance
         Tests but is unable to attend, TELKOM shall provide in lieu of its
         presence written instructions to proceed in its absence and report the
         results to TELKOM promptly following completion. TELKOM shall
         co-ordinate

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<PAGE>

         the other vendors required for the test. PARTNER shall co-ordinate the
         test dates across the relevant DIVRE to ensure that the tests are
         scheduled efficiently.

64.3     Each vendor shall upon receipt of the notice promptly inform TELKOM and
         the other vendor(s) whether its equipment has completed the required
         Sub-system Acceptance Tests, and if not when such tests are scheduled
         for and if it expects any delay to its agreed completion dates.

64.4     TELKOM, acting reasonably, may reschedule the proposed test date by up
         to one (1) month to address any delays which are attributable to other
         vendors. In the event that the other vendor's equipment is still not
         available for testing after the one month grace period, but it is shown
         that the vendor's system otherwise fulfills all the Integrated System
         Acceptance Test requirements, TELKOM shall issue a Partial Integrated
         System Acceptance Test Certificate to the vendor.

64.5     For the avoidance of doubt, the testing and Commissioning procedures
         for Package 1 (Module 1) are provided in Article 55.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized representatives on the day and year first above written.

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<PAGE>

PERUSAHAAN PERSEROAN (PERSERO)            MOTOROLA, INC.
PT TELEKOMUNIKASI INDONESIA, TBK.

By /s/ Kristiono                          By /s/ Allen Ma
   ----------------------                    -----------------------------------
Name: Kristiono                           Name: Allen Ma
Title: President Director                 Title: Vice President & General
                                                 Manager, Asia

                                      127

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.27
<SEQUENCE>26
<FILENAME>u92256exv4w27.txt
<DESCRIPTION>EX-4.27 PARTNERSHIP AGREEMENT, NOVEMBER 12, 2003
<TEXT>
<PAGE>
                                                                    Exhibit 4.27



                             PARTNERSHIP AGREEMENT
                                      FOR
                        PROCUREMENT AND CONSTRUCTION OF
                REGIONAL METRO JUNCTION AND OPTIC ACCESS NETWORK
                           FOR REGIONAL DIVISION III

                                    BETWEEN

                       PT TELEKOMUNIKASI INDONESIA, TBK.

                                      AND

                 PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO)

                        NO.K.TEL 241/HK.810/UTA-00/2003

                            DATED NOVEMBER 12, 2003
<PAGE>

                              PARTNERSHIP AGREEMENT
                                       FOR
                         PROCUREMENT AND CONSTRUCTION OF
                REGIONAL METRO JUNCTION AND OPTIC ACCESS NETWORK
                            FOR REGIONAL DIVISION III
                     BETWEEN PT TELKOMUNIKASI INDONESIA, TBK
                                       AND
                 PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO)

                        NO. K.TEL.241/HK.810/UTA-00/2003

THIS PARTNERSHIP AGREEMENT ("Agreement") is made in Bandung on this day,
Wednesday, the twelfth day of November two thousand three (12-11-2003), by and
between:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA, Tbk., a
         telecommunication network and service operator company established
         pursuant to the laws of the Republic of Indonesia, having its
         headquarters on Jalan Japati No. 1, Bandung, in this matter duly
         represented by Kristiono in his capacity as the President Director,
         hereinafter referred to as "TELKOM"; and

II.      PT INDUSTRI TELEKOMUNIKASI INDONESIA (PERSERO), a limited liability
         company established pursuant to the laws of the Republic of Indonesia,
         having its head office on Jalan Mohamad Toha No. 77, Bandung, in this
         matter duly represented by John Welly in his capacity as the President
         Director, hereinafter referred to as "PARTNER".

(TELKOM and PARTNER individually referred to as the "Party", and collectively as
the "Parties").

WITNESSETH:

a.       TELKOM is a leading telecommunications services operator company that
         provides wireline telecommunications facilities in Indonesia;

b.       TELKOM has initiated a significant investment program for the purpose
         of modernizing and expanding its network infrastructure;

c.       PARTNER is a company with telecommunication infrastructure expertise
         that has the required technical expertise and financial resources in
         performing the Project;

d.       In its letter No. TEL.785/LG.210/TCC-00/2003 of 19 September 2003,
         TELKOM requested PARTNER to submit a quotation for the procurement and
         construction of Regional Metro Junction and Optic Access Network at
         Regional Division III;

<PAGE>

e.       In its letter No. 2043/NG.01/102010/2003 of 30 September 2003, PARTNER
         submitted to TELKOM a quotation for the work as referred to in
         paragraph d. above;

f.       In its letter No. TEL.885/LG000/TCC-00/2003 of 5 November 2003, TELKOM
         appointed PARTNER to perform the procurement and construction of
         Regional Metro Junction and Optic Access Network at Regional Division
         III with the initial price of USD 6,479,991.65 and Rp
         112,426,656,406.18, exclusive of 10%VAT;

g.       In its letter No. 2040/ST.06/320020/2003 of 5 October 2003, PARTNER
         expressed its willingness and agreed to accept and perform the work as
         referred to in paragraph f. above;

IN WITNESS WHEREOF, the Parties have agreed to enter into this Agreement subject
to the terms and conditions as follows:

CHAPTER I
GENERAL TERMS AND CONDITIONS

ARTICLE 1
DEFINITIONS

1.1      Unless the context requires otherwise, the following expressions shall
         have the meanings as follows:

         a.       BILL OF QUANTITIES (BoQ) means the bill of quantities set
                  forth in Schedule 1, as may be modified from time to time
                  pursuant to Articles 3.3 and 43;

         b.       BUSINESS DAY means a day, other than Saturday, Sunday or any
                  public holiday in Indonesia as determined by the government;

         c.       AGREEMENT means this Agreement and its schedules and
                  amendments;

         d.       WORK means all and any work under the scope of this Agreement
                  including survey, design and engineering plan, calculation and
                  procurement of materials, manufacturing, packaging and
                  transportation, construction and installation, testing,
                  integration within Sub-System supplied, integration between
                  the Existing System and the System supplied, documentation,
                  warranty and delivery of the procurement and installation of
                  Regional Metro Junction and Optic Access Network System and
                  Sub-System at Regional Division III, where TELKOM accepts the
                  ready-for-use delivery by taking into account the volume and
                  scope of work agreed to by TELKOM and PARTNER as referred to
                  in Schedule 5 (Scope of Work and Technical Specification);

                                        2
<PAGE>

         e.       CONTRACT VALUE means the overall value of all Purchase Orders
                  and with respect to each Purchase Order, the total payment (in
                  USD or IDR, as the case may be) to be made by TELKOM to
                  PARTNER under each Purchase Order for all Deliverables to be
                  supplied thereunder and for the full and diligent performance
                  by PARTNER of all of its obligations and covenants under this
                  Agreement, including all amounts payable to PARTNER to use or
                  procure licenses for rights to software and Documentation, and
                  for expenses for insurance and transportation and any other
                  expenses under this Agreement, subject to any change expressly
                  permitted under this Agreement or the respective Purchase
                  Order;

         f.       DELIVERABLES means the equipment, components, software and
                  Documentation to be delivered and all related services to be
                  performed by PARTNER pursuant to Purchase Order(s);

         g.       PURCHASE ORDER means a document issued by TELKOM from time to
                  time pursuant to Article 25 and acknowledged by PARTNER for
                  the supply and Commissioning by PARTNER of all or parts of the
                  System and/or for the provision of services. Any attachments
                  or appendices to a Purchase Order and any amendments to a
                  Purchase Order in accordance with Article 43 shall form an
                  integral part of the Purchase Order;

         h.       TECHNICAL SPECIFICATION means collectively, the technical
                  specification set forth in Schedule 5, and the applicable
                  specification issued by each manufacturer and all
                  specifications agreed pursuant to amendments to this Agreement
                  or a Purchase Order;

         i.       TOTAL SYSTEM means the whole Ring System from Regional Metro
                  Junction and Optic Access Network at the Regional Division III
                  supplied and integrated each other, and may function in
                  accordance with the Technical Specification set forth in
                  Schedule 5, to be delivered by PARTNER to TELKOM for
                  commercial operation;

         j.       RING SYSTEM means two or more Sub-Ring Systems supplied
                  consisting of Fiber Optic Cable, Transmission Equipment, Power
                  Supply and buildings and the related supporting facilities
                  consisting of one or more Sub-Ring Systems ready for
                  operation;

         k.       SUB-RING SYSTEM/ SUB SUB-RING SYSTEM means the equipment that
                  is complete, properly installed, well-functioned, and ready
                  for use based on location;

         l.       NMS SYSTEM means the implementation of the Network Management
                  System and Integration both in the Ring System level and the
                  Sub-Ring System level;

                                        3
<PAGE>

         m.       LOCATION means location(s) where the Equipment is to be
                  delivered, installed, inspected, tested and transferred, and
                  where the Work is to be performed by PARTNER as referred to in
                  Schedule 2;

         n.       EXISTING SYSTEM means the whole Regional Metro Junction system
                  and Optic Access Network owned by TELKOM existing and
                  operating at Divre III;

         o.       EQUIPMENT means all devices (hardware or software), cables,
                  tools, drawings, manuals, documents and so forth to be
                  provided by PARTNER to TELKOM under this Agreement;

         p.       INTEGRATION means the connection between the Total System and
                  the Existing System and may function properly;

         q.       INFORMATION means any data and writing relating to this
                  Agreement, including without limitation drawings, technology,
                  data and so forth;

         r.       ACCEPTANCE TEST means the physical and visual checking of the
                  installation and materials, testing of the Equipment at each
                  Ring System or Sub-Ring System for the proper function of the
                  Equipment installed as referred to in Article 13 of this
                  Agreement;

         s.       PARTIAL ACCEPTANCE TEST means an Acceptance Test conducted to
                  the System Ring or the Sub-Ring System;

         t.       ACCEPTANCE TEST REPORT means a document in writing made and
                  signed by the Parties through their authorized
                  representatives, stating that the Acceptance Test or the
                  Partial Acceptance Test is complete by setting forth the
                  result;

         u.       BAST-I means the First Acceptance Certificate stating that the
                  Acceptance Test of the whole Work under the relevant Purchase
                  Order is successfully complete and accepted by TELKOM;

         v.       BAST-II means the Second Acceptance Certificate for the whole
                  Work under the relevant Purchase Order stating that PARTNER
                  has meet all of its obligations, there is no outstanding work
                  relating to the performance and reliability of the whole Work
                  during the Maintenance Period under this Agreement;

         w.       SUB-CONTRACTOR means any party(s) (other than PARTNER) to whom
                  any part of the Work has been subcontracted by PARTNER, with a
                  prior written notice to TELKOM, and shall include any
                  permitted representative or assignee of such party(s);

         x.       COMMISSIONING means activities to be done by PARTNER for
                  preparation of the Acceptance Test;

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<PAGE>

         y.       MAINTENANCE PERIOD means a duration of twelve (12) months
                  since BAST - I;

         z.       EFFECTIVE DATE OF CONTRACT (EDC) means the date that all
                  provisions of Article 51 have been met;

         aa.      COMMERCIAL OPERATION means an operation where TELKOM has been
                  ready to provide services to both internal and external
                  customers (e.g., transmission of voice, data or multimedia)
                  for any part or the whole Ring System or the Sub-Ring System.

ARTICLE 2
GENERAL CONDITIONS

2.1      If any provision of this Agreement or any part thereof is determined to
         be invalid or unenforceable under the laws to which such provision is
         subject to, such invalidity or unenforceability shall in no way affect
         or impair the remaining provisions of this Agreement.

2.2      Failure or delay on the part of any Party hereto to exercise its rights
         under this Agreement shall not be considered to be a repudiation or
         waiver thereof, and shall not preclude any other or further exercise
         thereof.

ARTICLE 3
SCOPE OF WORK

3.1      Scope of Work under this Agreement shall cover the procurement and
         construction of the Regional Metro Junction and Optic Access Network at
         the Regional Division III, Network Management System, and services of
         PARTNER at the Regional Division III in accordance with configuration,
         capacity planning, Bill of Quantity, Technical Specification as set
         forth in Schedule 5 (Scope of Work and Technical Specification).

3.2      For purposes of performance of the Work, PARTNER shall perform the
         following:

         a.       Survey, design and engineering plan;

         b.       Procurement and/or manufacture of the Equipment and delivery
                  of the Equipment to Locations;

         c.       Implementation, Testing and Commissioning, Integration of the
                  Ring System and Sub-Ring System into the Existing System;

         d.       Provide the Maintenance Period of one (1) year after BAST - I
                  and after sales services;

         e.       provide an All-Risk Insurance;

                                       5
<PAGE>

         f.       Provide training and internship.

3.3      Scope of Work shall be adjusted and performed based upon any amendment
         to this Agreement:

         a.       after the detailed survey, design and engineering are complete
                  and approved by TELKOM; and

         b.       after the actual Bill of Quantity are complete and approved by
                  TELKOM.

3.4      This Agreement is a contract covering various steps involved in the
         Project on a Turnkey basis.

3.5      "Turnkey basis" means that pursuant to the Scope of Work, based upon
         the effective date of this Agreement, once PARTNER receives a Purchase
         Order, PARTNER shall be solely responsible for the survey, design,
         development, manufacture, delivery, supply, installation, integration
         and management of the Network, and the remedying of any defects, so as
         to make the Network ready for service. PARTNER shall also do everything
         necessary and reasonable in connection with this Agreement, where
         PARTNER shall perform all of its obligations under this Agreement.

3.6      PARTNER shall perform the work based upon a Purchase Order pursuant to
         Schedule 3 (Implementation Schedule and Deployment Plan) and finish
         every stages of work on the date or time determined.

ARTICLE 4
TERM AND PERFORMANCE LOCATIONS OF WORK

4.1      Work. The Work of procurement and construction of the Regional Metro
         Junction and Optic Access Network at the Regional Division III shall be
         performed and finished in whole within 26 (twenty six) months since the
         Effective Date of Contract.

4.2      Work Locations. The Work shall be performed at the Regional Division
         III as set forth in Schedule 2 to this Agreement.

4.3      Delay. In case PARTNER is behind schedule in performing the Work as
         referred to in Articles 4.1 and 4.2, PARTNER shall be imposed a penalty
         as regulated in Article 35 of this Agreement.

4.4      If such delay is due to (i) the agreement between PARTNER and TELKOM to
         modify the Work as referred to in Article 43, or (ii) any third party
         not appointed or selected by PARTNER, or (iii) Force Majeure, PARTNER
         shall be permitted to extend the term of completion of the Work on
         TELKOM's consent.

                                       6
<PAGE>

ARTICLE 5
SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

5.1      The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed in accordance with Schedule
         2.

5.2      PARTNER shall in coordination with TELKOM perform, arrange and procure
         all permits required to perform the work for and on behalf of TELKOM,
         such as installation permits, rights of way, Ijin Mendirikan
         Bangunan/IMB (Right to Establish Building) and other necessary permits
         from the local government or other parties, and all duties required to
         ensure the Locations/Sites preparation for performance of the Work.
         Costs for procuring the permits are included in the unit price and
         shall not be priced separately.

5.3      In case of any loss or delay in the granting of licenses, dispensations
         or permits by public officers, which may affect the Implementation
         Schedule, with the condition that all provisions have been fulfilled by
         PARTNER, and after TELKOM gives its assistance, the Parties agree to
         extend the performance period.

ARTICLE 6
SCHEDULES

6.1      Schedules. The following documents shall be enclosed to and constitute
         an integral part of this Agreement.

         Schedule 1        Recapitulation and Breakdown of Price & Bill of
                           Quantity

         Schedule 2        Designs of the Ring System, Sub-Ring System and Sub
                           Sub-Ring System

         Schedule 3        Implementation Schedule and Project Management

         Schedule 4        Minutes of Clarification Meeting and Negotiation

         Schedule 5        Scope of Work and Technical Specification

         Schedule 6        Proposal Documents

         Schedule 7        Purchase Order Form

         Schedule 8        Appointment Letter to PARTNER

         Schedule 9        Letter of Acceptance from PARTNER

         Schedule 10       Training Syllabus

         Schedule 11       Procedures for Acceptance Test

         Schedule 12       Project Management

         Schedule 13       MOU between PARTNER and Sub-Contractor and List of
                           Sub-Contractors and Suppliers

         Schedule 14       Performance Bond and Maintenance Bond Form

         Schedule 15       Confidentiality Agreement

6.2      Inconsistency. In case of any inconsistency between this Agreement and
         its Schedules, the provisions of this Agreement shall prevail.

                                       7
<PAGE>

CHAPTER 2
TECHNICAL TERMS AND CONDITIONS

ARTICLE 7
TECHNICAL CONDITIONS

The Work hereunder shall be performed in accordance with Technical Specification
set forth in Schedule 5 to this Agreement.

ARTICLE 8
QUALITY WARRANTY

8.1      PARTNER shall make all reasonable efforts to ensure TELKOM's rights to
         inspect production and installation phases of its sub-contractors.
         PARTNER shall cooperate with TELKOM in case TELKOM at its own expense
         opts to conduct such inspection.

8.2      In so far as any equipment or component thereof is produced by a
         sub-contractor working for PARTNER, PARTNER shall make all reasonable
         endeavors to include similar provisions in its contract with the
         sub-contractor in order to enable TELKOM to perform inspections of a
         similar nature.

8.3      PARTNER shall ensure that performance of the Total System of the
         Regional Metro Junction and Optic Access Network at the Regional
         Division III shall function properly until the expiry of the
         Maintenance Period through necessary repair or replacement as set forth
         in detail in Schedule 5.

ARTICLE 9
SURVEY, DESIGN, AND PLANNING

9.1      The Planning and design activities for the Project must be able to
         fully accommodate the DRM [Design Review Meeting] and monthly meeting
         mechanism as described in Article 15 of this Agreement.

9.2      The planning and design work shall include Survey of the
         Location/Site(s) where PARTNER and TELKOM jointly determine the best
         location/site for installation of the equipment, with Location
         requirements determined by TELKOM.

ARTICLE 10
CIVIL WORK OUTSIDE PLAN

10.1     PARTNER shall apply the regular cost for the excavation work and its
         reinstatement (construction unit: BC-TR). Payment by TELKOM to PARTNER
         relating to the work will be determined only based upon the

                                       8
<PAGE>

         actual length of fiber optic cable. The actual condition of land (soft
         land, macadam, tar) will not determine the cost for the excavation work
         and its reinstatement. TELKOM shall only make payment based upon the
         actual length of fiber optic cable as agreed in the Design Review
         Meeting (DRM).

10.2     Regular cost for the excavation work and its reinstatement shall relate
         to Level-5 of the List of OSP Civil Work Prices as set forth in the
         Schedule 1.

10.3     PARTNER shall install the fiber optic cable on the depth level of 130
         cm.

ARTICLE 11
INSTALLATION PROCEDURES AND STANDARDS

11.1     PARTNER shall provide all services to ensure the proper installation of
         all equipments, provide optimal operating conditions and maximize its
         long-term viability. PARTNER shall provide all tools and equipments
         necessary to install and commission its equipment.

11.2     PARTNER shall provide equipment installation services, which consist
         the following activities:

         a.       provision of materials, labor, equipment, tools and machinery
                  for installation;

         b.       materials delivery and storage;

         c.       transportation of goods;

         d.       installation of the equipment;

         e.       cleaning-up sites; and

         f.       site preparation plan and drawings.

11.3     Provision of materials, labor, equipment, tools and machinery by
         PARTNER for installation shall include the following activities:

         a.       provision of all materials, labor, tools, transportation,
                  telecommunication facilities (telephone, facsimile, etc.) and
                  everything necessary for completion of the work pursuant to
                  this Agreement;

         b.       Mobilization of adequate supervisory force and staff,
                  consisting of experienced engineer, technicians and workmen to
                  complete the work satisfactory and in workmanlike manner
                  within the period specified in this Agreement;

         c.       provision of all equipments, tools, measuring equipment,
                  machinery and electricity which is used for installation
                  purpose only; and

11.4     Installation of the equipment by PARTNER shall consist of the following
         activities:

                                       9
<PAGE>

         a.       provision of lines and integration of sub-component into the
                  system unit, namely Transmission Equipment and Outside Plan
                  (OSP);

         b.       checking system unit and shall ensure that each system unit
                  may function as required.

11.5     Cleaning-up at each Location/Site shall be conducted during
         installation period and shall include the following activities:

         a.       PARTNER shall keep the work and storage areas clean and tidy
                  and shall everyday remove all combustible rubbish from inside
                  and near the buildings, structures and plant;

         b.       upon completion of each of installation, PARTNER shall remove
                  from the Location/Site as early as possible all tolls,
                  appliances, packing cases and plant not constituting an
                  integral part of this Agreement;

         c.       PARTNER shall either remove or level as required by TELKOM's
                  Project Manager, all excess earth or spoil resulting from any
                  excavation;

         d.       PARTNER shall make good to the satisfaction of TELKOM's
                  Project Manager at his own expenses, all damages to buildings,
                  plants, finishes, etc., caused by contractor, his
                  subcontractor(s) and/or their employees.

ARTICLE 12
LOCAL SUPPORTING INFRASTRUCTURE

PARTNER shall provide TELKOM with access to its local technical staffs to ensure
the effectiveness of deployment, operation and problem solving in due time.
PARTNER shall ensure that the local support is available in due time,
cost-effective, and has high-quality to meet the services level in accordance
with the requirements set by TELKOM.

ARTICLE 13
ACCEPTANCE TEST

13.1     Acceptance Test. List of items tested and procedures for testing must
         be completed and approved by the Parties before the first Acceptance
         Test is conducted. The Acceptance Test shall be performed after
         commissioning of the Sub-Ring System or the Sub Sub-Ring System
         conducted by PARTNER and ready for the Acceptance Test. PARTNER shall
         perform the Acceptance Test of the whole Work under this Agreement, at
         installation Locations based on the Acceptance Test schedule to be
         proposed by PARTNER to TELKOM. The Acceptance Test shall be performed
         in the presence of authorized representatives of the Parties.

                                       10
<PAGE>

13.2     Prior Notice on Acceptance Test. PARTNER shall provide a notice to
         TELKOM within 14 (fourteen) days before the Acceptance Test date.
         Within seven (7) days upon its receipt, TELKOM shall notify PARTNER of
         its approval on the Acceptance Test schedule or TELKOM may propose
         another Acceptance Test schedule no later than seven (7) days after the
         date proposed by PARTNER. In case TELKOM does not give any response of
         PARTNER's notice within seven (7) days, TELKOM shall be considered to
         have approved such Acceptance Test schedule.

13.3     Partial Acceptance Test. TELKOM has the option to request PARTNER to
         conduct the Partial Acceptance Test of the Sub-Ring System or certain
         Sub Sub-Ring System or that that will be determined later by TELKOM in
         any Ring System being constructed.

         In case that the Partial Acceptance Test results in the proper function
         and operation of the Sub-Ring System or Sub Sub-Ring System both from
         technical aspect in accordance with the technical specification set
         forth in this Agreement and commercial aspect, TELKOM shall issue a
         Partial BAST covering only the completed Sub-Ring System or Sub
         Sub-Ring System. The Partial BAST shall be treated as the BAST - I of
         the Work accepted.

         Maintenance Period for the Work accepted pursuant to this Article shall
         commence after the issuance of the Partial BAST and shall expire after
         twelve (12) months, regardless of whether or not the BAST - I will be
         issued in the future for the Sub-Ring System or the related Sub
         Sub-Ring System.

13.4     Acceptance Test Performance. After the whole Sub-Ring System or Sub
         Sub-Ring System is ready for the Acceptance Test, the Acceptance Test
         shall be conducted to check the comparability in the completed Sub-Ring
         System or Sub Sub-Ring System and the installed Equipment, with the
         Technical Specification agreed by PARTNER and TELKOM. PARTNER shall
         thereafter provide TELKOM with the Acceptance Test Report.

13.5     Obligation for default remedy. If there is any inconsistency with the
         Technical Specification (hereinafter "Default") during the Acceptance
         Test period, TELKOM and PARTNER shall record such Default in writing
         and PARTNER shall promptly start remedying such Default.

13.6     Major Default. If the Acceptance Test result shows that the Equipment
         may not be operated, or cause the damage or loss of data or software,
         or cause the corruption of data (hereinafter "Major Default"), PARTNER
         shall inform TELKOM in writing either to (a) cease the Acceptance Test
         or (b) extend the Acceptance Test period.

         In case of (a), after the Default is remedied, PARTNER shall inform
         TELKOM seven (7) days before conducting the retest.

13.7     Minor Default. If the Acceptance Test result shows that the Equipment
         will cause certain failures other than the Major Default, which do not
         affect the

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<PAGE>

         substantial operation of the Sub-Ring System or Sub Sub-Ring System,
         PARTNER shall remedy such Minor Default within three (3) months after
         the issuance of BAST - I.

13.8     Stability Test. Following the completion of the Acceptance Test,
         PARTNER shall perform a stability test for 14 (fourteen) days for the
         purposes of examining the performance of the Sub-Ring System or Sub
         Sub-Ring System in whole and of ensuring that the Work relating to such
         Sub-Ring System or Sub Sub-Ring System has been technically performed
         in accordance with the Technical Specification under this Agreement.
         During such examination, the Parties are not allowed to make any
         adjustment in case of any irregularity arising in certain part of the
         Sub-Ring System or Sub Sub-Ring System.

13.9     Examination of Acceptance Report and Stability Test Report. Following
         the completion of tests as regulated in this Article and PARTNER has
         submitted reports of the Sub-Ring System and Sub Sub-Ring System, and
         other requirements under this Agreement have been met, TELKOM shall
         examine all reports of PARTNER. In case that any part of the function
         does not conform to the Technical Specification under this Agreement or
         is not complete, TELKOM shall notify PARTNER in writing within seven
         (7) days since PARTNER submits such reports.

13.10    Remedy Costs. Any cost incurred in relation to the remedy as set forth
         in this Article shall be the full responsibility of PARTNER.

13.11    BAST - I for the Sub-Ring System or Sub Sub-Ring System shall be issued
         upon the fulfillment of the following activities:

         a.       installation has been performed;

         b.       each Sub-Ring System or Sub Sub-Ring System has been tested
                  and function properly in accordance with the Technical
                  Specification without any pending items which obstruct the
                  functional operation;

         c.       each Sub-Ring System or Sub Sub-Ring System may be operated
                  commercially;

         d.       PARTNER has submitted the As-built drawing;

         e.       PARTNER has submitted a certificate from the public work
                  authority stating that PARTNER has completed the reinstatement
                  work in accordance with public work specifications.

         BAST - I for the NMS System shall be issued after the Integration and
         the Transmission Network Management System has been performed, tested
         and function properly without any Major Default and PARTNER has
         submitted the As-built drawing.

13.12    Issuance of BAST - I. The Sub-Ring System or Sub Sub-Ring System shall
         be issued if PARTNER has demonstrated to TELKOM that all requirements
         under the Technical Specification set forth in Schedule 5 have been met
         under the conditions as follows:

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<PAGE>

         a.       Within seven (7) days after the stability test result, TELKOM
                  shall inform PARTNER of whether or not the Sub-System is
                  accepted;

         b.       In case that such reports show that the Sub-Ring System or Sub
                  Sub-Ring System has been tested and function properly in
                  accordance with the Technical Specification without any
                  pending items detrimental to the functional operation, TELKOM
                  cq. the Project Manager shall issue the First Acceptance
                  Certificate (BAST - I) for the related Sub-Ring System or Sub
                  Sub-Ring System within seven (7) days after the submission of
                  the Acceptance Test Report and Stability Test Report.

                  If TELKOM for any reason does not notify PARTNER in writing of
                  the non-acceptance of the Sub-System, or not issue BAST - I
                  within seven (7) days or TELKOM operates the Sub-Ring System
                  or Sub Sub-Ring System commercially, then such Sub-Ring System
                  or Sub Sub-Ring System shall be considered to have been
                  accepted and BAST - I must be issued.

         c.       The issuance of BAST - I by TELKOM shall not be withheld
                  because of any Minor Default, provided that (i) such default
                  will not be detrimental to the normal operation and
                  maintenance of the Sub-Ring System or Sub Sub-Ring System
                  pursuant to the Technical Specification as set forth in
                  Schedule 5; (ii) such default will be recorded as an
                  attachment to BAST - I so that PARTNER may perform the remedy
                  pursuant to Article 13.7.

13.13    The Second Acceptance Test (BAST - II) shall be issued by TELKOM cq.
         the Project Manager within twelve (12) months after the date of BAST -
         I, provided that PARTNER shall have met the following conditions:

         a.       all defaults have been remedied and reported;

         b.       all maintenance obligations have been met.

ARTICLE 14
PROCEDURES FOR DELIVERY

14.1     Any physical delivery of Deliverables listed in the Purchase Order
         shall be accompanied with records of delivery, covering:

         a.       Name and registered office of PARTNER;

         b.       Number of Purchase Order;

         c.       Date of delivery and transfer;

         d.       Volume and type of deliverables included; and

         e.       Certificate of Origin.

14.2     Delivery of equipment to Location/Site shall be made with reference to
         the Sub-Ring System or Sub Sub-Ring System completely and not
         partially, unless jointly agreed otherwise by the Parties.

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<PAGE>

14.3     PARTNER shall be responsible for the delivery of equipments, components
         and software from the origin country to the point of arrival in
         Indonesia and from the point of arrival to the Location/Site as stated
         in the relevant Purchase Order in accordance with Schedule 3
         (Implementation Schedule and Deployment Plan). PARTNER shall be
         responsible for any land transportation delivery costs to the intended
         Location/Site.

14.4     PARTNER covenants and warrants that all delivered equipments and
         components are from types that have been approved by the authority in
         Indonesia and have passed quality warranty by TELKOM in accordance with
         Article 8 and Schedule 11 (Procedures For Acceptance Test) hereto.

14.5     PARTNER shall be responsible for the supply of, and costs for, the
         facilities, equipment and services that may be required by PARTNER and
         its staff.

14.6     The provisions set forth in this Article 4 shall be effective if
         payment for the project performed under this Agreement is made by using
         internal fund of TELKOM.

ARTICLE 15
REPORT AND MEETING

15.1     Written Report. PARTNER shall provide a written report (progress
         report) on each phase of the Work pursuant to the Implementation
         Schedule as set forth in Schedule 3, at least once a month, to be made
         in five (5) copies, four (4) of which shall be sent to TELKOM cq. the
         Project Manager and the rest shall be sent to the Chairman of Regional
         Division III.

15.2     Periodic Meeting. For the smoothness of the Work, TELKOM and PARTNER
         agree to hold periodic meetings at least once a month or such other
         period as agreed by the Parties from time to time.

ARTICLE 16
PROJECT MANAGEMENT

16.1     PARTNER shall propose the Project Management Plan ("PMP") in the form
         as set forth in Schedule 12. TELKOM and PARTNER shall discuss and
         mutually agree on the details of the PMP.

16.2     Prior to the Project activity, the Parties shall have already agreed on
         the PMP, at least on the following:

         a.       Task and responsibility;

         b.       Organization and Project Personnel;

         c.       Submission of Report concerning progress and occurring
                  problem.

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<PAGE>

16.3     PARTNER shall appoint Project personnel as described in the PMP,
         including Project Manager responsible on the contact with TELKOM
         pertaining to the solving of any problem occurs during the performance
         of the Project.

16.4     Identity and qualification of all Project personnel as proposed by
         PARTNER to work at the Project, including the Project Manager as
         described in the PMP shall be notified in writing by PARTNER to TELKOM
         prior to the appointment. Project Manager shall only be appointed upon
         TELKOM's prior approval. For any other Project personnel, TELKOM shall
         notify PARTNER on its objections within 7 (seven) Calendar Days
         following the notification and the Project personnel to whom TELKOM has
         objection on shall not be appointed. The substitute shall possess same
         qualifications and shall be fit for the Project.

16.5     At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom PARTNER's Project personnel shall at any time, maintain close
         cooperation and communications. TELKOM may also appoint local
         supervisor with whom MITRA'S local Project personnel shall at any time,
         maintain close cooperation and communications.

         Project Manager appointed by TELKOM for the performance of WORK under
         this AGREEMENT is the Head of TELKOM CONSTRUCTION CENTRE, while the
         Project owner appointed under this AGREEMENT is the REGIONAL DIVISION
         III.

16.6     TELKOM may object to and, after consulting it with PARTNER, request
         PARTNER to immediately replace anyone employed by PARTNER or by any
         sub-contractor, which under TELKOM's reasonable opinion, undertake
         wrongdoings, proven to be unqualified in accordance with the terms of
         the Scope of Work or does not have the capability or is in negligence
         in performing his duties, and such person shall not be re-employed in
         any Project location unless with TELKOM's prior written approval.

16.7     PARTNER shall deliver to TELKOM a required progress report as described
         in the Scope of Work. With relation to the period covered in the
         progress report, if PARTNER fails to inform TELKOM on the occurrence of
         any problem, the TELKOM shall be entitled to consider such problem as
         not having occurred during the said period. However, the submission of
         the said progress report from PARTNER to TELKOM shall not modify
         PARTNER's obligation in accordance with the provisions of this
         Agreement.

16.8     PARTNER shall provide complete project management support to the
         Project, including maintaining the sub-contractor and other suppliers,
         and maintaining the acquired site as needed, licensing and passing
         rights.

16.9     PARTNER shall deliver the renewed Implementation Schedule to TELKOM.
         The renewed Implementation Schedule shall contain significant
         milestones including:

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<PAGE>

         a.       The initiation of performance at each Location;

         b.       The initiation of detail survey for each Location;

         c.       The completion of installation, construction design, related
                  drawings with the Project;

         d.       Ready date for self-test by PARTNER, and Acceptance Test for
                  each Location/site;

16.10    The handover of equipments, components, software and services by
         PARTNER shall fulfill the provisions of this AGREEMENT, including the
         timetable and milestones as set forth in Schedule 3 (Implementation
         Schedule and Deployment Plan).

16.11    Any amendment on the Implementation Schedule shall be made upon mutual
         agreement of the Parties and shall only be valid if conducted as the
         Amendment signed by authorized representative of each Party.

16.12    Location Survey

         1.       Following the enforcement of the AGREEMENT, PARTNER shall
                  conduct a detailed and engineered survey on the LOCATION by
                  considering detailed design standard prepared by PARTNER and
                  approved by TELKOM. PARTNER shall appraise the
                  installation/construction design in simultaneously with the
                  related bill of quantities.

         2.       Upon the completion of LOCATION survey, PARTNER shall report
                  the result of such survey to TELKOM.

         3.       LOCATION survey has target to conduct the following
                  activities:

                  (i)      Determining the installation route of fiber optic,
                           new buildings along with the supporting facilities,
                           including estimating the existing duct system that
                           may be re-utilized.

                  (ii)     Underlining supporting facilities that may be
                           re-utilized, including power supply, building.

                  (iii)    Determining the lay out/ placement, junction
                           equipment and optical access in STO building or any
                           other TELKOM building.

                  (iv)     Determining the precise quality and length of the
                           cable-bridge along with the duct attaching to the
                           bridges.

         4.       PARTNER shall be liable for the administrative and
                  organizational activities required to conduct the LOCATION
                  survey. PARTNER shall be liable for all expenses in conducting
                  the LOCATION survey, including personnel, transportation,
                  accommodation, communications, and financing the expense of
                  other party who may be related in conducting each work or
                  analysis as described in Article 16.12. TELKOM shall only be
                  liable for the accommodation and transportation expenses of
                  TELKOM's employees who are involved in the LOCATION survey.

                                       16
<PAGE>

16.13    Design Review Meeting /DRM

         1.       After the undertaking of detailed survey, TELKOM and PARTNER
                  shall conduct Design Review Meeting.

         2.       The first DRM shall be conducted within 10 (ten) working days
                  following the detailed survey. Any subsequent DRM shall only
                  be commenced in the occurrence of design change.

         3.       In DRM, TELKOM and PARTNER shall simultaneously undertake
                  and/or agree on at least the following activities:

                  (i)      describe and complete the list of infrastructure
                           which may be re-utilized based on the Location
                           survey;

                  (ii)     complete the details of the route;

                  (iii)    complete depth of level of the digging along the
                           route;

                  (iv)     complete the details of the bills of quantity;

                  (v)      agree on the adjustment, if any, upon the Project
                           Management Plan and the Implementation Schedule.

         4.       PARTNER shall be liable for all the administrative and
                  organizational activities required to arrange all DRM. PARTNER
                  shall be liable for all the calling expenses of the DRM and
                  shall fund the analysis described in Article 16.13. TELKOM
                  shall only be liable to finance the accommodation and
                  transportation expenses of TELKOM's employee attending DRM.

         5.       The Parties shall bear a report in each DRM, in which the
                  agreed substances noted as the agreement of the Parties,
                  evidenced by the signed Resolution of Meeting by authorized
                  representative of each Party.

         6.       In convening each DRM, the Parties shall always refer to the
                  maximum of the Contract Value as given under Article 19 of
                  this AGREEMENT.

         In the event the Parties do not reach any agreement in DRM, such
         problem shall be delivered to the senior management of each party to
         conclude an agreement.

16.14    Representatives on Location Survey and DRM

         TELKOM and Partner shall notify each Party from time to time with
         relation to the appointment (and any amendment of such appointment) of
         an authorized representative having the authority to conduct or enter
         into agreement in each DRM and/or monthly meeting for the interest of
         each Party.

                                       17
<PAGE>

ARTICLE 17
MAINTENANCE PERIOD

17.1     MAINTENANCE PERIOD is a period of 12 (twelve) months commencing as from
         the date of the related BAST - I or the date on which EQUIPMENT is
         commercially utilized by TELKOM, whichever comes first.

17.2     PARTNER represents that EQUIPMENT shall function well and stable in
         accordance with the TECHNICAL SPECIFICATION during the MAINTENANCE
         PERIOD. In the occurrence of any technical damage, default or
         malfunction in the normal operation during the MAINTENANCE PERIOD,
         PARTNER shall fix and/or replace such damage, default or malfunction
         upon its own expense. PARTNER represents that during the MAINTENANCE
         PERIOD set forth in Article 17.1, hardware shall be free of any factory
         damage and shall function as described in the TECHNICAL SPECIFICATION.

17.3     Defect during MAINTENANCE PERIOD. If there is any major default or
         disturbance against the SUB-SYSTEM within 12 (twelve) month period,
         unless in Force Majeure and/or any event in which PARTNER shall not be
         liable under this AGREEMENT, which in cumulative exceeds or is the same
         as 24 (twenty four) hour of unavailability of SUB-RING SYSTEM or SUB
         SUB-RING SYSTEM, then the issuance of the Second Acceptance Certificate
         (BAST-II) shall be postponed and the MAINTENANCE PERIOD on the SUB-RING
         SYSTEM or SUB SUB-RING SYSTEM shall be extended up to the number of
         days of the occurrence of such disturbance. On its own expense, PARTNER
         shall put its best effort to give alternative solution which is
         commercially proper.

17.4     PARTNER shall not be obligated and/or liable to remedy any default
         and/or inconformity or any subsequent default and/or inconformity in
         the event such is caused by TELKOM or Third Party.

17.5     In the event there is no damage and/or there is no claim from TELKOM
         during MAINTENANCE PERIOD, then PARTNER shall not be required to
         conduct the second acceptance test upon the WORK which was delivered by
         PARTNER to TELKOM under BAST-I and TELKOM shall immediately issue
         BAST-II to PARTNER.

ARTICLE 18
SPARE PARTS

18.1     During MAINTENANCE PERIOD, all parts that are needed to be replaced as
         spare, shall be provided by PARTNER without any fee unless PARTNER is
         released from this obligation pursuant to Article 39.3 of this
         AGREEMENT.

18.2     PARTNER shall provide the information on prices and suppliers (local
         and foreign) with relation to the spare parts, sub-assemblies, etc, and
         recommend

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<PAGE>

         the amount to be purchased and stocked for the successful of the SYSTEM
         maintenance.

18.3     PARTNER shall provide a list of spare parts, description and the number
         of EQUIPMENT and module as needed.

18.4     PARTNER shall agree to supply spare parts to TELKOM and TELKOM shall be
         entitled to purchase spare parts from PARTNER for TELKOM's maintenance
         purpose with a mutually agreed price.

18.5     PARTNER shall agree to provide a list of spare parts and usable
         materials, to the extend of its knowledge, to be purchased and stocked
         by and become TELKOM's for the maintenance and utilization of SYSTEM
         for the period of 7 (seven) years following BAST -II.

18.6     PARTNER shall provide spare parts and usable materials to be purchased
         and stocked by TELKOM for a minimum period of 7 (seven) years after the
         final production of each EQUIPMENT, unless the equal replacement of
         such spare part and usable material is available. Further, if the
         supply of spare parts related to the SYSTEM is stopped, PARTNER shall
         notify TELKOM at least 1 (one) year before such replacement is
         conducted.

CHAPTER 3
COMMERCIAL TERMS AND CONDITIONS

ARTICLE 19
CONTRACT VALUE

19.1     Contract Value including incoming Tax, other taxes, duties and expenses
         in accordance with the prevailing rules and regulations yet excluding
         VAT 10%, to implement the Project under this AGREEMENT shall be in the
         amount of USD6,479,991.54 and Rp112,426,656,406.18 with the details as
         set forth in Schedule 1 (Recapitulation and Description of Prices &
         Bill of Quantity) of this AGREEMENT.

19.2     Implementation of the Contract Value mentioned in the above Article
         19.1 shall be further disclosed in each Purchase Order issued by TELKOM
         in accordance with the provision of Article 25 of this AGREEMENT.

19.3     However, TELKOM and PARTNER agree that in the event the Scope of Work
         is amended based on the result of the Design Review Meeting, the final
         survey and the "actual Bill of Quantity" for each SUB-RING SYSTEM or
         SUB SUB-RING SYSTEM, then the final price of the Contract Value shall
         be recalculated and adjusted as needed.

19.4     No additional expense. Contract Value as described in the expenses
         description as mentioned in Schedule 1 of this AGREEMENT shall have
         covered all the parts required in implementing the WORK under this

                                       19
<PAGE>

         AGREEMENT, unless there is an addition or reduction of WORK as
         requested in writing by TELKOM as provided under Article 43 (Variation
         of Work) and Article 3.3 (Adjustment of Scope of Work) with relation to
         the addition or reduction of WORK under this AGREEMENT.

19.5     Unit prices described in Schedule 1 are fixed and shall not change
         unless agreed upon under this AGREEMENT. Unit price of equipment shall
         be considered including the payment by PARTNER for all the
         transportation, insurance, custom duty and import duty, import related
         tax, licensing at receiving port, land transportation, storehouse and
         hand over to the Location/Site where the equipment is assembled. Unit
         price for the service related to the equipment include the survey,
         planning, design, licensing, passing right, assembling, integration,
         project management, insurance and assignment of right, commissioning
         and expenses on acceptance test, services related to acquired land, and
         all related material and expenses in completing the Project on a
         turnkey basis as referred to in Article 3.5. Import duty or custom duty
         shall be included in the unit prices as mentioned in Schedule 1 and
         shall remain fixed.

ARTICLE 20
INSURANCE AND SECURITY

20.1     PARTNER shall maintain and close the insurance on its own expense for
         the shipping, during the transportation, installation up to BAST-I for
         all the risk under this AGREEMENT, with TELKOM as the beneficiary.

20.2     The insurance company appointed b PARTNER for local transportation and
         the work of land installation shall be an Indonesian insurance company,
         being PT Jasa Indonesia (PT JASINDO) through PT Sarana Janesia Utama
         (PT SJU).

20.3     In delivering the first invoice, PARTNER or its members shall enclose
         copy of the original insurance policy or cover note. Upon request,
         original of the insurance policy or cover note shall be disclosed to
         TELKOM to be examined.

20.4     PARTNER shall maintain Jaminan Sosial Tenaga Kerja (JAMSOSTEK) for its
         employees on its own expense.

ARTICLE 21
TAX AND IMPORTING

21.1     Tax and Importing. All taxes (excluding Value Added Tax), stamp duty
         and other duties under the Government regulations shall be under
         PARTNER's liability. Tax deduction shall be conducted by PARTNER based
         on the prevailing regulations.

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<PAGE>

21.2     Importer. All EQUIPMENT (both hardware and software) imported under
         this AGREEMENT shall be conducted under DDP (Delivery Duty Paid) as
         regulated in Incoterm 2000. Therefore, it shall be agreed by the
         Parties in this AGREEMENT: (i) The Party acting as the importer shall
         be PARTNER; and (ii) PARTNER shall use its Import License or Master
         List (Agent) in managing the release of EQUIPMENT from the authority of
         Duty and Exempt.

21.3     Additional equipment. In the event PARTNER require additional
         equipment, tool or device in implementing WORK that shall only be
         obtained by importing it from aboard, then all the expense, tax,
         retribution and other fee upon them shall be borne by PARTNER.

21.4     PARTNER shall be liable on its own expense, to punctually obtain all
         the permit, licenses and approval over the export from originating
         country and each transit locations, including the payment for every and
         all retribution to handle the transportation and other expenses related
         to the permit, license and approval.

21.5     Deviations in importing procedure. PARTNER shall be fully liable upon
         the occurrence of deviations upon the transporting of EQUIPMENT from
         originating country, transporting procedure or supporting import
         documents, as regulated under the Presidential Instruction No. 3 of
         1991 dated 25 July 1991 or its replacement regulation, if any.

ARTICLE 22
ASSIGNMENT OF TITLE OF OWNERSHIP AND RISK

22.1     Occurrence of Assignment. Assignment of title of ownership and risk
         from PARTNER to TELKOM shall occur for each Purchase Order when (i) the
         First Acceptance Certificate (BAST-I) is issued by TELKOM, or (ii)
         SUB-RING SYSTEM or SUB SUB-RING SYSTEM has been commercially operated
         by TELKOM, whichever comes first.

22.2     Continuing liability of PARTNER. The assignment of title of ownership
         as mentioned in Article 22.1 shall not affect, release or discharge the
         risk and liability of PARTNER for the warranty of EQUIPMENT and any
         other material or for Minor Default on EQUIPMENT as referred to in
         Articles 13.7 and 13.10 of this AGREEMENT, up to the issuance of the
         Second Acceptance Certificate (BAST-II).

ARTICLE 23
RIGHTS AND OBLIGATIONS OF PARTNER

Other than the rights and obligations given under other Articles of this
AGREEMENT, PARTNER shall have the rights and obligations as follows:

23.1     Obligations of PARTNER:

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<PAGE>

         a.       Ensure that the performance of the Regional Metro Junction
                  SYSTEM and Optical Access Network in Regional Division III
                  operate in good manner until the termination of MAINTENANCE
                  PERIOD through repair or replacement as needed, as further
                  regulated in Schedule 5.

         b.       Ensure the service/feature quality at least up to the minimum
                  requirements until the termination of MAINTENANCE PERIOD
                  through repair or replacement as needed, as provided under
                  this AGREEMENT.

         c.       Completion of WORK under Article 3 of this AGREEMENT in such
                  manner that the Regional Metro Junction Project and Optical
                  Access Network in Regional Division III function in accordance
                  with the Technical Specification and may be commercially
                  operated pursuant to Article 4.1 of this AGREEMENT.

         d.       Conduct the up grade software of Regional Metro Junction and
                  Optical Access Network in Regional Division III at the
                  required time which was caused by, among others, the
                  occurrence of addition or expansion of new equipment during
                  Maintenance Period without additional expense from TELKOM.

23.2     Rights of PARTNER:

         Receive punctual payment from TELKOM upon the implementation of this
         AGREEMENT.

ARTICLE 24
RIGHTS AND OBLIGATIONS OF TELKOM

Other than the rights and obligations given under other Articles of this
AGREEMENT, TELKOM shall have the rights and obligations as follows:

24.1     Obligations of TELKOM:

         a.       Commence payment to PARTNER for the punctual implementation of
                  WORK under this AGREEMENT.

         b.       Issue recommendations as needed by PARTNER to conduct license
                  arrangement as regulated in Article 5 of this AGREEMENT.

         c.       Provide LOCATIONS and all the required infrastructures
                  (including but not limited to electricity, water, air
                  conditioning, security, grounding, fire detector equipment,
                  fire distinguisher equipment, access gateways) at the
                  LOCATIONS for the installation of EQUIPMENT pursuant to the
                  implementation schedule and the result of Design Review
                  Meeting.

                                       22
<PAGE>

24.2     Rights of TELKOM:

         a.       Accept the performance of the Regional Metro Junction System
                  and Optical Access Network in Regional Division III through
                  repair or replacement as needed, until the termination of
                  MAINTENANCE PERIOD, as described in detail in Schedule 5.

         b.       Accept the quality of service/feature up to at least the
                  minimum requirements through repair or replacement as needed,
                  until the termination of the MAINTENANCE PERIOD, as provided
                  under this AGREEMENT.

ARTICLE 25
PURCHASE ORDER AND PROCEDURE

25.1     PARTNER shall deliver all Deliverables to TELKOM as the response
         against the Purchase Order issued by TELKOM from time to time, which in
         general takes place after the implementation of DRM.

25.2     TELKOM through TELKOM's Project Manager (most preferable) or any
         authorized representative which has been approved the Parties (for
         certain geographical area as notified in writing by TELKOM from time to
         time) shall issue Purchase Order.

25.3     Purchase Order shall only be valid if: (a) made in writing in the form
         as set forth in Schedule 7 (Purchase Order), and (b) signed by TELKOM's
         Project Manager or the appointed representative and PARTNER.

         Purchase Order shall enclose the required schedules and shall in proper
         manner clearly describes:

         25.3.1   SUB-RING SYSTEM or SUB SUB-RING SYSTEM to be established;

         25.3.2   Purchase Order Value;

         25.3.3   Location/Project Area;

         25.3.4   Detailed Network Design;

         25.3.5   Detailed BoQ; and

         25.3.6   Complete Implementation Schedule and description for each
                  Location.

25.4     Within 5 (five) Working Days since the receipt of Purchase Order,
         PARTNER through its authorized representative shall, among others:

                                       23
<PAGE>

         25.4.1   approve Purchase Order by co-signing Purchase Order or its
                  copy at the provided space and return it to TELKOM through
                  facsimile, followed by the letter or direct mail or by courier
                  service. The co-signing of Purchase Order by authorized
                  representatives of PARTNER shall be deemed as the approval of
                  Purchase Order by PARTNER under no condition and every terms
                  and conditions come with such approval shall be void and not
                  be valid; or

         25.4.2   notify TELKOM through facsimile, which is followed by a letter
                  or direct mail or by courier service that Purchase Order is
                  not approved.

                  PARTNER shall be entitled to refuse to approve Purchase Order
                  if: (a) Purchase Order is not complete or does not have the
                  required document; or (b) Purchase Order does not cover the
                  concerned written decision of DRM in accordance with Article
                  16.13.

25.5     TELKOM may issue one or more new Purchase Orders as deemed necessary in
         simultaneous with the concerned DRM.


ARTICLE 26
TERMINATION OF PURCHASE ORDER

26.1     A Purchase Order may be terminated by TELKOM in whole or in part and
         from time to time by TELKOM, as the result of:

         26.1.1   Force Majeure and/or

         26.1.2   the inability of PARTNER to complete work within 50 calendar
                  days as from the completion date provided under the Purchase
                  Order.

26.2     TELKOM shall deliver a writing notification to PARTNER, which is the
         "Notification on Purchase Order Termination", signed by TELKOM's
         authorized representative which shall disclose the reasons for the
         actions, the limit where the performance of work under the Purchase
         Order is terminated and the date (which shall not be less than five (5)
         Working Days since the date of Notification on Purchase Order
         Termination) where such termination shall become effective.

26.3     Unless directed otherwise by TELKOM in the said notification, upon the
         acceptance of such Notification on Purchase Order Termination, PARTNER
         shall:

         26.3.1   terminate the work given under the Purchase Order on the date
                  and as provided in the Notification on Purchase Order
                  Termination (unless properly required upon security or safety
                  consideration);

         26.3.2   be restricted from placing any following order or contract for
                  material, service or facility with its sub-contractors, unless
                  such is necessary to complete a part of the work in accordance
                  with the Purchase Order which is not terminated;

                                       24
<PAGE>

         26.3.3   use proper effort to terminate every order and contract
                  related to the performance of the work terminated under the
                  Notification of Purchase Order;

         26.3.4   subject to the payment from TELKOM under Article 27, transfer
                  to TELKOM (if made possible under orders and contracts), with
                  the mean, at the time and as provided under TELKOM's
                  direction, PARTNER's right, right of ownership and interest
                  pursuant to the terminated order and contract;

         26.3.5   use proper effort to decrease the loss occurring from the
                  termination of the Purchase Order and conclude all the
                  outstanding obligations and any claim arising from the
                  termination of such order and contract, with the approval and
                  ratification from TELKOM, as far as such approval and
                  ratification is required, the approval or ratification of
                  which shall;

         26.3.6   subject to the payment from TELKOM under Article 27 and as
                  properly requested by TELKOM, (i) transfer the right and
                  deliver to TELKOM by the mean, at the time and as provided (if
                  any) under TELKOM's direction, the fabricated or not
                  fabricated parts, the ongoing work, the completed work, stock,
                  and other materials resulted as a part from, or obtained in
                  relation with the performance of work that is terminated under
                  the Notification on Purchase Order Termination, and (ii)
                  deliver to TELKOM the plan, drawing, information and other
                  asset which has been completed or partly completed, which if
                  the Purchase Order were to be completed, would be delivered to
                  TELKOM;

         26.3.7   complete the performance of part of the Scope of Work that may
                  have not been terminated under the Notification on Purchase
                  Order Termination; and

         26.3.8   take necessary actions, or as may be determined by TELKOM, to
                  protect and maintain the assets related to the Purchase Order
                  that are under PARTNER's authority, upon which TELKOM has or
                  may have its right, provided that if PARTNER follows TELKOM's
                  lead, PARTNER shall not be liable to TELKOM upon the loss or
                  damage of such asset;

26.4     Upon the acceptance of Notification on Purchase Order Termination,
         PARTNER shall deliver to TELKOM a written termination claim. Such claim
         shall be delivered immediately, in any case within at the latest ninety
         (90) days since the Notification on Purchase Order Termination. Payment
         of the claimed amount pursuant to such termination claim, which is
         approved by TELKOM to be paid in accordance with the performance of
         PARTNER's obligation under Article 26.2 shall be paid to PARTNER
         pursuant to the issuance of special Purchase Order, and payment shall
         be conducted by TELKOM within twenty one (21) Working Days as from
         TELKOM's

                                       25
<PAGE>

         approval (the approval of which shall not be withheld or postponed
         without any proper reason) upon such claim. For avoidance of doubt, for
         the purpose of TELKOM's payment obligation under this Article 26, every
         Deliverable related to the Purchase Order for which the Notification on
         Purchase Order Termination has been delivered shall be examined to the
         extent of TELKOM's satisfaction, where this examination shall be
         considered as Acceptance Test.

26.5     In completing the claim of such termination in whole or in part, the
         payment from TELKOM to PARTNER shall be limited to as follows:

         26.5.1   the price for the accomplished work pursuant to Schedule 1;

         26.5.2   reasonable and proper pro rata amount with relation to the
                  partly accomplished work, if such is made possible under
                  Schedule 1;

         26.5.3   stock expense and the expense of goods that are reasonably
                  purchased and required with relation the part of Purchase
                  Order which has been terminated, yet have not been included in
                  the accomplished work in whole or in part;

         26.5.4   completion expense and claim payment arising from the
                  termination of work under contract and order, as determined
                  above, which are reasonably imposed upon the terminated part
                  of Purchase Order;

         26.5.5   accounting, legal and administration expenses which are
                  reasonably required to process the completion claim and
                  supporting data related to the part of terminated Purchase
                  Order and for the completion and accomplishment of contract
                  for such purpose, along with the storage, transport and other
                  reasonable expenses born with relation to the protection or
                  sale of asset allocated to the Purchase Order.

26.6     Notwithstanding the aforesaid, whole payment to PARTNER in accordance
         with this Article 26, along with other payments, shall not exceed the
         prevailing value for the work or for the terminated part. TELKOM shall
         not be responsible for any expense or other liability beyond the
         expense which has been claimed and validated in accordance with Article
         26.4. TELKOM shall not be liable to PARTNER in the case of such
         termination upon any profit loss or consequential damages.

26.7     Up to the outstanding amount indebted to PARTNER pursuant to this
         Article 26, then all the paid monies or due to be made payable to
         PARTNER shall be deducted with each obligation PARTNER may have to
         TELKOM and prices which has been approved for or sale result from every
         material, supply or other things obtained by PARTNER or sold in
         accordance with this Article and not otherwise regained by or credited
         to TELKOM. If such caused net obligations of PARTNER to TELKOM, then
         PARTNER shall pay such amount to TELKOM within thirty (30) days after
         requested in writing.

                                       26
<PAGE>

26.8     For the period of one (1) year following the final completion pursuant
         to Purchase Order, PARTNER shall maintain and provide TELKOM at any
         reasonable time at PARTNER's premise, all books, records and documents
         covering the expense and fee in accordance with the Purchase Order
         related to the accomplished work pursuant to this Article 26.

CHAPTER 4
FINANCIAL TERMS AND CONDITIONS

ARTICLE 27
TERMS AND CONDITIONS OF PAYMENT

27.1     The terms of payment of WORK under this Agreement will be made to
         PARTNER by TELKOM in full in amount of Purchase Order value after
         PARTNER completing the work based upon Sub Ring System or Sub Sub-Ring
         System related to the issuance of BAST-I.

27.2     The payment of Contract Value of each Purchase Order to PARTNER by
         TELKOM shall be made after the delivery of the following documents:

         1)       original introduction letter of PARTNER's Project Manager;

         2)       1 original and 2 copies of invoices;

         3)       additional and reduction Work Certificate based upon Sub Ring
                  System or Sub Sub-Ring System;

         4)       copy of Performance Bond;

         5)       original Maintenance Bond;

         6)       1 original and 2 copies of receipts;

         7)       original 10% VAT invoice;

         8)       original BAST-I;

         9)       copy of insurance policy;

         10)      original Certificate of Origin;

         11)      copy of Purchase Order and its amendment if any.

27.3     The payment of Training Service is made to PARTNER by TELKOM in full or
         in amount of 100% of Training Service Price after all training is
         completed by PARTNER to TELKOM's employees, which evidenced by the
         issuance of Training Completion Certificate. PARTNER's invoice shall be
         completed by the following documents:

         1)       original introduction letter of PARTNER's Project Manager;

         2)       1 (one) original and 2 (two) copies of invoices;

         3)       1 original and 2 copies of receipts;

         4)       original 10% VAT invoice;

         5)       original Training Completion Certificate;

         6)       copy of Purchase Order and its amendment if any.

27.4     Period of Payment

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<PAGE>

         Any payment shall be made within 21 (twenty one) calendar days after
         TELKOM receiving complete and correct documents. If TELKOM fails to
         make the payment within such stipulated period, TELKOM will be imposed
         with a penalty in amount of 1o/oo (one per mil) of the outstanding
         Invoice Amount for each day of delay at the maximum penalty of 5%.

27.5     Address for Invoice

         The invoice and related documents under this Agreement shall be
         delivered to the following address:

         Head of III Regional Division
         PT Telekomunikasi Indonesia, Tbk.
         Jalan Supratman No. 66A
         Bandung - 40122

27.6     The payment to PARTNER by TELKOM shall be made by transfer directly to
         the following address:

         Bank:    Mandiri, Asia Afrika Selatan Bandung Branch
         Address: Jl. Asia Afrika 118-120
                  Bandung

         For USD:
         Account No.: 130.0075.000.102
         For IDR:
         Account No.: 130.0074.000.095

         Both accounts are on behalf of PARTNER (written as contemplated in the
         account). Transfer fee shall be borne by PARTNER.

ARTICLE 28
PERFORMANCE BOND AND MAINTENANCE BOND

28.1     For any Purchase Order issued by TELKOM, PARTNER shall issue a
         Performance Bond in the form of Bank Guarantee or Surety Bond in
         accordance with TELKOM's prevailing provision in amount of 5% of the
         relevant Purchase Order value which has the validity period commencing
         from the issuance date of Purchase Order until BAST-I issued by TELKOM
         under this Agreement, or commercially deployment of any Deliverables
         under this the Purchase Order concerned.

28.2     PARTNER obliges to issue Maintenance Bond in the form of Bank Guarantee
         or Surety Bond in accordance with TELKOM's prevailing provision in
         amount of 5% of Purchase Order value after the issuance of BAST-I.

28.3     Performance Bond is effective as from the Purchase Order Date until the
         date of BAST-I, and Maintenance Bond is effective as from the date of
         BAST-I until the date of BAST-II.

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<PAGE>

28.4     The original Performance Bond shall be delivered to TELKOM by PARTNER
         within 14 (fourteen) calendar days as from the signing date of this
         Purchase Order, and the original Maintenance Bond is delivered when
         BAST-I period ends. Both Bank Guarantees are delivered to:

         PT Telekomunikasi Indonesia, Tbk.
         Attention: Head of III Regional Division
         Jalan Supratman No. 66A
         Bandung - 40122

28.5     In the event the Performance Bond and Maintenance Bond expire previous
         to the WORK or obligation completed, PARTNER shall extend the validity
         period of such guarantees not later than 14 (fourteen) calendar days
         prior to their expiration and deliver them to:

         PT Telekomunikasi Indonesia, Tbk.
         Attention: Head of III Regional Division
         Jalan Supratman No. 66A
         Bandung 40122

28.6     Performance Bond as stipulated in Article 28.1 shall be returned to
         PARTNER when BAST-I is delivered. Maintenance Bond as stipulated in
         Article 28.2 shall be returned to PARTNER on the delivery of BAST-II.

28.7     In the event PARTNER fails to complete the WORK or its parts based upon
         terms and conditions of this Agreement, due to serious negligence
         and/or intentional default, then PARTNER and TELKOM shall discuss such
         circumstances. If no consensus is reached, TELKOM is entitled to
         exercise such Performance Bond/Maintenance Bond and it belongs to
         TELKOM.

CHAPTER 5
TERMS AND CONDITIONS OF PROJECT ORGANIZATION

ARTICLE 29
ASSIGNMENT AND SUB-CONTRACT

29.1     PARTNER without prior written consent of TELKOM, may not assign this
         Agreement, or transfer or encumber a number of the outstanding or
         become outstanding moneys under this Agreement.

29.2     TELKOM is entitled to assign this Agreement to one of subsidiary of or
         related company to TELKOM with prior consent of PARTNER in which such
         consent may not be unreasonably withheld.

29.3     List of each proposed subcontractor and part of proposed Scope of Work
         to be performed by subcontractor will be conveyed on DRM. In the event
         of the existence of a proposal to change and/or add subcontractor,
         PARTNER shall immediately notify TELKOM in writing prior the proposed
         subcontractor is

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<PAGE>

         appointed. TELKOM shall notify TELKOM within seven (7) Working Days if
         it has substantive objection to the appointment of one of proposed
         subcontractor and/or the relevant work to be performed by them and
         PARTNER shall consider such objection in order to fulfill the approval
         of TELKOM.

29.4     The use of subcontractor by any manner does not relieve PARTNER from
         its liability to deliver the Deliverables to TELKOM (in particular to
         ensure that the Deliverables comply with all requirements under this
         Agreement) or to perform necessary tasks such as project management.

29.5     PARTNER shall ensure that the addition or substitution of any
         subcontractor does not affect the agreed Contract Value or the
         implementation of the Scope of Work.

ARTICLE 30
LOGISTICS

30.1     PARTNER shall provide all logistical requirements from the point of
         origin of any equipment, components or other Project goods to the
         applicable Project Location/Site, inclusive of all charges, such as
         transport and transit, demurrage, storage, insurance, levies, taxes,
         etc.

30.2     PARTNER shall determine all arrangements for shipping/transportation,
         forwarding and servicing the equipment, component or other Project
         goods from their point of origin to the Project Location/Site where
         they are finally deployed.

30.3     PARTNER shall provide all warehousing requirements and explain the
         location of the facilities to be used for this purpose. PARTNER will
         also be required to arrange the warehousing and storage facilities at
         installations site to ensure proper storage and protection of all
         equipment, components or other Project goods. PARTNER shall ensure that
         all equipment is adequately packaged and stored to avoid any damage.
         While in such warehousing, the equipment and material will be the sole
         responsibility of PARTNER.

30.4     PARTNER shall provide all required protection, insurance and other
         services to ensure safe delivery of all the equipment, components or
         other Project goods. PARTNER shall be responsible for any damage or
         loss of goods.

ARTICLE 31
INVENTORY

31.1     PARTNER shall provide all services to ensure proper installation of the
         equipment, components or other Project goods in compliance with this
         Agreement, provide optimal operating condition. PARTNER shall provide
         all tools and equipment necessary to install and commission any Project
         equipment procured under this Agreement.

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<PAGE>

31.2     The provision of materials, labor, equipment, tools and machinery for
         installation consist of the following activities:

         a.       PARTNER shall provide all materials (inclusive of cables,
                  connector and other miscellaneous materials), labor, tools,
                  transportation and telecommunication facilities (telephone,
                  facsimile, etc) and anything else necessary for the completion
                  of work in accordance with this Agreement;

         b.       PARTNER shall employ an adequate supervisory force and an
                  adequate staff of experienced technicians and workmen to
                  complete the Scope of Work in satisfactory and efficient
                  manner within the period as stipulated in this Agreement.

31.3     PARTNER and its subcontractors shall provide all the equipment, tools,
         measuring equipment, machinery and electrical power equipment necessary
         for the implementation of the Scope of Work in Indonesia; and

31.4     Delivery and storage of Project equipment and materials shall consist
         of the following activities:

         a.       PARTNER and its subcontractors shall be responsible for
                  storage arrangement during the interval as from the delivery
                  of equipment until it is required for installation;

         b.       PARTNER and its subcontractors shall be responsible for
                  loading and unloading as well as forwarding of any equipment
                  and materials at all stages up to Commissioning;

         c.       PARTNER and its subcontractors shall be responsible for
                  unpacking (and repacking if necessary), identification and
                  checking of materials and relevant invoices or other
                  documents; and

         d.       PARTNER and its subcontractors shall be responsible for
                  handling and storage of any goods during transportation and at
                  the site.

ARTICLE 32
COMPLIANCE WITH ENVIRONMENTAL STANDARDS

32.1     The Deliverables supplied by PARTNER shall comply with all applicable
         legal requirements and shall not contain any legally prohibited
         materials and/or stocks. The Deliverables may not contain any materials
         and/or stocks that cannot be processed by means of normal waste
         processing method.

32.2     PARTNER allows TELKOM to examine the degree of environmental care and
         provides reasonable assistance to TELKOM in examining the same of the
         manufactures concerned.

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<PAGE>

32.3     PARTNER shall early provide TELKOM with information to give TELKOM a
         reasonable time to revert it to all parties involved before the
         Deliverables are received:

         a.       materials and/or preparations which exist in the equipment are
                  harmful to people, property or the environment including soil,
                  water and air;

         b.       such materials and/or preparations which are located in the
                  related equipment and components shall be treated at the end
                  of their useful life and at the end of the equipment's useful
                  life and how the relevant components can be removed safely and
                  correctly from the equipment;

         c.       the prevailing regulations for the transport, storage,
                  unloading and processing of the material with respect to the
                  harm which is capable of causing; and

         d.       reasonably and without any costs improve the information
                  distribution/acquisition process at and by TELKOM.

32.4     PARTNER shall represent that the components of equipment are proper for
         reuse or recycling other than by incineration at the end of its useful
         life.

32.5     PARTNER shall provide TELKOM with the above information either by
         electronic information or electronically in a commonly used computer
         program and in a format requested by TELKOM.

32.6     PARTNER shall ensure that all the information provided to TELKOM is
         complete and correct to the best of its knowledge.


CHAPTER 6
OTHER TERMS AND CONDITIONS

ARTICLE 33
DOCUMENTS

33.1     Notwithstanding to other documents which shall be provided under the
         other articles of this Agreement, PARTNER shall deliver 5 (five)
         counterparts of documents with respect to this Agreement for each Sub
         Ring System or Sub Sub-Ring System, consisting of:

         (i)      As-Built Drawing (original, hard copy and soft copy) in 2
                  (two) months after BAST-I;

         (ii)     Devices technical documentation as specified in the Scope of
                  Work prior to the issuance of BAST-I.

33.2     PARTNER shall provide an adequate number of handbooks and drawings that
         shall be required to support equipment maintenance, installation and
         test

                                       32
<PAGE>

         function. Handbooks and drawings shall include assembly drawings,
         wiring information, schematics, drawings, circuit diagrams/description,
         and complete instructions for familiarization, installation, operation,
         theory, maintenance and parts replacement, as well as proper system
         drawings. Instruction handbooks for each piece of equipment shall be
         prepared separately and submitted to TELKOM. Instruction handbooks to
         be supplied shall include:

         a.       System and Installation Handbooks;

         b.       Equipment Handbooks including Standard Operation Procedure
                  (SOP) and Standard Maintenance Procedure (SMP).

33.3     Documents retain: On the completion of Work, any drawings and documents
         related to the Sub-Ring System or Sub Sub-Ring System owned by PARTNER
         that is related to the Work shall be stored for the period of a design
         life of such Devices of Sub-Ring System or Sub Sub-Ring System. It is
         proposed to enable PARTNER to supply each parts necessary to be
         replaced and/or extension of such Sub-Ring System or Sub Sub-Ring
         System agreed by the Parties for the period of a design life of Devices
         of Sub-Ring System or Sub Sub-Ring System.

33.4     Intellectual Property Documents: Any intellectual property related to
         drawings, specification and data issued by each Parties in this
         Agreement with respect to this Agreement remain belongs to the relevant
         Parties.

33.5     Documents Clarification: Any incomplete, hesitation with respect to the
         specification and/or explanation contemplated in each documents, which
         formed any parts of this Agreement, shall be submitted to TELKOM for
         clarification.

ARTICLE 34
SUPERVISORY COSTS AND ACCEPTANCE

34.1     Responsibility of TELKOM: TELKOM shall bear all costs occurred in
         relation to its representative in implementing the supervisory,
         Commissioning and acceptance any Sub-Ring System or Sub Sub-Ring System
         as stipulated in this Agreement, except to any matters related to power
         supply and office room at PARTNER's sites which shall be responsibility
         of PARTNER.

34.2     Responsibility of PARTNER: PARTNER shall, at its own expense, provide
         all tools and staffs necessary to implement the testing, supervisory
         and examining based upon its necessity until BAST-I is issued.

ARTICLE 35
PENALTY AND INDEMNITY

35.1     Penalty Amount: For any delay in the completion of Work, TELKOM is
         entitled to impose a penalty to PARTNER in amount of 1 o/oo (one per
         mil) of

                                       33
<PAGE>

         delayed Purchase Order value exclusive of 10% VAT, for each day of
         delay until the maximum amount of 5% (five percent).

35.2     Amount or amounts of moneys paid under Article 35.1 shall be paid as a
         penalty and shall be paid to TELKOM by PARTNER with respect to any
         delay in the completion of Work, without disregarding to TELKOM's
         rights to terminate this Agreement under Article 38 of this Agreement.

35.3     Period to pay the penalty: Penalty as stipulated in Article 35.1, if
         any, shall be paid to TELKOM by PARTNER not exceeding 30 (thirty)
         calendar days as from written notification on such penalty.

35.4     Payment reduction: If PARTNER fails to pay the penalty as stipulated
         above, TELKOM has the right upon such amount of penalty imposed by
         deducting the payment of Contract Value in Purchase Order.

35.5     Without prejudice to any other provisions in this Agreement, PARTNER
         shall indemnify TELKOM and hold TELKOM harmless from all damages, costs
         and expenses arising out from any Claims (as defined below), if Claims
         arise:

         a.       as consequence of a failure by PARTNER to perform its
                  obligations pursuant to this Agreement or other specific
                  agreement related to this Agreement;

         b.       in connection with the Work performed pursuant to its
                  obligations under this Agreement, unless the occurrence of the
                  damage is not attributable by PARTNER;

         c.       in connection with the faulty design of the equipment or any
                  other material or supplies which are supplied by PARTNER;

ARTICLE 36
REPRESENTATIONS AND WARRANTIES

36.1     PARTNER guarantees that the Equipment and Total System which have to be
         delivered to TELKOM are 100% (one hundred percent) new, contain no
         repaired part, contain no hidden defect and originating not from tort.
         PARTNER shall then guarantee that all Equipment (whether hardware or
         software) delivered to TELKOM under this Agreement shall have the age
         of product Equipment design at least of seven (7) years as of the
         issuance date of BAST-I or as of the time where the Equipment was
         commercially used by TELKOM, whichever earlier.

36.2     Damage. In the event Maintenance Period which is 12 (twelve) months
         since BAST-I (First Acceptance Certificate), due to design error,
         negligence in manufacturing or other similar causes, a loss or damage
         to the Equipment occurs, PARTNER shall proceed the activities to repair
         or replace it by replacement or repairing it under the cost born by
         PARTNER, maximum

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<PAGE>

         within 2 (two) calendar days as of a written notification from TELKOM
         received by PARTNER.

36.3     Release of Obligation. PARTNER shall be fully released from its
         obligations to repair or replace the defected material during the
         Maintenance Period. In the event the loss or the damaged caused by the
         operation of Equipment not following the procedure determined in the
         operation guidance or other causes which can be proved by PARTNER that
         such loss or damage is not due to PARTNER's default.

36.4     Transportation Cost. All transportation cost in relation with the
         re-export and import, import duty and inklaring in relation with or
         arising from the repairing or replacement of the damaged Equipment
         during the Maintenance Period shall be the responsible of PARTNER in
         accordance to Article 17.

36.5     Maintenance of Equipment after the Maintenance Period. In the event,
         after the expiry of the Maintenance Period of 12 (twelve) months,
         TELKOM requires assistance of Equipment maintenance from PARTNER,
         PARTNER agree to perform such maintenance including the change of the
         same or similar age of Equipment design of spare parts as meant in
         Article 18 under the cost to be jointly agreed.

36.6     Failure by PARTNER. In the event PARTNER fails to complete the Work,
         due to PARTNER's default, and after the lapse of the agreed performance
         schedule, and after the penalty as stipulated in Article 35 has been
         fully enforced, PARTNER is given reasonable time, as jointly agreed, to
         complete the Work. In the event PARTNER keeps failing to complete the
         Work after such period, TELKOM is entitled to the following matters
         cumulatively: (a) terminate this Agreement; and (b) appoint Third Party
         to continue this Agreement provided that any reasonable excess amount
         arising from the continuance of the Work shall be born by PARTNER.

36.7     PARTNER's Guarantee. PARTNER guarantees that all Equipment supplied to
         TELKOM and the performance of the Work are stipulated under this
         Agreement and shall fulfill the state of the art technology owned by
         PARTNER or its license as agreed in the Scope of Work upon the
         execution of this Agreement.

ARTICLE 37
TRAINING, KNOW-HOW AND DEVELOPMENT OF INTELLECTUAL PROPERTY

37.1     PARTNER shall give training to TELKOM's employee and TELKOM shall
         provide qualified employees for the training program provided by
         PARTNER under this Agreement.

37.2     The training shall be conducted domestic and overseas (China) and
         PARTNER proposes a detail schedule for both kind of training based on
         TELKOM's need.

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<PAGE>

37.3     The training schedule and syllables is attached hereto as Schedule 10.

ARTICLE 38
TERMINATION OF AGREEMENT

38.1     PARTNER's default. PARTNER shall be deemed to have committed a default
         in the event:

         a.       PARTNER does not perform the Scope of Work materially under
                  this Agreement or negligent in performing its obligations
                  under this Agreement so that seriously affects the performance
                  of the Work and fails to remedy the defaults; or

         b.       PARTNER is subject to bankruptcy process, incapability,
                  liquidation or settlement in a jurisdiction, or being in a
                  condition of incapable to pay its debt, or if a receiver is
                  appointed to act for and on behalf of it to secure all or part
                  of its assets; or

         c.       PARTNER commits material breach to its obligations under this
                  Agreement; or

         d.       PARTNER denies this Agreement.

38.2     TELKOM shall immediately deliver a notice concerning the default to
         PARTNER. PARTNER shall take proper action to remedy its defaults and
         deliver to TELKOM a remedy schedule describing PARTNER's remedy
         schedule. The form and detail of notice is discussed and agreed by the
         Parties.

38.3     In the event 30 (thirty) calendar days since the date of notification,
         PARTNER shows no intention to remedy its defaults, without prejudice to
         PARTNER's other rights, TELKOM will terminate this Agreement with a 30
         (thirty) calendars days prior notice.

38.4     Upon the notice of the termination of this Agreement by TELKOM, PARTNER
         shall complete the Work in progress, which shall be accepted and paid
         under this Agreement.

38.5     TELKOM's default. PARTNER shall be deemed to have committed a default
         in the event:

         a.       TELKOM being in bankruptcy process, incapability, liquidation
                  or settlement in a jurisdiction, or being in a condition of
                  incapable to pay its debt, or if a reveicer is appointed to
                  act for and on behalf of it to secure all or part of its
                  assets; or

         b.       TELKOM fails to fulfill its contractual obligations; or

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<PAGE>

38.6     In the event TELKOM commits any default, PARTNER shall, as soon as
         possible, notify TELKOM by giving detail of TELKOM's default. TELKOM
         shall within 30 (thirty) calendar days since the notification date
         proceed to remedy its default.

38.7     In the event within 30 (thirty) days calendar since the date of
         notification, TELKOM shows no intention to remedy its defaults, PARTNER
         is entitled to terminate this Agreement.

38.8     Upon the termination of this Agreement under Article 38.7, TELKOM shall
         make payment upon:

         a.       each Equipment that has been delivered and/or installed in
                  accordance with Bill of Quantity:

         b.       each Service in accordance with survey result; and

         c.       each material located in the fabrication process (until the
                  date of notification of Work termination letter from TELKOM),
                  transportation or others and included in the Progress Report
                  upon delivery to TELKOM's places;

         d.       reasonable cost for the demobilization in accordance with the
                  Cost Report provided by PARTNER upon the delivery of the Cost
                  Report.

         Payment shall be made by TELKOM under the following terms:

         a.       The documents in Article 38.8 have been received by TELKOM.

         b.       TELKOM shall response to such documents within 10 (ten)
                  working days since the receipt of such. In the event TELKOM
                  gives no response within 10 (ten) days, the documents are
                  deemed to have been received.

         c.       Settlement shall be reached within 60 (sixty) days. Later than
                  60 (sixty) days, dispute shall be brought before BANI as meant
                  in Article 47.

38.9     Payment in accordance with Article 38.8 shall be made not later than 21
         (twenty one) calendar days after the delivery of documents. Letter of
         notification of termination of this Agreement shall replace all other
         documents necessary to receive the payment.

ARTICLE 39
RESPONSIBILITY

39.1     PARTNER's responsibility. PARTNER at its own cost shall take all proper
         action to prevent the loss or damage to TELKOM's personnel or goods.
         PARTNER is responsible for losses and claims arising from intentional
         default or negligence of PARTNER or its employees or workers or
         assistants to the extent as referred to in Article 39.4.

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<PAGE>

39.2     Damage to equipment. In the event of damage to TELKOM's equipment
         during the performance of Work due to serious intentional default or
         negligence of PARTNER or its employees or workers or staff, a
         certificate shall be made in writing and signed by PARTNER's officer
         and TELKOM's supervisor appointed to supervise the Work. All damage or
         loss referred to in this Article is the responsibility of PARTNER to an
         extent as meant in Article 39.4.

39.3     PARTNER is not responsible for the damage to or loss on the equipment
         or other goods, business disturbance or loss of income, profit or sale,
         loss of information and data, or for special loss, incidental, to which
         a punitive cannot be enforced, indirectly or consequential.

39.4     During the period of this Agreement, all PARTNER' responsibility for
         any action or omission in any kind shall not exceed a maximum amount of
         20% (twenty percent) of contract value in the Purchase Order.

39.5     Loss or damage caused by material negligence or intentional action,
         default or negligence to conduct any action of PARTNER, its employees,
         agents or sub-contractors, including damage or interruption to TELKOM's
         Network which have existed during the migration to the new network
         provided by PARTNER.

39.6     Unless otherwise provided by the prevailing law, the rights and
         remedies herein are exclusive, and the Parties accept the remedies as
         replacement of all rights and remedy lain provided by the law and all
         claims in any form whatsoever arising from or in relation with this
         Agreement or other implementing agreement.

ARTICLE 40
INTELLECTUAL PROPERTY RIGHT

40.1     Intellectual Property Right. Contract Value as meant hereunder has
         covered all amount that has to be paid for the right of the use of the
         Equipment. PARTNER shall do its best effort to ensure that the use of
         the Equipment and its gear by TELKOM is not in breach of any
         Intellectual Property Right of Third Party. The term Intellectual
         Property Right shall include patent, trademark, industrial design,
         copyright and other similar rights. TELKOM shall immediately notify
         PARTNER of a Third Party's claim in relation to HAKI.

40.2     Third Party's claim. In the event there are legal claims or legal
         action against TELKOM in relation to the use of patent and/or
         Intellectual Property Right of Third Party, as meant in Article 40.1,
         PARTNER shall indemnify and release TELKOM from all legal claims,
         whether before the court or other forum, and PARTNER shall settle its
         legal claim at its own cost.

40.3     In the event there is a accusation of breach of Intellectual Property
         Right of Third Party which indemnification is as stipulated in Article
         40.2,

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<PAGE>

         PARTNER shall take commercially proper action at its own option to (i)
         obtain the license from Third Party; (ii) defend the said accusation
         until final decision and all timely banding; (iii) re-design the
         product accused to be in breach of Intellectual Property Right to avoid
         any breach of Intellectual Property Right.

40.4     The above Article 40.3 states the only and all PARTNER's obligation in
         relation with a claim of HAKI from Third Party.

40.5     PARTNER shall have no obligation in relation with a claim or action
         under this Article unless: (i) PARTNER is immediately notified in
         writing by TELKOM of such Third Party claim within maximum 10 (ten)
         calendar days since TELKOM receives written notification/claim from
         such Third Party; and (ii) TELKOM allows PARTNER to control by itself,
         the defense and settlement of Third Party's claim; and (iii) TELKOM
         provides proper assistance to PARTNER, at PARTNER's cost, with respect
         to the settlement and defense of claim of such Third Party. Without
         prejudice to the foregoing, TELKOM is entitled to hire an advisor, at
         TELKOM's cost, to participate in the defense.

40.6     PARTNER is not responsible for any claim as meant in this Article based
         on: (i) the use of product other than the way it is meant to be used;
         (ii) modification or change of product conducted without permission;
         (iii) operation of product combined with products which are not
         supplied by PARTNER; (iv) compliance of PARTNER to the design
         determined by TELKOM, the use of material or specification provided by
         TELKOM, in which case TELKOM shall defend, indemnify and release
         PARTNER from any claim of HAKI breach.

ARTICLE 41
RIGHT TO USE SOFTWARE

41.1     PARTNER hereby gives TELKOM, under the terms and conditions hereunder,
         a non-exclusive license which is not transferable to use Licensed
         Software in Hardware and Software Documentation for internal purpose of
         TELKOM.

         Without limitation to the foregoing, the license does not include the
         right to modify, copy (unless as meant in paragraph 2 below), port,
         translate or sub-license the Licensed Software and Software
         Documentation.

41.2     TELKOM is entitled to make 1 (one) reserved copy for every item of
         Licensed Software, the use of reserved copy of which is limited only to
         replace the Licensed Software which cannot be operated. TELKOM shall
         maintain records concerning the keeping of reserved copies and deliver
         them to PARTNER upon request.

41.3     Certain program of the Licensed Software and/or Software Documentation
         may be the property of third party giving license to PARTNER which can
         be

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<PAGE>

         the third party of direct beneficiary or as meant in the terms and
         conditions hereunder in relation with the protection of such property
         of Third Party's software. TELKOM agrees that Third Party beneficiary
         may apply the terms and conditions directly to TELKOM.

41.4     The Licensed Software may contain freeware or shareware which is
         obtained by PARTNER from third party source. No license fee is paid by
         PARTNER over the freeware or shareware, and no license fee may be born
         by TELKOM for the use thereof. TELKOM acknowledges and agrees that
         PARTNER does not guarantee and is not responsible for anything related
         to the ownership and/or use of freeware and shareware by TELKOM.

ARTICLE 42
SPECIAL TERMS

42.1     Confidentiality of Information. The Parties agree to do their best
         effort to keep the confidentiality of Information with respect to this
         Agreement and the Parties shall ensure that their directors, employees,
         agents or their assistants will not disclose any information, data,
         documentation and knowledge to Third Party without written consent from
         other party, nor publish any information, data, documentation and
         knowledge in the form of printings, cassettes, disks or any other
         forms, unless such action is conducted to fulfill reporting obligation
         to related government institution as required by law.

42.2     Exception of Information. The stipulation of Article 42.1 shall not
         apply in the event the Information has become public domain or the
         lapse of 10 (ten) years since the execution of this Agreement.

ARTICLE 43
WORK VARIATION

43.1     Alteration to the Scope of Work. The alteration to the Scope of Work is
         performed under an Amendment to this Agreement or Purchase Order: (i)
         after TELKOM approves the detail survey, design, and engineering, and
         or (ii) after the actual Bill of Quantity is complete and approved by
         TELKOM.

43.2     Upon joint consent of the Parties, TELKOM may at any time amend the
         Scope of Work, Drawings, design specification, place or time of
         delivery, addition or reduction of Work. The said amendment may be
         conducted before or on the beginning of Work under a performance
         schedule, feasibility and variation of Contract Value hereunder or
         Purchase Order that may be agreed by the Parties.

43.3     Cost addition/reduction. In the event the amendment causes addition or
         reduction to the cost and or amend the period of the completion of
         Work, the Contract Value and/or the period of the completion of Work
         shall be

                                       40
<PAGE>

         amended accordingly based on the agreement of the Parties to the
         Agreement or Purchase Order.

43.4     Variation of Agreement. Every variation to the content of this
         Agreement, whether related to the Scope of Work, Contract Value, Period
         or any other part of this Agreement, binds TELKOM and PARTNER if made
         in writing and agreed by TELKOM and PARTNER which is then made into an
         amendment to this Agreement.

43.5     Unit Price. The agreed unit price for the variation of the Scope of
         Work which is performed under this Agreement shall be equal with the
         unit price specified herein until the last BAST-II. This provision
         shall not include the free cost items as apply or in the event no unit
         price is given.

ARTICLE 44
NATIONAL LAWS

PARTNER shall comply with all regulations and government discretions prevailing
in Indonesia as stated in the regulations.

ARTICLE 45
FORCE MAJEURE

45.1     Definition of Force Majeure. Force Majeure shall mean events or
         conditions which are out of the Parties' control in this Agreement
         which cause termination or prevention of performance of this Agreement
         such as earthquake, flood, landslide, typhoon, fire, blast, sabotage,
         riot, disturbance, military action, strike, regulation amendment, order
         or regulation of public officer.

45.2     Notice. Any events categorized as Force Majeure shall be notified to
         other Party within the latest 14 (fourteen) calendar days after the
         occurrence of such event. If the time has lapsed, the other Party is
         entitled to reject the Force Majeure as the reason for delay or failure
         to perform such party's obligation.

45.3     Delay due to Force Majeure. If, due to Force Majeure, the fabrication,
         delivery, construction, installation, training, Acceptance Test or
         other program become temporary discontinued, the period of performing
         such discontinued activity shall be amended by extending the period of
         performance of such affected program. If such thing affects the period
         of completion as meant herein, the Parties then agree to extend the
         period of completion of Work with the days equal with the temporary
         discontinuance of the above program plus a reasonable necessary time to
         demobilize and lock the effect of the Force Majeure (for example, bad
         weather).

                                       41
<PAGE>

45.4     Amendment to Contract Value. The extension of period of completion of
         Work related to the Force Majeure as meant in Article 48.1 shall not
         increase the Contract Value.

45.5     Responsibility in the event of Force Majeure. All damages related to
         the Force Majeure shall be the responsibility of the concerned Party.

45.6     In the event the Work is "temporary discontinued" for more than a total
         of 6 (six) months, by giving 30 (thirty) days prior notice, one of the
         Party is entitled to terminate this Agreement and TELKOM shall pay to
         PARTNER all Work that has been completed until the occurrence of the
         Force Majeure, not included the Equipment that is still in the original
         package and located in TELKOM's Locations.

45.7     For the avoidance of doubt, in the event of termination due to Force
         Majeure, TELKOM shall pay for the following matters by showing the
         supporting documents:

         (i)      on-site Equipment;

         (ii)     Services that have been performed;

45.8     Such termination shall not discharge the rights and obligations of the
         Parties arising before the occurrence of the Force Majeure.

ARTICLE 46
GOVERNING LAW

This Agreement shall be governed by the law of the Republic of Indonesia.

ARTICLE 47
DISPUTE RESOLUTION

47.1     Resolution through deliberation. Any disparity or dispute arising
         between TELKOM and PARTNER with respect to the implementation of this
         Agreement or any predicament related to the implementation of this
         Agreement shall be resolved by deliberation by the Parties based on
         good faith.

47.2     BANI. In the event the dispute is unable to be resolved deliberately
         within 60 (sixty) days, it shall be referred to the Indonesian National
         Board of Arbitration /BANI in Jakarta in accordance with the rules and
         procedures of BANI.

47.3     BANI's award. The Parties agree that BANI's award is final and binding
         and therefore no appeal shall be submitted to any court. Until the
         issuance of BANI's award, all terms and conditions hereunder remain
         valid and the obligations of each Party shall be completed until the
         dispute is declared over.

                                       42
<PAGE>

ARTICLE 48
CORRESPONDENCE

All correspondence in relation to the implementation of this Agreement shall
made in bahasa Indonesia and English and addressed to:

TO TELKOM:

1.       Head of Regional Division III
         PT TELEKOMUNIKASI INDONESIA Tbk.
         Jl. Supratman No. 66A
         Bandung 40122-INDONESIA
         Phone     022-453 2082
         Facsimile 022-720 6541

2.       Head of TELKOM Construction Centre
         PT TELEKOMUNIKASI INDONESIA Tbk.
         GKP TELKOM 6th floor
         Jl. Japati No. 1
         Bandung 40133-INDONESIA
         Phone     022-452 6417
         Facsimile 022-720 6530
         E-mail    tri_d@telkom.co.id

TO PARTNER:

         Head of Fixed Network & Access Division
         Jl. Mohamad Toha No. 77
         Bandung 40253-Indonesia

         Phone     022-5202615
         Facsimile 022-5205394
         E-mail    junianto@inti.co.id

ARTICLE 49
APPOINTED SUB-CONTRACTOR

It is agreed that part of the Work under this Agreement as specified in the
attached Scope of Work shall be sub-contracted to by PARTNER to the Appointed
Sub-Contractors. List of the Appointed Sub-Contractors and Suppliers is as
attached hereto as Schedule 13.

Part of the sub-contracted Work shall be invoiced by PARTNER to TELKOM and the
payment of such invoice shall made directly to PARTNER.

                                       43
<PAGE>
ARTICLE 50
MISCELLANEOUS

50.1  Heading. All headings of articles herein are used for convenience only
      and shall not amend, add or affect certain meaning of the interpretation
      of this Agreement.

50.2  PARTNER at its own cost shall make 26 (twenty six) copies of this
      Agreement to be delivered to TELKOM for the supervision of the
      implementation and other related activities.

50.3  The term "PARTNER" and "PARTNERSHIP" are used for convenience only and
      shall not interpreted or considered as the construction of a partnership
      under any law between the Parties. Without prejudice to other things that
      are contrary, in any way one of Party shall not be considered as partner
      or agent of the other Party or to have authority to act for and on behalf
      of the other Party under this Agreement.

50.4  In any event any article in this Agreement are not enforceable, the said
      Article shall be deleted and considered unenforceable or invalid. The
      Parties shall, to the extent possible, deliberate with good faith to agree
      on a provision which can be implemented which has material similar effect
      and this Agreement shall be amended.


ARTICLE 51
EFFECTIVE DATE OF CONTRACT

This Agreement shall become effective as of the issuance of Work Order (SPMK)
dated 5 November 2003 by TELEKOM to PARTNER.

                                       44
<PAGE>

IN WITNESS WHEREOF, this Agreement is signed in Jakarta by the representatives
of the Parties in two (2) counterparts, sufficiently stamped, each of which
shall have the same legal effect.

Perusahaan Perseroan (Persero)              PT Industri Telekomunikasi Indonesia
PT Telekomunikasi Indonesia, Tbk.           (Persero)

/s/ Kristiono                               /s/ John Welly [STAMPED]
- ------------------                          ------------------------
KRISTIONO                                   JOHN WELLY
President Director                          President Director

                                       45

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.28
<SEQUENCE>27
<FILENAME>u92256exv4w28.txt
<DESCRIPTION>EX-4.28 CONTRACT AGREEMENT, DATED DEC.18, 2003
<TEXT>
<PAGE>
                                                                    Exhibit 4.28

                               CONTRACT AGREEMENT

                                      FOR

                           SOFTSWICTH SYSTEM CLASS-4
                              PROCUREMENT PROGRAM
                          THROUGH BUY OR RETURN SCHEME

                                    BETWEEN

                        PT TELEKOMUNIKASI INDONESIA, TBK

                                      AND

                            SANTERA-OLEX CONSORTIUM

                      NO. K. TEL. 264/HK. 910/UTA-00/2003

                            DATED DECEMBER 18, 2003
<PAGE>

                               CONTRACT AGREEMENT
                                       FOR
                           SOFTSWICTH SYSTEM CLASS-4
                               PROCUREMENT PROGRAM
                          THROUGH BUY OR RETURN SCHEME
                                     BETWEEN
                       PT TELEKOMUNIKASI INDONESIA, Tbk.
                                       AND
                            SANTERA-OLEX CONSORTIUM

                       No.: K.TEL. 264 /HK.910/UTA-00/2003

THIS CONTRACT (the "Agreement") is made the day of THURSDAY dated 18th DEC
2003, by and beeween :

I.       PERUSAHAAN PERSEROAN (PERSERO) PT TELEKOMUNIKASI INDONESIA,Tbk., a
         network and services telecommunication provider, established under the
         laws of the Republic of Indonesia, having its registered office at
         Jalan Japati No.l, Bandung, for the purpose of this Agreement duly
         represented by AGUS UTOYO in his capacity as Director of HRD and
         Business Support, hereinafter referred to as "TELKOM", and

II.      SANTERA-OLEX CONSORTIUM, a consortium incorporated under Consortium
         Agreement No. 03TEKTEAM0813.dated 20 September 2003 which has been
         legalized by Notaries Benny Djaja, SH, SE, MM., No.1276/W/IX/2003
         dated 25 September 2003, its having office at Wisma Bisnis Indonesia
         Lt-15 JI.Letjen S.Paiman Kav.12 Jakarta - 11480, in this legal act duly
         represented by:

         FADJAR TJOANDA, title President Director of PT. OLEX CABLES INDONESIA
         (Leader) a corporation incorporated under the laws of the Republic of
         Indonesia having its registered office at Wisma Bisnis Indonesia Lt-15
         JI.Letjen S.Parnan Kav.12 Jakarta -11480, and

         TEO KENG SOON, tide Managing Director Asia Pasific Regional of
         SANTERA (Member), a corporation organized and

                                       1
<PAGE>

         existing under the laws of the Stated of California - USA, having its
         address at 80 Raflles Place Level 36 UOB Plaza 1 Singapura - 048624,

         for the purpose of signing of this Agreement duly represented FADJAR
         TJOANDA, title President Director PT.OLEX CABLES INDONESIA hereinafter
         referred to as CONTRACTOR.

(TELKOM and CONTRACTOR are individually hereinafter referred to as a "Party" and
collectively as the "Parties").

                                   WITNESSETH

a.       WHEREAS in anticipacing tele communication business in the upcoming,
         TELKOM desire to modernize its existing telecommunication equipment so
         as to be in compliance to creating performance and quality such
         existing equipment;

b.       Whereas TELKOM through its letter No.TEL.154/LG000/TCC-00/2003 dated 17
         November 2003. has submitted the invitation for second stage to the
         CONTRACTOR;

c.       Whereas to respon the TELKOM's letter as mentioned in point b. above,
         the CONTRACTOR through its letter dated 19 November 2003 and 05
         December 2003 has submitted the bid to TELKOM cq. Tender Committee;

d.       whereas TELKOM trough its letter number: Tel.962/LG000/TCC-00/2003
         dated 12 December 2003, has appointed the SANTERA-OLEX CONSORTIUM as
         a CONTRACTOR to execution the procurement and implementation of Trunk
         Softswtch under Softswitch Class-4 basis which contract amounting of
         US$.4,050,510 and Rp.2.457.191.459,- excluding 10% VAT.

e.       whereas CONTRACTOR through its commitment letter no Ref.No.PSF020-001
         dated 15 December 2003 hereby commit and agree to carry out the Works
         accordance with point d. mentioned above.

                                       2
<PAGE>

f.       WHEREAS between TELKOM and CONTRACTOR has been held the contract
         discussions in accordance with Minutes of Meetings dated 5 December
         2003 and 10 - 12 December 2003;

NOW THEREFORE, based upon the above-mentioned considerations, the Parties hereto
have agreed to bind each other into this AGREEMENT under the following terms and
conditions:

CHAPTER 1
GENERAL TERMS AND CONDITIONS

ARTICLE 1
DEFINITIONS

1.1.     Where the context permits, the following expressions shall have the
         following meanings:

     a.  BILL OF QUANTITIES (BoQ) means the bill of quantities set out in
         Appendix 1, as may be modified from time to time in mentioned in
         Articles 3.3. and 45;

     b.  AGREEMENT shall mean this Agreement together with appendices and
         amendments thereof;

     c.  WORKS means the objective of the Agreement, i.e., supply of Goods,
         survey, design, installation/construction, testing, integrating with
         existing system, complete and operational system as required,
         documentation, training and any other associated services or activities
         whatsoever for the implementation of the Project and the performance of
         the Agreement by the Contractor up to the last issue of FINAL BAC;

     d.  GOODS means equipment includes all kinds of machinery, apparatus,
         materials, articles, spare parts, necessary tools and test equipment
         for operation and maintenance, relevant drawings, operation manuals and
         handbooks which the Contractor is required to supply to

                                       3
<PAGE>

         TELKOM under the Agreement;

     e.  SERVICES means the Contractor's services and activities such as survey,
         design, installation/ construction, progress/ quality control, testing,
         reporting, commissioning and training which the Contractor is required
         to execute under the Agreement.

     f.  PROJECT means Softswitch System Class-4 including all of its supporting
         EQUIPMENT has procured and installed by CONTRACTOR where the SYSTEM can
         be tested, accepted and technical and commercial operation.

     g.  REQUEST FOR PROPOSAL means "General Conditions", "Technical
         Specifications", "Project Specifications" and any additional notice
         which may be given to Bidder.

     h.  PROPOSAL means the written offer in response to the Request for
         Proposal.

     i.  CONTRACT PRICE means the net price (including any applicable Value
         Added Tax) payable to the Contractor for the full and proper
         performance of the Agreement.

     j.  PROJECT MANAGER means TELKOM's staff duly authorized by TELKOM to act
         as its representative for the execution of the Project.

     k.  DEFAULT means any of negligent act or failure in the implementation of
         the Project in respect of the Agreement.

     l.  EXISTING SYSTEM shall mean all of TELKOM's existing and operational
         system in deployment sites;

     m.  SYSTEM means the Softswitch System Class-4 forming a network ready for
         accepted, handed over and operated by TELKOM. The SYSTEM consists of
         subsystems as follows:

         -    Media Gateway controller/Softswitch

         -    Signalling Gateway

                                       4
<PAGE>

         -    Trunk Gateway

         -    Features Server

         -    Network Management System

         -    Power Supply Equipment

     n.  TECHNICAL SPECIFICATION shall mean technical specifications as mutual
         agrred by both parties and as mentioned in the Appendix 9 of this
         AGREEMENT;

     o.  PROJECT SITE means a location or locations which the Goods are to be
         delivered and/or where the Works are to be performed by the Contractor.

     p.  INTEGRATION shall mean the integration between the SYSTEM and EXISTING
         SYSTEM which properly fuction;

     q.  COMMISSIONING means such activities that shall be done by the
         CONTRACTOR in preparation of the ACCEPTANCE TEST;

     r.  ACCEPTANCE TEST (Buy or Return Acceptance Test - BAT) shall mean
         physical and visual checking of the installation and materials, and
         testing of SYSTEM to test the proper functionality as mentioned in
         Article 13 of this AGREEMENT of the EQUIPMENT installed;

     s.  ACCEPTANCE TEST REPORT shall mean written document being made and
         signed by Parties hereto through their respective duly representatives,
         certifying the ACCEPTANCE TEST has been completed and stating the
         results.

     t.  BUY OR RETURN ACCEPTANCE TEST CERTIFICATE (BAC) means an official
         written statement, dated and issued by Telkom cq. Project Manager
         indicating that the Works of Buy or Return basis have been performed,
         completed and tested satisfactorily can be operated and handed over to
         and accepted by TELKOM in accordance with the Agreement.

     u.  TRAINING CERTIFICATE mean an official written statement issued by

                                       5
<PAGE>

         TELKOM cq. Project Manager indicating that the entire work of TELKOM's
         employee training have been completely done by Contractor.

     v.  FINAL BAC means an official written statement, dated and issued by
         TELKOM cq. Project Manager indicating that the entire Work of Buy or
         Return Basis handed over to TELKOM under the Agreement have
         satisfactorily performed and operated including one year warranty
         period and the Contractor has performed all his obligations under the
         Agreement.

     w.  EQUIPMENT shall mean all equipment (both hardware and software),
         cables, apparatus, drawings, manuals, documents and anything else which
         shall be provided by the CONTRACTOR to TELKOM in accordance with this
         AGREEMENT;

     x.  MONTHS and DAYS denote Gregorian calendar months and calendar days,
         respectively.

     y.  BUY OR RETURN BASIS means SYSTEM procurement scheme, where if, the
         SYSTEM can technical and commercial properly function and good
         operation, then TELKOM will buy and make payment to CONTRACTOR. In
         case the SYSTEM fail during acceptance test then TELKOM will return
         such fail equipment according to detail scheme as described in Article
         5 of this Agreement.

     z.  WARRANTY PERIOD means a period of twelve (12) months from BAC;

     aa. EFFECTIVE DATE OF CONTRACT (EDC) means the date on which all the
         provisions of Article 51 are fulfilled.

ARTICLE 2
GENERAL CONDITIONS

2.1.     If any provision of this Agreement or part

                                       6
<PAGE>

         thereof is rendered void, illegal or unenforceable by any legislation
         to which it is subject, it shall be rendered void, illegal or
         unenforceable only to that extent and it shall in no way affect or
         prejudice the enforceability of the remainder of such provision or the
         other provisions of this Agreement.

2.2.     No failure on the part of either Party to exercise and no delay on the
         part of either Party in exercising any right hereunder will operate as
         a release or waiver thereof, nor will any single or partial exercise of
         any right under this Agreement preclude any other or further exercise
         of it.

2.3.     This AGREEMENT shall enure to the benefit of and be binding upon the
         Parties and their respective successors and permitted assigns.

ARTICLE 3
SCOPE OF WORKS

3.1.     The Scope of this AGREEMENT covers the procurement of Softswitch System
         Class-4 and services from CONTRACTOR in Cikupa, Semanggi-2, Bandung
         Centrum, Bandung Japati and Surabaya Kebalen locations according to the
         configuration, capacity plan, Bill of Quantity, and Technical
         Specification as set out in Appendices 1,5 and 9.

3.2.     For the purpose of the implementation of the WORKS, CONTRACTOR shall
         carry out the followings:

         a.   Survey, design and engineering plan;

         b.   Procurement and/or manufacturing of EQUIPMENT and delivery of the
              EQUIPMENT to the LOCATIONS;

         c.   Implementation, INTEGRATION of SYSTEM to EXISTING SYSTEM;

                                       7
<PAGE>

         d.   Warranty for one (1) year period after BAC; and;

         e.   Software maintenance, up date and up grade for 1 (one) year from
              BAC

         f.   All risks insurance;

         g.   Commissioning and Testing;

         h.   Training & On the Job Training.

3.3.     The Scope of WORKS shall be adjusted and executed under an Amendment to
         this AGREEMENT:

         a.   after the detailed survey, design and engineering is completed and
              approved by TELKOM; and

         b.   after the final As-Built Bill of Quantity is completed and
              approved by TELKOM

3.4      This AGREEMENT is a contract covering various steps involved in the
         Softswitch System Class-4 Procurement Program on a turnkey basis with
         referrence to Article 5 of this Agreement.

3.5.     "TURNKEY BASIS" pursuant to the Scope of Work, upon the effective date
         of this contract, CONTRACTOR shall be fully and solely responsible for
         the survey, design, development, manufacture, delivery, supply,
         installation, integration and Commissioning of the Network, and the
         remedying of any defects, so as to make the SYSTEM ready for service.
         CONTRACTOR shall also do everything necessary as reasonably may be
         inferred from this AGREEMENT as being required of CONTRACTOR to perform
         all of its obligations under this Agreement.

ARTICLE 4
PERIOD AND WORKS
IMPLEMENTATION

4.1.     The WORKS. The WORKS the Softswitch System Class-4 Procurement Program
         shall

                                       8
<PAGE>

         be carried out and completed entirely within four (4) months and
         fourteen (14) calendar days from the EDC up to May 2, 2004.

4.2.     Delays. In the event CONTRACTOR has a delay in the completion of the
         WORKS as mentioned in Article 4.1 and 4.2 above then CONTRACTOR shall
         be imposed liquidated damages as referred to in Article 35 of this
         AGREEMENT.

4.3.     If such delays are due to (i) CONTRACTOR and TELKOM agreed upon a
         variation of WORKS as mentioned in Article 46, or (ii) there is any
         instruction to stop the Work from TELKOM or (iii) Force Majeure, then
         CONTRACTOR shall be permitted to extend the completion period of the
         WORKS based on approval from TELKOM.

ARTICLE 5
BUY OR RETURN SCHEME

5.1.     The Softswitch System Class-4 Project shall be executed through the
         procurement program under the arrangement of Buy or Return scheme.

5.2.     After completetion of the Project installation period as described in
         Article 5.1. above, that the TELKOM's Team together with CONTRACTOR's
         Team shall conduct BAT of the SISTEM which is deployed by CONTRACTOR to
         ensure whether such SISTEM is successful and be properly function so
         such SYSTEM can be commercial and technical operated according to
         Technical Specification as stated in the Agreement or such SISTEM is
         failed.

5.3.     If the result of acceptance test of SYSTEM by Team is stated that such
         SYSTEM can be commercial and technical operated according to Technical
         Specification as stated in the Agreement, that TELKOM cq. Head of
         TELKOM Construction Centre will issue the BAC as proof acceptance of
         the works and payment of such works.

                                       9
<PAGE>

5.4.     If the result of acceptance test of SYSTEM according to Article 13 by
         Team is stated that such SYSTEM unsuccessfull and not function properly
         and can not be commercial and technical operated according to Technical
         Specification as stated in the Agreement, that this Agreement shall be
         terminated and CONTRACTOR shall remove the equipment has been intalled
         by CONTRACTOR in the construction locations as described in Article
         3.1. above without any payment from TELKOM to and/or reimburse costs
         occure by CONTRACTOR. By failure of such SYSTEM has been installed by
         CONTRACTOR, TELKOM will issue the official written indicating that such
         SYSTEM is failed to function, according to technical specification
         requirement.

5.5.     CONTRACTOR shall remove the equipment as specified in Article 5.4. at
         the latest one (1) week from issued such TELKOM's statement letter, the
         delay to remove of such equipment will cause to charge any costs by
         TELKOM to utilize the TELKOM's facilities by CONTRACTOR according to
         applicable TELKOM's tariff.

5.6.     In case the SYSTEM failure because of incorrect information given by
         CONTRACTOR when the section pass/fail in the evaluation process,
         CONTRACTOR shall be imposed liquidated damage as amount of the contract
         price as described in Article 19 plus any costs occure by TELKOM
         according to Statement Guaranty Letter on Pass/Fail Clarification for
         TELKOM Softswitch System Class 4 Procurement Program dated 21 October
         2003 issued by CONTRACTOR.

                                       10
<PAGE>

ARTICLE 6
SITE PREPARATION, ACQUISITION, RIGHTS OF WAY AND PERMITS

6.1      The Parties shall be responsible for preparing the Locations/Sites
         where the Deliverables are to be installed, in accordance with this
         Agreement.

6.2      CONTRACTOR shall perform all necessary tasks to ensure Location/Site
         preparation for Network roll-out in coordination with TELKOM, as
         follows:

6.2.1.   Arrange and acquire all the permits required to perform the work for
         and on behalf of TELKOM, such as trenching/road excavation permits,
         installation permits, rights of way, building construction permit (IMB)
         and other permits necessary either from local municipality or other
         Parties. The costs for acquiring the permit have been included in the
         unit price and shall not be priced separately;

6.3      In the event omission of or delay in providing licenses, clearances, or
         permits by public authorities occurs, which affects the implementation
         schedule, provided all requirements have been fulfilled by CONTRACTOR,
         and after TELKOM provides its assistance, then the Parties shall agree
         to extend the implementation period.

ARTICLE 7
APPENDICES

7.1.     Appendices. The following documents shall be attached and constitute as
         integral parts of this AGREEMENT:

         Appendix 1 : Price Breakdown, Bill of Quantity and Spare;

         Appendix 2 : Schedule of Implementation and Project Management Plan;

         Appendix 3 : E-Auction and Discussion Minutes of Meetings;

         Appendix 4 : Responsibility Matrix

         Appendix 5 : Configuration and Scope of Works;

                                       11
<PAGE>

         Appendix 6 : Appointement Letter to CONTRACTOR;

         Appendix 7 : CONTRACTOR's Commitment Letters;

         Appendix 8 : Consortium Agreement;

         Appendix 9 : Technical Specification;

         Appendix 10 : Training's Syllabus;

         Appendix 11 : Buy or Return Acceptance Test Process;

         Appendix 12 : Test Items of Buy or Return;

         Appendix 13 : RFP & QA;

         Appendix 14 : RFQ & QA;

         Appendix 15 : Business Ethics.

7.2.     Discrepancies. In the event of discrepancies between the provisions of
         this AGREEMENT with Appendices thereof, then the provisions of this
         AGREEMENT shall prevail.

CHAPTER 2.
TECHNICAL TERMS AND CONDITIONS

ARTICLE 8
TECHNICAL REQUIREMENTS

The WORKS shall be carried out under this AGREEMENT in accordance with TECHNICAL
SPECIFICATIONS as referred to in Appendix 9 of this AGREEMENT;

ARTICLE 9
QUALITY ASSURANCE

9.1.     CONTRACTOR shall make all reasonable efforts to ensure TELKOM, is
         entitled to inspect the production and installation phases of the
         processes of all members of CONTRACTOR's consortium. CONTRACTOR shall
         co-operate with TELKOM in case TELKOM elects at own expense to conduct
         such inspections.

9.2.     CONTRACTOR warrant any equipment or a component thereof is produced by
         a sub-contractor working for CONTRACTOR, CONTRACTOR shall include
         similar provisions in its contract with the sub-contractor in order to
         enable TELKOM to perform inspections of a similar nature.

                                       12
<PAGE>

9.3.     CONTRACTOR warrant that the good performance of SYSTEM of the
         Softswitch System Class-4 until the expiry of WARRANTY PERIOD through
         repair or replacement as necessary.

ARTICLE 10
SURVEY, DESIGN, AND PLANNING

10.1.    The planning and design activities for the Project shall be able to
         fully accommodate the DRM mechanisms as described in Article 16 of this
         AGREEMENT.

10.2.    The planning and design works shall consist of Survey of the Location /
         Site(s) that CONTRACTOR and TELKOM together to determine the optimum
         location/site for installation of the equipment, provided that the
         Location has been determined by TELKOM.

ARTICLE 11
INSTALLATION PROCEDURES AND STANDARDS

10.1.    CONTRACTOR shall provide all services to ensure proper installation of
         all equipment, provide optimal operating conditions and maximize its
         long term viability. CONTRACTOR shall provide all tools and equipment
         necessary to install and commission their equipment.

10.2.    CONTRACTOR shall provide equipment installation services and shall
         consist of the following activities:

         a.   provision of materials, labor, equipment, tools and machinery for
              installation;

         b.   materials delivery and storage;

         c.   transportation of goods;

         d.   installation of the equipment;

         e.   cleaning-up sites; and

         f.   site preparation plan and drawings.

                                       13
<PAGE>

10.3.    Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

         a.   CONTRACTOR shall provide all materials, labor, tools,
              transportation, telecommunication facilities (telephone,
              facsimile, etc.) and everything else necessary for completion of
              work in accordance with this AGREEMENT;

         b.   CONTRACTOR shall employ an adequate supervisory force and an
              adequate staff of experienced engineers consisting of technicians
              and workmen to complete the work in a satisfactory and workman
              like manner within the time specified in this AGREEMENT;

         c.   CONTRACTOR shall itemize and provide all equipment, tools,
              measuring equipment, machinery and electricity necessary for
              execution of the Scope of Work in Indonesia; and

 10.4.   Installation of the equipment shall consist of the following
         activities:

         a.   CONTRACTOR shall be responsible for providing connection and
              integrating sub-components into system units, i.e. Transmission
              Equipment and Outside Plant (OSP);

         b.   CONTRACTOR shall be responsible for system unit check and shall
              ensure the each system units functions as required.

 10.5.   Cleaning-up at each Location/site shall be conducted during
         installation periods and consist of the following activities:

         a.   CONTRACTOR's Sub-contractor shall keep the work and storage areas
              clean and tidy and shall remove daily all combustible rubbish from
              inside and near the buildings, structures and plant;

                                       14
<PAGE>

         b.   Upon completion of each installation, CONTRACTOR shall remove from
              the Location/site as early as possible all tools, appliances,
              packing cases and plant not constituting an integral part of this
              AGREEMENT.

         c.   CONTRACTOR shall either remove or level as required by TELKOM's
              Project Manager, all excess earth or spoils resulting from any
              excavation.

         d.   CONTRACTOR shall make good to the satisfaction of TELKOM's Project
              Manager at his own expense, all damages to buildings, plants,
              finishes etc caused by contractor, his subcontractor(s) and/or
              their employees.

ARTICLE 12
LOCAL SUPPORT INFRASTRUCTURE

CONTRACTOR shall provide TELKOM access to its local technical staff to ensure
effective deployment, operations and timely problem solving. CONTRACTOR shall
ensure such local support is timely, cost effective, and of high quality in
order to meet TELKOM's desired service levels.

ARTICLE 13
ACCEPTANCE TEST AND HAND OVER

13.1.    ACCEPTANCE TEST. The test procedure shall be completed and agreed upon
         by the Parties prior to the first ACCEPTANCE TEST. ACCEPTANCE TEST
         shall be carried out after the SYSTEM is commissioned by CONTRACTOR and
         is ready for ACCEPTANCE TEST. CONTRACTOR shall carry out ACCEPTANCE
         TEST over the whole WORKS as referred to in this AGREEMENT, at the
         LOCATIONS of installation in accordance with ACCEPTANCE TEST schedule
         which shall be submitted by CONTRACTOR, to TELKOM. The ACCEPTANCE TEST

                                       15
<PAGE>

         shall be carried out in the presence of both parties' authorized
         representatives.

13.2.    Prior Notice to ACCEPTANCE TEST. CONTRACTOR shall give notification to
         TELKOM within fourteen (14) calendar days prior to the date of the
         ACCEPTANCE TEST. Within seven (7) calendar days after receipt of such
         notification, TELKOM shall notify CONTRACTOR of its approval for such
         ACCEPTANCE TEST schedule or TELKOM may propose another ACCEPTANCE TEST
         schedule which shall not be later than seven (7) calendar days after
         CONTRACTOR's proposed date. In the event TELKOM does not respond to
         CONTRACTOR's notification within seven (7) calendar days, then TELKOM
         shall be deemed to approve such ACCEPTANCE TEST schedule.

13.3.    ACCEPTANCE TEST implementation. Subsequent to the implementation of the
         SYSTEM, due for ACCEPTANCE TEST, the ACCEPTANCE TEST shall be carried
         out to test the compatibility within the SYSTEM that has been completed
         and EQUIPMENT being installed, with TECHNICAL SPECIFICATIONS agreed by
         CONTRACTOR and TELKOM. Further, CONTRACTOR shall deliver the ACCEPTANCE
         TEST REPORT to TELKOM.

         In case TELKOM's Team can not attend to acceptance test according to
         mutual greed schedule than the conducting acceptance test shall be
         rescheduled maximum for fourteen (14) calendar days. If TELKOM Team not
         attend after such reschedule then CONTRACTOR can conduct acceptance
         test without TELKOM's team attend and the result of test shall be
         deemed by TELKOM.

13.4.    Error rectification obligations. Should there be any non-compliance
         with the TECHNICAL SPECIFICATIONS (hereinafter referred to as "Error")
         during ACCEPTANCE TEST period, TELKOM and CONTRACTOR shall record such
         Error in writing and CONTRACTOR shall start to rectify such Error
         according to BAT requirement.

                                       16
<PAGE>

13.5.    Major Remaining Errors. If the result on ACCEPTANCE TEST indicates
         EQUIPMENT which is not operable, or causes damage or loss of data or
         software, or causes corrupted data (hereinafter referred to as "Major
         Remaining Errors"), then CONTRACTOR shall notify TELKOM in writing (a)
         to stop the ACCEPTANCE TEST or (b) to extend the ACCEPTANCE TEST
         period.

         In case of (a) above, after the Error has been rectified, CONTRACTOR
         shall notify TELKOM seven (7) calendar days before conducting
         re-testing.

13.6.    Minor Remaining Errors. If ACCEPTANCE TEST result indicates the
         EQUIPMENT shall cause failures other than Major Remaining Errors that
         do not affect the fundamental operation of any parts of the SYSTEM,
         then CONTRACTOR shall rectify such Minor Remaining Errors within three
         (3) months after the issuance of BAC.

13.7.    Checking on Acceptance Test Report. Upon the completion of such tests
         as referred to in this Article and CONTRACTOR has submitted reports on
         the SYSTEM, and any other requirements have been made available in
         accordance with the provisions of this AGREEMENT, TELKOM shall check
         all such reports of CONTRACTOR. In the event any part of functionality
         is not in compliance with TECHNICAL SPECIFICATION under this AGREEMENT
         or incomplete, TELKOM shall notify CONTRACTOR in writing within seven
         (7) calendar days from the presentation by CONTRACTOR of said reports.

13.8.    Cost for Corrections. All costs incurred in connection with corrections
         as referred to in this Article shall become the full responsibility of
         CONTRACTOR.

13.9.    BAC for SYSTEM shall be issued if the following activities are
         fulfilled;

             a.   installation is completed;

                                       17
<PAGE>

              b.   SYSTEM has been tested and is functioning properly in
                   accordance to the TECHNICAL SPECIFICATION and test items
                   without pending items that are detrimental to the functional
                   operation;

              c.   SYSTEM is possible to be commercially operated.

13.10.   The issuance of BAC (Buy or Return Acceptance Certificate);. The SYSTEM
         shall be accepted if CONTRACTOR has shown to TELKOM all requirements in
         accordance with the TECHNICAL SPECIFICATIONS as referred to in Appendix
         9 have been fulfilled under the following conditions:

         a.   Within 7 (seven) calendar days after result of stability test,
              TELKOM will notify CONTRACTOR whether the SYSTEM has been accepted
              or not;

         b.   In the event such reports indicate SYSTEM has been tested and is
              functioning properly in accordance to the TECHNICAL SPECIFICATION
              without pending items that are detrimental to the functional
              operation, then TELKOM c.q. Project Manager will issue BAC for the
              relevant SYSTEM within seven (7) calendar days after submission of
              ACCEPTANCE TEST REPORT and Stability Test Report.

              Should TELKOM for whatsoever reason neither inform CONTRACTOR of
              non-acceptance in writing, nor issue the BAC within the above
              mentioned seven (7) days period or TELKOM commercially operate the
              SYSTEM, then the SISTEM shall be deemed accepted and the BAC shall
              be issued.

         c.   The issuance of BAC by TELKOM shall not be withheld due to Minor
              Remaining Errors by taking into

                                       18
<PAGE>

              consideration that (i) such deficiency shall not adversely affect
              normal operation and maintenance work of the SYSTEM in accordance
              with the Technical Specifikation as referred to in Appendix 5;
              (ii) such deficiency will be put as an attachment to the BAC in
              order for CONTRACTOR to rectify in accordance with Article 13.7.

 13.11.  FINAL BAC shall be issued by TELKOM cq. Project manager, twelve (12)
         months after the date of BAC provided CONTRACTOR has fulfilled the
         following conditions:

         a.   all remaining errors have been rectified and reported;

         b.   all warranty obligations have been fulfilled;

         c.   As-Built documentation has been completed and submitted.

ARTICLE 14
GOODS DELIVERY PROCEDURE

14.1.    All physical deliveries of Deliverables covered by this Agreement shall
         be accompanied by a consignment note, which includes:

         a.   Name and registered office of CONTRACTOR;

         b.   Agreement Number;

         c.   Date of shipment and delivery;

         d.   Quantities and type of goods included; and

         e.   Certificate of Origin.

14.2.    Delivery of equipment to the intended Location/Site shall be
         implemented by reference to complete Systems and not piecemeal, except
         as otherwise mutually agreed between the Parties.

14.3.    CONTRACTOR shall be responsible for delivery of the equipment,
         components and software from the country of origin to the point of
         landing in Indonesia, and from the point of landing to the intended
         Location/Site as specified in this AGREEMENT in accordance with
         Appendix 3 (Implementation Schedule and Project Management). CONTRACTOR

                                       19
<PAGE>

         and shall be responsible for all inland transportation shipping costs
         to the intended Location/Site.

14.4.    CONTRACTOR represents and warrants that all equipment and components
         delivered are type-approved by the relevant authorities in Indonesia
         and have passed quality assurance by TELKOM in accordance with the
         quality assurance as mentioned in Article 9 and in Appendix 12
         (Acceptance Test Items) of this AGREEMENT.

ARTICLE 15
REPORTS AND MEETINGS

15.1     Written reports. CONTRACTOR shall give written reports (progress
         report) on any stage of the WORKS in accordance with Schedule of Works
         Implementation as provided in Appendix 2, at least once in a month,
         which shall be made in five (5) copies, four (4) shall be sent to
         TELKOM c.q. Project Manager and another one shall be submitted to HEAD
         OF CONSTRUCTION CENTRE.

15.2     Periodical meetings. For the purpose of the smoothness of the WORKS and
         to cope with any technical obstacle, TELKOM and CONTRACTOR agree to
         convene periodical meetings at least once a month or any other time
         interval as agreed by both Parties from time to time.

ARTICLE 16
PROJECT MANAGEMENT

16.1.    CONTRACTOR shall propose a Project Management Plan ("PMP"), in a form
         as mentioned in Appendix 2. TELKOM and CONTRACTOR shall discuss and
         mutually agree on the details of the PMP.

16.2.    Prior to start-up of Project activities, the Parties shall have agreed
         on a PMP containing at least the following:

         a.   Role and responsibility;

                                       20
<PAGE>

         b.   Project organization and personnel;

         c.   Reporting of progress and issues.

16.3.    CONTRACTOR shall appoint the Project personnel as described in the PMP
         including a Project Manager who shall be responsible for contact with
         TELKOM with respect to resolving issues arising in the course of
         Project implementation.

16.4.    The identity and qualifications of all Project personnel proposed by
         CONTRACTOR to work on the Project, including the Project Manager as
         mentioned in the PMP shall be notified in writing by CONTRACTOR to
         TELKOM before appointment. The Project Manager shall only be appointed
         with TELKOM's prior approval. For all other Project personnel, TELKOM
         shall inform CONTRACTOR of any objections within seven (7) Days of
         notification and any Project personnel to whom TELKOM objects shall not
         be appointed. Replacements must be equally well qualified and
         appropriate for the Project.

16.5.    At TELKOM's sole discretion, TELKOM may appoint its Project Manager
         with whom CONTRACTOR Project personnel shall maintain close cooperation
         and communication at all times. TELKOM may also appoint local
         supervisors with whom CONTRACTOR'S local Project personnel shall
         maintain close cooperation and communication at all times.

         The Project Manager as appointed by TELKOM for the execution of the
         WORKS under this AGREEMENT shall be HEAD OF CONSTRUCTION CENTRE,
         however the owner of the Project which has been appointed in this
         AGREEMENT is LONG DISTANCE DIVISION.

16.6.    TELKOM may object to and, after consultation with CONTRACTOR direct
         CONTRACTOR to remove from any site

                                       21

<PAGE>

         immediately any person employed by CONTRACTOR or any sub-contractor at
         the site who, in the reasonable opinion of TELKOM, misconducts himself,
         has proved to be unsuitable under the terms of the Scope of Work or is
         incompetent or negligent in the performance of his duties, and such
         person shall not be employed again at any Project site except with the
         prior written approval of TELKOM.

16.7.    CONTRACTOR shall submit to TELKOM the required progress report as
         mentioned in the Scope of Work. With respect to any period covered by a
         progress report, in the event that CONTRACTOR fails to inform TELKOM of
         any problem, TELKOM shall be entitled to presume that no such problem
         arose during such period. However, submission by CONTRACTOR to TELKOM
         of the specified progress reports will not alter, amend or modify
         CONTRACTOR obligations pursuant to any provision of this Agreement.

16.8.    CONTRACTOR shall provide complete project management support to the
         Project including without limitation, managing the constituents members
         of CONTRACTOR and other suppliers, as well as managing the acquisition
         of required sites, permits and rights of way.

16.9.    CONTRACTOR shall immediately deliver newest Performance Schedule to
         TELKOM. The newest Performance Schedule shall contain important
         progress step (milestones) including:

         a.   Starting performance on any location;

         b.   Starting detail survey on any location;

         c.   Finishing installation, development design, related drawing with
              Project;

         d.   Date of readiness, for commisioning, and Acceptance Test for any

                                       22

<PAGE>

              location/Site;

16.10.   Deliver of equipment, component, software and service by CONTRACTOR
         shall fulfill provisions of this AGREEMENT include schedule and
         progress step (milestones) as set out in Appendix 2 (Schedule of
         Implementation).

16.11.   Any changes of Schedule of Implementation shall be based on mutually
         agreement of the Parties and be legally if its done as Variation duly
         signed by legal representation from each Party.

16.12.   Site Survey

         1.   After the Effective Date of this AGREEMENT award, the CONTRACTOR
              shall carry out a detailed site survey and engineering taking into
              consideration the detailed design standard provided by the
              CONTRACTOR and approved by TELKOM. The CONTRACTOR shall justify
              the installation/construction designs together with the
              associated bill of quantities.

         2.   Site Surveys shall aim to include, but not limited to, the
              following activities:

              (i)   Determining fiber optic installation route, new building and
                    its supporting facilities including assessing reusability of
                    existing duct systems

              (ii)  Baselining reusable supporting facilities, including power
                    supply, buildings.

              (iii) Determining lay-out/placement of the transmission equipment
                    within TELKOM's STO or other TELKOM's building.

         3.   CONTRACTOR shall take responsibility for the organizational and
              administrative activities required to conduct the Site Surveys.
              CONTRACTOR shall be responsible for all reasonable costs of
              performing the Site Surveys, including

                                       23

<PAGE>

              personnel, transportation, accommodation, communications; and
              shall fund at its own expense the cost of other related party in
              performing any of the work or analyses contemplated as mentioned
              in Article 16.12. TELKOM shall only be responsible for the costs
              of providing accommodations and transport for TELKOM staff
              involved in the Site Surveys.

16.13.   Design Review Meeting (DRM)

         1.   After the performance detailed survey, TELKOM dan CONTRACTOR shall
              perfom Design Review Meeting.

         2.   The first DRM shall be conducted immediately after detailed
              survey. Further DRMs only intended to be held in case there is any
              modification design.

         4.   CONTRACTOR shall take responsibility for the organizational and
              administrative activities required to organize all DRMs.
              CONTRACTOR shall be responsible for all reasonable costs of
              convening the DRM and shall fund at its own expense the analysis
              as mentioned in Article 16.13 TELKOM shall only be responsible for
              the costs of providing accommodations and transport for TELKOM
              staff attending a DRM.

         5.   The Parties shall produce minutes of each DRM in which any
              substantive agreements shall be recorded as agreements of the
              Parties, as evidenced by signature of the minutes by the
              authorized representative of each Party.

         If the Parties cannot reach agreement at the DRM, the matters shall be
         escalated to senior management of each Party for resolution.

16.14.   Representation at Site Survey and DRM

                                       24

<PAGE>


         TELKOM and CONTRACTOR shall notify each other from time to time
         regarding their appointments (and any changes to such appointments) of
         authorized representatives who have authority to execute or make
         agreements in any DRM and/or monthly meeting on their behalf.

ARTICLE 17
WARRANTY PERIOD

17.1.    The WARRANTY PERIOD a period of 12 months starting from the date of BAC
         for SYSTEM or the date the EQUIPMENT has been used commercially by
         TELKOM, whichever date comes earlier.

17.2.    CONTRACTOR warrants the EQUIPMENT shall work properly and stable in
         accordance with TECHNICAL SPECIFICATION during the WARRANTY PERIOD. In
         the event of any damage, error or technical malfunction in normal
         operation during the WARRANTY PERIOD, CONTRACTOR shall repair and/or
         replace the damage, error and technical malfunction at its own cost.
         CONTRACTOR warrants for the period as mentioned in paragraph 1, the
         hardware is free from manufacture's defect and shall comply to the
         function as described in TECHNICAL SPECIFICATION. TELKOM's exclusive
         remedy for breach of the warranty is the repair or replacement of the
         defective EQUIPMENT.

17.3.    In case damage happen during warranty period as mentioned in
         sub-article (2) of this article, then TELKOM shall notify to PARTNER
         officially at the latest 30 (thirty) calendar days after damage is
         found. PARTNER has obligation to repair damages or replace with new one
         within reasonable period which is agreed by both parties after formal
         notification of TELKOM except PARTNER could prove that damages is
         caused as

                                       25

<PAGE>

         mentioned in Article 39 clause (3) of this Agreement which is submitted
         by PARTNER within 14 (fourteen) days to TELKOM after receipt of such
         notice. All costs, fees and other costs arise due to repair or
         replacement become PARTNER's obligation and responsibility

17.4.    Defects during WARRANTY PERIOD. In the event of major defect or
         disruption to the SYSTEM within twelve (12) months period, save to the
         extent of Force Majeure events and/or events for which CONTRACTOR not
         liable under this AGREEMENT, which cumulatively shall exceed or equal
         to 24 (twenty four) hours of non availability of SYSTEM, then the
         issuance of the FINAL BAC shall be postponed and the WARRANTY PERIOD of
         such SYSTEM shall be extended to the number of days of such disruption.
         CONTRACTOR shall use its best commercially reasonable efforts to
         provide alternative solution at its own cost.

17.5.    CONTRACTOR shall have no obligation and/or responsibility to rectify
         any errors and/or non-compliances or subsequent errors and
         non-compliances if these have been caused by TELKOM or third parties
         which are not nominated or appointed by CONTRACTOR.

ARTICLE 18
SPARE PARTS

18.1.    During WARRANTY PERIOD, all parts that are required to be replaced,
         shall be supplied by CONTRACTOR without charge unless CONTRACTOR is
         released from this obligation in

                                       26

<PAGE>

         accordance to Article 39.3. of this AGREEMENT.

18.2.    CONTRACTOR shall provide prices and suppliers (local or overseas)
         information, regarding spare parts, sub assemblies, etc., and advise
         the required quantities to be purchased and stocked for the successful
         maintenance of the SYSTEM.

18.3.    CONTRACTOR shall provide a list of spare part, description and quantity
         of EQUIPMENT, module and sub module level as appropriate.

18.4.    CONTRACTOR shall agree to supply the spare parts to TELKOM and TELKOM
         shall have the right to purchase these spare parts from CONTRACTOR for
         TELKOM's maintenance requirements at a price to be agreed upon. The
         spare parts or suitable equivalents with the same performance should be
         available throughout the EQUIPMENT design lifetime of the SYSTEM.

18.5.    CONTRACTOR shall agree to provide a list of spare part and consumable
         items, to the best of its knowledge, to be purchased and stocked by and
         to be property of TELKOM for maintenance and usage for the SYSTEM for a
         period of six (6) years after FINAL BAC.

18.6.    CONTRACTOR shall provide spare parts and consumable items to be
         purchased and stocked by TELKOM for a minimum period of six (6) years
         after the final production of each EQUIPMENT, unless suitable
         equivalents for spare parts and consumables are available. Subsequent
         to this, should supplies of any spare parts relevant to the SYSTEM be
         discontinued, CONTRACTOR shall notify TELKOM at least one (1) year in
         advance of such discontinuation.

18.7.    Spare part and tools as quoted in the Bill of Quantity according to
         Appendix I of

                                       27

<PAGE>

         this AGREEMENT shall be delivered by CONTRACTOR upon the BAC of
         relevant SYSTEM where the spare part pool are located.

CHAPTER 3
COMMERCIAL TERMS AND CONDITIONS

ARTICLE 19
CONTRACT PRICE

19.1     The Contract Value excluding VAT currently at 10%, but including income
         tax, other taxes, duties and costs in accordance with the prevailing
         laws and regulations for execution of the Project under this AGREEMENT
         is amount of US$.4,050,510 (Four million fifty thousand five hundred
         and ten US Dollar) and Rp.2,457,191,459 (Two billion four hundred fifty
         seven million one hundred ninety one thousand four hundred and fifty
         nine Rupiah) with the details as mentioned in Appendix 1 this
         AGREEMENT.

19.2.    Summary of Contract Price as described in Article 19.1. above are:

                    SOFTSWITCH SYSTEM CLASS-4 PRICE SUMMARY:

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
NO.        SUB ELEMENT           TOTAL COST (IDR)          TOTAL COST (US)
- --------------------------------------------------------------------------
<S>    <C>                       <C>                       <C>
 1     Goods and Services         2,425,600,214              3,789,444
- --------------------------------------------------------------------------
 2     Spare Part                    31,591,245                202,366
- --------------------------------------------------------------------------
 3     Training                               -                 58,700
- --------------------------------------------------------------------------
       TOTAL                      2,457,191,459              4,050,510
- --------------------------------------------------------------------------
</TABLE>

19.3.    However, both TELKOM and CONTRACTOR agree in the event the Scope of
         Works is amended due to the result of the Design Review Meeting as well
         as the final survey and "As-Built Bill of Quantity" SYSTEM, then the
         final AGREEMENT PRICE shall be calculated and adjusted accordingly as
         required.

                                       28

<PAGE>

19.4.    No further costs. AGREEMENT PRICE set forth in the breakdown of costs
         as as mentioned in Appendix 1 of this AGREEMENT shall cover the
         entirety of parts which are required for the implementation of the
         WORKS in accordance with this AGREEMENT, save to the extent any
         additional or reduced WORKS as required by TELKOM in writing as
         referred to in Article 44 (Works Variation) and Article 3.3 (Adjustment
         of Scope of Work) with respect to Additional or Reduction of the WORKS
         under this AGREEMENT.

19.5.    Unit prices quoted in Appendix 1 (Price Summary, Bill of Quantity and
         Spare) are firm fixed prices and shall not be varied except as
         permitted under this AGREEMENT. Unit prices for equipment are deemed to
         include payments by CONTRACTOR for all costs of freight, insurance,
         customs and import duties, taxes related to importation, clearance at
         the port of entry, inland transportation, warehousing and delivery to
         the Location/Site where the equipment to be installed. Unit prices for
         equipment related services shall include survey, planning, design,
         permits, rights of way, installation, integration, project management,
         insurance up to transfer of title, testing and commissioning costs,
         services related to land acquisition, and all related materials and
         expenses to complete the Project on a turnkey basis as contemplated as
         mentioned in Article 3.5. Import or custom duties are included in the
         unit prices as mentioned in Appendix 1 and shall remain fixed.

ARTICLE 20
INSURANCE AND SAFETY

20.1.    CONTRACTOR shall arrange and cover the insurance at his own cost for
         the shipment, during transportation, installation until BAC for all
         risk according to this AGREEMENT.

20.2.    The Insurance company to be appointed by the CONTRACTOR for local
         transportation and terrestial installation

                                       29

<PAGE>

         works shall be a local Indonesian Insurance Company PT Asuransi Export
         Indonesia (PT ASEI) through the broker PT Sarana Janesia Utama (PT
         SJU).

20.3.    CONTRACTOR shall arrange the Social Security (ASTEK) insurance for his
         own employees at his own cost.

ARTICLE 23
TAXES AND IMPORTATION

21.1.    Taxes and Importation. All taxes (excluding VAT), stamp duty and other
         duties in accordance with the Government regulations shall be the
         responsibility of the CONTRACTOR Any withholding tax shall be deducted
         directly by TELKOM from the payment to be made to CONTRACTOR in
         accordance with the prevailing laws which is applicable to this
         AGREEMENT. VAT and other related taxes shall be settled with the
         Government directly by TELKOM.

         Upon settlement of VAT and other related taxes between TELKOM and the
         Government, TELKOM will submit original receipts of settlement to
         CONTRACTOR, to enable CONTRACTOR to refund the VAT and other related
         taxes.

21.2.    Importer. All the EQUIPMENT (both hardware and software) imported based
         upon this AGREEMENT shall be conducted under DDP (Delivered Duty Paid)
         as referred to in Incoterm 2000. Therefore, it is agreed by the Parties
         hereto that: (i) the Party who acts as the importer shall be
         CONTRACTOR; and (ii) CONTRACTOR shall use its Import Licence or
         (Agent's) Master List in conducting custom clearance of the EQUIPMENT
         from Custom Authority.

21.3.    Additional devices. In the event CONTRACTOR shall require additional
         devices, apparatus or any other tools in carrying out the WORKS which
         shall be obtained by means of importing them from abroad, then all
         costs, taxes, retribution and

                                       30

<PAGE>

         any other levies thereof shall become the responsibility of CONTRACTOR.

21.4.    CONTRACTOR, shall be responsible at its own cost, for obtaining in a
         timely fashion all necessary export permits, licenses and approvals
         from the country of origin and any intermediate locations, including
         the payment of any and all levies for freight handling and other costs
         related to such permits, licenses and approvals.

21.5.    Irregularities to importation procedures. CONTRACTOR shall be fully
         responsible for the occurrence of irregularities to either the delivery
         of EQUIPMENT from country of origin, transport procedures or supporting
         import documents, as set forth in the Presidential Instruction Number 3
         of 1991 dated 25th July 1991 or any replacement regulations thereof, if
         any.

ARTICLE 22
TRANSFER OF TITLE AND RISKS

22.1.    Event of Transfer. Transfer of title and risk from CONTRACTOR to TELKOM
         shall occur for each SUB-SYSTEM when (i) BAC has been issued or deemed
         to have been issued by TELKOM, or (ii) the SYSTEM has been put into
         commercial operation by TELKOM, whichever is the earliest.

22.2.    Remaining CONTRACTOR's responsibilities. Transfer of title as referred
         to in Article 22.1 shall not impair, release or discharge CONTRACTOR's
         risks and responsibilities towards warranty over EQUIPMENT and any
         other materials or towards Minor Remaining Errors in the EQUIPMENT as
         described in Articles 13.7 dan 13.10 of this AGREEMENT until the
         issuance of FINAL BAC.

ARTICLE 23
CONTRACTOR'S RIGHT AND OBLIGATION

         Beside the rights and obligations as stated in other Articles of this
         AGREEMENT, CONTRACTOR shall have the following rights and obligations:

                                       31

<PAGE>

23.1.    CONTRACTOR'S obligations:

         a.   To ensure the good performance of Softswitch System until the
              expiry of WARRANTY PERIOD through repair or replacement as
              necessary.

         b.   To ensure the service quality at least to the minimum requirement
              until the expiry of WARRANTY PERIOD through repair or replacement
              as necessary as staled in this AGREEMENT.

         c.   Completion of the WORKS according to Article 3 of this AGREEMENT
              such that the SYSTEM of Softswitch System is functioning in
              accordance with the Technical Spesification and can be put into
              commercial operation, in accordance to Article 4.1. of this
              AGREEMENT.

23.1.    CONTRACTOR'S right:

         To receive the payment from TELKOM in the due time for the execution of
         AGREEMENT.

ARTICLE 24
TELKOM'S RIGHT AND OBLIGATION

Beside the rights and obligations as stated in other Articles of this AGREEMENT,
TELKOM shall have the following rights and obligations:

24.1.    TELKOM'S obligations:

         a.   To make the payment to CONTRACTOR for the execution of the WORKS
              on schedule based on this AGREEMENT.

         b.   To issue the recommendation needed by CONTRACTOR to proceed with
              the permission as stipulated in Article 5 of this AGREEMENT.

                                       32

<PAGE>

         c.   To provide the LOCATIONS as well as all the necessary
              infrastructure (including but not limited to electricity, water
              supply, air conditioning, security, grounding, fire alarm, fire
              extinguisher, access road) at the LOCATIONS for the installation
              of EQUIPMENT in accordance with implementation schedule and the
              result of Design Review Meeting.

24.2.    TELKOM'S rights:

         a.   To get the system performance of the Sotfswitch System Class-4
              through repair or replacement as necessary until the expiry of the
              WARRANTY PERIOD, as detailed in Appendix 5.

         b.   To get the service quality at least to the minimum requirement
              through repair or replacement as necessary until the expiry of the
              WARRANTY PERIOD, as stated in this AGREEMENT.

CHAPTER 4
TERMS AND CONDITIONS OF FINANCE

ARTICLE 25
PAYMENT'S TERMS AND CONDITIONS

25.1.    The Terms and Condition of this WORKS based on this AGREEMENT will be
         made by TELKOM to CONTRACTOR as follows:

         The implementation of the Project is subject to an arrangement of Buy
         or Return Basis with the following conditions:

         TELKOM will make fully payment to CONTRACTOR with the following
         conditions:

         1)   Payment Buy or Return System will be made after the BAC issued by
              TELKOM indicating that the

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              SYSTEM has successful and can properly technical and commercial
              operation.

         2)   Contractor has submitted completed and valid invoice in 3 (three)
              original copies to TELKOM accompined with following document:

              -   Original BAC;

              -   Original Insurance Polis;

              -   Original Warranty Bond;

              -   Tax invoice (SSP/Surat Setoran Pajak) and Tax Factur following
                  the applicable Indonesian regulation.

              -   Simple Receipt (Kwitansi)

25.2.    Period of Payment

         Each of payment shall be made within twenty one (21) calendar days
         after receipt of complete and correct documents by TELKOM.

         If TELKOM delay to make such payment, TELKOM will be imposed the
         liquidated damage of such delayed with the Government Bank's deposit
         interest rate per day of delayed invoicing's value and shall be paid
         together with the such payment under this Article.

25.3.    Address of invoicing.

         Any invoices and related documents under this AGREEMENT shall be
         submitted to the following addresses:

         To: TELKOM

         PT Telekomuniukasi Indonesia,Tbk
         Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No.1, 2nd Floor
         Bandung 40133

25.4.    Completeness and Correctness

         Documents shall be correct and complete, when fulfil the criteria as
         stated in the "Required Document Verification for Procurement of
         Softswitch System Class-4" according to Article 25.1. of this
         AGREEMENT.

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<PAGE>

25.5.    The payment shall be made by TELKOM to CONTRACTOR though direct
         transfer which to be addressed to:

          Bank            : FINCONESIA
          Address         : Sentral Senayan I, Lt 6
                            Jl. Asia Afrika No. 8
                            Jakarta 10270

         For USD Portion:

         Account No.     : CM 052 GRBU
         For IDR Portion :

         Account No.     : CM 052 GRBR

         Both in favour of Olex Cables Indonesia The transfer fee shall be
         responsibility of CONTRACTOR.

ARTICLE 26
PERFORMANCE AND WARRANTY BONDS

26.1     The Performance Bond and Warranty Bond shall be in form of Surety Bond
         / Quarantee Bank issued by Insurance Company / Bank according to
         applicable internal TELKOM policy and accepted by TELKOM amounting to 5
         % (five percent) of the total CONTRACT VALUE as stated in Article 19,
         which shall USD 202,525.50 (Two hundred two thousand five hundred
         twenty five US Dollar and fifty cents) Rp. 122.859.572,95 (One hundred
         twenty two million eight hundred fifty nine thousand five hundred
         seventy two Rupiah and ninty five cents).

         The Performance bond shall be valid from the Effective Date of Contract
         until the last BAC while the Warranty Bonds shall be valid from the
         last BAC up to the last FINAL BAG.

26.2     The Performance Bond shall be submitted by CONTRACTOR to TELKOM within
         14 (fourteen) days from signing of this AGREEMENT while the Warranty
         Bond shall be submitted on the last BAC. Both of the bonds submitted
         to:

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<PAGE>
         PT Telekomunikasi Indonesia, Tbk.
         Att. Senior Manager Shared Services
         DIVISI JSITELKOM LONG DISTANCE
         Jalan Japati No. 1,2nd Floor
         Bandung 40133

26.3     In case either the combined Performance and Bond expires before the
         WORKS is completed, CONTRACTOR shall extend the validity of the bonds
         at the latest within fourteen (14) calendar days before its expiration
         and submit it to:

         PT Telekomunikasi Indonesia, Tbk
         Att. Senior Manager Shared Services
         DIVISI TELKOM LONG DISTANCE
         Jalan Japati No. 1,2nd Floor
         Bandung 40133

26.4     The Performance Bond as stipulated in Article 26.1. shall be released
         to CONTRACTOR upon submission of the last BAC. The Warranty Bond as
         stipulated in Article 26.1 shall be released to CONTRACTOR upon
         submission of the FINAL BAC.

26.5     In the event CONTRACTOR fails to accomplish the WORKS or its parts in
         accordance with the terms and conditions of this AGREEMENT, due to
         gross negligence and/or willful misconduct of CONTRACTOR, then
         CONTRACTOR and TELKOM shall meet to review the situatation. If no
         mutual agreement reached, then TELKOM is entitled to forfeit the
         Performance/ Warranty Bond without any written consent from CONTRACTOR
         and become to property of TELKOM.

26.6.    The release of Peformance Bond as described in Article 26.6. above, no
         waive of CONTRACTOR's obligation as described in Articles 5.5. and 5.6
         of this Agreement.

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CHAPTER 5
TERMS AND CONDITIONS OF CONSORTIUM ORGANIZATIONAL

ARTICLE 27
CONSORTIUM ORGANIZATION CRITERIA

27.1     The Consortium of which CONTRACTOR is a part shall have at least one
         (1) Indonesian member.

27.2     The Consortium leader shall be required to be the leading technology
         supplier for pembuat Softswitch System Class-4.

27.3     All substitutions, replacements or other changes to the composition of
         the membership of CONTRACTOR's Consortium must be submitted to and
         approved by TELKOM in writing.

ARTICLE 28
ASSIGNMENT AND SUB-CONTRACTING

28.1.    CONTRACTOR shall not, without the prior written consent of TELKOM,
         assign this Agreement, or assign or encumber any of the moneys due or
         becoming due under it. TELKOM reserves the right to assign this
         Agreement, without prior approval of CONTRACTOR to an Investor provided
         the Investor gives CONTRACTOR satisfactory payment assurances in
         accordance to this AGREEMENT.

28.2.    TELKOM reserves the right to assign this Agreement, with the prior
         approval of CONTRACTOR which such approval shall not be unreasonably
         withheld, to any of TELKOM's subsidiaries or related companies.

28.3.    A schedule of each proposed sub-contractor and the part of the Scope of
         Work proposed to be performed by such sub-contractor will be submitted
         on DRM session. In case of any plan to change

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<PAGE>

         and/or to add a sub-contractor, CONTRACTOR shall notify TELKOM in
         writing immediately before the proposed sub-contractor is appointed.
         TELKOM shall advise within seven (7) Business Days if it has
         substantive objections to the appointment of any of such proposed
         sub-contractors and/or the work they were intended to do, and
         CONTRACTOR shall take such objections into account so as to meet with
         TELKOM's approval.

28.4.    The use of sub-contractors shall in no way relieve CONTRACTOR from its
         responsibility to deliver the Deliverables to TELKOM (in particular to
         ensure that any Deliverables comply with all requirements of this
         AGREEMENT) or to perform necessary tasks such as project management.

28.5.    CONTRACTOR shall ensure that the addition or removal of any
         sub-contractors shall not impact the agreed Contract Value or
         implementation of the Scope of Work.

ARTICLE 29
INVOLVEMENT OF LOCAL ENTITIES

29.1.    CONTRACTOR shall use all reasonable efforts to maximize involvement of
         entities in Indonesia in its provision of Deliverables, the objective
         being to maximize financial benefits as well as transfer of knowledge
         and learning in Indonesia and thereby reduce TELKOM's exposure to
         foreign exchange risk.

29.2.    The undertaking required by TELKOM shall state that CONTRACTOR will,
         over the duration of the Project, procure certain materials and
         services within Indonesia (stating all categories of materials and
         services) to support the local operations of the overseas companies in
         the Consortium. Further, that all such procurements will be in
         accordance with this AGREEMENT.

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<PAGE>

ARTICLE 30
LOGISTICS

30.1.    CONTRACTOR shall provide all logistical requirements from the point of
         origin of the any equipment, components or other Project goods to the
         applicable Project Location/Site, including of all charges, such as
         transport and transit, demurrage, storage, insurance, fees, levies,
         taxes, etc.

30.2.    CONTRACTOR shall provide all arrangements for shipping/ transportation,
         forwarding and servicing equipment, components or other Project goods
         from point of origin to the Project Location/Site where they are
         finally deployed.

30.3.    CONTRACTOR shall provide all warehousing requirements if needed and
         explain the locations of the facilities to be used for this purpose.
         CONTRACTOR will also be required to arrange for warehousing and storage
         facilities at installation sites to ensure proper storage and
         protection of all equipment, components or other Project goods.
         CONTRACTOR shall ensure all equipment is adequately packaged and stored
         to avoid any damage. While in such warehousing, the equipment and
         material shall be the sole responsibility of CONTRACTOR.

30.4.    CONTRACTOR shall provide all required protection, insurance and other
         services to ensure safe delivery of the all equipment, components or
         other Project goods. CONTRACTOR shall be responsible for any damage or
         loss of goods.

ARTICLE 31
INVENTORY

31.1.    CONTRACTOR shall provide all services to ensure proper installation of
         equipment, components or other goods according to this AGREEMENT,
         provide optimal operating conditions

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<PAGE>

         CONTRACTOR shall provide all tools and equipment necessary to install
         and commission any Project equipment procured under this AGREEMENT.

31.2     Provision of materials, labor, equipment, tools and machinery for
         installation shall consist of the following activities:

         a.   CONTRACTOR's contractor shall provide all materials (including
              cables, connectors and other miscellaneous materials), labor,
              tools, transportation, telecommunication facilities (telephone,
              facsimile, etc.) and everything else necessary for completion of
              work in accordance with this AGREEMENT;

         b.   CONTRACTOR's contractor shall employ an adequate supervisory force
              and an adequate staff of experienced technicians and workmen to
              complete the Scope of Work in a satisfactory and workman like
              manner within the time as mentioned in this AGREEMENT.

31.3     CONTRACTOR and its sub-contractors provide all equipment, tools,
         measuring equipment, machinery and electrical power equipment necessary
         for execution of the Scope of Work in Indonesia; and

31.4     Delivery arid storage of Project equipment and materials shall consist
         of the following activities:

         a.   CONTRACTOR and its sub-contractors shall be responsible for
              storage arrangements during the interval from the delivery of
              equipment until it is required for installation;

         b.   CONTRACTOR and its sub-contractors shall be responsible for
              loading and unloading as well as handling of any equipment and
              materials at all stages up to Commissioning;

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<PAGE>

         c.   CONTRACTOR and its sub-contractors shall also be responsible for
              unpacking (and repacking where necessary), identification and
              checking of materials and relevant invoices or other documents;
              and

         d.   CONTRACTOR and its sub-contractors shall be responsible for
              handling and storage of any goods during transportation and at the
              site.

ARTICLE 32
COMPLIANCE WITH ENVIRONMENTAL STANDARDS

32.1.    The Deliverables supplied by CONTRACTOR shall comply with all
         applicable legal requirements and shall not contain any legally
         prohibited substances and/or preparations. The Deliverables shall not
         contain any substances and/or preparations that cannot be processed by
         means of a normal waste processing method.

32.2.    CONTRACTOR shall allow TELKOM to examine its degree of environmental
         care and provide reasonable assistance to TELKOM in examining that of
         the manufacturers concerned.

32.3.    CONTRACTOR shall provide TELKOM with the information early enough to
         give TELKOM reasonable time to pass it on to all Parties involved
         before Deliverables are received:

         a.   Such substances and/or preparations present in the equipment are
              harmful to people, property or the environment, including soil,
              water and air;

         b.   Such substances and/or preparations are located in the equipment
              and the components concerned shall be treated at the end of their
              useful life and at the end of the useful life of the equipment,
              and how such components can be

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<PAGE>

              removed from the equipment safely and correctly;

         c.   Regulations are applicable to the transport, storage,
              installation, use, dismantling and processing of the substance in
              connection with the harm it is capable of causing; and

         d.   To improve the information distribution /acquisition process at
              and by TELKOM to a reasonable extent without its costs.

32.4.    CONTRACTOR shall state which components of the equipment are suitable
         for re-use or recycling other than by incineration at the end of its
         useful life.

32.5.    CONTRACTOR shall provide TELKOM with the above-mentioned information,
         either via an electronic information carrier or electronically in a
         commonly used computer program and in a format requested by TELKOM.

32.6     CONTRACTOR shall warrant all of the information which provided to
         TELKOM is complete and correct to the best of its knowledge.

CHAPTER 6
OTHERS TERMS AND CONDITIONS

ARTICLE 33
DOCUMENTS

33.1.    Notwithstanding any other documents to be provided in other articles of
         this AGREEMENT, CONTRACTOR shall submit five (5) copies of documents
         relating to this AGREEMENT for each SYSTEM, consists of:

         (i)  As-Built Drawing (original, hard copy and soft copy), within two
              (2) month after BAC;

         (ii) Technical documentation of EQUIPMENT as detailed in the Scope of
              Works before the issuance of BAC;

                                            42
<PAGE>

33.2.    CONTRACTOR shall provide an adequate number of handbooks and drawings
         that shall be required to support equipment maintenance, installation,
         and test function. Handbooks and drawings shall include assembly
         drawings, wiring information, schematics, drawings, circuit
         diagrams/descriptions and complete instruction for familiarization,
         installation, operation, theory, maintenance, and parts replacements,
         as well as appropriate system drawings. Instruction handbooks for each
         piece of equipment shall be prepared separately, and submitted to
         TELKOM. Instruction handbooks to be supplied shall include the
         following:

         a.       Installation and system handbooks;

         b.       Equipment handbook including Standard Operating Procedure
                  (SOP) and Standard Maintenance Procedure (SMP);

         c.       Repair handbooks including circuit diagrams;

33.3.    Documents retention. Upon the completion of the WORKS, any drawings and
         documents with respect to the SYSTEM owned by CONTRACTOR related to the
         WORKS shall be kept for the EQUIPMENT-design-lifetime of such SYSTEM.
         This is purportedly to enable CONTRACTOR to supply any parts which need
         replacement and/or expansion of such SYSTEM as agreed by the Parties
         during the EQUIPMENT-design-lifetime of the SYSTEM.

33.4.    Intelectual Property Rights documents. Any intellectual property rights
         with respect to any drawings, specifications and data issued by the
         respective Party hereto in regard of this AGREEMENT shall remain the
         possession of such relevant Parties.

33.5.    Clarification on documents. Any incompleteness, doubts with respect to

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<PAGE>

         breakdown and/or elaboration contemplated in any documents, which
         constitute parts of this AGREEMENT, shall be presented to TELKOM for a
         clarification.

ARTICLE 34
COSTS FOR SUPERVISION AND HAND OVER

34.1.    TELKOM's responsibilities. TELKOM shall bear all costs incurred in
         connection with its representative in the implementation of
         supervision, ACCEPTANCE TEST and hand over of each SYSTEM as referred
         to this AGREEMENT, save to extent all matters concerning utilities and
         work space in CONTRACTOR's premises which shall become the
         responsibility of CONTRACTOR.

34.2.    CONTRACTOR's responsibilities. CONTRACTOR shall at its own costs,
         provide all equipment and own staff which are required for the
         implementation of test, supervision, and inspection in accordance with
         its requirements until the accomplishment of the BAC.

ARTICLE 35
LIQUIDATED DAMAGES

35.1.    Liquidated Damages Amount. For any delay in the completion of WORKS
         implementation, TELKOM shall be entitled to impose penalty to
         CONTRACTOR amounting to 1 0/00 (one per mil) of Contract Price
         excluding 10% VAT for every day delay up to a maximum of five per cent
         (5%) of the CONTRACT PRICE excluding 10% VAT.

35.2.    The sum or sums of money to be paid under Article 35.1 shall be paid as
         liquidated damages and payable by CONTRACTOR to TELKOM in respect of
         the loss or damages sustained by reason of such delay and any sum of
         money paid shall be TELKOM's sole remedy for the delay for which the
         sums are paid, without prejudice to

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<PAGE>

         TELKOM's right of termination AGREEMENT under section 39 of this
         AGREEMENT.

35.3.    Time of payment for Liquidated Damage. Liquidated Damage as mentioned
         in Article 35.1, if any, shall be payable by CONTRACTOR to TELKOM no
         later than thirty (30) calendar days upon written notice of the
         imposition of such Liquidated Damages.

35.4.    Payment deduction. In the event CONTRACTOR shall fail to make payment
         on Liquidated Damages referred to above, then TELKOM shall be entitled
         to Liquidated Damages amounts so imposed by means of deducting
         forthwith from payment of AGREEMENT PRICE.

ARTICLE 36
INDEMNIFICATION

36.1.    Without prejudice to any other provisions of this Agreement, CONTRACTOR
         shall indemnify TELKOM and hold TELKOM harmless from all damages, cost
         and expenses arising from any Claims (as defined below), if Claims
         arise:

         a.       as a result of a failure by CONTRACTOR to perform its
                  obligations pursuant to this AGREEMENT or other specific
                  agreement related to this AGREEMENT;

         b.       in connection with the work carried out pursuant to its
                  obligations under this AGREEMENT, unless the occurrence of the
                  damage is not attributable to CONTRACTOR;

         c        in connection with the faulty design of the equipment or any
                  other material or supplies which are supplied by CONTRACTOR;

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<PAGE>

         d.       in connection with an infringement of any Intellectual
                  Property Rights or industrial property right belonging to a
                  third party in relation to Article 41;

         e.       In connection with any Claims including any fines or other
                  penalties suffered by TELKOM as a result of the violation by
                  CONTRACTOR or any of its employees or agents of any laws or
                  regulations in Indonesia related to Article 47;

         f.       for personal injury to and death of any persons and damage to
                  any property arising out of the performance of this AGREEMENT
                  due to acts or omissions whether negligent or otherwise of
                  CONTRACTOR, its employees, agents or sub-contractors;

         g.       In connection with termination by TELKOM for non-delivery of
                  contracted equipment, components or software.

         Provided that TELKOM:

         1.       Gives CONTRACTOR prompt written notice of such Claim;

         2.       Permits CONTRACTOR to defend or settle the Claim;

         3.       Does not at any time admit liability in respect of the whole
                  or any part of the Claim or agrees to settle or dispose of the
                  Claim; and

         4.       Provides all reasonable assistance to CONTRACTOR in defending
                  or settling the Claim.

38.2.    "Claims" shall mean any demands, claims, actions, liabilities, losses,
         damages awarded by a court or arbitration tribunal against TELKOM,
         costs (including legal

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<PAGE>

         and other professional costs), penalties and expense incurred by TELKOM
         as a result of a breach by CONTRACTOR or any sub-contractor of any of
         its obligations, representations, undertakings or warranties under this
         AGREEMENT.

ARTICLE 37
REPRESENTATION AND WARRANTY

37.1.    CONTRACTOR warrants that the EQUIPMENT and SYSTEM to be delivered to
         TELKOM are new, shall not contain any refurbish parts, having no hidden
         defect and shall not be originated illegally. CONTRACTOR shall further
         undertake that all EQUIPMENT (both hardware and software) delivered to
         TELKOM under this AGREEMENT shall have EQUIPMENT design-life time of
         product at least ten (10) years as of the date of issuance of BAC, or
         from the time the EQUIPMENT has been used commercially by TELKOM,
         whichever occurs first.

37.2.    Detriment. In the event during WARRANTY PERIOD i.e. twelve (12) months
         as of BAC due to fault in design, negligence of workmanship or other
         similar causes, a detriment or damage to the EQUIPMENT occurs then
         CONTRACTOR shall start the activities to rectify or replace it with the
         replaced or rectified ones at CONTRACTOR'S costs, within fourteen (14)
         calendar days after a written notice has been received by CONTRACTOR
         from TELKOM.

37.3.    Release of obligation. CONTRACTOR shall be fully released from
         obligations to rectify or replace defective material during WARRANTY
         PERIOD, if such detriment or damage is caused by the operation of
         EQUIPMENT which does not follow the procedures determined in the
         operating manuals or any other reasons which CONTRACTOR can proves that
         such

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<PAGE>

         detriment or damage shall not constitute CONTRACTOR's fault.

37.4.    Transportation costs. All costs for transportation with respect to
         re-export and import, import duties and custom clearance in connection
         with or due to the rectification or replacement of the damaged
         EQUIPMENT during the WARRANTY PERIOD shall become the responsibility of
         CONTRACTOR subject to provisions of Article 17.

37.5.    Maintenance of EQUIPMENT after WARRANTY PERIOD. If, upon the expiry of
         WARRANTY PERIOD of 12 (twelve) months, TELKOM requires maintenance
         assistance for the EQUIPMENT from CONTRACTOR, then CONTRACTOR shall
         agree to carry out such maintenance including replacement of the same
         or comparable spare parts within the EQUIPMENT-design-life time of the
         EQUIPMENT as mentioned in Article 18 with costs thereof as mutually
         agreed.

37.6.    Failure by CONTRACTOR. If CONTRACTOR fails to accomplish the WORKS,
         which is due to CONTRACTOR's default, and after the elapse of the
         agreed implementation schedule, and after the full liquidated damages
         as stipulated in Article 36 is applied, CONTRACTOR shall be given a
         reasonable time, which shall be mutually agreed upon, to complete the
         WORKS. If CONTRACTOR still fails to complete the WORKS after such
         period, then Articles 5.4., 5.5. and 5.6. of this Agreement shall aplly
         to CONTRACTOR.

37.7.    Undertaking by CONTRACTOR. CONTRACTOR undertakes that all EQUIPMENT,
         supplied to TELKOM and the execution of the WORKS in accordance with
         this AGREEMENT and shall meet the state of the art technology, owned by
         CONTRACTOR or licence to him as agreed upon in the Scope of Work at the
         date of entering into this AGREEMENT.

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ARTICLE 38
TRAINING, TRANSFER OF KNOW HOW AND DEVELOPMENT OF INTELLECTUAL PROPERTY

38.1     CONTRACTOR shall provide training to TELKOM employees and TELKOM shall
         provide qualified employees for training programs provided by
         CONTRACTOR under this Agreement.

38.2     Training shall be conducted both domestic and overseas according to
         implementation schedules as specified in Appendix 2 of this Agreement.

38.3.    The Syllabus of Training as specified in Appendices 10 of this
         AGREEMENT.

38.4.    The execution of Training by CONTRACTOR shall cooperate with TELKOM's
         Directorate of HRD and Business Support cq. TELKOM's Training Centre
         Unit.

ARTICLE 39
TERMINATION OF AGREEMENT

39.1.    CONTRACTOR's Default. CONTRACTOR shall be deemed to be in default if:

         a.       CONTRACTOR is not materially executing the WORKS in accordance
                  with this AGREEMENT or is neglecting to perform his
                  obligations thereunder so as to seriously affect the carrying
                  out of the WORKS and fails to remedy the deficiencies, or

         b.       CONTRACTOR becomes subject to bankruptcy, insolvency,
                  liquidation or winding-up proceedings in any jurisdiction, or
                  is otherwise insolvent or unable to pay its debts, or if a
                  receiver is appointed over or steps are taken to enforce any
                  security Interest against the whole or a part of its assets;
                  or

         c.       CONTRACTOR is in material breach

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<PAGE>

                  of its obligations as stipulated under this AGREEMENT; or

         d.       CONTRACTOR repudiates this AGREEMENT

         e.       If this Project is failed during acceptance test as described
                  in Article 5.4. of this Agreement that TELKOM will not pay
                  averything to CONTRACTOR.

         f.       If the Project is failure during acceptance test as described
                  in Article 5.4. then CONTRACTOR shall indemnify TELKOM as
                  specified in Article 5.6. of this Agreement.

39.2.    TELKOM shall then immediately dispatch default notice to CONTRACTOR.
         CONTRACTOR shall then take a reasonable action to remedy its default
         and send to TELKOM a redemption plan, which describes CONTRACTOR's
         recovery schedule.

39.3.    If within thirty (30) days after the date of notice, CONTRACTOR does
         not show its intention to remedy the default, TELKOM shall without
         prejudice to any other right CONTRACTOR may have, terminate this
         AGREEMENT by issuing a written termination notice thirty (30) days
         prior to the termination.

39.4.    Upon termination of this AGREEMENT notice by TELKOM, CONTRACTOR shall
         complete the SUB-SYSTEMS which already under construction, which will
         then be accepted and paid according to the AGREEMENT.

39.5.    TELKOM's Default. TELKOM shall be deemed to be in default if.

         a.       being in bankruptcy, insolvency, liquidation or winding-up

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<PAGE>

                  proceedings in any jurisdiction, or is otherwise insolvent or
                  unable to pay its debts, or if a receiver is appointed over or
                  steps are taken to enforce any security interest against the
                  whole or a part of its assets; or

         b.       fails to meet its contractual obligations, or

         c.       fails to make its payment obligation within twenty one (21)
                  calendar days after the first delay occurs;

39.6.    In the event TELKOM commits such default, CONTRACTOR shall, as soon as
         possible, give notice to TELKOM which specifies the default. TELKOM
         shall within thirty (30) days after the date of such notice diligently
         pursue to remedy such default.

39.7.    If within thirty (30) days after the date of notice, TELKOM does not
         show its intention to remedy the default, CONTRACTOR shall have the
         right to terminate the AGREEMENT.

39.8.    Upon termination of this AGREEMENT under Article 39.7 TELKOM will pay:

         a.       any EQUIPMENT already delivered and/or installed according to
                  Bill-of-Lading or similar/comparable documents; and

         b.       any Services according to As-Built Survey; and

         c.       any materials which are under progress of manufacturing,
                  transport or other means and which are included in the
                  Progress Report upon delivery to TELKOM's premises;

         d.       Any reasonable expenses for demobilization according to
                  Cost-Report provided by CONTRACTOR upon presentation of
                  Cost-Report.

         Documents under Article 39.8.a automatically accepted.

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         Documents under Article 39.8. b to d above shall be submitted to TELKOM
         by CONTRACTOR.

         TELKOM shall respond these documents within ten (10) working days as of
         receipt of such documents.

         If TELKOM does not respond within such 10 days, then the documents will
         be deemed as accepted.

         Settlement shall be reached within 60 days. After such 60 days, the
         matter shall be taken to BANI as mentioned in Article 48.

39.9.    Payment under Article 39.8 shall be effected no later than twenty-one
         (21) days after presentation of the documents. Letter of Termination of
         the AGREEMENT together with the above mentioned documents will replace
         all other documents required for receiving payment.

ARTICLE 40
LIABILITY

40.1.    CONTRACTOR's liability. CONTRACTOR shall, at its own costs, take all
         reasonable precautions to prevent any loss or damage to person and
         property of TELKOM. CONTRACTOR shall be fully liable for losses and
         claims, which arise in connection with wilful misconduct or gross
         negligence of CONTRACTOR or its personnels, labors or servants.

40.2.    Damage to the equipment. In the event any damage to the equipments
         belonging to TELKOM during the execution of the WORKS, due to willful
         misconduct or gross negligence of CONTRACTOR or its personnel or its
         labors or its subordinates, then a protocol shall be made in writing
         and to be signed by CONTRACTOR's officer and the supervisor from TELKOM
         which are appointed to supervise the WORKS. All damages or direct
         losses or consequential losses referred to in this Article shall be

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<PAGE>

         the fully responsibility of CONTRACTOR.

40.3.    loss or damage caused by the gross negligence or willful act, fault or
         omission of CONTRACTOR, its employees, agents or sub-contractors,
         including any damage or interruption to TELKOM's existing Network
         during the migration to the new network to be provided by CONTRACTOR;
         or

40.4.    Unless otherwise provided for by mandatory applicable law, the rights
         and remedies as mentioned in this AGREEMENT are exclusive, and the
         parties accept these remedies in lieu of any and all other rights and
         remedies available at law or otherwise, in contract or in tort, for any
         and all claims of any nature arising out of or in connection with this
         AGREEMENT or any other agreement regarding its performance.

ARTICLE 41
INTELLECTUAL PROPERTY RIGHTS

41.1.    Intellectual Property Rights. The AGREEMENT PRICE as mentioned in this
         AGREEMENT already covers the amount to be paid for the right to use for
         the EQUIPMENT. CONTRACTOR will use its best endeavors to undertake that
         the use of all EQUIPMENT and apparatus thereof by TELKOM will not
         infringe any intellectual property rights (IPR) of any third party. The
         term "IPR" shall include patent, mark, industrial design, copyrights
         and neighboring rights. TELKOM shall inform CONTRACTOR promptly of any
         third party's claim regarding IPR.

41.2.    Third Party claim. In the event any legal claims or any other legal
         actions against TELKOM in connection with the use of such patent and/or
         third party intelectual property rights, as mentioned in Article

                                          53

<PAGE>

         41.1 CONTRACTOR shall indemnify and hold TELKOM harmless for any legal
         claims, whether in courts or any other forum, and CONTRACTOR shall
         settle such legal claims at his own costs.

41.3.    In the event of any allegation of infringement of any third party's IPR
         which is subject to indemnification as mentioned in Article 41.2.
         CONTRACTOR shall use its commercially reasonable efforts at its option,
         (i) to obtain a licence from the third party; (ii) to defend against
         such allegation through final judgement and all timely fields appeal;
         (iii) to redesign the allegedly infringing products in order to avoid
         infringement.

41.4.    The above Art. 41.3 states the sole and entire obligation of CONTRACTOR
         with respect to any claim regarding the IPR of any third party.

41.5.    CONTRACTOR will have no obligation with respect to any claim or action
         pursuant to this article unless: (i) CONTRACTOR is promptly notified in
         writing of such third party claim by TELKOM, within maximum ten (10)
         calendar days after TELKOM receive written notification/ claim from
         such third party; and (ii) TELKOM allows CONTRACTOR sole control of the
         defence and settlement of such third party claims and (iii) TELKOM
         provides CONTRACTOR with reasonable assistance, at CONTRACTOR's
         expense, in connection with the settlement and defence of such third
         party's claims. Notwithstanding the above, TELKOM shall have the right,
         to employ counsel to participate in any such defense at TELKOM's
         expense.

41.6.    CONTRACTOR shall have no liability for any claim of the nature referred
         to in this Article based upon: (i) use of the

                                          54

<PAGE>

         products in a manner other than for which it was intended; (ii)
         unauthorised modification or changes made to the products; (iii)
         operation of the products in combination with products not supplied by
         CONTRACTOR; or (iv) CONTRACTOR's compliance with TELKOM's designated
         designs, material usage or specifications furnished by TELKOM, in which
         case TELKOM shall defend, indemnify and hold CONTRACTOR harmless
         against any claim of infringement of any such IPR.

ARTICLE 42
RIGHT OF USE FOR SOFTWARE

42.1.    CONTRACTOR hereby grants to TELKOM subject to the terms and conditions
         of this AGREEMENT a nonexclusive, non-transferable license to use the
         Licensed Software on the Hardware and the Software Documentation for
         the TELKOM's internal purposes.

         Without limiting the foregoing, the license does in particular not
         include the light to modify, copy (other than as mentioned per
         paragraph 2 below), port, translate or sublicense the Licensed Software
         and the Software Documentation.

42.2.    TELKOM shall be entitled to produce one (1) back-up copy of each item
         of the Licensed Software, whereby the use of such back-up copy shall be
         limited to replace the original Licensed Software if the original
         Licensed Software is inoperable. TELKOM shall keep records about the
         storage of such back-up copies and present such the records to
         CONTRACTOR on demand.

42.3.    Certain programs of the Licensed Software and/or the Software
         Documentation may be proprietary to third party licensors of CONTRACTOR

                                          55

<PAGE>

         who may be direct and intended third party beneficiaries of certain
         terms and conditions herein relating to the protection of such third
         party proprietary Software. TELKOM agrees those third party
         beneficiaries may enforce these terms and conditions directly against
         TELKOM.

42.4.    The Licensed Software may contain freeware or shareware obtained by
         CONTRACTOR from a third party source. No license fee has been paid by
         CONTRACTOR for the inclusion of any such freeware or shareware, and no
         license fee is charged to TELKOM for its use. TELKOM acknowledges and
         agrees that CONTRACTOR provides no warranties and shall have no
         liability whatsoever in respect of TELKOM's possession and/or use of
         the freeware or shareware.

ARTICLE 43
SPECIFIC CONDITIONS

43.1.    Confidentiality on INFORMATION. The Parties agree to perform their best
         efforts in keeping confidentiality on INFORMATION with respect to this
         AGREEMENT and The Parties shall ensure its directors, employees,
         agents, or servants shall not disclose information, data, documentation
         and knowledge to third parties without written approval from the other
         party, nor shall produce information, data, documentation and knowledge
         in the form of paper, cassettes, diskettes, discs or any other forms,
         save to extent that such action is performed as a report to the
         relevant Governmental agencies as required by the laws.

43.2.    Exceptions of INFORMATION. The provision as mentioned in Article 43.1
         above shall not apply in the event such INFORMATION has become public

                                          56

<PAGE>

         domain or upon the expiry of 10-year period as of the signature of this
         AGREEMENT.

ARTICLE 44
WORKS VARIATION

44.1.    Changes to the scope of Works. The Scope of Work shall be adjusted and
         executed (i) under an Amendment to this AGREEMENT after the detailed
         survey, design and engineering is completed and approved by TELKOM, and
         (ii) after the final As-Built Bill of Quantity is completed and
         approved by TELKOM.

44.2.    Upon mutual agreement between the Parties, TELKOM may alter the Scope
         of Works, Drawing, specification design, place or time of delivery,
         addition or reduction of WORKS. Changes of WORKS, can be conducted
         prior to or at the commencement of the WORKS under an implementation
         schedule, feasibility and possible Agreement Price variation as
         mutually agreed upon by Parties.

44.3.    Cost addition/reduction. If such alteration shall cause cost addition
         or reduction and/or changes of completion period of WORKS, then an
         adjustment shall be made to the AGREEMENT Price and/or completion
         period of WORKS based upon mutual agreement of the Parties;

44.4.    Agreement variation. Any variations to the content of this AGREEMENT,
         whether with respect to Scope of Works, Agreement Price, Period or any
         other parts of this AGREEMENT shall bind TELKOM and CONTRACTOR if it
         expressly made in writing and agreed by TELKOM and CONTRACTOR by
         providing and signing an amendment to this AGREEMENT.

44.5.    Unit Price. The agreed unit prices for variations to the Scope of Work
         being performed under this AGREEMENT shall be the same as the unit
         prices detailed in this AGREEMENT until FINAL BAC.

                                          57

<PAGE>

         This does not include free of charge items as applicable or if no unit
         price is given.

ARTICLE 45
NATIONAL REGULATIONS

CONTRACTOR shall obey all prevailing regulations and governmental policies in
Indonesia whether those have been expressly provided in the provisions of laws
or not.

ARTICLE 46
FORCE MAJEURE

46.1.    Definition of Force Majeure. Force Majeure shall mean events or
         circumstances which occur beyond reasonable control of the Parties
         hereto which cause the stoppage or prevention of the implementation of
         AGREEMENT such as earthquake, flood, landslides, typhoon, fires,
         explosion, sabotage, riots, disturbances, military actions, strikes,
         changes in law, orders or regulations of public authorities.

46.2.    Notices. Any event which categorized as Force Majeure shall be informed
         to the other Party within fourteen (14) calendar days at the latest
         upon such occurrence. If such period is exceeded, the other Party is
         entitled to refuse such Force Majeure as the reasons of the delay or
         the failure to perform such party's obligation.

46.3.    Delays due to Force Majeure. If, due to Force Majeure, the
         implementation of manufacturing, delivery, construction, installation,
         training, ACCEPTANCE TEST or any other program shall be temporarily
         prevented, then the period of program implementation so prevented shall
         be revised by extending the implementation period of the affected
         activity/program. If this shall affect the completion period as
         mentioned in this AGREEMENT, then Parties shall agree to extend the
         completion period of the WORKS with the number of days at least

                                          58

<PAGE>

         equal to the prevention of the program implementation mentioned above
         plus a reasonable time necessary to re-mobilise and to cover the impact
         of the Force Majeure (e.g. bad weather).

46.4.    Changes to AGREEMENT PRICE. The extension period of program
         implementation or completion period of the WORKS in connection with the
         Force Majeure event as mentioned in Article 46.1 shall not cause the
         increase of AGREEMENT PRICE.

46.5.    Liability in the event of Force Majeure. All damages in connection with
         the occurrence of Force Majeure shall become the responsibility of the
         respective Party hereto.

46.6.    if the WORKS are suspended, due to the occurrence of Force Majeure, for
         more than six (6) months in the aggregate, by giving 30 day prior
         notice, either Party shall have the right to terminate this AGREEMENT
         and TELKOM shall pay CONTRACTOR for all WORKS carried out until the
         occurrence of Force Majeure, excluding any EQUIPMENT which is still
         originally packed and located at TELKOM's LOCATIONS.

46.7.    For the avoidance of doubt, in the event of termination due to Force
         Majeure, TELKOM shall pay for the followings against supporting
         documents:

         (i) EQUIPMENT already on site;

         (ii) Services already performed;

46.8.    Such termination shall not omit the rights and obligations of the
         Parties which have occurred before such Force Majeure event.

ARTICLE 47
APPLICABLE LAW

This AGREEMENT construed and under perception of law of the Republik of
Indonesia.

                                 59

<PAGE>

ARTICLE 48
SETTLEMENT OF DISPUTES

48.1.    Amicable settlement. Any discrepancies or disputes arising between
         TELKOM and CONTRACTOR with respect to the execution of this AGREEMENT
         or all matters in connection with the implementation of this AGREEMENT
         or all related mailers thereof shall be settled amicably between
         Parties based upon good faith.

48.2.    BANI. In the event that such disputes cannot be settled amicably within
         sixty (60) days, then the dispute shall be submitted to the Indonesian
         National Board of Arbitration (or "BANI") in Jakarta in accordance with
         rules and procedures of BANI. The governing law shall be the Indonesian
         law, while the proceeding language shall be in Bahasa Indonesia.

48.3.    Nature of BANI decision. The Parlies hereto agree decision of BANI
         shall be final and binding upon them and therefore no other legal
         appeal may be permitted to any court of competence. Upon decision of
         BANI aforesaid, all terms and conditions of this AGREEMENT shall remain
         valid and the respective Parties' obligations shall be completed until
         such dispute is declared to be settled.

ARTICLE 49
CORRESPONDENCES

All correspondences in connection with the implementation of this AGREEMENT
shall be made in Indonesian or English and addressed to:

FOR TELKOM:

1. Head of Long Distance Division
   PT.TELEKOMUNIKASI INDONESIA, Tbk.
   TELKOM Building 2nd Floor
   Jl. Japati No.1
   Bandung 40133 - INDONESIA
   Phone 022-4522317
   Fax   022-4522321

                                60

<PAGE>

2. Head of TELKOM Construction Centre
   PT.TELEKOMUNIKASI INDONESIA, Tbk.
   TELKOM Building 2nd Floor
   Jl.Japati No.1
   Bandung 40133 - INDONESIA
   Phone 022-4526417
   Fax   022-7206530

FOR CONTRACTOR:

   Project Manager - Softswitch
   Consortium Santera-Olex
   Wisma Bisnis Indonesia Lt.15
   Jl. S Parman Kav.12,Jakarta 11480
   Phone 021 535 7443
   Fax   021 535 7243
   Att. Mr. Rudy Widjanarso

ARTICLE 50
MISCELLANEOUS

50.1.    Headings. All headings of the articles set forth in this AGREEMENT
         shall only be for convenience and therefore it shall not alter, add or
         affect certain meaning in the interpretation of this AGREEMENT.

50.2.    Languages. This AGREEMENT is provided in two (2) languages being
         Indonesian and English languages each of which shall have the same
         meaning, provided that in the event of discrepancy between them, then
         Indonesian language version shall prevail.

50.3.    CONTRACTOR shall make by its own costs twenty five (25) copies of this
         AGREEMENT to be delivered to TELKOM for the control of implementation
         of the AGREEMENT and other related activities.

50.4.    In the event any of the articles of this AGREEMENT is unenforceable,
         then such article shall be deleted and shall be deemed to be of no
         force or effect. The Parties shall, to the extent possible, negotiate
         in good faith to agree upon an enforceable provision having a
         materially similar effect, and this AGREEMENT shall be amended
         accordingly.

                                          61

<PAGE>


50.5.    In the implementation of this Agreement the parties shall consider
         business ethics as a public ethics to success and result of deployment
         quality. Violation of such business ethics as attached in Appendix 15
         of this Agreement cause of be canceled or be terminated this Agreement
         without any claim by CONTRACTOR to TELKOM.

ARTICLE 51
EFFECTIVE DATE OF CONTRACT (EDC)

This AGREEMENT shall be effective from the date signing of this AGREEMENT by
duly authorized Representatives of the Parties.

IN WITHNESS WHEREOF, this AGREEMENT is made in two (2) original and executed in
Jakarta by duly representatives of the Parties hereto in view of prevailing
laws, bearing sufficient stamp duties, each of which shall be binding and having
the same legal power.

                           Signed by:

                           For and on behalf of:

         TELKOM                                           CONTRACTOR
                                               PT.OLEX CABLES INDONESIA (LEADER)

                                               [STAMPED]

/s/ AGUS UTOYO                                 /s/FADJAR TJOANDA
- --------------                                 -----------------
     AGUS UTOYO                                         FADJAR TJOANDA
   Director of HRD                                    President Director
And Business Support


                                       62



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.29
<SEQUENCE>28
<FILENAME>u92256exv4w29.txt
<DESCRIPTION>EX-4.29 SIDE LETTER TO PARTNERSHIP AGREEMENT
<TEXT>
<PAGE>

                                                                    Exhibit 4.29

                                  SIDE LETTER
                                       TO
                           THE PARTNERSHIP AGREEMENT
               K.TEL.237/HK.810/UTA-00/01 DATED 30 NOVEMBER 2001
                                      FOR
                         THE CONSTRUCTION AND PROVISION
                    OF HIGH PERFORMANCE BACKBONE - SUMATERA

                        NO.K.TEL.116/HK.830/UTA-00/2003

                              DATED JUNE 12, 2003
<PAGE>

                                   SIDE LETTER
                                       TO
                           THE PARTNERSHIP AGREEMENT
                K.TEL.237/HK.810/UTA-00/01 DATED 30 NOVEMBER 2001
                                       FOR
                         THE CONSTRUCTION AND PROVISION
                     OF HIGH PERFORMANCE BACKBONE-SUMATERA

                        NO. K.TEL. 116 /HK.830/UTA-00/2003

This Side Letter is made the day of Twelve month June year 2003, by and
between:

I.   PT. TELEKOMUNIKASI INDONESIA, TBK, a company telecommunications services
     and network provider, established and organized under the laws of the
     Republic of Indonesia, having its registered office at JI.Japati No.1
     Bandung, Indonesia, in this purpose represented by KRISTIONO, Title
     President Director, hereinafter in this Side Letter shall be referred to as
     TELKOM,

AND

II.  PIRELLI - SIEMENS CONSORTIUM, consists of PT. PIRELLI CABLES INDONESIA and
     PT. SIEMENS INDONESIA, a consortium already established and now legalized
     by Dr. IRAWAN SOERAJO, SH, Msl, Notary in Jakarta on 30, November 2001
     under Legalization Number 457/L/2001, in this purpose represented by
     STEFANO POLI, Chief Executive Officer PT. PIRELLI CABLES INDONESIA, having
     its office at Gedung BRI, Suite 1502, JI.Jendral Sudirman Kav.44-48,
     Jakarta and represented-by ROLF UNTERBERGER, Director PT. SIEMENS INDONESIA
     and HERBERT FETTIG, Deputy Director PT. SIEMENS, having its office at
     Siemens Business Park Building B, JI.MT.Haryono Kav. 58-60 Jakarta 12780,
     companies established under the laws of Republic of Indonesia,

                                       1

<PAGE>

hereinafter in this Side Letter shall be referred to as PARTNER.

                                   WITNESSSETH

a.   WHEREAS, TELKOM and PARTNER have signed the Partnership Agreement
     NO.K.TEL.237/HK.810/UTA-00/01 dated November 30,2001 (Main Agreement) and
     its Amendment No.K.TEL.90/HK.820/UTA-00/2003 dated April 16, 2003
     hereinafter collectively referred to as Agreement;

b.   WHEREAS, TELKOM and PARTNER have held meeting to discuss regarding the
     splitting value for sub-system and sources of fund of High Performance
     Backbone Sumatera project dated April 10, 2003 and May 1, 2003;

c.   WHEREAS, TELKOM and PARTNER have held meeting to discuss regarding the
     method of invoicing for partial acceptance test for Sub-system-6 of High
     Performance Backbone Sumatera project dated May 21,2003.

NOW THEREFORE, TELKOM AND PARTNER agreed to amend the Main Agreement as
specified in the following terms and conditions:

                                    ARTICLE 1
                                 CONTRACT PRICE

TELKOM and PARTNER agreed that the additional of Contract Price due to the
additional scope of works as stated in the Article 2 para (2) item b. of
Amendment No.1 of US$2,830,086.19 and Rp.1.699.138.114,- is lump sum with the
meaning no change either plus or minus in the performed of works based on the
Amendment No.1

                                       2

<PAGE>

                                    ARTICLE 2
                              INVOICING OF PROJECT

2.1. TELKOM and PARTNER agreed that the invoicing of project based on the source
     of fund will be made with the following conditions:

     a.  For the bill of quantity and unit price of the scope of works which has
         performed based on the Original Agreement shall be applied as stated in
         the Agreement.

     b.  The additional scope of works which performed based on the Amendment
         No.1 shall be applied as described, in Article 1 of this Side Letter.

2.2. The detail of bill of quantity and the unit price above as stated in
     Appendix-1 of this Side Letter.

                                   ARTICLES 3
                                   APPENDICES

3.1. The following Appendixes and documents, including their references/
     attachments mentioned therein, are attached and shall constitute integral
     part of this Side Letter.

     Appendix-1 : The Details of BoQ

     Appendix-2 : The Minutes of meeting
                  Dated: April 10, 2003, May 1, 2003 and May 21, 2003

                                    ARTICLE 4
                                 MISCELLANEOUS.

4.1. This Side Letter is made as integral part of the Agreement.

4.2. All stipulations and provisions stated in the Agreement shall remain valid
     unless modified by this Side Letter.

                                       3

<PAGE>

4.3. This Side Letter is made in 2 (two) languages, Indonesia and English, and 3
     (three) originals both approved and signed by duly authorized
     representatives of the parties hereto.

IN WITNESS WHEREOF THE PARTIES hereto agree to sign this Side Letter on the day
and year written above.

Signed by:
For and on behalf of:

PT. TELEKOMUNIKASI INDONESIA, TBK    PIRELLI-SIEMENS CONSORTIUM

                                              [STAMPED]

/s/ Kristiono                        /s/ Stefano Poli
- -------------                        ----------------
KRISTIONO                            STEFANO POLI
President Director                   Chief Executive Officer PT. PIRELLI
                                     CABLES INDONESIA

                                     /s/ Rolf Unterberger
                                     --------------------
                                     ROLF UNTERBERGER
                                     Director PT. SIEMENS INDONESIA

                                     /s/ Herbert Fettig
                                     ------------------
                                     HERBERT FETTIG
                                     Deputy Director PT. SIEMENS
                                     INDONESIA

                                       4


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.30
<SEQUENCE>29
<FILENAME>u92256exv4w30.txt
<DESCRIPTION>EX-4.30 AM#1 TO PARTNERSHIP AGREEMENT, SEPT.27/02
<TEXT>
<PAGE>

                                                                    Exhibit 4.30

                                AMENDMENT NO. 1
                            TO PARTNERSHIP AGREEMENT
              NO.K.TEL.249/HK.810/UTA-00/01 DATED 5 DECEMBER 2001
                    FOR DEVELOPMENT CONTRACT PSTN EXCELLENCE
                           REGIONAL JUNCTION DIVRE-V

                        NO.K.TEL.177/HK.820/UTA-00/2002

                              DATED SEPTEMBER 27, 2002
<PAGE>

                                AMENDMENT No. 1
                            TO PARTNERSHIP AGREEMENT
              NO.K.TEL.249/HK.810/UTA-00/01 DATED 5 DECEMBER 2001
                    FOR DEVELOPMENT CONTRACT PSTN EXCELLENCE
                           REGIONAL JUNCTION DIVRE-V

                     NUMBER: K.TEL. 177 /HK.820/UTA-00/2002

On this day, Friday dated Twenty Seven month September of year 2002, at the
Corporate Office of PT. (Persero) Telekomunikasi Indonesia, Tbk. Jalan Japati
No. 1, Bandung, between the parties:

I.       PT (PERSERO) TELEKOMUNIKASI INDONESIA, TBK., having its corporate
         office at Jalan Japati No.1 Bandung, in this legal act duly represented
         by KRISTIONO, President Director, hereinafter in this Amendment
         referred to as TELKOM;

         And

II.      CONSORTIUM SUMITOMO CORP. -NEC CORP. - PT.NASIO KARYA PRATAMA -
         PT.COMMUNICATION CABLE SYSTEMS INDONESIA, a consortium organized and
         established under the Notary Public Deed No.36 dated October 19, 2001,
         drawn up in front of Notary Debra T.C. Schram, SH., as amended by
         Notary Public Deed No.12 dated February 18, 2002 with the same Notary
         Public, having its office at PT.SUMITOMO INDONESIA, Gedung SUMMITMAS I,
         12th Floor, Jl. Jendral Sudirman Kav.61-62 Jakarta-10190, in this legal
         act duly represented by:

         KAZUO NAKAJIMA, Assistance to General Manager, Information &
         Telecommunication Project Divisions, Sumitomo Corporation, having its
         registered office at 1-8-II, Harumi, Chuo-ku, Tokyo, 104-8610, Japan,
         as a Leader of Consortium;

                                        1

<PAGE>

         TOSHIYA MATSUKI, Department Manager 2nd Sales Department, 1st
         International System Division, NEC Networks, NEC Corporation, having
         its registered office at 7-1, Shiba 5-chome, Minato-ku, Tokyo 108-8001,
         Japan, as a Member of Consortium;

         ITA YULIATI DJOEMHANA, President Director of PT.Nasio Karya Pratama,
         having its registered office at Jl.Gunawarman No.53 Jakarta-12180,
         Indonesia, as a Member of Consortium;

         PETER DJATMIKO, President Director of PT.Communication Cable Systems
         Indonesia, having its registered office at Wisma Millenia 4th Floor,
         Jl. MT Haryono Kav.16 Jakarta - 12810, Indonesia, as a Member of
         Consortium.

         Hereinafter collectively the Parties belonging to this Consortium in
         this Amendment referred to as PARTNER.

         (severally SUMITOMO CORPORATION referred to as SUMITOMO, NEC
         CORPORATION referred to as NEC, PT. NASIO KARYA PRATAMA referred to as
         NASIO and PT. COMMUNICATION CABLE SYSTEMS INDONESIA referred to as
         CCSI).

By first taking into consideration the following matters:

a.       Whereas TELKOM and SUMITOMO-NEC-NASIO Consortium have signed the
         Partnership Agreement No. K.TEL.249/HK810/UTA-00/2001 dated December 5,
         2001 (hereinafter referred to as the "Main Agreement");

b.       Whereas SUMITOMO - NEC - NASIO Consortium intended to add a new
         consortium member through its letter No.L.,SNN.0001 dated February 27,
         2002 which was then approved by TELKOM through its letter

                                        2

<PAGE>

         No.TEL.130/LG000/TEK-30/2002 dated June 20,2002;

c.       Whereas the additional member of consortium as specified in point b.
         above was meant to speed-up delivery and to maximize utilization of
         local material, as discussed in the meeting held on May 8, 2002 between
         TELKOM and PARTNER which resulted in agreement to change the related
         material portion price (The Minute of meeting of negotiation as
         attached);

d.       Whereas TELKOM through its letter No.C.TEL.16/LG000/TEK-30/2001 dated
         February 7, 2002, has assigned the execution of the works under the
         Partnership Agreement from Regional-V East Java Division to Development
         Division.

After having taken into consideration the above matters, TELKOM and PARTNER have
agreed to amend the provisions stipulated in the Main Agreement by the following
terms and conditions:

ARTICLE 1: MEMBER OF CONSORTIUM

Referring to the Preamble of Main Agreement, TELKOM and PARTNER agreed to add a
new Consortium member, namely:

Name of Company: PT. Communication Cable Systems Indonesia.
Address: Wisma Millenia 4th Floor,
Jl.MT.Haryono Kav.16 Jakarta-12810.

ARTICLE 2: THE CHANGING OF MATERIAL PRICE COMPOSITION

TELKOM and PARTNER agreed to change the composition of material price
specifically for OSP material type which consists of Fibre Optic Cable and
Accessories as specified in the Attachment 10 of Main Agreement from Japanese
Yen portion to Indonesian Rupiah portion.

                                        3

<PAGE>

ARTICLE 3: ASSIGNMENT OF AGREEMENT

In the execution of the Partnership Agreement, TELKOM assigned its Development
Division (DIVPEM) to be in-charge of the following tasks as specified in the
Main Agreement: Acceptance Test (Article 8), Licensing (Article 9), Maintenance
& Guarantee (Article 11) Implementation Supervision (Article 12), Field
Supervision (Article 13), Documentation (Article 16), Quality Assurance (Article
22), Partner Assurance (Article 23), Transfer of Title and Risk (Article 26),
Training (Article 28), System Support (Article 29), Expatriates (Article 30),
Consultancy Forum (Article 31), Damages and Losses (Article 36), Penalty
(Article 37 except paragraph (2)), Force Majeure (Article 38) and Default
(Article 39).

ARTICLE 4: REPORT

TELKOM and PARTNER agreed that the submission of Report as specified in Article
15 of Main Agreement from DIVRE-V to DIVPEM with copy to DIVRE-V.

ARTICLE 5: PAYMENT

TELKOM and PARTNER agreed to add a new account number to make a payment of
Agreement Price as specified in Article 18 paragraph (4), as follows:

Account-III, in favour of PT. Communication Cable Systems Indonesia:
Account No.: 0353082393
Bank Name : Bank BCA KCU Sudirman
Address : Wisma BCA I, Jl.Jend.Sudirman
          Kav.22-23 Jakarta-12920

In conformity with the payment amount which becomes CCSI's right with transfer
fee to be charged to CCSI directly deducted from such payment amount.

                                        4

<PAGE>

ARTICLE: 6 SYSTEM SUPPORT

TELKOM and PARTNER agreed to amend of Article 29 paragraph (1) of main
Agreement, as follows:

"PARTNER shall support TELKOM staff in the operation of the completed system
under the Contract described in detail in Attachment-9 for the period of fifteen
(15) months as from the issuance of first PAC for the first RING"

ARTICLE 7: CORRESPONDENSE

TELKOM and PATRNER agreed to amend the address of correspondence for TELKOM and
PARTNER as specified in Article 32 paragraph (1) of the Main Agreement, as
follows:

TELKOM:

DIVISI PEMBANGUNAN
Attn.GM AREA-V
Address: Jl.Ketintang No.156
         Surabaya-60231
No.Tlp/Fax: 031-828 6800 / 031-829 2020
E-mail : spyono@telkom.co.id

CC:

1.       DIVISI REGIONAL-V JATIM
         Attn.SM.BANGNIS
         Address: Jl.Ketintang No.156
                  Surabaya-60231
         No.Tlp/Fax: 031-8286500/031-8286580
         E-mail    : angger@telkom.co.id

2.       KADIVPEM
         Address: Jl.Japati No.1 5th Floor
                  Bandung-40133
         No-Tlp/Fax: 022-4525425/022-7206530
         E-mail    : tri d@telkom.co.id

                                        5

<PAGE>

PARTNER:

PT.SUMITOMO INDONESIA
Address: Gedung SUMMITMAS I,12th Fl.
         Jl.Jend.Sudirman Kav.61-62
         Jakarta-12190
No.Tlp/Fax: 021-525 1550/021-520 2305
E-mail: mitsuyoshi.oshima@sumitomocorp.co.jp
        takeshi.oko@sumitomocorp.co.jp

CC:

General Project Manager
Address: Perumahan Kris Kencana
         Jl.Raya Kencana Sari Blok-H No.9
         Surabaya

No.Tlp/Fax: 031-567 0429/031-567 0429
E-mail: nasio5@indosat.net.id

ARTICLE 8: EFFECTIVE DATE OF AMENDMENT

This Amendment becomes immediately effective after duly signed by TELKOM and
PARTNER.

ARTICLE 9: APPENDIXES

The following Appendices of this Amendment constitute an inseparable part of the
Main Agreement and this Amendment:

Appendix 1  : Amendment-I of Consortium Agreement

Appendix 2  : TELKOM's Stipulation Letter on the Amendmen-I

Appendix 3  : Minute of Meeting of Negotiation

Appendix 4  : Correspondence

Appendix 5  : Company Profile of CCSI

                                        6

<PAGE>

If there is a conflict between the terms specified in the main body of this
Amendment and the Appendices, the terms specified in the main body of this
Amendment shall govern.

ARTICLE 10: OTHER PROVISIONS

10.1.    All terms and conditions as stipulated in the Agreement, except as
         expressly amended in accordance with the provisions of this Amendment,
         shall remain valid in full force.

10.2.    This amendment is drawn-up-with two (2) originals, in the Indonesian
         Language and English Language, each of them having the same meaning,
         and having the same legal power after being signed by both parties.

In witness whereof the Parties, hereto set their hand this day and year above
written.

                                        7

<PAGE>

                        Signed by, for and on behalf of:

PT. TELEKOMUNIKASI INDONESIA, TBK.   CONSORTIUM SUMITOMO-NEC NASIO-CCSI,
                                       SUMITOMO CORPORATION (LEADER)
/s/ Kritstiono
- -------------------                  [STAMPED]
KRISTIONO
DIREKTUR UTAMA                       /s/ Kazuo Nakajima
                                     -----------------------
                                     KAZUO NAKAJIMA
                                     ASSISTANT TO GENERAL MANAGER, INFORMATION &
                                         TELECOMMUNICATION PROJECT DIVISION

                                     NEC CORPORATION (MEMBER)

                                     /s/ Toshiya Matsuki
                                     ------------------------
                                     TOSHIYA MATSUKI
                                     DEPT.MANAGER 2ND SALES DEPT., 1ST
                                               INTERNATIONAL SYSTEM DIVISION,
                                               NEC NETWORKS


                                     PT.NASIO KARYA PRATAMA (MEMBER)

                                     /s/ Ita Yuliati Djoemhana
                                     ----------------------------------
                                     ITA YULIATI DJOEMHANA
                                       DIREKTUR UTAMA

                                     PT. COMMUNICATION CABLE SYSTEMS
                                           INDONESIA (MEMBER)

                                     /s/ Peter Djatmiko
                                     --------------------------------
                                     PETER DJATMIKO
                                     Direktur Utama


                                       8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.31
<SEQUENCE>30
<FILENAME>u92256exv4w31.txt
<DESCRIPTION>EX-4.31 AM#2 TO PARTNERSHIP AGREEMENT, DEC.30/02
<TEXT>
<PAGE>

                                                                    Exhibit 4.31

                                AMENDMENT NO. 2
                          TO PARTNERSHIP AGREEMENT FOR
                 DEVELOPMENT CONTRACT PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-V
                         NO.K.TEL.249/HK.810/UTA-00/01

                             DATED 5 DECEMBER 2001


                        NO.K.TEL.255/HK.920/UTA-50/2002

                            DATED DECEMBER 30, 2002
<PAGE>

                                 AMENDMENT NO-2
                          TO PARTNERSHIP AGREEMENT FOR
                 DEVELOPMENT CONTRACT PSTN EXCELLENCE REGIONAL
                                JUNCTION DIVRE-V
                         NO.K.TEL.249/HK.810/UTA-00/01
                             DATED: 5 DECEMBER 2001

                      NO.: K.TEL. 255 /HK.920/UTA-50/2002

This AMENDMENT NO.2 is made on this day, Monday dated thirty December, 2002 at
the Corporate Office of PT. (Persero) Telekomunikasi Indonesia, Tbk., Jalan
Japati No. 1, Bandung, by and between the parties:

I.       PERUSAHAAN PERSEROAN (PERSERO) PT. TELEKOMUNIKASI INDONESIA, TBK, NPWP:
         1.000.013.1201., which has status been notified in the State Gazette of
         the Republic of Indonesia, number 5 date January 17 1992, supplement
         number 210, as has been changed for several time and the latest in the
         State Gazette of the Republic of Indonesia number 45, date May 4, 2002,
         supplement number 5495. Having its corporate office at Jl. Japati No. 1
         Bandung 40133, Indonesia, in this Amendment duly represented by
         KRISTIONO, PRESIDENT DIRECTOR, hereinafter referred to as TELKOM.

And

II.      CONSORTIUM SUMITOMO CORP. - NEC CORP. - PT. NASIO KARYA PRATAMA - PT.
         COMMUNICATION CABLE SYSTEMS INDONESIA, a consortium organized and
         established under the Notary Public Deed No.36 dated October 19, 2001,
         drawn up in front of Notary Debta T.C. Schram, SH,:as amended by
         Notary Public Deed No. 12 dated February 18, 2002 with the same Notary
         Public, having its office at PT. SUMITOMO INDONESIA, Gedung SUMMITMAS
         I, 12th Floor, Jl. Jend. Sudirman Kav 61-62, Jakarta 12190, in this
         Amendment duly represented by:

                                       1
<PAGE>

         KAZUO NAKAJIMA, Assistant to General Manager, Information &
         Telecommunication Project Division, Sumitomo Corporation, having its
         principal office at 1-8-11, Harumi, Chuo-ku, Tokyo, 104-8610, Japan, as
         the Leader of Consortium;

         TOSHIYA MATSUKI, Department Manager, 2nd Sales Department, 1st
         International System Division, NEC Networks, NEC Corporation, having
         its principal office at 7-1, Shiba 5- chome, Minato-ku, Tokyo 108-8001,
         Japan, as a Member of Consortium;

         ITA YULIATI DJOEMHANA, President Director of PT. Nasio Karya Pratama,
         having its registered office at Jl. Gunawarman No. 53, Jakarta 12180,
         Indonesia, as a Member of Consortium;

         PETER DJATMIKO, President Director of PT. Communication Cable Systems
         Indonesia, having its registered office at Wisma Millenia, 4th Floor,
         jl., MT-Haryono Kav. 16, Jakarta 12810, Indonesia, as a Member of
         Consortium.

Hereinafter collectively the Parties belonging to this Consortium in this
Amendment referred to as PARTNER.

(severally SUMITOMO CORPORATION referred to as SUMITOMO, NEC CORPORATION
referred to as NEC, PT. NASIO KARYA PRATAMA referred to as NASIO and PT.
COMMUNICATION CABLE SYSTEMS INDONESIA referred to as CCSI).

By first taking into consideration the following matters:

a.       WHEREAS, TELKOM and SUMITOMO-NEC- NASIO Consortium have signed the
         Partnership Agreement No. K.TEL.249/HK.810/UTA-00/2001 dated December
         5, 2001 hereinafter referred to as Main Agreement, and Amendment
         No.1 No.K.TEL.177/HK.820/UTA-00/2002 on September 27,2002, hereinafter
         referred to

                                        2

<PAGE>

         as Amendment No.1;

b.       WHEREAS, based on letter number TEL.2161/HK.000/RE5-20/2002 dated July
         31, 2002, regarding confirmed decision of EDC Date, TELKOM has decided
         the valid effective time of Contract or EDC.

c.       WHEREAS, PARTNER had submitted his letter No. L.SNN.0012 dated August
         14, 2002 regarding Design Review Meeting;

d.       WHEREAS, TELKOM and PARTNER had agreed to change the configuration and
         Scope of Work during Design Review Meeting on August 19- 23,2002;

e.       Based on point d. above, TELKOM and PARTNER had recalculated the volume
         of Work and both parties agreed to amend Scope of Work, Contract Amount
         and Project Implementation Schedule during the Coordination. Meeting at
         DIVPEM AREA-V Meeting Room, Jl. Ketintang No. 156, Surabaya, on
         September 3-6, 2002;

f.       WHEREAS, based on the DRM result, TELKOM had issued Price Approval of
         Amendment No.2 through his letter No. TEL....../........./...../2002
         dated .................., 2002.

After having into consideration of all matters above, both parties, TELKOM and
PARTNER have agreed to make an amendment of the provisions stipulated in the
Main Agreement and Amendment No.1 with the terms and conditions as follows:

                                    ARTICLE 1
                                  SCOPE OF WORK

TELKOM and PARTNER herewith agreed to amend the Volume and Scope of Work as
stipulated in the Appendix 9 of Main Agreement, Breakdown Price per Ring as

                                        3

<PAGE>

stipulated in the Appendix 10 of Main Agreement and Article 2 of Amendment No.1
with the Appendices 1, 2, 3 and 4 of this Amendment No.2.

                                    ARTICLE 2
                                 CONTRACT AMOUNT

2.1.     Contract Amount as specified in Article 3 of Main Agreement is
         amounting to JPY.3,670,938,358 (Three billion six hundred seventy
         million nine hundred thirty eight thousand three hundred and fifty
         eight Japanese Yen) and Rp.125.463.907.070,-(One hundred twenty five
         billion four hundred sixty three million nine hundred seven thousand
         and seventy Indonesian Rupiah) including 10% VAT.

2.2.     By the result of the Design Review Meeting, which has conducted between
         TELKOM and PARTNER, the Parties agreed to amend the Contract Amount and
         after amendment the Contract Amount will be as described below.

<TABLE>
<CAPTION>
                                                                             PORTION
                                                                             -------
               ITEMS                                                JPY                     IDR
               -----                                                ---                     ---
<S>                                                            <C>                    <C>
Agreement Price under this Amendment                           1,258,833,916          188.964.251.510
10% VAT                                                          125,883,391           18.896.425.151
Total Agreement Price under this
Amendment (including 10% VAT)                                  1,384,717,307          207.860.676.661
</TABLE>

Said: One billion three hundred eighty four million seven hundred seventeen
thousand three hundred and seven Japanese Yen plus Two hundred seven billion
eight hundred sixty million six hundred seventy six thousand six hundred and
sixty one Indonesian Rupiah.

2.3.     The breakdown of Agreement Price as specified in paragraph 2.2. of this
         Article is stated in Appendix-2 of this Amendment.

                                        4

<PAGE>

                                    ARTICLE 3
                             PROJECT COMPLETION TIME

Detailed Project Completion Time as stipulated in Annex 11 of Main Agreement
becomes as Annex 2 of this Amendment No.2. The following is schedule of PAT and
PAC:

<TABLE>
<CAPTION>
                                       COMPLETION OF PAT /         ISSUANCE OF PAC
     DESCRIPTION                               WORK            /COMPLETION CERTIFICATE
     -----------                       -------------------     -----------------------
<S>                                    <C>                     <C>
Main Ring 1 Mea Sby                    28th February 2003         14th March 2003
Outer Ring                             28th February 2003         14th March 2003
Regional Junction 1-2                  30th January 2004          13th February 2004
Regional Junction 1-1                  26th December 2003         9th January 2004
Regional Junction 2-1                  30th September 2003        14th October 2003
Regional Junction 2-2                  30th January 2004          13th February 2004
Kediri Ring 1                          30th June 2003             14th July 2003
SB Ring Loop 1                         26th December 2003         9th January 2004
Maintenance & Operation Support        14th June 2004             28th June 2004
</TABLE>

                                    ARTICLE 4
                              PERFORMANCE SECURITY

PARTNER shall amend the amount and validity of the respective Performance
Security in accordance with this Amendment No.2, and shall submit it to TELKOM,
c.q. Finance Department of DIVRE-V, Jl.Ketintang No. 156, Surabaya, after this
Amendment No.2. is signed by both parties.

                                   ARTICLE 5
                                  ATTACHMENTS

5.1.     Both Parties, TELKOM and PARTNER agree to changes the Appendices of
         Main Contract as stated in the Article 1 of this Amendment and to add
         with the new Appendices as described in Article 5.2. of this Amendment.

                                        5

<PAGE>

         Amendment constitute an inseparable part of the Main Agreement and this
         Amendment consists of:

         Appendix 1: Scope of Work

         Appendix 2: Breakdown Price per Ring

         Appendix 3: The Project Implementation Schedule

         Appendix 4: Minutes of Meeting

                  -        Minute of DRM Meeting dated 23 August 2002.

                  -        Minute of Coordination Meeting dated 3-6 September
                           2002

                  -        Approval of Amendment-2 Price

                  -        Minute of Coordination dated 18 October 2002 and 1
                           November 2002.

         Appendix 5: Correspondences:

                  -        Consortium Letter number L.SNN.0012 dated 14 August
                           2002, regarding DRM

If there is a conflict between the terms specified in the main body of this
Amendment and the Appendices, the terms specified in the main body of this
Amendment shall govern.

                                    ARTICLE 6
                                OTHER PROVISIONS

6.1.     All terms and conditions as stipulated in the Main Agreement and
         Amendment No.1 except as expressly amended in accordance with the
         provisions of this Amendment, shall remain valid in full force.

6.2.     This Amendment is made in 2 (two) Originals, in the Bahasa Indonesian
         and English Language, provided that if in the event any inconsistency
         or conflict between both language, the Bahasa Indonesia text shall
         prevail, each of them having the same meaning, and having the same
         legal power after being signed and chopped with the company's stamp by
         both parties.

                                        6

<PAGE>

6.3.     Copies of this Original Amendment shall be made in 25 (twenty five)
         fold by PARTNER on his account to be submitted to TELKOM for the
         purpose of supervision implementation and other purposes.

In witness whereof the parties hereto set their hands this day and year above
written.

                         Signed by, for and on behalf of


PT. TELEKOMUNIKASI INDONESIA,      CONSORTIUM
TBK.                               SUMITOMO-NEC-NASIO-CCSI
                                   SUMITOMO CORPORATION (LEADER)
/s/ Kristiono
- ----------------------             [STAMPED]
KRISTIONO
DIREKTUR UTAMA                     /s/ Kazuo Nakajima
                                   ------------------
                                   KAZUO NAKAJIMA
                                   ASSISTANT TO GENERAL MANAGER, INFORMATION
                                   & TELECOMMUNICATION PROJECT DIVISION

                                   NEC CORPORATION (MEMBER)

                                   /s/ Toshiya Matsuki
                                   ---------------------
                                   TOSHIYA MATSUKI
                                   DEPT. MANAGER, 2nd SALES DEPT, 1st
                                   INTERNATIONAL SYSTEM DIVISION, NEC
                                   NETWORKS

                                   PT. NASIO KARYA PRATAMA (MEMBER)

                                   /s/ Ita Yuliati Djoemhana
                                   -------------------------
                                   ITA YULIATI DJOEMHANA
                                   PRESIDENT DIRECTOR

                                   PT. COMMUNICATION CABLE
                                   SYSTEMS INDONESIA (MEMBER)

                                   /s/ Peter Djatmiko
                                   --------------------
                                   PETER DJATMIKO
                                   PRESIDENT DIRECTOR









                                        7

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.32
<SEQUENCE>31
<FILENAME>u92256exv4w32.txt
<DESCRIPTION>EX-4.32 SUPPLY CONTRACT, DATED NOV.27,2002
<TEXT>
<PAGE>

                                                                    Exhibit 4.32

                                SUPPLY CONTRACT

                                     AMONG

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                    THE COMMUNICATIONS AUTHORITY OF THAILAND

                      SINGAPORE TELECOMMUNICATIONS LIMITED

                            DATED NOVEMBER 27, 2002
<PAGE>

RECITAL

This Contract is made and entered into the 27th day of November 2002

BETWEEN:

         Perusahaan Perseroan (Persero) P.T. Telekomunikasi Indonesia Tbk, a
telecommunications services and network provider established and incorporated
under the laws of the Republic of Indonesia, having its Registered Office at Jl.
Japati No. 1 Bandung 40133, Indonesia (hereinafter referred to as "PT Telkom"),

         The Communications Authority of Thailand, a state enterprise organized
and existing under the laws of Thailand and having its principle office at 99
Chaeng Walthana Road, Lak Si, Bangkok 10002, Thailand (hereinafter referred to
as "CAT"),

         Singapore Telecommunications Limited, a company established under the
laws of the Republic of Singapore, and having its registered office at
Comcentre, 31 Exeter Road, Singapore 239732, Singapore (hereinafter referred to
as "SingTel"),

hereinafter collectively referred to as "the Purchasers" and individually as
"the Purchaser" on the one part,

AND

         NEC Corporation, a company organized and existing under the laws of
Japan, having its principal office at 7-1, Shiba 5-chome, Minato-ku, Tokyo
108-8001, Japan (hereinafter called "NEC"),

hereinafter referred to as "the Contractor" on the other part.

Both the Purchasers and the Contractor shall be hereinafter collectively
referred to as "the Parties" and individually as "the Party", which expressions
shall include their successors and permitted assigns.

The Parties hereto undertake to execute the present Contract under the following
terms and conditions:

                                       1
<PAGE>

DEFINITIONS

In these Terms and Conditions and in all other documents forming part of the
Contract the following definitions shall apply.

"Acceptance" means written acknowledgment by the Purchasers that the Work, or
part of it, has been completed in accordance with the Contract. "Accept" and
"Accepted" in the context of "Acceptance" shall be construed accordingly.

"Acceptance Validation" means formal assurance, including testing, by the
Contractor that the Work satisfies the criteria for Acceptance in accordance
with the Contract to enable the Purchasers to determine whether or not to accept
the Work or any part thereof. "Acceptance Testing", "Acceptance Tests" shall in
this context be construed accordingly.

"Billing Milestone" means a pre-determined point for billing to be authorized
subject to specific criteria being met.

"Business Day(s)" means a day other than Saturday, Sunday and gazetted public
holidays in the relevant country.

"Certificate of Network Acceptance", "Certificate of Commercial Acceptance",
"Certificate of Final Acceptance" shall refer to the certificates issued under
the respective conditions of Clause 17 (Acceptance) hereof.

"CIF" means cost, insurance and freight and is the FOB price plus all necessary
charges at the point of entry. CIF costs include FOB costs plus the following:

         -        international freight

         -        insurance as required

         -        handling charges and transportation in landing point
                  countries/territories

         -        clearance charge

         -        carriage to and unloading at site.

"Commercial Acceptance" means the Purchasers grant a Certificate of Commercial
Acceptance for the Initial Network.

"Commercial Acceptance Date" means such date as stated in the Certificate of
Commercial Acceptance in accordance with the Contract.

"Contract" means these Terms and Conditions of Contract together with the
documents listed in Clause 2 (Contract Documents) and any appendices hereof, and
be deemed to include Contract variations, if any, pursuant to Clause 12
(Variations During Execution).

"Contractor" means the party whom the Purchasers enter into the Contract with.

"Contract Price" means the price payable to the Contractor by the Purchasers
under this Contract stated in the Price Schedule attached hereto full and proper
performance by the Contractor of all their obligations under this Contract; and
includes Contract variations, if any, pursuant to Clause 12 (Variations During
Execution); and includes any sums relating to special protection or special

                                       2
<PAGE>

navigation aids with regards to cable or pipeline crossings and any cable depot
storage costs incurred prior to the Network Acceptance Date.

"Equipment" means all materials, equipment and goods including Software supplied
or procured or to be supplied or procured by the Contractor for incorporation in
the Network, and includes all spares.

"FOB" means free on board and is the cost of the goods at the point of exit, via
vessel or aircraft, including all local charges. FOB costs include the
following:

         -        ex factory costs

         -        charges to vessel or airport

         -        billing of lading or airway bill processing costs

         -        loading on board vessel

         -        sales tax (only in the country/territory of manufacturing).

"Force Majeure" means unexpected and unavoidable causes beyond the reasonable
control of the Parties and without their fault or negligence, including but not
limited to acts of or failure to act of any governmental authority, war or
warlike operations, insurrections or riots, fires, floods, epidemics, quarantine
restrictions, freight embargoes.

"Final Acceptance" means written acknowledgment by the Purchasers that the Work
has been completed in accordance with the Contract, in this context
"Certificate of Final Acceptance" shall be construed accordingly.

"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, circuit
diagrams, inventions whether patent-able or not and know-how.

"Initial Network" means the whole of the Network provided at the Network
Acceptance Date with an initial capacity of 30 Gbps (i.e. 30 Gbps fully working
capacity).

"Line Segments" as defined in Part 4 (Technical Specifications).

"Network" means the whole of the Thailand-Indonesia-Singapore (TIS) cable
network provided between and including the Network Interfaces at each of the
terminal stations as per Appendix 2 (TIS network configurations).

"Network Acceptance" means the Purchasers grant a Certificate of Network
Acceptance for the Initial Network.

"Network Acceptance Date" means such date as stated in the Certificate of
Network Acceptance in accordance with the Contract and this includes a thirty
(30) day period for the Purchasers to consider the full test results.

"Network Interface" means the input (II) and output (lo) of a) STM-1 electrical
and/or optical ports; b) STM-4, STM-16 and STM-64 optical ports, at the

                                       3
<PAGE>

SDH/Interconnecting Equipment, Digital Distribution Frame and/or Optical
Distribution Frame (including the DDF/ODF itself) in each Terminal Station.

"Quality Assurance" means all those planned and systematic actions necessary to
provide adequate confidence that a product or service will satisfy the
requirements of the Contract.

"Release Certificate" means a written statement issued by the Contractor and
certified by the Purchasers that any equipment, Segment(s) or the Network being
submitted to the Purchasers for Acceptance Validation has been fully tested in
accordance with the Contract requirements and conforms to Contract. In this
context the term "Release" shall be construed accordingly.

"Segment" means any of, and "Segments" shall mean the following:

Under Configuration C:

Segment A  :Portion linking Batam and Singapore

Segment B1 :Portion linking Singapore and BU1 position

Segment B2 :Portion linking BU1 position and Songkhla

"Segment S" Refers to all the Line Segments for the TIS configuration as
detailed in Part 4 (Technical Specifications).

"Segment SIE" means the portion of SDH/Interconnecting Equipment at all Terminal
Stations for each respective TIS network configuration as detailed in Part 4
(Technical Specifications).

"Sub-Contractor" means any person, partnership or corporation with whom the
Contractor places a contract or an order for the supply of any equipment, item,
service or for any work, associated with this Contract. In this context the term
"Sub-contract shall be construed accordingly.

"Software" means all programs, data, object code, documentation and operating
systems, whether in writing, in firmWare, or in any other form, which is
necessary for the purposes of this Network; including documentation, any support
tools which are not commercially available, and data connected with the
development and support as well as any upgrade or enhancement thereto that may
be required under the warranty provisions hereof.

"Terminal Station" refers to each cable station specified in Appendix 2 (Network
Configuration).

"Terminal Station Equipment (TSE)" as defined in Part 4 (Technical
Specifications).

"Work" means the scope of the Contract i.e. desk top studying, route surveying,
managing, coordination, planning, designing, manufacturing, provision of
supplies, transportation, assembling, cable laying, installation, integration,
testing, commissioning, training, and any other associated service or activities
whatsoever

                                       4
<PAGE>

concerning the construction of the Network and the performance of the Contract
by the Contractor and/or its Sub-Contractors.

Notwithstanding Clause 2 of Part 1 Terms and Conditions, words and expressions
as used in the Terms and Conditions of Contract, unless expressly provided to
the contrary, shall bear the same meanings as defined or used in this Contract.

                                       5
<PAGE>

INTERPRETATION

In this Contract, unless otherwise specified, reference to:

                  (a)      "Includes" and "Including" shall mean Including
                           without limitation;

                  (b)      a person includes any person, individual, company,
                           firm, corporation, government, state or agency of a
                           state or any undertaking or organisation (whether or
                           not having separate legal personality and
                           Irrespective of the Jurisdiction in or under law
                           which it was incorporated or exists);

                  (c)      a statute or statutory instrument or accounting
                           standard or any of their provisions is to be
                           construed as a reference to that statute or statutory
                           Instrument or accounting standard or such provision
                           as the same may have been or may from time to time
                           hereafter be amended or re-enacted;

                  (d)      any statute, statutory instrument, regulation, bylaw
                           or other requirement of English law and to any
                           English legal term for any action, remedy, method of
                           judicial proceeding, legal document, legal status,
                           court, official or any legal concept or doctrine
                           shall in respect of any jurisdiction other than
                           England be deemed to include that which most nearly
                           approximates in that Jurisdiction to the English
                           term;

                  (e)      writing shall include typewriting, printing,
                           lithography, photography and other modes of
                           representing words in a legible form (other than
                           writing on an electronic or visual display screen) or
                           other writing in non-transitory form;

                  (f)      words denoting the singular shall include plural
                           and vice versa and words denoting any gender shall
                           include all genders;

                  (g)      the time of day is reference to time in Bangkok,
                           Thailand.

                  (h)      "day(s)" unless otherwise specified refers to
                           calendar day(s).

                                       6
<PAGE>

CLAUSE 1 OBJECT

In consideration of the Contract Price, as stated in Clause 13 (Contract Price),
the Contractor agrees, under its sole responsibility, to undertake and complete
the Work and provide long term support, as further specified in Part 4
(Technical Specification) and in all respects in accordance with the
requirements of this Contract, in order that the Network is delivered by the
Network Acceptance Date as stated in Clause 5 (Completion Date).

                                       7
<PAGE>

CLAUSE 2 CONTRACT DOCUMENTS

The following documents and all schedules, attachments, appendices and annexes
listed and attached hereto shall be deemed to form and be read and construed as
part of this Contract:

         Part 1   Terms and Conditions of Contract

         Part 2   Price Schedule

         Part 3   Billing Schedule

         Part 4   Technical Specification

         Part 5   Plan of work

         Part 6   Contractor's Network Description

         Part 7   Questions and Answers

In the event of any conflict between these documents the order of precedence
indicated above shall prevail.

This Contract supersedes all prior oral and written understanding between the
Purchasers and the Contractor and constitutes the entire agreement between the
Purchasers and the Contractor with respect to the subject matter of the
Contract.

                                       8
<PAGE>

CLAUSE 3 RESPONSIBILITY OF THE CONTRACTOR

3.1      The Contractor shall be fully responsible to conduct the desk top
         study, survey the cable route, design, develop, engineer, manufacture,
         supply, install, test the Segmant(s)/Network in accordance with all the
         terms and conditions contained in the Contract including any
         integration of the Network and for ensuring that the Network 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 the Purchasers
         on any matter whatsoever related to this Contract.

3.2      The Contractor shall assure that the Work shall comply with the
         requirements of the Contract and shall meet the Purchasers' overall
         performance requirements as set forth in the Contract for which it is
         intended notwithstanding that Part 4 (Technical Specifications) may not
         fully define every detail of such requirements.

3.3      Purchasers' acceptance of the Contractor's guidance or recommendations
         as to engineering standards and design specifications or the
         Purchasers' suggestions or recommendations on any aspect of the said
         design shall not relieve in any way the Contractor from its total
         responsibility for the design and suitability of the Network.

3.4      The Contractor shall be deemed to have reviewed the Work as a whole and
         in detail and to have fully satisfied itself of the feasibility and
         practicability thereof.

3.5      The Contractor shall provide the Network at the fixed price as set
         forth in Part 2 (Price Schedule). The fixed price for the Network shall
         not be varied except as provided for in Clause 12 (Variations During
         Execution).

3.6      In addition to the requirements for the provision of technical
         information described in the Contract, the Contractor shall, upon
         request, provide the purchasers with such additional technical
         information in connection with the Contract as the Purchasers may
         reasonably require.

3.7      The Contractor shall ensure that the works, tasks, materials and
         equipment included in the Work meet the functional requirements in the
         Contract. If necessary work, task, material or equipment required to
         fulfil the functional requirement is omitted in Part 2 (Price
         Schedule), and consequently in Clause 13 (Contract Price), including
         any additions as a result of the route survey, the Contractor shall
         carry out such work or task or supply such material or equipment at its
         own cost without any claim being made against the Purchasers.

3.8      The Contractor shall conform with Part 5 (Plan of Work).

3.9      The Contractor shall attend at its own expenses such meetings with the
         Purchasers' representatives at such times and in such locations as may
         be

                                       9
<PAGE>

         required by the Purchasers, to discuss the general progress and any
         revision of the Contract which may become necessary.

                                       10
<PAGE>

CLAUSE 4 TECHNICAL REQUIREMENTS AND PLAN OF WORK

The Work shall comply with the requirements of Part 4 (Technical Specification),
Part 5 (Plan of Work), Part 6 (Contractor's Network Description) and Part 7
(Questions and Answers), but the Purchasers and the Contractor may mutually
agree to make such alterations as may be considered necessary during the
implementation of the Contract and in accordance with Clause 12 (Variations
During Execution).

                                       11
<PAGE>

CLAUSE 5 COMPLETION DATE

The Network shall be completed on or before 27 November 2003 pursuant to Clause
38 herein to allow the Certificate of Network Acceptance to be issued in
accordance with Clause 17 herein.

                                       12
<PAGE>

CLAUSE 6 LETTER OF PERFORMANCE GUARANTEE

6.1      In order to guarantee the good and timely execution of all the
         contractual obligations, the Contractor shall, at its own cost, provide
         on the Contract signing date a Letter of Performance Guarantee in the
         form of an irrevocable and unconditional Bank Guarantee in the format
         as attached in Appendix 1.1, in favour of each of the Purchasers in
         equal amount, the summation of which will be the value equal of ten
         percent (10%) of the Contract Price for the initial Network. The
         Letter of Performance Guarantee shall be issued by a bank acceptable by
         the Purchasers.

6.2      After Network Acceptance, the total amount of Performance Guarantee
         shall be reduced to five percent (5%) of the Contract Price for the
         initial Network, and shall remain in force until the issuance of the
         Certificate of Final Acceptance.

6.3      In the event of default by the Contractor in carrying out its
         responsibilities under the Contract, the Purchasers at their option
         shall have the right, from time to time, to call in all or part of the
         amount represented by the Letter of Performance Guarantee as they, in
         their sole discretion, deem necessary subject only to the terms
         referred to in the Letter of Performance Guarantee.

6.4      The Purchasers shall have the right to take such actions to enforce the
         remedies provided in the Contract or which may be otherwise available
         in law or in equity, including the right to recover such damages or
         losses as provided in the Contract in addition to the amount recovered
         under the Letter of Performance Guarantee.

                                       13
<PAGE>

CLAUSE 7 QUALITY ASSURANCE

7.1      The Contractor shall permit the Purchasers or their designated
         representatives to carry out the following Quality Assurance
         activities:

                  (a)      to audit the Contractor's quality assurance system of
                           the Network and its application to the Work
                           including, without limitation, manufacture,
                           development, installation, raw materials and
                           components provision;

                  (b)      to inspect all parts of the Work and to carry out
                           design control review to the extent reasonably
                           practicable to ensure that their quality meets Part
                           4 (Technical Specification).

7.2      At any time during manufacture and installation, if any part of the
         Work does not or will not comply with the Contract, the Purchasers may
         reject the same. Upon rejection the Contractor shall forthwith at its
         own expense rectify the non-compliance in accordance with Part 4
         (Technical Specification), Part 6 (Contractor's Network Description)
         and Part 7 (Questions and Answers and no additional costs shall be made
         to the Purchasers in respect thereof. The Contractor shall bear the
         direct cost, including the Purchasers' participation, of additional
         Quality Assurance activities caused by major non-conformance of the
         Contractor.

7.3      No part of the Network shall be shipped until a Release Certificate has
         been issued in accordance with Part 4 (Technical Specification) and
         certified by the Purchasers.


7.4      The factory release of parts of the Network in accordance with Clause
         4 (Technical Requirements and Plan of Work) shall not in any way
         prejudice any right or remedy which the Purchasers may have against the
         Contractor, or relieve the Contractor of its liabilities, and in
         particular it is without prejudice to its obligations relating to the
         performance of the Network under Clause 3 (Responsibility of the
         Contractor).

7.5      Any certification given by or on behalf of the Purchasers in respect
         of any aspect of the Work carried out or proposed by the Contractor, or
         in respect of any part of the Network, shall not relieve the Contractor
         of any responsibilities under the Contract.

7.6      The Purchasers shall at all reasonable times have full access to the
         Work, and the Contractor shall provide appropriate facilities for such
         access and for the purpose of inspection and testing. The Purchasers
         shall also have full access to all plants, offices and work sites of
         the Contractor and any of its Sub-Contractors, to enable the Purchasers
         to inspect the Work and monitor progress. All information shall be
         accessible, including laboratory and test results, for any components
         manufactured by the Contractor and used in the project. The Contractor
         shall include in its Sub-contracts such provisions as may be necessary
         to secure this right on behalf of the Purchasers. The Purchasers shall
         have the right to establish resident representative(s) at the

                                       14
<PAGE>

         Contractor's and Sub-Contractor's plants and at all work sites, and the
         Contractor shall, if required, make suitable office space, facilities
         and shipboard accommodation available for such representative(s) at the
         Contractor's own expense.

                                       15
<PAGE>

CLAUSE 8 DAMAGE TO THE NETWORK BEFORE NETWORK ACCEPTANCE

8.1      This Clause applies to all damages (which in this Clause includes
         destruction and loss) arising from any cause whatever, including Force
         Majeure

8.2      The Initial Network shall stand at the risk of and be in the sole
         charge of the Contractor from the coming into force of the Contract up
         to the date of issuance of the Certificate of Network Acceptance.
         During this period, the Contractor shall, with all possible speed,
         remedy damage occurring to the Network. Notwithstanding such damage,
         the Contractor shall proceed with the execution and completion of the
         Work in accordance with the Contract, subject to any extension of
         time for completion agreed under clause 20 (Delay in Completion)
         hereof, and  apart from the granting of extension of time to the
         Contractor, the Purchasers shall not be liable to the Contractor in
         damages or otherwise arising thereof.

8.3      The cost of remedying such damage during this period shall be wholly
         borne by the Contractor, save that the Purchasers shall pay the
         Contractor for remedying the damage to the extent that it is caused by
         the willful misconduct of servants, agents, or contractors (other than
         the Contractor) of the Purchaser acting in the course of their
         employment as such

                                       16
<PAGE>


CLAUSE 9 INJURY TO PERSONS AND DAMAGE TO PROPERTY

9.1      This Clause applies to all claims, losses, expenses and damages for:

                  (a)      injuries to or death of any persons;

                  (b)      damage to property, other than the Network; or

                  (c)      the costs of clean-up and other costs resulting from
                           environmental damage;

         which results directly and/or Indirectly from the activities of the
         Contractor, its Sub-Contractors, or agents in the implementation of the
         Contract.

9.2      The Contractor shall be liable for all claims, losses, expenses, and
         damages described in sub-clause 9.1 above, and shall indemnify and save
         the Purchasers harmless from all such claims, losses, expenses and
         damages.

9.3      The Purchasers shall:

                  (a)      provide, within a reasonable time, written notice to
                           the Contractor of all such claims and suits;

                  (b)      permit the Contractor to assume the sole defence 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 defence or
                           settlement of the same.

                                       17
<PAGE>

CLAUSE 10 INSURANCE

10.1     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 at
         its own expense and in the joint name of the Purchasers and the
         Contractor as the insured:

                  (a)      (i) the Work and any work in progress of every kind
                           required for the execution, testing and completion of
                           the Work including, but not limited to the completed
                           item to the full value of such Work 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 Work,
                           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 risks, (Note 3) arising for which it is
                           responsible under the terms of the Contract and in
                           such manner that the Purchasers and the Contractor
                           are covered during the period of construction of the
                           Work.

                  (b)      against any damage, loss or injury which may occur to
                           any property (including that of the Purchasers) or to
                           any person (including any employee of the Purchasers)
                           as a result of the execution of the Work or temporary
                           work.

                  (c)      against damages 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 the Purchasers
                           against all such damages, compensation, claims,
                           demands, proceedings, costs, charges and 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 Part 2 (Price Schedule) 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,

                                       18
<PAGE>

                        branching units, terminal station equipment and other
                        equipment to be included in the Network (other than war
                        risks) beginning with the date when each such equipment
                        is ready for shipping and ending when the cable,
                        repeaters and branching units 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 Network
                        Acceptance.

               Note 3   War risks or equivalent coverage is required to protect
                        against damage to, seizure by and/or destruction of the
                        Network by means of war, piracy, takings at sea and
                        other warlike operations until the issuance of the
                        Certificate of Network Acceptance.

10.2     Upon the issuance of each policy relative to such insurance and not
         later than o fifteen (15) calendar days prior to each renewal thereof,
         the Contractor shall furnish the Purchasers with evidence acceptable
         to the Purchasers 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 sub-clauses 10.1 and 10.2 are in
         effect.

10.3     If the Contractor fails to effect and/or keep in force any of the
         insurance specified in sub-clauses 10.1 and 10.2 hereof, the Purchasers
         may, without prejudice to any other rights they may have under the
         Contract, effect and keep in force any such insurance and pay the
         premium due or take out new insurance satisfactory to them, in which
         event any sums so paid by the Purchasers shall become Immediately due
         and payable by the Contractor to the Purchasers.

         Should the Contractor fail to make the payment within thirty (30) days
         of receipt of request for such payment, the Purchasers may then deduct
         the amount of the requested payment from any monies that are, or may
         become due to the Contractor, or recover the same as a debt due from
         the Contractor.

10.4     The Contractor shall comply with all terms and conditions and
         guarantees contained in all policies affecting the foregoing insurance
         and shall ensure that its insurance brokers and/or insurers give to the
         Purchasers such information in relation thereto which may be relevant
         to such insurance as the Purchasers may reasonably request.

10.5     Generalities applicable to insurance coverage are:

                                       19
<PAGE>


                  (a)      The insurer nominated by the Contractor shall be
                           approved by the Purchasers.

                  (b)      All deductibles relative to the above insurance
                           coverage shall be payable by the Contractor.

                  (c)      The insolvency, liquidation, bankruptcy or failure of
                           any insurer providing insurance for the Contractor or
                           its Sub-Contractor, or failure of any such insurer to
                           pay claims accruing, shall not be considered a waiver
                           of nor shall it excuse the Contractor from complying
                           with any of the provisions of this Contract.

                  (d)      Following a loss or damage, the Contractor shall
                           remedy any such loss or damage with due diligence and
                           dispatch and shall not wait for any insurance
                           proceeds to effect the repairs.

                  (e)      All of the above insurance coverage shall provide
                           that prior to any cancellation or material change
                           thereto initiated by the underwriters, a sixty (60)
                           calendar days notice will be forwarded to
                           the Purchasers.

                  (f)      The Purchasers or the Contractor, as the case may be,
                           shall promptly give to the other party notice in
                           writing of any claim made or proceedings commenced
                           for which the Contractor or the Purchasers claims
                           to be entitled to indemnification under the Contract
                           and shall confer with the other Party concerning the
                           defence of any such claim or proceedings, shall
                           permit the such other party to be represented
                           by counsel in defence thereof and shall not effect
                           settlement of or compromise any such claim or
                           proceedings without the other's prior written
                           agreement. The Purchasers or the Contractor reserve
                           its right to bring any claim or proceeding
                           in relation to the Contract.

                                       20
<PAGE>

CLAUSE 11 SUSPENSION OF WORK

11.1     The Purchasers may, at their absolute discretion, order the Contractor
         to suspend all or part of the Work for such period of time as the
         Purchasers determine to be appropriate.

11.2     If, as a result of such suspension of Work, the Contractor incurs
         additional costs, or suffers loss in the discharge of its
         responsibilities under the Contract, then the Contractor shall be
         allowed to recover an amount equal to the costs and/or losses from the
         Purchasers, provided that:

                  (a)      such costs or losses could not have been reasonably
                           prevented by the Contractor, and

                  (b)      the Contractor submits, within thirty (30) calendar
                           days of the date of occurrence, a detailed claim
                           for such costs or losses, supported by sufficient
                           evidence to enable it to be validated by the
                           Purchasers and

                  (c)      the suspension was not caused by the default or
                           negligence of the Contractor and/or its
                           Sub-Contractor.

11.3     The Contractor shall be allowed an equitable extension in the time
         required for performance of any suspended work, or such longer or
         shorter period as may be mutually agreed, provided that the suspension
         was not caused by the default or negligence of the Contractor.

11.4     The agreed suspension shall be recorded in writing as a Contract
         variation as referred to in Clause 12 herein.

11.5     The Purchasers shall not be liable to the Contractor in the event of
         such suspension for any loss of profit or consequential damages
         whatsoever.

                                       21
<PAGE>
CLAUSE 12 VARIATIONS DURING EXECUTION

12.1     The Purchasers and the Contractor may mutually agree to make any
         variations to the provisions of the Contract as may be considered
         necessary during the execution of the Work.

12.2     Notwithstanding sub-clause 12.1 above, the Purchasers may instruct the
         Contractor to vary the Work, provided that such variations:

                  (a)      shall not in total increase the Contract Price by
                           more than ten percent(10%);

                  (b)      are provided in writing;and

                  (c)      shall, in the reasonable opinion of the Purchasers,
                           be implemented within the time allowed in the
                           Contract for the completion of the Work, unless
                           otherwise agreed in writing.

12.3     The effect of such variations 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 Part 2 (Price Schedule), the unit
                           price or rate as the case may be shall be applied to
                           Clause 13 (Contract Price).

                  (b)      if the subject of the variations is not covered by a
                           unit price or rate in Part 2 (Price Schedule), the
                           Contractor, shall satisfy the Purchasers that:

                      i.   the proposed adjustment is fair and reasonable,

                      ii.  if Sub-Contractor(s) had been engaged for such work,
                           that the Contractor had used its best efforts to
                           tender for, and negotiate with such Sub-Contractor(s)
                           for such variations on terms and conditions, and
                           prices that are fair and reasonable,

                      iii. the price and conditions for the services are
                           provided on terms and practices that are no less
                           favourable than that the Purchasers could obtain in
                           the market place (externally), or that granted by the
                           Contractor to its other customers, and

                      iv   the Contractor shall provide such evidence as the
                           Purchasers may reasonably require to this end.

12.4     Any changes in the Work resulting from the agreed final route survey
         report shall be treated as a Contract variation under sub-clause 12.1
         and shall be priced using the unit prices provided in Part 2 (Price
         Schedule).

12.5     Any adjustment in time and cost in respect of the above Contract
         variations shall only be recognised or acceded to when the Contract
         variation has been

                                       22

<PAGE>

         agreed in writing by the Purchasers and the Contractor prior to the
         implementation of the Contract variation.

12.6     The Purchasers shall not be liable for any additional Work unless it is
         recorded in Contract variations. If the Contractor proceeds without
         such written authorisation, it shall be deemed a waiver by the
         Contractor of any and all claims for additional payments.

12.7     No claims for any cost associated with the Contract except for item
         BM14 of Part 3 Billing Schedule, shall be made after the payment is
         made for Network Acceptance as set out under item BM13 of Part 3
         Billing Schedule.

                                       23
<PAGE>

CLAUSE 13 CONTRACT PRICE

13.1     Contract Price

         The Contract Price at the time of the execution of the Contract is
         United States Dollars Thirty Two Million Six Hundred and Eighty
         Thousand (US$ 32,680,000) as agreed to on entering into this Contract
         for the full and proper performance of the Work. The Contract Price is
         fixed and shall not be varied except as provided for in Clause 12
         (Variations During Execution).

13.2     Taxes, levies and duties

         13.2.1   The Contractor acknowledges that the Contract Price has
                  included all taxes, duties, levies and fees that may be
                  imposed or levied in connection with the Work, whether in the
                  country/territory of the Contractor, the Purchasers'
                  countries/territories, or any other country/territory. Taxes
                  incurred by the Contractor in the countries/territories, of
                  the Purchasers in respect of its personnel and Sub-Contractors
                  including but not limited to business income tax, income tax,
                  payroll tax and other taxes, contributions and levies that may
                  be levied on the Contractor or the personnel, local agent or
                  site office of the Contractor shall be borne by the Contractor
                  except for GST and VAT relating to the Contract items as
                  contained in Part 2 (Price Schedule).

         13.2.2   The Contractor is required to pay appropriate GST and VAT
                  relating to the Contract items as contained in Part 2 (Price
                  Schedule) to the authorities in the purchasers'
                  countries/territories. The Contractor will be reimbursed by
                  the Purchasers in conjunction with the settlement of the
                  Contract Price on bi-monthly and actual basis. The Contractor
                  shall, if required, provide the fiscal and billing
                  documentation to allow the Purchasers to be compliant with the
                  international and local fiscal laws and regulations. Any one
                  of the Purchasers shall have the option to withhold any
                  portion of the GST and/or VAT relating to any of the Contract
                  items as contained in Part 2 (Price Schedule) to pay directly
                  to the relevant authorities in their countries/territories, in
                  which case, the foregoing procedure of reimbursement under
                  this sub-clause 13.2.2 shall apply only to the portion of the
                  GST and/or VAT that has not been withheld by any one of the
                  Purchasers. Purchasers shall give a written notification to
                  the Contractor of the GST and/or VAT that the Purchasers
                  withhold. The Contractor shall pay the appropriate GST and/VAT
                  that is not withheld by the Purchasers.

13.3     Change of law

         Change of any law except those affecting GST and/or VAT, relating to
         the Contract items as contained in Part 2 (Price Schedule), Shall not
         affect Clause 13 (Contract Price).

                                       24
<PAGE>

13.4     Intentional Blank

13.5     The Contractor shall be responsible for any tax that might be incurred
         by the Contractor in the Purchasers' countries/territories as a result
         of incomes or revenue obtained by the Contractor arising from and/or in
         connection with the present Contract. If withholding taxes are payable
         in the Purchasers' countries/territories, the Purchasers shall withhold
         such sums from the Contractor and pay to the relevant authorities in
         accordance with the applicable laws.

                                       25
<PAGE>

CLAUSE 14 ASSIGNMENT AND SUB-CONTRACTED WORK

14.1     The Contractor shall not, without prior written consent of the
         Purchasers, assign the Contract or sub-contract any significant part of
         the Work, or assign, mortgage, charge or encumber any benefit
         whatsoever arising or which may arise under the Contract Such
         assignment or sub-contracting may only be consented to by the
         Purchasers in so far as the laws and regulations applicable in the
         countries/territories of the Purchasers so permit. In any event, the
         Contractor shall not be relieved of the responsibility under the
         Contract for such parts of the Work as are sub-contracted and the
         Contractor shall be responsible and liable for the acts or defaults of
         any Sub-Contractor or their employees, servants and agents, as fully as
         if they were the acts or defaults of the Contractor or the Contractor's
         employees, servants and agents.

14.2     In the event of termination under this Contract, the Contractor shall
         assign to the Purchasers, at the Purchasers' option, any Sub-contract
         which the Contractor has with its Sub-Contractors in respect of the
         Work so contracted out by the Contractor to these Sub-Contractors.

14.3     The Contractor shall ensure that any Sub-contracts entered into by the
         Contractor shall contain such provisions of this Contract as should be
         made applicable to such Sub-contracts

14.4     Any assignment, mortgage, charge, encumbrance or sub-contract in
         contravention of this Clause 14 shall, as against the Purchasers, be
         void and of no effect, and may be ignored by the Purchasers.

14.5     The Contractor shall protect, defend, indemnify and keep indemnified
         the Purchasers against all claims, demands, actions, suits,
         proceedings, writs, judgment, orders, decrees, damages, losses and
         expenses suffered or incurred by them arising out of or related to
         such assignment, mortgage, charge, encumbrance or sub-contract.

14.6     Any change of any significant Sub-Contractor during the execution of
         the Work shall need the prior written consent of the Purchasers.

                                       26
<PAGE>

CLAUSE 15 TERMS OF PAYMENT

15.1     Responsibility for payment

         15.1.1   The liability of each of the Purchasers for payments to the
                  Contractor for the Work to be performed in accordance with the
                  Contract shall be limited to one third of the total Contract
                  Price. No individual Purchaser will be liable to the
                  Contractor in any way whatsoever for payments defined as the
                  responsibility of the other Purchaser.

         15.1.2   No payment (final or otherwise) made under or in connection
                  with this Contract shall be the conclusive evidence of the
                  Contractor's performance of the Work, or of this Contract, in
                  whole or in part, and no such payment shall be construed to
                  constitute the acceptance of defective, faulty or improper
                  Work.

15.2     Billing Schedule

         The Billing Schedule is given in Part 3.

15.3     Billing procedures

         15.3.1   The Contractor shall render all invoices together with
                  supporting documents to each of the Purchasers to the
                  addresses as follows:

                  CAT:

                   Senior Director, Submarine Cable Department
                   The Communications Authority of Thailand
                   99 Chaeng Watthana Road
                   Bangkok, Thailand
                   Telephone: +66 2 506 3316
                   Fax: +66 2 573 5476

                  PT Telkom :

                  Reference Contract Number: K.TEL.212/HK.910/UTA-00/2002, Dated
                  27th November 2002
                   International Business Project Director
                   Jalan Dr. Soepomo 139, 2nd Floor
                   Jakarta, 12810
                   Indonesia
                   Telephone: +62 21 8379 2400
                   Fax: +62 21 8370 1000

                  SingTel:

                   Submarine Cable Division
                   375 Tanjong Katong Road, #01-00
                   Katong Submarine Cable Station
                   Singapore 437132, Singapore
                   Telephone: +65 6346 3717
                   Fax: +65 6345 2258

                                       27
<PAGE>

15.3.2   Invoices shall reach the Purchasers not more than once every two months
         and by the last calendar day of January, March, May, July, September,
         and November.

15.3.3   Invoices shall be submitted in the format to be agreed between the
         Contractor and the Purchasers. The bi-monthly invoices to the
         Purchasers shall show the total prices and the relevant Billing
         Milestone(s) billed in accordance with Part 3 (Billing Schedule). The
         amount due to the Contractor on each such invoice from the Purchasers
         shall be computed in accordance with sub-clause 15.1.

15.3.4   No invoice shall be submitted claiming payment earlier than that set
         out in Part 3 (Billing Schedule).

15.3.5   An Invoice shall be deemed to have been accepted for payment if none of
         the Purchasers presents a written objection on or before the date in
         which the payment would have been due.

15.3.6   In the event that a Purchaser objects to an invoice as mentioned in
         sub-clause 15.3.5 above, the Purchasers and the Contractor shall make
         every reasonable effort to settle promptly the dispute concerning the
         invoice in question. Notwithstanding the fact that in the meantime
         another invoice concerning a different milestone may have been
         submitted and accepted by the Purchasers, upon settlement of said
         dispute, the Contractor shall be entitled to resubmit the corrected
         invoice in accordance with sub-clause 15.3.7a) below.

15.3.7   Timing of Billing

         (a)      The Contractor shall bill according to Part 3 (Billing
                  Schedule): Billing shall be on a bi-monthly basis. Only
                  completed Billing Milestones (as defined in Part 3 (Billing
                  Schedule)) within a particular billing period shall be
                  eligible for claims.

         (b)      Actual GST and VAT paid to the authorities in the Purchasers'
                  countries/territories by the Contractor during the billing
                  period shall be billed in the same manner as and  in
                  conjunction with the bi-monthly invoices for the Contract
                  Price.

         (c)      Contract variations agreed in accordance with Clause 12
                  (Variations During Execution) above shall be Billed as
                  follows:

             i.   the value of Contract variations determining a net credit to
                  the Purchasers shall be offset to the invoice that the
                  Contractor is due to issue subsequent to the relevant
                  Contract variation signature; and

                                       28
<PAGE>

             ii.  the value of Contract variations determining a net debit to
                  the Purchasers shall be debited in the invoice that the
                  Contractor is due to issue at Network Acceptance Date.

15.4     Letters of Guarantee Against Payment

         15.4.1   The Contractor shall, at least thirty (30) days before the
                  first payment is due, deposit a Letter of Guarantee Against
                  Payment for the amount of the first payment (excluding GST and
                  VAT portion) to be made by the Purchasers to the Contractor,
                  and send the original Letter of Guarantee Against Payment to
                  each of the Purchasers.

         15.4.2   The Letter of Guarantee Against Payment for the initial
                  Network to be issued in accordance with the format given in
                  Appendix 1.2 shall remain in force until the issuance of a
                  Certificate of Network Acceptance or the settlement of all
                  claims arising from termination of the Contract in accordance
                  with its terms and conditions.

         15.4.3   Intentional Blank

         15.4.4   Notwithstanding Clause 6, in the event of default by the
                  Contractor in carrying out its responsibilities under the
                  Contract, or of frustration of the Contract by law for any
                  reason, the Purchasers shall have the right to call in the
                  amount represented by the Letter of Guarantee Against Payment
                  in accordance with the terms of such Letter of Guarantee
                  Against Payment.

         15.4.5   The invocation of the Letter of Guarantee Against Payment
                  shall not limit the rights of the Purchasers to take such
                  actions to enforce any remedies that are otherwise included in
                  the Contract, or are available in law or in equity.

         15.4.6   No payment of BMO shall be due from the Purchasers before the
                  submission by the Contractor of such a Letter of Guarantee
                  Against Payment.

15.5     Payment procedures

         15.5.1   Full amount owed shall be paid within sixty (60) days from the
                  date of receipt of the respective invoice by the respective
                  Purchaser, subject to the receipt of all supporting documents,
                  and for BMO the relevant Letter of Guarantee Against Payment.

         15.5.2   If the due date for any payment by any of the Purchaser is not
                  a Business Day in the respective Purchaser's country, the
                  payment due date shall be the next succeeding Business Day.

         15.5.3   The application of any charges in the case of invoices not
                  paid when due, shall be mutually agreed between the Contractor
                  and the Purchasers.

                                       29
<PAGE>

         15.5.4   All payments to the Contractor shall be made by the
                  Purchasers.

         15.5.5   All amounts due to the Contractor in respect of this Contract
                  shall be paid to:

                  NEC Corporation
                  Saving Account No. 2657305
                  Sumitomo Mitsui Banking Corporation
                  Tokyo Main Office
                  3-2, Marunouchi 1-chome, Chyoda-ku
                  Tokyo 108-8001, Japan

         15.5.6   Upon the payment of item BM 14 under Part 3 (Billing Schedule)
                  by the Purchasers to the Contractor, the Purchasers shall
                  thereby be released from all claims whatsoever of the
                  Contractor, whether at law open equity, contract of tort, or
                  otherwise by reason of anything arising out of or relating to
                  the Contract.

                                       30
<PAGE>


CLAUSE 16 TRANSFER OF TITLE

16.1     The title of the Network shall be transferred to the Purchasers as and
         when the Certificate of Network Acceptance is issued. The transfer of
         title shall not absolve or release the Contractor from its obligations
         and its liabilities under the Contract.

16.2     Upon transfer of title of the Network to the Purchasers, the Contractor
         warrants that the Network 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.

16.3     Upon the transfer of title of the Network to the Purchasers, the
         Contractor also warrants that the Network 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 Work.

                                       31
<PAGE>


CLAUSE 17 ACCEPTANCE

17.1     GENERAL

         Acceptance of the Network shall be in two (2) stages which are as
         follows:

                  i. Network Acceptance; and

                  ii. Final Acceptance

         The Network shall be accepted as a whole in accordance with Part 4
         (Technical Specification) and the Billing Milestone criteria for
         Network Acceptance as detailed in Part 3 (Billing Schedule).

17.2     Acceptance Test Programme

         At least four (4) months before the planned date of the start of the
         Acceptance Testing of the Network, the Contractor shall submit to the
         Purchases for approval a test programme and an Acceptance handbook for
         the conduct of the Segment Network and Acceptance Test, as detailed in
         Part 4 (Technical Specification).

17.3     Network Acceptance Tests

         In order to determine the acceptability of the completed Network
         thereof, the Contractor shall carry out tests in accordance with Part 4
         (Technical Specification)

17.4     Purchasers Tests

         The Contractor shall make the Segment(s)/Network thereof available to
         the Purchasers for testing in accordance with Part 4 (Technical
         Specification).

17.5     Intentional Blank

17.6     Intentional Blank

17.7     Commercial Acceptance

         17.7.1   If the Purchasers wish to put a part of or all the
                  Segment(s)/Network into Commercial Acceptance or if the
                  Purchasers are not satisfied that the results of the Network
                  Acceptance Tests or the delivered system compiles fully with
                  Part 4 (Technical Specifications), Part 5 (Plan of Work) and
                  Part 6 (Contractor's Network Descriptions) to justify the
                  issuance of a Certificate of Network Acceptance then, the
                  Purchasers may, at its sole discretion, proceed with the
                  issuance of a Certificate of Commercial Acceptance.

         17.7.2   Upon the issuance of a Certificate of Commercial Acceptance,
                  the Segment(s)/Network shall be deemed to be accepted for
                  commercial use. The Contractor shall continue to carry the
                  risk of the

                                       32
<PAGE>


                  Segment(s)/Network, provided that the Contractor shall not be
                  responsible for loss due to gross negligence of the Purchaser.

         17.7.3   The Certificate of Commercial Acceptance shall have annexed to
                  it an agreed list of all outstanding Items and deficiencies to
                  be made good by the Contractor and the timetable for the
                  remedy of such outstanding Items and deficiencies.

         17.7.4   The Contractor shall as soon as practicable remedy the
                  deficiencies indicated in all such listed items. within the
                  timetable annexed to the Certificate of Commercial Acceptance,
                  so as to ensure full conformance with the requirements of the
                  Contract and so long as any such Items are outstanding, the
                  Contractor shall be responsible for their maintenance of such
                  items.

         17.7.5   As from the date determined in accordance with sub-clause
                  17.7.2 hereabove, the Purchasers may at its sole discretion,
                  maintain the Segment(s)/Network except as mentioned in
                  sub-clause 17.7.4 above.

         17.7.6   When the deficiencies referred to in sub-clause 17.7.4
                  hereabove have been remedied, the Purchasers, at their sole
                  discretion, may repeat part or all of the Network Acceptance
                  Tests and if results are considered satisfactory, then they
                  will issue a Certificate of Network Acceptance in accordance
                  with sub-clause 17.8.

         17.7.7   The issuance of a Certificate of Commercial Acceptance shall
                  in no way relieve the Contractor from Its obligation to
                  provide a Segments/Network conforming with Part 4 (Technical
                  Specification) and other requirements of this Contract and, In
                  particular, any deterioration in the performance of the
                  Network resulting in a deviation from Part 4 (Technical
                  Specification) occurring between the date of issuance of that
                  Certificate and the date of issuance of a Certificate of
                  Network Acceptance shall be made good at the expense of the
                  Contractor.

17.8     Network Acceptance

         17.8.1   Within thirty (30) days of receipt of the Network Acceptance
                  test results of the completed Network the Purchasers shall
                  give notice to the Contractor that they:

                  (a)      propose to Issue a Certificate of Network Acceptance
                           in accordance with sub-clause 17.8.4; or

                  (b)      do not propose to issue a Certificate of Network
                           Acceptance, but are prepared to Issue a Certificate
                           of Commercial Acceptance in accordance with
                           sub-clause 17.7 hereabove; or

                  (c)      do not accept the Network.

                                       33
<PAGE>


         17.8.2   On receipt of a notice pursuant to sub-clause 17.8.1 the
                  Contractor may make representations to the Purchasers in
                  explanation of disputed results of the Acceptance Tests and
                  the Purchasers may, if satisfied as a result of that
                  explanation, issue a fresh notice pursuant to sub-clause
                  17.8.1 hereabove which shall be deemed to have been issued on
                  the date of original notice under sub-clause 17.8.1.

         17.8.3   In case of rejection, and if the explanation by the Contractor
                  foreseen in sub-clause 17.8.2 is not accepted by the
                  Purchasers, the Contractor shall carry out the necessary
                  corrective actions and will effect a new series of tests on
                  the rejected equipment. After receipt of the results, the
                  Purchasers will be granted a new period of thirty (30) days to
                  analyse the new results and the provisions of sub-clause
                  17.8.1 shall apply from the date the Purchasers receive these
                  latest results.

         17.8.4   When the Purchasers are satisfied that the Network has been
                  completed in accordance with Part 4 (Technical Specification)
                  and other requirements of the Contract, they shall issue a
                  Certificate of Network Acceptance and the Contractor can
                  submit an invoice for payment.

17.9     Intentional Blank

17.10    Final Acceptance

         17.10.1  At the end of and no later than sixty (60) days after the
                  expiration of the five(5) year warranty period and after the
                  satisfactory completion of the Final Acceptance tests of the
                  Network, defined in Part 4 (Technical Specification), and
                  provided that the Contractor has fulfilled its commitments
                  under the Contract, the Purchasers shall issue a Certificate
                  of Final Acceptance.

         17.10.2  The issuance of this 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 Network to fall to meet the requirements of the
                  Contract or such other performance levels agreed upon by the
                  Purchasers over the twenty-five (25) years design life of the
                  Network, Final Acceptance may be withheld until it can be
                  demonstrated to the satisfaction of the Purchasers that no
                  pattern of failure or pattern of degradation shall have
                  developed that is likely to cause the Network to fail to meet
                  the requirements of Part 4 (Technical Specification), Part 6
                  (Contractor's Network Description) over the twenty-five (25)
                  years design life. In such event, the validity of the Letter
                  of Performance Guarantee provided for under sub-clause 6.1
                  shall remain in force until the Certificate of Final
                  Acceptance is issued.

         17.10.3  The Certificate of Final Acceptance will not apply to those
                  parts which may have been replaced during the warranty period
                  or to those parts

                                       34
<PAGE>


                  having been the subject of an extension of warranty according
                  to the provisions of sub-clause 18.3 hereof.

         17.10.4  At the discretion of the Purchasers, the Final Acceptance
                  tests programme may consist of a repetition of a part or the
                  whole of the tests of the Network Acceptance test programme.

                  The Purchasers reserve the right to dispense with the Final
                  Acceptance tests.

17.11    Costs of acceptance

         All expenses incurred by the Contractor (including testing apparatus
         and technical staff) in the execution of the Acceptance procedures
         defined in Part 4 (Technical Specification) shall be borne by the
         Contractor.

                                       35
<PAGE>


CLAUSE 18 WARRANTY

18.1     The warranty period of the Network shall be five (5) years, starting
         from the Network Acceptance Date. During this period, the Contractor
         warrants that the Network, 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
         the Purchasers and that no pattern of failure or patter of degradation
         shall have developed that is likely to cause the Network to fail to
         meet the requirements of Part 4 (Technical Specification) over the
         twenty-five(25) years design life.

18.2     a) The Contractor shall perform any repair required to restore the
         Network to the requirements of the Contractor or such other performance
         levels agreed upon by the Purchasers, if the Network 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 Network to fail to meet such requirements. However, the
         Purchasers 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 its request and at its
         expense. The Contractor shall reimburse the Purchasers for the cost of
         such repairs within sixty (60) days from receipt of a relevant notice
         issued by the Purchasers. The Contractor shall be entitled to have a
         representative on board ship to observe at sea repair. Such repairs by
         the Purchasers shall not in any way diminish the Contractor's
         obligations under the warranty.

         b) The Contractor shall 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 burlat or reburtal, 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 labour 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.

18.3     The warranty period of items not accepted, provided or requiring repair
         or replacement at the Network Acceptance Date shall start from the
         date(s) such items are accepted by the Purchasers. Any defective part
         repaired or replaced during the warranty period shall itself be
         subject to a further warranty period of five (5) years from the date of
         repair or replacement.

18.4     If during the warranty period defects are found on repeated occasions
         in any part or parts of the Network or if a pattern or 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 repaked but shall be replaced by
         new part(s) at the request of the Purchasers, including all the
         appropriate spares.

                                       36
<PAGE>

         18.4.1   For the purpose of this Clause, a pattern of failure or
                  pattern of degradation shall be deemed to exist if:

                  (a)      the Purchasers have notified the Contractor that in
                           their reasonable opinion failures of the same or
                           similar mechanisms have occurred which show a
                           deterioration of Network performance that will render
                           the Network outside its specification during its
                           design life, and

                  (b)      the Contractor, having carried out an investigation,
                           cannot demonstrate to the reasonable satisfaction of
                           the Purchasers that:

                         i.    the failures/deteriorations are within the
                               predictions of the reliability model or
                               Mean-Time-Between-Failure (MTBF) figures:

                         ii.   the failures/deteriorations are not due to a
                               design defect in the component or Its
                               application; or

                         iii.  the failures/deteriorations only apply to a
                               limited number of parts, for example, as the
                               result of a manufacturing (or batch related)
                               inconsistency.

         18.4.2   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 the
                  Purchasers.

18.5     In addition, the Contractor shall pay to the Purchasers all actual
         expenses (if any) incurred by the Purchasers in testing or examining
         any part of the Network for the purpose of or in connection with this
         Clause or in connection with making good, replacing or repairing any
         part of the Network.

18.6     The Contractor shall make every reasonable effort to minimise the
         period of time that the Network is out of service for repair and
         testing. For failures or any situations which cause or risk to cause an
         outage of the Network, 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 the Purchasers. The
         Purchasers reserve the right to determine the timing of rectification.

18.7     The Contractor shall effect all repairs of the Network through the use
         of repair materials supplied by it. However, the Contractor with the
         agreement of the Purchasers, may use the materials needed to effect a
         repair from the Purchasers' available spare materials, components or
         equipment. The Contractor shall replace, in kind, such material
         supplied from the Purchasers spare stock or, at the option of the
         Purchasers, reimburse the Purchasers for the original price to them of
         such materials. The replacement of, or reimbursement for, such
         materials shall be made at a time mutually agreed

                                       37
<PAGE>



         upon by the Purchasers and the Contractor, but in no event shall the
         replacement or reimbursement be delayed beyond such time as the
         Purchasers' actual spare stock of such materials falls below fifty
         percent (50%) of the Purchasers' established stock level for such
         materials.

         18.7.1   All materials supplied to replenish the Purchaser's spare
                  materials, in accordance with sub-clause 18.7, and all
                  materials used to repair the Network, which are not supplied
                  from the Purchaser's spare materials, shall be warranted for a
                  period of five (5) years from the date of replacement.

18.8     The repair or replacement of any faulty unit or equipment includes the
         delivery to the Purchasers of 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 Part 4
         (Technical Specification) as per Annex 6.1

18.9     For the purpose of Network maintenance:

                  (a)      The usage of universal jointing and/or universal
                           coupling equipment for the maintenance or repair of
                           the Network during the warranty period shall not in
                           any way invalidate the Network warranty 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 the Purchasers decide to pool any spare plant
                           supplied under this Contract with other spare plant
                           supplied for other cable systems for which they have
                           maintenance authorities and where technical
                           compatibility exists, the usage of such other spare
                           plant supplied from another cable system for
                           maintenance shall not invalidate the Network warranty
                           during the warranty period.

18.10    Failure to Meet Required Performance

         During the period from to the Network Acceptance Date to the expiration
         of the Warranty period, if the performance of the Network fail to meet
         the performance required in Appendix 5 herein, the Contractor shall pay
         to the Purchasers as and by way of liquidated damages for such failure
         to meet the said performance requirement. The amount of liquidated
         damages for such failure shall be calculated in accordance with
         Appendix 5.

                                       38
<PAGE>


CLAUSE 19 LONG TERM SUPPORT

19.1     For a period of twenty-five (25) years starting on the Network
         Acceptance Date, the Contractor shall supply to the Purchasers:

                  (a)      technical support and advice in respect of the
                           design, maintenance and operation of the Segment(s)
                           and Network.

                  (b)      supplies, replacement equipment, repair service and
                           software support to the Network at a reasonable price
                           as indicated in sub-clauses 19.5 and 19.6.

19.2     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.

19.3     Notwithstanding sub-clause 19.2, 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's prior written notice to the Purchasers to allow the
         Purchasers to order from the Contractor any required spare parts and
         replacement equipment and shall forthwith provide full details of the
         arrangements to provide equivalents. However, the Contractor shall not
         cease to manufacture such parts and equipment before the expiration of
         the warranty period, as described in Clause 18 (Warranty).

19.4     In the event that the Contractor fails to comply with sub-clauses 19.2
         and 19.3, or if this Contract is terminated for default, the Purchasers
         may require the Contractor to provide to the Purchasers in accordance
         with Clause 25 (Confidentially of Information and Technology) the
         Software provided hereunder, and to provide to the Purchasers any and
         all manufacturing drawings and related specifications as well as bills
         of materials giving the description, in-house numbers and/or code
         numbers for all such parts or equipment including Software, or in cases
         where the parts or equipment were not manufactured by the Contractor,
         the manufacturers' names, description of the parts or equipment and
         code numbers, and giving tolerances for matching or equivalent parts or
         equipment and finally, for matched parts or equipment, giving lists of
         matched parameters and tolerances. Legible copies and microfilms
         thereof shall be considered as acceptable.

19.5     The applicable prices for the five (5) years after the Network
         Acceptance will be the prices included in Part 2 (Price Schedule) duly
         revised through a formula in which forty percent (40 %) of the price
         will be fixed and sixty percent (60 %) of the same (the "Adjustable
         Price") will be re-adjustable according to price indices submitted by
         the Contractor. The Adjustable Price will not increase by more than
         three percent (3 %) per year and shall not be higher than the
         prevailing market prices.

                                       39
<PAGE>

19.6     For the following years after the aforementioned five (5) years period
         and up to the completion of the twenty-five (25) year design life of
         the Network for long term support, the applicable prices shall not be
         higher than the prevailing market prices and shall be agreed upon by
         the Parties. At least one (1) year prior to the expiry of said period,
         the Contractor must inform the Purchasers of the list of the items of
         equipment that it intends to stop manufacturing.

                                       40

<PAGE>

CLAUSE 20 DELAY IN COMPLETION

20.1     Subject to the provisions in Clause 11 (Suspension), Clause 12
         (Variations During Execution) and sub-clause 20.2, the Contractor shall
         complete the supply and installation of the Network by the Acceptance
         Dates as specified in Clause 5 (Completion Date).

20.2     If the execution of the Work shall, without the default or negligence
         on the part of the Contractor, be delayed by reason of any event of
         Force Majeure and subject to sub-clause 20.3 the Contractor may be
         granted such extension of time for completion as shall be mutually
         agreed in good faith, without any financial claim from the Contractor
         to the Purchasers.

20.3     In connection with sub-clause 20.2 and provided that the Contractor
         proves

                  i.    that there is insufficient contingency time in Part 5
                        (Plan of Work) to cover any delay, and

                  ii.   such delay or any duration of such delays could not
                        be avoided fay use of alternative resources, and

                  iii.  such a delay could not be avoided even after
                        reasonable endeavours have been attempted to mitigate
                        the impact on delivery time,

         any extension of time for completion will only be considered by the
         Purchasers if the Contractor notifies the Purchasers of the cause of
         delay within fourteen (14) calendar days of commencement of the delay
         and provides to the Purchasers, either on completion of the Work or at
         an appropriate stage in the Work, satisfactory evidence of the effects
         of delay.

20.4     If the initial Network is not completed in accordance with Clause
         (Completion Date) or by the end of the period of extension agreed upon
         under Clause 11 (Suspension), Clause 12 (Variations During Execution)
         of sub-clause 20.2, the Contractor shall pay to the Purchasers by way
         of liquidated damages and not as a penalty an amount not exceeding ten
         percent (10%) of the Contract Price for the Initial Network and
         calculated as follows:

         Zero point two percent (0.2%) per calendar day on the value of the
         Contract Price for the Initial Network from the Network Acceptance Date
         or from the end of any period of extension agreed upon under Clause 11
         (Suspension) Clause 12 (Variations During Execution) or sub-clause 20.2
         and during which period the Certificate of Network Acceptance continues
         not to have been granted.

20.5     In the event that a Certificate of Commercial Acceptance is issued
         pursuant to sub-clause 17.7, the Contractor shall, in lieu of
         sub-clause 20.4, pay to the Purchasers by way of liquidated damages and
         not as a penalty an amount

                                       41
<PAGE>


         equal to zero point two percent (0.2%) per calendar day on the value of
         the Work which cannot be Accepted by reason of the defects specified in
         the Certificate of Commercial Acceptance not exceeding ten percent
         (10%) of the Contract Price.

20.6     Liquidated damages applied in accordance with sub-clauses 20.4 and 20.5
         shall be paid by the Contractor within sixty (60) days from the date of
         notification by the Purchasers of the application of such damages.

20.7     Should the Contractor default in the payment of liquidated damages
         under the terms of this Clause, the Purchasers shall have the right to
         obtain compensation by making deductions from any payments due or to
         become due to the Contractor and/or by recovering such sums as a debt
         or by forfieture in part or in whole by means of the Letter of
         Performance Guarantee.

                                       42
<PAGE>


CLAUSE 21 TERMINATION FOR CONVENIENCE

21.1     The Purchasers may terminate the performance of Work under the Contract
         in whole, or from time to time, in part, whenever they shall so
         determine. The Purchasers shall deliver to the Contractor a written
         notice, the "Notice of Termination", specifying the extent to which
         performance of Work under the Contract is terminated and the date upon
         which such termination becomes effective.

21.2     On receipt of such a Notice of Termination, unless otherwise directed
         by Purchasers in the notice, the Contractor shall:

                  (a)      stop Work and be relieved of obligations under the
                           Contract on the date and to the extent specified in
                           the Notice of Termination;

                  (b)      place no further orders or contracts for materials,
                           services, or facilities except as may be necessary
                           for completion of any portion of the Work under the
                           Contract which is not terminated;

                  (c)      use reasonable efforts to terminate all orders and
                           contracts to the extent that they relate to the
                           performance of Work terminated by the Notice of
                           Termination;

                  (d)      assign to the Purchasers, in the manner, at the time
                           and to the extent directed by the Purchasers, all of
                           the Contractor's rights, title and interest under the
                           orders and contracts so terminated;

                  (e)      use reasonable efforts to settle all outstanding
                           liabilities and all claims arising out of such
                           termination of orders and contracts, with the
                           Purchasers' approval or ratification to the extent
                           they may require, which approval or ratification
                           shall be final for all the purposes of this present
                           Clause;

                  (f)      transfer title and deliver to the Purchasers in the
                           manner, at the time, and to the extent (if any)
                           directed by them;

                        i.     the fabricated or un-fabricated parts, work
                               in progress, completed work, supplies, and
                               other material produced as part of, or
                               acquired in connection with the performance
                               of the Work terminated by the Notice of
                               Termination, and

                        ii.    the completed or partially completed plans,
                               drawings, information and other property
                               which, if the Contract had been completed,
                               would have been required to be furnished to
                               the Purchasers;

                  (g)      use reasonable efforts to sell, in the manner, at the
                           time, to the extent and at the price or prices
                           directed or authorised by the

                                       43
<PAGE>

                           Purchasers, any property of the types referred to
                           above, provided, however, that the Contractor:

                          i.   shall not be required to extend credit to
                               any buyer, and

                          ii.  may acquire any such property under the
                               conditions prescribed by and at a price
                               approved by the Purchasers; and provided
                               further that the proceeds of any such
                               transfer or disposal shall be applied in
                               reduction of any payments to be made by the
                               Purchasers to the Contractor under this
                               Contract or paid in such other manner as the
                               Purchasers may direct;

                  (h)          complete performance of such part of the Work as
                               may not have been terminated by the Notice of
                               Termination; and

                  (i)          take such action as may be necessary, or which
                               the Purchasers may direct, for the protection and
                               preservation of the property related to the
                               Contract which is in the Contractor's possession
                               and in which the Purchasers have or may acquire
                               an interest.

21.3     After receipt of a Notice of Termination the Contractor shall submit to
         the Purchasers a written termination claim. Such claim shall be
         submitted promptly but in no event later than ninety (90) calendar days
         from the effective date of termination.

21.4     In the settlement of any such partial or total termination claim, the
         Purchasers payment to the Contractor shall be limited to the following:

                  (a)      the price for completed Work, based on Part 2 (Price
                           Schedule),

                  (b)      a fair and reasonable sum in respect of partially
                           completed work prorated where practicable based on
                           Part 2 (Price Schedule) hereto;

                  (c)      the cost of supplies and materials reasonably and
                           necessarily purchased in respect of the Contract but
                           not incorporated into completed or partially
                           completed work;

                  (d)      the cost of settling and paying claims arising out of
                           the termination of the work under contracts and
                           orders, as provided above, which are properly
                           chargeable to the terminated portion of the Contract;

                  (e)      the reasonable costs of settlement, including
                           accounting, legal, clerical and other expenses
                           reasonable necessary for the preparation of
                           settlement claims and supporting data with respect to
                           the terminated portion of the Contract and for the
                           termination and settlement of contracts thereunder,
                           together with reasonable storage, transportation, and
                           other costs

                                       44
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                           incurred in connection with the protection or
                           disposal of property allocable to the Contract.

         Notwithstanding the above, the total payment to the Contractor pursuant
         to this Clause, taken together with any other payment, shall not exceed
         the Contract Price applicable to the Work or to part therefore so
         terminated.

21.5     In arriving at the amount due to the Contractor under this Clause,
         there shall be deducted all monies paid or due to be paid to the
         Contractor, any liabilities which the Contractor may have to the
         Purchasers and the agreed price for or the proceeds of sale of any
         materials, supplies or other things acquired by the Contractor or sold,
         pursuant to the provisions of this present Clause, and not otherwise
         recovered by or credited to the Purchasers.

21.6     If the termination is partial, before the settlement of the terminated
         portion of the Contract, the Contractor may submit to the Purchasers a
         written request for any equitable adjustment of the price or prices
         specified in the Contracts relating to the portion of the Contract not
         terminated by the Notice of Termination prorated where practicable,
         based on Part 2 (Price Schedule) hereto and such equitable adjustments
         as may be agreed shall be made.

21.7     The Purchasers may, from time to lime, under such terms and conditions
         as they may prescribe, approve partial payments and payments on account
         against costs incurred by the Contractor in connection with the
         terminated portion of the Contract if in the opinion of the Purchasers
         the total of such payments is within the amount to which the
         Contractor will be entitled hereunder. If the total of such payments is
         in excess of the amount finally agreed or determined to be due under
         this Clause, such excess shall be payable by the Contractor to the
         Purchasers on demand or recovered by the Purchasers from the Letter of
         Performance Guarantee.

21.8     For a period of one (1) year after final settlement under the Contract,
         the Contractor shall preserve and make available to the Purchasers at
         all reasonable times at the Contractor's premises, but without charge
         to the Purchasers, all books, records and documents bearing on costs
         and expenses under the Contract relating to the work terminated under
         this Clause.

                                       45
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CLAUSE 22 TERMINATION FOR DEFAULT

22.1     If the Contractor

                  (a)      fails to comply with Part 4 (Technical
                           Specifications), Part 5 (Plan of Work), and Part 6
                           (Contractor's Network Description) so as to
                           significantly jeopardise the performance, operation
                           and maintenance of the Network; or

                  (b)      fails to make progress so as to significantly
                           jeopardise the satisfactory performance by such
                           Contractor of its obligations under this Contract;
                           or

                  (c)      is in material breach of any of the provisions of the
                           Contract; or

                  (d)      intimates without lawful cause or justification that
                           the Work will not or cannot be completed

                  then the Purchasers may give thirty (30) days notice in
                  writing to the Contractor to make good the neglect, failure or
                  breach.

22.2     If the Contractor fails to comply with the notice referred to above
         within thirty (30) days from the date the notice was given, then the
         Purchasers may, subject to the provisions of this Clause 22, by written
         Notice of Termination for default to the Contractor, terminate the
         whole or any part of the Contract.

22.3     The Contractor shall not be in default, if any failure to perform the
         Contract arises out of Force Majeure or the acts or failure to act of
         the Purchasers.

22.4     If this Contract is terminated as provided in sub-clause 22.2 above,
         the Purchasers, in addition to any other rights provided in this Clause
         22, may require the Contractor to transfer title and to deliver to the
         Purchasers in the manner and to the extent directed by them, any
         completed equipment, material of supplies, and such partially completed
         cable and materials, parts, tools, dies, jigs, fixtures, plans,
         drawings, information, and Contract rights as the Contractor has had
         specifically produced or specifically acquired for the performance of
         such part of this Contract as may have been terminated and which if
         this Contract had been completed, would have been required to have been
         furnished to the Purchasers. In addition, the Contractor shall, upon
         the direction of the Purchasers, protect and preserve properly in its
         possession in which the Purchasers have an interest. The Contractor
         shall be paid the prices specified in Part 2 (Price Schedule) for
         completed equipment, material and supplies delivered and services
         performed, and the amounts agreed upon by the Purchasers and the
         Contractor for the manufacturing materials delivered to the Purchasers
         by the Contractor, and for the protection and preservation of property
         in which the Purchasers have an interest.

22.5     If the Contract is terminated in accordance with sub-clause 22.2, the
         Purchasers may elect to take over and to complete the Work. In such
         event, the Contractor, shall, without prejudice to any other rights or
         remedies of the

                                       46
<PAGE>

         Purchasers hereunder in law or in equity, be liable to the Purchasers
         for all costs so incurred by them in excess of the Contract Price,
         taking into account any sums due under this Contract to the Contractor
         for Work commenced, partly executed or completed and accepted by the
         Purchasers or materials, plant, machinery, tools and implements and
         other things purchased, used or to be used in connection with the Work.

22.6     If the Contract is terminated in accordance with sub-clause 22.2, the
         Contractor shall not be relieved from any liability for damages or
         other remedies which may have been incurred by reason of any breach of
         the Contract. This shall include, but is not limited to, the invocation
         of the Letter of Performance Guarantee and the Letter of Guarantee
         Against Payment.

                                       47
<PAGE>

CLAUSE 23 TERMINATION BECAUSE OF FORCE MAJEURE

23.1     In the event that the Contractor is unable to implement the Contractor
         for a period of more than six (6) calander months because of an event
         of Force Majeure, the Contractor may apply to the Purchasers for
         termination of the Contract. If the Purchasers are in agreement with
         such application, then the Contract may be so terminated. Nonetheless,
         the Purchasers reserve the right to terminate the Contract in the
         event that the Contractor is unable to implement the Contract for a
         period of more than six (6) calendar months because of an event of
         Force Majeure with immediate effect.

23.2     In the event that the Contractor is delayed or prevented from
         performing any of its obligations under the Contract by an event of
         Force Majeure, but not including events of Force Majeure that preclude
         the Purchasers from fulfilling their responsibilities under the
         Contract, and such cause shall continue to a delay or prevent
         continuance of the Work for a continuous period of six (6) calendar
         months or more, the Purchasers may terminate the Contract.

23.3     Upon termination as provided for in sub-clauses 23.1 and 23.2 above,
         the Purchasers may at their discretion require the Contractor to
         translate to the Purchasers title in any equipment or materials held by
         the Contractor or its Sub-Contractors under the Contract.

23.4     In the event that payments already made to the Contractor under this
         Contract exceed the value of those items retained or obtained under the
         sub-clause above, then the Contractor shall repay such excess to the
         Purchasers within sixty (60) days from the date of notification and if
         not paid, such excess shall be a debt due to the Purchasers.

                                       48
<PAGE>

CLAUSE 24 INTELLECTUAL PROPERTY - INDEMNITY

24.1     The Contractor shall fully indemnify and keep indemnified the
         Purchasers against all actions, claims, demands, costs, charges and
         expenses arising from or incurred by reason of any infringement or
         alleged infringement of any patents, copyright, or any similar
         protection of intellectual property by the use, sale or transfer by the
         Purchasers of any of the proprietary information or materials supplied
         by the Contractor under the Contract, but such indemnity shall not
         cover any use of the proprietary information or materials otherwise
         than for the purpose indicated by or reasonably inferred from the
         Contract.

24.2     In the event of any infringement or alleged infringement or any claim
         being made or action brought against the Purchasers arising out of the
         matters referred to in this Clause:

                  (a)      The Contractor shall, as soon as reasonably
                           practicable, be notified and shall:

                      I.   at its own expense conduct all negotiations for the
                           settlement of the same, and any litigation that may
                           arise therefrom.

                      II.  give to the Purchasers such reasonable security as
                           shall from time to time be required by the Purchasers
                           to cover the amount ascertained or agreed or
                           estimated, as the case may be, of any compensation,
                           damages, expenses and costs for which the Purchasers
                           may be liable;

                  (b)      The Purchasers shall, at the request of the
                           Contractor, afford all reasonable assistance for the
                           purpose of contesting any such claim or action, and
                           shall be repaid any expenses incurred in so doing.
                           The Purchasers shall not make admission prejudicial
                           to the Contractor's contesting such claim or action
                           Insofar as they are legally able to avoid making any
                           such admission:

                  (c)      In the event that the Contractor fails to take over
                           the conduct of the negotiations and litigation within
                           thirty (30) days of being notified of any claim or
                           action, or fails to provide the Purchasers with any
                           security required by the Purchasers under this sub-
                           clause, the Purchasers may conduct negotiations and
                           litigation for the settlement of the same and shall
                           be released from their obligations under sub-clause
                           24.2 (b) and reimbursed by the Contractor for all
                           such expenses and payments.

24.3     If the Network or any part thereof is held to constitute infringement
         and is subject to an order restraining its use or providing for its
         surrender or destruction, the Contractor shall at its own expense
         immediately either:

                  (a)      procure for the Purchasers the right to retain and
                           continue to use the Network;

                                       49
<PAGE>

                  (b)      or modify the Network so that it becomes non
                           Infringing.

24.4     The Contractor has no liability for any claim of Infringement based
         upon alteration or modification of any software supplied hereunder
         without the contractor's consent.

                                       50
<PAGE>

CLAUSE 25 CONFIDENTIALITY OF INFORMATION AND TECHNOLOGY

25.1     Ownership of any Information provided by the Contractor to the
         Purchasers or by the Purchasers to the Contractor shall remain with
         the party providing the Information.

25.2     Information furnished by one Party to another shall be kept
         confidential by the Party receiving it, and shall be used only for the
         construction, maintenance, operation or repair of the Network, or the
         performance of the Contract, and may not be used for any other
         purposes, or disclosed to third party(s) without the prior written
         consent of the Party owning the information, unless:

                  (a)      such information was previously known to the
                           receiving Party free of any obligation to keep it
                           confidential; or

                  (b)      such information has come into the public domain
                           other than by a breach of confidentiality by the
                           receiving Party; or

                  (c)      such information is required to be disclosed pursuant
                           to an order of the court or under any written law or
                           regulation; or

                  (d)      such information is developed independently by either
                           party's employees who had no access to such
                           confidential information where the party can document
                           such independent development.

25.3     The Contractor shall not disclose any route survey information obtained
         and produced as a result of the cable route survey without the prior
         written consent of the Purchasers, except where such disclosure is for
         the purposes of the Contract.

25.4     The Purchasers do not intend to, and will not knowingly, without the
         prior written consent of the Contractor, disclose or transfer directly
         or indirectly:

                  (a)      any Intermediate product (including processes,
                           materials and services) produced directly by the use
                           of the information obtained by or through the
                           Contractor; or

                  (b)      any commodity produced by such intermediate product
                           if the intermediate product of the information
                           obtained by or through the Contractor is a plant
                           capable of producing a commodity or is a major
                           component of such plant.

                                       51
<PAGE>

CLAUSE 26 RESPONSIBILITY FOR OBTAINING PERMITS AND FOR CUSTOMS CLEARANCE AND
          OTHER FORMALITIES

26.1     Responsibilities of the Contractor

       26.1.1     The Contractor shall obtain the necessary licenses, permits
                  and authorisations from the appropriate authorities and
                  organisations as listed in Appendix 6, including, but not
                  limited to:

                  (a)      those for works and cable laying associated with the
                           land portion;

                  (b)      those for cable laying operations, and other
                           associated marine activities, including, but not
                           limited to environmental studies, surveys in the
                           Purchasers' territories including the Purchasers'
                           territorial waters and exclusive economic zones.

                  (c)      those for Import and installation of equipment
                           specified in the Contract and which is necessary for
                           the construction of the Network

       26.1.2     The Contractor shall be responsible for the customs clearance
                  of all materials and equipment to be imported in each of the
                  Purchasers' countries/territories. For the implementation of
                  this Contract, the Contractor shall be liable for any damages
                  which the Purchasers may sustain should the Contractor be
                  unable to perform the Contract in accordance with the
                  provisions hereof.

       26.1.3     Any Involvement of the Purchasers in the importation and
                  customs clearance of the materials and equipment to be
                  imported shall not release the Contractor from any contractual
                  liability.

       26.1.4     In the case of temporary importation all operations and
                  related activities shall be the exclusive responsibility of
                  the Contractor. The Contractor shall be responsible for the
                  maintenance of the materials or equipment in question while
                  they remain in the Purchasers' countries/territories as well
                  as for their re-exportation.

       26.1.5     The Contractor shall provide at least one (1) month notice of
                  its intention to commence any activities within the territory
                  of any landing point country/territory.

       26.1.6     In addition, should the agreements of third
                  countries/territories be needed for cable laying operations
                  and other associated marine activities, the Contractor shall
                  obtain at its own cost, with the assistance of the Purchasers
                  if necessary, such agreements from the relevant government
                  authorities.

       26.1.7     The Contractor shall provide, to Purchasers at least one (1)
                  month notice of all the freight and shipment arrangements
                  (whether by land,

                                       52
<PAGE>

                  sea or air) and of the invoice for each shipment or dispatch
                  of under materials and equipment.

       26.1.8     The Contractor shall send the following documents by air mail
                  under registered cover to the appropriate Purchasers, as
                  required:

                  (a)      original bill of lading in the name of the relevant
                           Purchaser or air bill;

                  (b)      copies of the invoice;

                  (c)      copies of the packing list; and

                  (d)      certificate of origin, or goods circulation
                           certificate.

                  The format of the invoices shall be agreed between the
                  Contractor and the Purchasers.

       26.1.9     Pro forma invoices are to detail the unit price of each item
                  and its Price. Schedule reference number.

26.2     For undertaking of Work in Thailand, the Contractor shall apply for any
         required license in accordance with Foreign Business Act B. E 2542
         (1999) All Work in Thai territory shall not be proceeded without valid
         license(s). The Contractor agrees that the execution of this Contract
         is conditional of obtaining valid license(s).

                                       53
<PAGE>

CLAUSE 27 NOTICES

27.1     Any notice to be given to either Party under the terms of the
         Contract shall, without prejudice to any other way of serving it, be
         sufficiently given if sent by registered post to the following
         nominated addresses, and at least two (2) working days advise given by
         facsimile that notice is to be served. Notices shall be deemed to have
         been given within ten (10) calendar days of being posted.

27.2     Address for notices to the purchasers

         CAT:

                   Senior Director, Procurement Department
                   The communications Authority of Thailand
                   99 Chaeng Watthana Road
                   Bangkok, Thailand
                   Telephone : +66 2 573 5417
                   Fax : 66 2 573 5476

                   And copy to:
                   Senior Director, Submarine Cable Department
                   The Communications Authority of Thailand
                   99 Chaeng Watthana Road
                   Bangkok, Thailand
                   Telephone: + 66 2 506 3352
                   Fax:+ 66 2 573 5476

         PT Telkom

                   International Business Project Director
                   Jalan Dr. Soepomo 139, 2(nd) Floor
                   Jakarta 12810
                   Indonesia
                   Telephone: +62 21 8379 2400
                   Fex: +62 21 8370 1000

                   And copy to:
                   Head of Network Division
                   Jalan Japati 1, 2(nd) Floor
                   Bardung, 40133
                   Indonesia
                   Telephone: +62 22 452 2315
                   Fax: + 62 22 452 2321

         Sing Tel:

                   Submarine Cable Division
                   375 Tanjong Katong Road, #01-00
                   Katong Submarine Cable Station
                   Singapore 437132, Singapore
                   Telephone: +65 6346 3717

                                       54

<PAGE>

                   Fax: +65 6345 2258

         Addresses for notices to the Contractor

                   Submarine Network Division
                   NEC Corporation
                   7-1, Shiba 5-chome, Minato-ku
                   Tokyo 108-8001, Japan
                   Telephone: +81 3 3798 6749

                   Fax: +81 3 3798 9117

         Either Party shall give written notice to the other of any change to
         such nominated addresses.

                                       55

<PAGE>

CLAUSE 28 CLAUSE HEADINGS

The headings of Clauses are provided for convenience only and shall not be used
to interpret the Contract and shall not be deemed to form part of the Contract.

                                       56

<PAGE>

CLAUSE 29 LIMITATION OF LIABILITY

29.1     Except as specifically provided for under the Contract, in no
         circumstances shall any of the Purchasers, nor the Contractor, be
         liable to one and the other for consequential, incidental of indirect
         damages and the liability of the Purchasers and the Contractor to each
         other shall not exceed the Contract Price.

29.2     Notwithstanding sub-clause 29.1 above, the liability of the Contractor
         shall not be limited and shall include direct, consequential,
         incidental or indirect damages in the case of:

         (a)      death of personal injury;

         (b)      environmental damage resulting from the Contractor's work;

         (c)      the wilful failure of the Contractor to perform their
                  contractual obligations;

         (d)      fraud of illegal or unlawful acts:

         (e)      acts or omissions of the Contractor which are contrary to the
                  most elementary rules of diligence which a conscientious
                  Contractor would have followed in similar circumstances, or

         (f)      damage to any property other than the Network.

                                       57
<PAGE>

CLAUSE 30 SEVERABILITY

If any of the provisions of the Contract shall be invalid or unenforceable, the
entire Contract shall not thereby be rendered invalid or unenforceable, but
shall be constructed as if it did not contain the particular invalid
unenforceable provisions. The rights and obligations of the Parties shall be
construed and enforced accordingly.

                                       58
<PAGE>

CLAUSE 31 CONTRACTOR TO CONFORM TO REGULATIONS

31.1     The Contractor shall comply with the requirements of all laws in the
         countries/territories, states, provinces and territories in which any
         part of the Work under this Contract is to be done and with all
         ordinances, regulations, rules, by-laws, orders and proclamations made
         or issued under the same and with any lawful requirements thereunder
         and with the lawful requirements of public, municipal and other
         authorities within those countries/territories, states, provinces and
         territories in any way affecting this Contract or applicable to any
         Work thereunder.

31.2     The Purchasers shall not be responsible for any acts, defaults,
         neglects or omissions of the Contractor that violate the laws,
         statutes, orders, rules, decrees, or regulations of any jurisdiction in
         which the Work is carried out.

31.3     The Contractor shall be deemed to have satisfied itself that it has
         obtained all necessary information and assessed all risks, including
         but not limited to regulatory and fishermen permitting risks, with
         respect to the Work and the Contract including but not limited to the
         matters listed below:

              (a)      Fees, pilotage and any dues payable to port authorities;

              (b)      Conditions affecting labour including work permits.

              (c)      Rules and regulations of governments and/or port
                       authorities;

              (d)      Permits or approvals to lay the Network in the
                       territorial waters, exclusive economic zones or other
                       claimed waters through which it passes, and the land
                       route through which it passes;

              (e)      Permits related to the environment impact of the cable
                       laying and burial operations.

         The Contractor shall not claim for any additional payment arising from
         the above.

31.4     The Contractor shall be deemed to have fully examined and independently
         verified the documents referred to in Clause 2 (Contract Documents)
         hereby and all drawings, specification, schedules, terms and conditions
         of this Contract, regulations and other information in relation to the
         Contract and to have fully understood and satisfied itself as to all
         information which is relevant as to the risk whether political or
         otherwise, contingencies and other circumstances which could affect the
         Contract, and in particular the laying of the cable. The Purchasers,
         their servants and agents and all of them shall have no liability in
         law or equity or in Contract or in tort or pertinent to any other cause
         of action with respect to any such information, risks, contingencies or
         other circumstances.

                                       59
<PAGE>



CLAUSE 32 SETTLEMENT OF DISPUTES AND APPLICABLE LAWS

32.1     The Contractor and the Purchasers shall endeavour to settle any
         dirrerences of opinion which may arise during the implementation of the
         Contract in an amicable manner.

32.2     Any difference of opinion which may arise in respect of the
         interpretation and implementation of the Clauses of the Contract and
         any dispute which may subsist shall be settled in accordance with the
         Rules of Arbitration and Concillation of the international Chamber of
         Commerce by one or several Arbitrators sitting in Paris designated in
         accordance with the said Rules.

32.3     The language to be used in the arbitration shall be the English
         language.

32.4     The Contract shall be subject to, construed and interpreted in
         accordance with the laws of England, except that the Contract shall be
         construed and interpreted in accordance of the law of respective
         Purchaser's country/territory for and dispute of incident relating to
         the Purchaser only.

                                       60
<PAGE>

CLAUSE 33 KEEPING OF RECORDS

33.1     For all items specified in Part 2 (Price Schedule), the Contractor
         shall keep and maintain such books, records, vouchers and accounts with
         respect to its billing of those items to the Purchasers until five (5)
         years from the Network Acceptance Date.

33.2     For any item quoted on a cost incurred basis, the Contractor shall keep
         and maintain such books, records, vouchers and accounts of all costs
         with respect to the engineering, provision and installation of
         facilities of the Network until five (5) years from the Network
         Acceptance Date.

33.3     The Contractor shall obtain from its Sub-Contractors such supporting
         records for other than the cost of fixed cost items subject to the
         conditions of sub-clause 33.2, as may be reasonably required and shall
         maintain such records for a period of five(5) years from the Network
         Acceptance Date.

33.4     The Contractor shall afford the Purchasers the right to review the said
         books, records, vouchers and accounts of all costs required to be kept,
         maintained and obtained pursuant to this Clause.

                                       61
<PAGE>

CLAUSE 34 ENTIRE AGREEMENT AND AMENDMENTS

34.1     This Contract supersedes all prior oral or written understandings
         between the Purchasers and the Contractor concerning the subject matter
         of this Contract This Contract and any of its provisions may only be
         altered or added to by another agreement in writing signed by a duly
         authorised person on behalf of each and every Party to this Contract.

34.2     The Parties acknowledge and agree that:

                  (a)      they have not been induced to enter into this
                           Contract by any representation, warranty or other
                           assurance not expressly incorporated into it; and

                  (b)      in connection with this Contract, and except in
                           the case of fraud, their only rights and remedies in
                           relation to any representation, warranty or other
                           assurance shall be for breach of the terms of this
                           Contract and all other rights and remedies are
                           excluded.

                                       62
<PAGE>

CLAUSE 35 RELATIONSHIP BETWEEN THE PARTIES

35.1     The relationship between the Purchasers, each to each, is not and shall
         not be that of partners and nothing herein contained shall be deemed to
         constitute a partnership between them or any of them. The common
         enterprise between the Purchasers shall be and is limited to the
         express provision of this Contract and shall exist in no other way.

35.2     The Parties agree that no contractual relation is created between. the
         Purchasers and any of the Contractor's Sub-Contractors, suppliers or
         agents.

35.3     The relationship between the Contractor and the Purchasers shall not be
         deemed to be that of an agent and principal.

35.4     The liability of the Purchasers shall not be joint but several.

                                       63

<PAGE>

CLAUSE 36 AGENTS AND REPRESENTATIVES OF THE PURCHASERS

The Purchasers may nominate such agents or representatives, as they may desire,
to carry out any of their responsibilities or to exercise any of their rights
under this Contract. The Purchasers shall notify the Contractor in writing of
any such nominations.

                                       64
<PAGE>

CLAUSE 37 SUCCESSORS BOUND

This Contract shall be binding on the Contractor and on each Individual
Purchaser and their respective successors and their permitted assigns.

                                       65
<PAGE>

CLAUSE 38 COMING INTO FORCE OF THE CONTRACT

38.1     The Purchasers and the Contractor agree that the Contract will enter
         into force after its execution and upon receipt of the Letter of
         Performance Guarantee referred to in Clause 6 (Letter of Performance
         Guarantee) by the Purchasers.

38.2     When the above condition is complied with, then the Purchasers shall
         immediately notify the Contractor, and the Contract shall come into
         force on the date of receipt of such notice.

38.3     If the Contract has not come into force after ninety (90) days from the
         signing of the Contract, the Parties will attempt to reach an agreement
         in order to extend the said limit.

                                       66

<PAGE>

CLAUSE 39 PUBLICITY

39.1     No publicity relating to this Contract shall be published by the
         Contractor in any newspaper, magazine, journal or any other medium
         without the prior written approval of the Purchasers:

39.2     Without prejudice to any prior obligations of confidentiality it may
         have, the Contractor shall ensure that no publicity, relating to the
         Contract, shall take place without the prior written agreement of the
         Purchasers.

39.3     This provision shall survive the expiry or termination of the Contract.

                                       67

<PAGE>


CLAUSE 40 SOFTWARE

40.1     The Contractor hereby grants to the Purchasers an irrevocable
         non-exclusive royalty-free license to use, copy and use as copied all
         Software Including related documentation provided under this Contract
         throughout the Network design life. This license shall be limited to
         use of the Software for the purpose of operation and maintenance of the
         Network, and shall commence from the date of delivery of each item of
         Software or related documentation to the Purchasers.

40.2     The Contractor shall fully disclose and supply and keep supplied in
         confidence to the Purchasers the latest version of all the Software
         including documentation, with relevant information about their release
         status.

40.3     The Contractor shall take suitable precautions to protect the
         documentation and relevant source code against loss of any kind.
         Up-to-date copies of the latest documentation and relevant source code
         shall be stored by the Contractor in a safe and secure location remote
         from its normal work premises for the period of the design life of the
         Network.

40.4     In addition to the above, the Contractor shall place into an escrow
         account with an independent third party escrow agent, upon the terms
         and conditions of the Escrow-Agreement set out in Appendix 7 hereto;
         one copy of the source code and object code of the latest version of
         the Software, both in human readable format, if required, and machine
         readable format, as well as details of host machines and sufficient
         documentation including software tools to enable modification of the
         Software and shall ensure that such source code, object code and
         documentation provided hereunder are always complete and up-to-date.
         The Contractor shall further grant the Purchasers an irrevocable,
         non-exclusive, non-transferale (except that a Purchaser may assign such
         license in the event of its amalgamation or reconstruction),
         royalty-free license, to use the source code to modify, and use as
         modified, the Software, provided that such-license is limited to the
         circumstances where the Purchasers terminate the Contract due to the
         Contractor's default pursuant to Clause 22 (Termination for Default)
         hereof or if the Contractor, following the expiration of the warranty
         period set out in Clause 18 (Warranty), refuses or is not in a position
         to satisfy the Purchasers' reasonable requests for a software
         modification at reasonable cost or within such timescale as the
         Purchasers may reasonably require. Such refusal or inability shall be
         notified in writing by the Contractor to the Purchasers. For the
         avoidance of doubt the Purchasers shall not be entitled to sub-license
         the Software either in Its original form or as modified.

40.5     For the purpose of this Clause, the latest version shall mean the last
         maintained release issued by the Contractor at the time of the end of
         the five (5) year warranty period (or such extended warranty period
         selected by the Purchasers).

                                       68

<PAGE>


CLAUSE 41 INDEMNITIES TO SURVIVE TERMINATION

Each indemnity in this Contract is a continuing obligation, independent from the
other obligations of the Contractor and survives termination of this Contract.

                                       69

<PAGE>

CLAUSE 42 SIGNATURE

The Contract will be executed in 4 originals.

                                       70

<PAGE>

CLAUSE 43 NO WAIVER BY PURCHASER

43.1     The failure of the Purchasers in any one or more instances to insist
         upon strict performance of any of the terms or provisions of the
         Contract or to exercise any right or option herein conferred shall not
         be construed as a waiver or relinquishment, to any extent, of the right
         to assert or rely upon any such terms or provisions or options on any
         future occasion.

43.2     Except as otherwise provided under the Contract, no delay or failure of
         the Purchasers to exercise any right or remedy under the Contract will
         operate as a waiver thereof. No right or remedy conferred upon or
         reserved to the Purchasers under the Contract is exclusive of any other
         right or remedy under the Contract or any right or remedy provided or
         permitted by law.

                                       71
<PAGE>

CLAUSE 44 CONTRACTOR'S STAFF ON SITE

Unless otherwise agreed in writing, the Contractor shall give at least fourteen
(14) calendar days' written notice before commencing Work on Purchaser's site
(including but not limited to cable stations, man-holes etc) and shall name
those employees and Sub-Contractors requiring access. The Purchasers may object
to and direct the Contractor to remove within twenty-four (24) hours any person
employed by the Contractor or any Sub-contractor in connection with the Work who
in the opinion of the Purchasers, misconducts himself/herself or is incompetent
or negligent in the Performance of his/her duties and such person shall not be
employed again in connection with the Work without the prior approval of the
Purchasers.

                                       72
<PAGE>

CLAUSE 45 INTENTIONAL BLANK

                                       73
<PAGE>

CLAUSE 46 SHIPMENT TO THAILAND

46.1     According to notification issued by the Minister of Transport and
         Communications, whenever the Contractor has to Import Equipment into
         Thailand from a foreign country and the Equipment are to be carried by
         sea, the Contractor shall use Thai vessels for carriage service
         purposes so long as there is space available in such vessel. The
         Contractor must at all times comply with the requirements provided in
         the Thai Mercantile Marine Promotion Act.

                                       74
<PAGE>

IN WITNESS WHEREOF the Parties have severally subscribed these presents or
causes them to be subscribed in their names and on behalf of their respective
duly authorized officers.

THE PURCHASERS

SIGNED for and on behalf of
the Purchasers

By: /s/ Kittin Udomkiat
    ----------------------------------------
    THE COMMUNICATIONS AUTHORITY OF THAILAND

By: /s/ Kristiono
    --------------------------------------------------
    PERUSAHAAN PERSEROAN (PERSERO) P.T. TELEKOMUNIKASI
    INDONESIA TBK

By: /s/ Ng Seng Sum
    ------------------------------------
    SINGAPORE TELECOMMUNICATIONS LIMITED

THE CONTRACTOR

SIGNED for and on behalf of
NEC

By: /s/ Botaro Hirosaki
    ------------------------------------
    NEC CORPORATION

                                       75

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.33
<SEQUENCE>32
<FILENAME>u92256exv4w33.txt
<DESCRIPTION>EX-4.33 CABLE NETWORK CONSTRUCTION & MAIN. AGMT
<TEXT>
<PAGE>
                                                                    Exhibit 4.33



                 THAILAND - INDONESIA - SINGAPORE CABLE NETWORK
                      CONSTRUCTION & MAINTENANCE AGREEMENT

                  TELKOM REF. NO. PKS.211/HK.910/UTA-00/2002


                              DATED NOVEMBER 27, 2002
<PAGE>

                 THAILAND - INDONESIA - SINGAPORE CABLE NETWORK
                      CONSTRUCTION & MAINTENANCE AGREEMENT

                   TELKOM Ref. No. PKS, 211/HK.910/UTA-00/2002

THIS AGREEMENT, made and entered into this 27th day of November 2002, between
and among the Parties signatory hereto (hereinafter collectively referred to as
the "Parties" and individually referred to as the "Party"), which Parties are
identified in Schedule A,

WITNESSETH:

         WHEREAS, the Parties acknowledge that the tremendous growth in the
telecommunications traffic in South East Asia warrants the implementation of a
new high capacity fiber optic cable system with Cable Landing Points in
Thailand, Indonesia and Singapore (hereinafter referred to as "TIS") to support
such demand and to connect to existing and planned South East Asian cable
systems;

         WHEREAS, the Parties acknowledge that the existing cables in South East
Asia would be fully utilized in the next few years;

         WHEREAS, the Parties wish to acquire capacity at the highest quality on
an ownership basis;

         WHEREAS, CAT, TELKOM and SINGTEL signed a Memorandum of Understanding
to plan the TIS effective from 13 May 2002 (hereinafter referred to as the
"MOU") to permit activities, as defined in the MOU; and

         WHEREAS, the MOU shall continue to be in force until the signing, by
the Parties, of this Agreement, which is the TIS Construction and Maintenance
Agreement (hereinafter referred to as the "C&MA" or "Agreement"); and

         WHEREAS, the Parties now desire to construct the TIS comprised of two
(2) fiber optic pairs; and

         WHEREAS, the Parties now desire to define the terms and conditions upon
which the TIS will be provided, constructed, operated and maintained.

         NOW, THEREFORE, the Parties hereto, in consideration of the mutual
covenants herein expressed, covenant and agree with each other as follows:

                                     - 1 -

<PAGE>

1        DEFINITIONS AND INTERPRETATIONS

1.1      The following definitions and interpretations shall apply to certain
         terms used in this Agreement:

         (a)      ASSOCIATE COMPANY: A company is the Associate of another if
                  either company owns directly no less than 20% of its equity.

         (b)      CABLE LANDING POINT: Cable Landing Point shall be the beach
                  joint or the mean low watermark of ordinary spring tides if
                  there is no beach joint.

         (c)      CAPACITY: Capacity shall be expressed in terms of two (2) half
                  MIUs and shall be classified as follows:-

                  ALLOCATED CAPACITY: Capacity allocated in the TIS to Specific
                  Parties and which comprises Assigned Capacity, Defined
                  Capacity and Reserved Capacity.

                  ASSIGNED CAPACITY: Capacity which is assigned to the Parties
                  in specific Paths of the TIS.

                  DEFINED CAPACITY: Capacity acquired by a Party for transfer on
                  an IRU basis to other Carriers pursuant to Subparagraph 14.10.

                  DESIGN CAPACITY: the maximum capacity that the TIS is designed
                  to provide which shall be no less than 160 Gbit/s per
                  fiber pair.

                  EQUIPPED CAPACITY: the amount of capacity physically provided
                  in the TIS.

                  INITIAL EQUIPPED CAPACITY: Initial Equipped Capacity of the
                  TIS shall be 30 Gbit/s.

                  IRU CAPACITY: Capacity acquired after execution of this
                  Agreement on an IRU basis.

                  RESERVED CAPACITY: Capacity which is acquired by a Party for
                  its intended future assignments pursuant to Subparagraph 14.7.

                  UNALLOCATED CAPACITY: the difference in capacity between the
                  Design Capacity and the Allocated Capacity.

                  UNASSIGNED CAPACITY: Capacity which comprises the Defined
                  Capacity and/or Reserved Capacity.

                                     - 2 -

<PAGE>
\
         (d)      CARRIER: Any entity authorized or permitted under the laws of
                  its respective Country, or another Country in which it
                  operates, to acquire and use international transmission
                  facilities for the provision of international
                  telecommunications services and which is in possession of any
                  necessary operating license to enable it to do so.

         (e)      COUNTRY: The word Country as used in this Agreement shall mean
                  a country, territory or place, as appropriate.

         (f)      FINAL ACCEPTANCE: The issuance of a Certificate of Final
                  Acceptance pursuant to the terms and conditions set forth in
                  the Supply Contract(s).

         (g)      INITIAL PARTIES: Initial Parties are CAT, TELKOM and SINGTEL.

         (h)      IRU: Indefeasible Right of Use which does not convey ownership
                  and voting rights in the management of the TIS.

         (i)      IRU PURCHASERS: shall mean any Carrier that purchase IRU of
                  the TIS.

         (j)      LINK: The physical optical fibre pair(s) between the Network
                  Interfaces at the Terminal Stations (excluding Terminal
                  Stations) of one Terminal Party and another Terminal Party.
                  The Links of the TIS shall be as follows :-

                  (i)      Thailand - Singapore Link;

                  (ii)     Singapore - Indonesia Link.

         (k)      MINIMUM INVESTMENT UNIT: A unit designated as the minimum unit
                  of investment in the TIS, allowing the use of two (2) half
                  STM-l circuits on any Path within the TIS. The Minimum
                  Investment Unit is hereinafter termed as a "MIU".

         (l)      NETWORK INTERFACE: the nominal STM-1 digital/optical
                  input/output ports, and/or STM-4, STM-16 and STM-64 on the
                  digital/optical distribution frame (including the
                  digital/optical distribution frame itself) where the basic
                  system payload module connects/aggregates with other
                  transmission facilities or equipment.

         (m)      PATH: The connectivity in the TIS between any two Terminal
                  Stations, independent of the actual Link(s) used to connect
                  these Terminal Stations. The Paths of the TIS shall be as
                  follows:-

                  (i)      Thailand-Singapore Path;

                  (ii)     Singapore - Indonesia Path; and

                  (iii)    Thailand - Indonesia Path.

                                     - 3 -

<PAGE>

         (n)      NETWORK ACCEPTANCE: The issuance of Certificate of Network
                  Acceptance pursuant to the terms and conditions as set forth
                  in the Supply Contract(s).

         (o)      READY FOR NETWORK ACCEPTANCE DATE: The date on which the
                  entire Segment S of the TIS is provisionally accepted by the
                  Procurement Group (hereinafter referred to as the "PG") on
                  behalf of the Parties. The Ready for Network Acceptance Date
                  (hereinafter referred to as the "RFNA Date") shall be 27
                  November 2003, or such other date as may be agreed by the
                  Management Committee (hereinafter referred to as the "MC").

         (p)      READY FOR SERVICE DATE: The date on which commercial service
                  can be placed on the entire TIS. For the purposes of this
                  Agreement, the Ready for Service Date shall be on or before 5
                  December 2003, or such other date as may be agreed by the MC
                  established pursuant to Subparagraph. 3.1 hereof (hereinafter
                  referred to as the "RFS Date").

         (q)      SIE: Synchronous Digital Hierarchy/Interconnecting Equipment.

         (r)      SUPPLY CONTRACT: The contract(s) placed by the PG on behalf of
                  the Parties for the supply of Segment S of the TIS.

         (s)      TERMINAL PARTIES: The Terminal parties are CAT, TELKOM and
                  SINGTEL.

         (t)      TERMINAL STATION: The cable landing station at the Cable
                  Landing Points.

1.2      Schedules and Annexes

         The Schedules and Annexes to this Agreement, and any written amendments
         thereto or any Schedules or Annexes substituted therefore, shall form
         part of this Agreement, and any Paragraph which contains a reference to
         a Schedule or Annex shall be read as if the Schedule or Annex was set
         out at length in the body of the Paragraph itself. In the event that
         there is any conflict between the terms and conditions of this
         Agreement and the Schedules and Annexes to this Agreement, the terms
         and conditions of this Agreement shall prevail.

1.3      Interpretation

         Where the sense requires, words denoting the singular only shall also
         include the plural and vice versa. References to persons shall include
         firms and companies and vice versa. Reference to the male shall include
         the female.

                                     - 4 -

<PAGE>

2.       TIS CONFIGURATION, PLANNING AND DEVELOPMENT

2.1      The configuration of TIS shall be as shown in Annex 3.

2.2      The planning and development of the TIS shall be based on the use of
         proven technology judged suitable for implementation of the TIS at the
         RFS Date employing the appropriate transmission rate necessary to meet
         the capacity requirements of the Parties, which shall be initial at 3 x
         9.95328 Gbits per second (30 Gbits/s) or higher.

3.       MANAGEMENT COMMITTEE

3.1      For the purpose of directing the progress of the engineering,
         provision, installation, bringing into service and continued operation
         of the TIS, the Parties shall form a Management Committee (hereinafter
         referred to as "MC), consisting of a Chairman and one representative
         from each of the Parties to this Agreement. Except as otherwise stated
         in this Agreement, which exception shall include decisions on
         procurement which shall be made by the Procurement Group (hereinafter
         referred to as "PG") in accordance with Paragraph 7, the MC shall make
         all major decisions necessary on behalf of the Parties to effectuate
         the purposes of this Agreement, including bat not limited to, the
         placement of the TIS and its associated Terminal Stations, or any
         portion thereof into service prior to or on or after the RFS Date.

3.2      Two or more Parties may designate the same Party to serve as their
         representative at specific meetings of the MC and/or its Subcommittees
         established pursuant to Subparagraph 3.7 of this Agreement.

3.3      Each of the Parties shall, on a rotational basis, provide the Chairman
         of the MC. The MC will meet on the call of a Chairman or whenever
         requested by one or more Parties together representing at least thirty
         three point three three per cent (33.33%) of the total voting interests
         specified in Schedule B. The Chairman shall give at least thirty (30)
         days advance notice of each meeting to each of the Parties hereto,
         together with a copy of the draft agenda. In cases of emergency, such
         notice period may be reduced where at least sixty six point six seven
         percent (66.67%) of the total voting interests an in agreement.
         Documents for the meeting should be made available to members at least
         fourteen (14) days before the meeting, but the MC may agree to discuss
         papers distributed on less than fourteen (14) days' notice.

                                     - 5 -

<PAGE>

3.4      All decisions made by the MC shall be subjected; in the first place, to
         consultation among the Parties, which shall make every reasonable
         effort to reach agreement with respect to matters to be decided.
         However, in the event an agreement cannot be reached, the decision will
         be carried on the basis of a vote, representing seventy five percent
         (75%) of the total voting interests specified in Schedule B. Votes of
         the members of the MC shall be weighted in proportion to the relative
         voting interests as specified in Schedule B of the Parties they
         represent. A member of me MC representing more than one Party shall
         separately cast the votes to which each Party he represents is
         entitled.

3.5      Any Party not represented at a MC meeting, but entitled to vote, may
         vote on any matter on the agenda of such meeting by either appointing a
         proxy in writing, or giving notice of such vote to the Chairman prior
         to the submission of such matters for vote at such meetings.

3.6      No decisions of the MC, its subcommittees or any other groups
         established by the MC shall override any provisions of this Agreement
         or in any way diminish the rights or prejudice the interests granted to
         any Party under this Agreement.

3.7      The following subcommittees shall be formed, comprised of
         representatives of each Party, to aid the MC in the performance of its
         duties. The said subcommittees, under the direction of the MC, shall be
         responsible for their respective areas of interest listed in Annex 1 of
         this Agreement and any other areas of interest designated by the MC:

         (i)      Technical and Operational Subcommittee (hereinafter referred
                  to as "T&OSC");

         (ii)     PG;

         (iii)    Financial and Administration Subcommittee (hereinafter
                  referred to as "F&ASC").

3.8      The Parties shall appoint among themselves the Chairman or Co-Chairmen
         of the T&OSC and F&ASC, each of which subcommittees shall meet at least
         annually after the effective date of this Agreement and more frequently
         if necessary, until two (2) years following the RFS Date and thereafter
         as may be appropriate. Meetings of a subcommittee may be called to
         consider specific questions at the discretion of its Chairman, or
         Co-Chairmen, or whenever requested by one or more Parties representing
         at least thirty three point three three percent (33.33%) of the total
         voting interests specified in Schedule B.

                                     - 6 -

<PAGE>

3.9      The respective Chairman or Co-Chairmen of each subcommittee, or a
         designated representative of each subcommittee, shall attend the MC
         meetings and meetings of each other subcommittee in an advisory
         capacity as necessary. On or about two (2) years after the RFS Date,
         the MC shall determine whether any of its subcommittees should remain
         in existence. If the MC determines that one or more of its
         subcommittees shall not remain in existence, the responsibilities
         assigned to a subcommittee whose existence has been terminated under
         this Subparagraph 3.9 shall revert to the MC unless otherwise provided
         for in this Agreement.

3.10     The Network Administrator (hereinafter referred to as "NA") shall be
         appointed by the MC.

3.11     The Terms of Reference and appointment arrangement for the NA are as
         set forth in Annex 2 of this Agreement.

3.12     The Terms of Reference of all the subcommittees, the NA established
         pursuant to this Paragraph 3 shall be amended by the MC as and when it
         is necessary.

4.       TIS SEGMENTS

4.1      In accordance with the arrangements contained in this Agreement, the
         TIS shall be engineered, provided, constructed, maintained and operated
         between a terminal in Thailand, a terminal in Indonesia and a terminal
         in the Singapore, which for purposes of this Agreement, shall be
         regarded as consisting of the following segments:

                 Segment S: The whole of the submarine cable provided between
                            and among, including, the TIS Network Interfaces at
                            the Terminal Stations at Songkhla, Thailand; Changi,
                            Singapore and Batam, Indonesia.

                 Segment T1: A Terminal Station at Songkhla, Thailand

                 Segment T2: A Terminal Station at Changi, Singapore

                 Segment T3: A Terminal Station at Batam, Indonesia

4.2      Segments T1, T2 and T3 shall each consists of:

         (i)     an appropriate share of land, civil work and buildings at the
                 specified locations for the cable landing and for the cable
                 route including cable rights-of-way and ducts between a
                 Terminal Station and its respective Cable Landing Point and an
                 appropriate share of common services and

                                     - 7 -

<PAGE>

                  equipment at each of those locations together with equipment
                  in each of those Terminal Stations which is solely associated
                  with the TIS, but not a part of Segment S; and

         (ii)     multiplex and/or digital cross connect equipment, SIE, Add
                  Drop Multiplexers (hereinafter referred to as "ADM") or an
                  appropriate share thereof in each of the Terminal Stations as
                  required to operate and interface between the TIS Network
                  Interface and the nominal 155 Mbit/s operating point,
                  associated solely and directly with assigned capacity entering
                  or leaving the TIS.

4.3      Segment S shall be regarded as consisting of the following Subsegments:

         SUBSEGMENT S1:

         The whole of the submarine cable containing two (2) optical fiber pairs
         provided between and including the TIS Network Interface at the
         Terminal Station at Songkhla and the TIS Network Interface at the
         Terminal Station at Changi.

         SUBSEGMENT S2:

         The whole of the submarine cable containing two (2) optical fiber pairs
         provided between and including the TIS Network Interface at the
         Terminal Station at Changi and the TIS Network Interface at the
         Terminal Station at Batam.

4.4      Segment S shall include:

         (i)      all transmission, power feeding and test equipment directly
                  associated with submersible plant;

         (ii)     the power equipment provided wholly for use with the equipment
                  listed in (i) above;

         (iii)    the transmission cable equipped with appropriate repeaters and
                  joint housings between the Terminal Stations;

         (iv)     the power feed earth system or an appropriate share thereof,
                  associated with terminal power feeding equipments; and

         (v)      multiplexing and/or digital cross connect equipment or an
                  appropriate share thereof, down to the 155 Mbit/s level in
                  each of the Terminal Stations as required and approved by the
                  MC, associated solely and directly with assigned capacity
                  transiting between any two interconnecting Links in the TIS.

                                     - 8 -

<PAGE>

5        PROVISION AND CONSTRUCTION OF SEGMENTS T1, T2 AND T3

5.1      Segment T1 of the TIS shall consist of an appropriate share of the
         existing Terminal Station at Songkhla and shall be provided by CAT.

5.2      Segment T2 of the TIS shall consist of an appropriate share of the
         existing Terminal Station at Changi and shall be provided by SINGTEL.

5.3      Segment T3 of the TIS shall consist of an appropriate share of the
         existing Terminal Station at Batam and shall be provided by TELKOM.

5.4      Each Terminal Party shall bear its own Segment T capital costs in the
         initial construction of the TIS.

6        OWNERSHIP OF SEGMENTS

6.1      Segment S of the TIS shall be owned by the Parties in common and
         undivided shares, in the proportions set forth in Schedule B. Ownership
         of Segment S shall vest in the Parties immediately upon ownership
         vesting in the PG in accordance with the Supply Contract(s).

6.2      Segment T1 of the TIS shall be owned by CAT

6.3      Segment T2 of the TIS shall be owned by SINGTEL

6.4      Segment T3 of the TIS shall be owned by TELKOM

6.5      Each segment or sub-segment shall be regarded as including its related
         spare and stand by units and components, including but not limited to,
         submersible repeaters, cable length and terminal equipment where
         appropriate.

7        SUPPLY OF SEGMENT S

7.1      The supply of Segment S shall be through the Supply Contract to be
         placed by the PG with supplier(s) subject to approval by the MC.

7.2      Each of the Parties shall be entitled, on request and its own expense,
         to receive from the PG a copy of the Supply Contract subject to the
         acceptance by each such Party of any reasonable conditions of
         confidentially imposed by the Supply Contract.

                                     - 9 -


<PAGE>

7.3      The PG shall ensure that the Supply Contract specify that Segment S of
         the TIS provided pursuant to the Supply Contract shall be ready for
         Network Acceptance on or before 27 November 2003. However, the Parties
         recognize and agree that the PG does not warrant or guarantee that
         Segment S of the TIS shall be ready for Network Acceptance on the date
         specified in the Supply Contract

7.4      The PG shall ensure that the Supply Contract shall afford them or their
         designated representatives reasonable rights of access to examine, test
         and inspect the TIS submarine cable equipment material, supplies and
         installation activities.

7.5      In the event that Segment S fails to meet the specifications referenced
         in the Supply Contract for its provision, fails to provide the
         specified capacity, or is not engineered, provided, installed and ready
         in sufficient time to meet the RFNA Date specified in the Supply
         Contract or if the supplier(s) are otherwise in material breach of the
         Supply Contract, the PG, as an agent of the Parties to this Agreement
         may pursuant to this Paragraph 7 and in accordance with the Supply
         Contract take such actions as may be necessary to exercise the rights
         and remedies available under the terms and conditions of the Supply
         Contract Such actions by the PG shall be subject to any direction
         deemed necessary by the MC.

7.6      The members of the PG shall not be liable to any other Party for any
         loss or damage sustained by reason of a supplier's failure to perform
         in accordance with the terms and conditions of its Supply Contract or
         as a result of the TIS not being ready for network acceptance on or
         before the RFNA Date specified in the Supply Contract or if the TIS
         does not perform in accordance with the technical specifications and
         other requirements of the Supply Contract or the TIS is not integrated
         or placed into operation. The Parties recognize that the PG does not
         guarantee or warrant (i) the performance of the Supply Contract by the
         supplier(s), (ii) the performance or reliability of Segment S of the
         TIS, or (iii) that the TIS will be integrated or placed into operation.
         And the Parties hereby agree that nothing in this Agreement shall be
         constructed as such a warranty or guarantee.

8        DEFINITION OF SEGMENT S CAPITAL COSTS

8.1      The Segment S capital costs (hereinafter referred to as Segment S
         Capital Costs), as used herein, refer to costs incurred in connection
         with engineering, providing, constructing, laying and installation of
         Segment S of the TIS; or causing it to be engineered, provided and
         constructed, and shall include:

         (i)      financial charges attributable to other Parties' shares of
                  such costs incurred under the MOU in respect of the TIS;

         (ii)     those costs payable to the supplier(s) under the Supply
                  Contract;

                                     - 10 -

<PAGE>

         (iii)    those costs directly incurred by the Terminal Parties which
                  shall be fair and reasonable in amount and not included in the
                  Supply Contract, and which have been directly and reasonably
                  incurred for the purpose of, or to be properly chargeable in
                  respect of, such engineering, provision, construction,
                  installation and laying of Segment S, including but not
                  limited to the costs of engineering, design, materials,
                  manufacturing, procurement and inspection, installation,
                  removing (with appropriate reduction for salvage) cable ship
                  and other ship costs, route survey, burying, testing
                  associated with laying or installation, customs duties taxes
                  (except income tax imposed on the net income of a Party),
                  financial charges attributable to other Parties' shares of
                  costs incurred, supervision, billing activities, overheads and
                  insurance or a reasonable allowance in lieu of insurance if
                  such Party elects to carry a risk itself being a risk which is
                  similar to one against which a supplier has insured or against
                  which insurance is usual or recognized or would have been
                  reasonable.

         (iv)     those costs and expenses incurred by the NA Up to the RFS Date
                  in fulfilling its responsibilities as set forth in Annex 2;

         (v)      The Segment S Capital Costs shall include PG meeting costs but
                  exclude costs incurred by the Parties hereto in holding of MC
                  meetings and meetings of its subcommittees or groups
                  established pursuant to Subparagraph 3.7.

8.2      The Segment S Capital Costs shall also include the costs of any
         additional work and multiplex and/or digital cross connect equipment,
         SIE, ADM or an appropriate share thereof, down to the 155 Mbit/s level,
         as required and approved by the MC, associated solely and directly with
         assigned capacity transiting between any two interconnecting Links in
         the TIS, which may be incorporated in the Segment S subsequent to the
         RFS Date.

9.       DEFINITION OF OPERATION AND MAINTENANCE COSTS

9.1      The costs of operation and maintaining Segment S of the TIS up to beach
         manhole (hereinafter referred to as the "Segment S O&M Costs"), shall
         be shared by the Parties in the relevant proportions specified in
         Schedule C2. The cost for operation and maintenance of land cable from
         beach manhole to terminal station shall be part of the Segment T O&M
         costs.

9.2      The costs associated with Segment S O&M Costs are the costs reasonably
         incurred in the operation and maintenance of Segment S, including, but
         not limited to:

                                     - 11 -

<PAGE>

         (i)      the cost of attendance, testing, adjustments, storage of plant
                  and equipment, repairs (including repairs at sea) and
                  replacements, cable ships (including an appropriate share of
                  standby costs), cable deports, reburial and replacement of
                  plant, tools and test equipment, customs duties, taxes,
                  (except income tax imposed upon the net income of & Party)
                  paid in respect of such facilities, billing activities,
                  financial charges attributable to other Carriers' shares of
                  costs incurred by a maintenance authority (hereinafter
                  referred to as "Maintenance Authority" which have the same
                  meaning ascribed thereto under Subparagraph 12.7 herein),
                  supervision, overheads and costs and expenses reasonably
                  incurred on account of claims made by or against other persons
                  in respect of such facilities or any part thereof and damages
                  or compensation payable by the Party concerned on account of
                  such claims. Costs, expenses damages, or compensation payable
                  to the Parties on account of claims made against other
                  persons, shall be subjected to MC approval and shall be shared
                  by the Parties in the proportions specified in Schedule C.

         (ii)     those fees payable to the NA, after the RFS Date, in
                  fulfilling its responsibilities as set forth in Annex 2;

9.3      The costs referred to in Subparagraph 9.2 above shall exclude costs
         incurred by the Parties hereto in the hosting of the meetings of the MC
         and the subcommittees or groups pursuant to Subparagraph 3.7 or in the
         attendance by the Parties' representative of such meetings after the
         RFS Date unless approved by the MC.

10       ALLOCATION AND BILLING OF SEGMENT S CAPITAL AND OPERATION AND
         MAINTENANCE COSTS

10.1     The Segment S Capital Costs as defined in Paragraphs S shall be borne
         by the Initial Parties, in the proportions as set forth in Schedule Cl.
         The Segment S Capital Costs for the Initial Parties shall be billed by
         Supplier in accordance with the Supply Contract. The NA shall bill
         Additional Parties according to their purchase price and reimburse the
         Initial Parties according to Schedule C1.

10.2     The Segment S O&M Costs as defined in Paragraph 9 shall be borne by the
         Parties, in the proportions as set forth in Schedule C2.

10.3     Unless the MC authorizes changes to the procedure for the rendering of
         bills associated with me Segment S Capital Costs or Segment S O&M
         Costs, the NA or Terminal Parties shall promptly render bills
         respectively, in accordance with this Paragraph 10 and the billing and
         payment procedures established by the F&ASC and approved by the MC, to
         each of the Parties for such Party's pro rata shares of these costs in
         accordance with Schedule Cl and C2 respectively. Such bills shall be
         rendered by NA or Terminal Parties not more frequently than

                                     - 12 -
<PAGE>

         quarterly and shall contain a reasonable amount of detail to
         substantiate them. On the basis of such bills, each Party shall pay NA
         or the Terminal Parties such amounts as may be owed by the end of the
         calendar month following the calendar month in which the bill was
         rendered.

10.4     In the case of bills containing costs billed on a preliminary billing
         basis, appropriate adjustments will be made in subsequent bills
         promptly after the actual costs involved are determined. As soon as
         practicable, NA and the Terminal Parties shall make such adjustments
         and render such bills or arrange for such credits as appropriate due to
         changes in the cost actually incurred.

10.5     For purposes of this Agreement, financial charges shall be computed as
         applicable on a daily basis from the date the cost is incurred until
         the date payment is due, at a rate equal to the lowest publicly
         announced prime rate or minimum commercial lending rate, however
         described, for ninety (90) days loans in the currencies of the Parties
         or the currency of billing, as applicable, charged by established
         commercial banks in the countries concerned on the fifteenth day of the
         month in which the costs were incurred by the invoicing Parties. If
         such a day is not a business day, the rate prevailing on the next
         business day shall be used. The source of the rate of such financial
         charges shall be as shown at Annex 4. The application of financial
         charges relating to costs incurred for the Segment S Capital Costs and
         Segment S O&M Costs shall be limited to a maximum of one hundred twenty
         (120) days, unless otherwise approved by the MC.

10.6     Amounts billed and not paid when due shall accrue extended payment
         charges from the day following the date on which payment was due until
         paid. If the due date is not a business day, the due date shall be
         postponed to the next business day. For the purpose of this Agreement,
         extended payment charges shall be computed at three hundred percent
         (300%) of the rate described in Subparagraph 10.5 on the day following
         the date payment of the bill was due. In the event that applicable law
         does not allow the imposition of extended payment charges at the rate
         established in accordance with this Subparagraph 10.6, extended payment
         charges shall be at the highest rate permitted by applicable law, which
         in no event shall be higher than the rate computed in accordance with
         this Subparagraph 10.6. For purposes of this Agreement, "paid" shall
         mean that the funds are immediately available for use by the recipient.

10.7     Credits for refund of financial charges and bills for extended payment
         charges shall not be rendered if the amount of charges involved is less
         than the equivalent of one hundred ($100) US dollars or its equivalent
         in the billing currency.

10.8     A bill shall be deemed to have been accepted by the Party to whom it is
         rendered if that Party does not present a written objection on or
         before the date when payment is due. If such objection is made, the
         Parties concerned shall make every reasonable effort to settle promptly
         the dispute concerning the bill in question. If the objection is
         sustained and the billed Party has paid the disputed bill, the

                                     - 13 -
<PAGE>

         agreed upon overpayment shall be promptly refunded to the objecting
         Party by the invoicing Party together with any financial charges
         calculated thereon at a rate determined in accordance with Subparagraph
         10.5 of this Agreement from the date of payment of the bill to the date
         on which the refund is transmitted to the objecting Party. If the
         objection is not sustained and the billed Party has not paid the
         disputed bill, the said Party will pay such bill promptly together with
         any extended payment charges calculated thereon at a rate determined
         in accordance with Subparagraph 10.6 of this Agreement from the day
         following the day on which payment was due until paid. Nothing in this
         Subparagraph 10.8 shall relieve a Party from paying those parts of a
         bill that are not in dispute.

11.      CURRENCY OF PAYMENT

         All bills rendered to the Party shall be in the currency of the United
         States or in the currency of the billing Party which is specified in
         Annex 4 or the currency in which the cost was incurred in the case of
         Segment S O&M Costs. Such bills shall be paid in the currency in which
         the bills are rendered. In conjunction with the NA and Terminal
         Parties, the F&ASC shall develop procedures to deal with the
         differences between the exchange rates.

12       DUTIES AND RIGHTS AS TO OPERATION AND MAINTENANCE OF SEGMENTS

12.1     CAT shall be solely responsible for the operation and maintenance of
         Segment T1 and that portion of Segment S between the TIS Network
         Interface at the Terminal Station at Songkhla and its respective Cable
         Landing Point. CAT shall use all reasonable efforts to operate and
         maintain or cause to be operated and maintained Segment T1 and the said
         portion of Segment S, economically and in efficient working order.

12.2     SINGTEL shall be solely responsible for the operation and maintenance
         of Segment T2 and those portions of Segment S between the TIS Network
         Interfaces at the Terminal Station at Changi and its respective Cable
         Landing Points. SINGTEL shall use all reasonable efforts to operate and
         maintain or cause to be operated and maintained Segment T2 and those
         said portions of Segment S, economically and in efficient working
         order.

                                     - 14 -
<PAGE>

12.3     TELKOM shall be solely responsible for the operation and maintenance of
         Segment T3 and those portions of Segment S between the TIS Network
         Interfaces at the Terminal Station at Batam and its respective Cable
         Landing Points. TELKOM shall use all reasonable efforts to operate and
         maintain or cause to be operated and maintained Segment T3 and those
         said portions of Segment S, economically and in efficient working
         order.

12.4     The Terminal Parties (for the purpose of this Agreement, collectively
         called the "Maintenance Authorities" and individually called the
         "Maintenance Authority" or "MA") shall be responsible for the overall
         operation and maintenance of those portions of Segment S connecting the
         respective Terminal Parties' Cable Landing Points, economically and
         efficient working order and with an objective of achieving effective
         and timely repairs when necessary. The Segment S operation and
         maintenance procedures shall be established by the MA following
         consultation with the T&OSC, as appropriate. The MA shall perform their
         responsibilities in a manner consistent with those maintenance
         agreements applicable to the TIS.

12.5     Such responsibilities shall be apportioned between and among the
         Terminal Parties as they may mutually agree. The responsibilities for
         the Segment S operation and maintenance shall be reviewed, and
         recommendations shall be made to the MA as appropriate, by the T&OSC.
         The MA shall use all reasonable efforts to operate and maintain or
         cause to be operated and maintained economically the Segment S of the
         TIS in efficient working order.

12.6     The MA shall have the right to deactivate Segment S, or any part
         thereof, in order to perform their duties. Prior to such deactivation,
         reasonable notice shall be given to, and coordination shall be made
         with the other Carriers. To the extend possible, sixty (60) days prior
         to initiating action, the MA involved shall advise the other Carriers
         in writing of the timing, scope, and costs of significant planned
         maintenance operations; of significant changes to existing operations
         and maintenance methods; and of contractual arrangements for cable
         ships or other maintenance facilities or devices that will have a
         significant impact on operation or maintenance costs. Should one or
         more Parties representing at least seventy five percent (75%) of the
         total voting interests in the TIS specified in Schedule B wish to
         review such operation or change prior to its occurrence, such Party or
         Parties shall notify the appropriate MA and the T&OSC Chairman or Co-
         Chairmen in writing thirty (30) days of such advice. Upon such
         notification, the T&OSC shall initiate action to convene an ad hoc
         meeting for such review.

12.7     Each Party that has designed or procured equipment used in the TIS
         shall give necessary information relating to the Segment S operation
         and maintenance of the equipment to the MA responsible for the Segment
         S operation and maintenance of such equipment. Each MA with
         responsibility for the maintenance of any segment or portion of any
         segment of the TIS shall have prompt access necessary

                                     - 15 -
<PAGE>

         to the performance of its duties to all system maintenance information
         appropriate to those parts of the TIS not covered by its authority.

12.8     The MA, with respect to the TIS, shall be authorized to pursue claims
         in its own name, on behalf of the Parties, in the event of any damage
         or loss to the TIS or any part thereto and may file appropriate lawsuit
         or other proceedings on behalf of the Parties. Subject to obtaining the
         prior concurrence of the MC, a MA may settle or compromise any claims
         and execute releases and settlement agreements on behalf of the Parties
         as necessary to effect a settlement or compromise. The MC shall be
         informed of all such activities, as appropriate.

12.9     None of the Party shall be liable to any other Party or take on itself
         to be responsible to any Carrier for any loss or damage sustained by
         reason of any failure in, or breakdown of, the facilities constituting
         the TIS or any interruption of service, whatsoever shall be the cause
         of such failure, breakdown, or interruption, and however long it shall
         last, but, in the event of a failure or breakdown of any such
         facilities, if the MA responsible for O&M of such facilities involved
         as specified in this Paragraph 12 fails to restore those facilities to
         efficient working order and operation within a reasonable time after
         having been called upon to do so by any other Party to whom capacity is
         assigned by this Agreement, the MC may, to the extent that it is
         practical to do so, place or cause to be placed such facilities in
         efficient working order and operation and charge the Carriers their
         proportionate shares of the costs reasonably incurred in doing so.

12.10    Each Party to this Agreement, at its own expense, shall have the right
         to inspect from time to time the Segment S operation and maintenance of
         any portion of the TIS and to obtain copies of the maintenance records.
         For this purpose, each MA responsible for maintaining any segment or
         portion of any segment of the TIS, as specified in this Paragraph 12
         shall retain significant records, including recorder charts, for a
         period of not less then five (5) years from the date of the record. If
         these records are destroyed at the end of this period, a summary of
         important items should be retained for the life of the TIS. Such right
         of inspection pursuant to this Subparagraph 12.10 shall be subject to
         reasonable conditions of confidentiality.

13       KEEPING AND INSPECTION OF BOOKS FOR SEGMENT S

13.1     For those portions of Segment S, if any, specified in the Supply
         Contract as costs incurred items, the PG shall ensure that the Supply
         Contract require the supplier(s) to keep and maintain such books,
         records, vouchers and accounts of all such costs with, respect to the
         engineering, provision and installation of those items for a period of
         five (5) years from the date of Network Acceptance of Segment S, as
         specified in the Supply Contract(s).

                                     - 16 -
<PAGE>

13.2     For those portions of Segment S specified in the Supply Contract as
         fixed cost items, the PG shall ensure that the Supply Contract require
         the supplier(s) to keep and maintain records with respect to their
         respective billing of those items for a period of five (5) years from
         the RFNA Date of Segment S, as specified in the Supply Contract.

13.3     The PG shall ensure that the Supply Contract require the supplier(s) to
         obtain from their contractors and subcontractor(s) such supporting
         records, for other than the cost of fixed cost items, as may be
         reasonably required by Subparagraph 13.1 and to keep and maintain such
         records for a period of five (5) years from the RFNA Date of Segment S,
         as specified in the Supply Contract.

13.4     The PG shall ensure that the Supply Contract shall afford the Parties
         to this Agreement the right to review the books, records, vouchers, and
         accounts required to be kept, maintained, and obtained pursuant to
         Subparagraphs 13.1, 13.2 and 13.3.

13.5     With respect to additions to Segment S, comparable records to those
         specified in Subparagraphs 13.1, 13.2 and 13.3, as appropriate, shall
         be maintained by the Party providing such additions for a period of
         five (5) years from the installation date of such equipment.

13.6     The Terminal Parties shall each keep and maintain such books, records,
         vouchers, and accounts of all costs that are incurred in the
         engineering, provision and installation of Segment S and not included
         in the Supply Contract, as defined in Paragraph 10, which they incur
         directly, for a period of five (5) years from the RFS Date or the date
         the work is completed, whichever is later.

13.7     With respect to the Segment S O&M Costs, such books, records, vouchers,
         and accounts of costs, as are relevant, shall be kept and maintained by
         the Terminal Parties for a period of five (5) years from the date on
         which the corresponding bills to the Carriers are rendered.

13.8     Any Party, including the NA, keeping and maintaining relevant books,
         records, vouchers, and accounts of costs pursuant to Subparagraphs
         13.5, 13.6 and 13.7 shall afford the other Parties the right to review
         or audit the said books, records, vouchers, and accounts of costs. In
         affording the right to review or audit, the entire costs reasonably
         incurred in complying with the review or audit. In the case of an audit
         initiated by the MC and exercised by the F&ASC, the audited Party or
         Parties shall be permitted to recover the entire costs of the review or
         audit from the Carriers in the proportions specified in the appropriate
         Schedule.

13.9     Any rights of review and audit pursuant to this Paragraph 13 shall only
         be exercisable through the F&ASC in accordance with the F&ASC's audit
         procedures.

                                     - 17 -
<PAGE>

14       ASSIGNMENT AND USE OF CAPACITY

14.1     The Capacity of the TIS can only be used by a Carrier.

14.2     The Parties shall obtain Allocated Capacity in the form of MIUs on an
         ownership basis as shown in Schedule B.

14.3     Procedures for Parties activation of their Allocated Capacity will be
         developed by the T&OSC and the NA for MC approval.

14.4     A Party is allowed to use its Allocated Capacity for the provision of
         international telecommunications services with/by itself and its
         Associate companies provided that the users of the capacity are also
         Carriers and that such Associate companies are not operating in the
         other Party's landing countries except in the Party's landing country.

14.5     For the purpose of this Agreement, transfer of Allocated Capacity
         (hereinafter referred to as "Transfer") is the making available of all
         the right of use of the capacity to an Associate company without
         transferring the Party's other obligations and rights.

14.6     Subjected to MC approval, transfer of a Party's Allocated Capacity to
         its Associate is allowed provided that the capacity transferred is in
         multiples of the MIU and that the recipient of the transferred capacity
         is a Carrier and provided that such recipient/s does/do not operate in
         the other parties landing countries except in the Party's landing
         country. The subsequent transfer by the recipient to another party is
         not allowed. The transfer back of the said allocated capacity to the
         transferor is allowed only once.

14.7     The Assigned and Unassigned Capacity which comprised of the Parties
         shall be in accordance with Schedule E. Such Unassigned Capacity shall
         comprise Reserved Capacity for intended future assignments in
         accordance with Subparagraph 14.9, and/or Defined Capacity for sale on
         an IRU basis in accordance with Subparagraph l4.11.

14.8     The Capacity in the TIS shall be jointly assigned in a Path to two (2)
         Carriers or wholly assigned in a Path to one (1) Carrier and shall be
         expressed in terms of half interest in a MIU:

         (i)      Jointly-assigned Capacity in a Path Assignment shall be
                  considered as consisting of two half-interests in a MIU, with
                  each half-interest assigned to one of the two Carriers
                  involved. Such MIUs are assigned to the indicated Party for
                  provision of international telecommunications services between
                  such Carriers.

                                     - 18 -
<PAGE>

         (ii)     Wholly-assigned Capacity in a Path Assignment shall be
                  considered as consisting of two half-interests in a MIU
                  assigned to one Party. Such MIUs can only be assigned to the
                  indicated Party for:

                  (a)      connection from TIS Cable Landing Point by a Party
                           licensed in that country/territory to an external
                           cable system, The traffic termination must be in a
                           non-TIS Cable Landing Point country/territory in
                           which the Party is also licensed to provide
                           international telecommunication services (hereinafter
                           referred to as 'Transit Out"); or

                  (b)      connection from another cable system to a TIS Cable
                           Landing Point for transit through TIS for exit to
                           another cable system via a TIS Cable Landing Point.
                           The traffic termination at both ends must be in
                           non-TIS Cable Landing Point countries/territories
                           (hereinafter referred to as "Transit Through").

14.9     Any Party having Reserved Capacity may, at times approved by the MC,
         have such capacity, or a portion thereof redesignated as Assigned
         Capacity (with an appropriate designation of a specific Path) as is
         necessary to establish jointly- assigned Capacity or wholly-assigned
         Capacity pursuant to Subparagraph 14.8. Such capacity shall be assigned
         to a Party designating its Reserved Capacity as set forth above, and
         shall not be reassigned to another Carrier. Such re-designation of
         Reserved Capacity to Assigned Capacity shall also be subjected to the
         following:

         (i)      The half-interests in the jointly-assigned MIUs required by a
                  Party in any Path of the TIS shall be deducted from the
                  Party's Reserved Capacity, wherever available.

         (ii)     The two half-interests in the wholly-assigned MIUs required by
                  a Party in any Path of the TIS shall be deducted from the
                  Party's Reserved Capacity, wherever available.

14.10    The procedures for the transfer of a Party's Reserved Capacity and
         Defined Capacity shall be as follows:

         (i)      A Party which has Reserved Capacity may, once at the end of
                  every one (1) year after the RFS Date coincide with the MC
                  meetings, convert such capacity to Defined Capacity.

         (ii)     A Party which has Defined Capacity may convert such capacity
                  to Reserved Capacity at any time as required.

                                     - 19 -
<PAGE>

         (iii)    Notwithstanding Subparagraph 14.10 (i), any Party may be
                  permitted to transfer the MIU between their Reserved Capacity
                  and Defined Capacity on other, occasions subject to the
                  approval of the MC in consideration of circumstances,
                  including but not limited to the following:

                  (a)      The introduction of new submarine cable systems
                           interconnecting to the TIS; and

                  (b)      The introduction of other international
                           telecommunications Carrier to the country of a
                           Terminal Party.

         (iv)     A Party which has Assigned Capacity may convert such capacity
                  to Reserved Capacity not more than once per year.

14.11    Any capacity acquired after the RFS Date shall be on an IRU basis at a
         price to be determined by the MC. Such acquisition of capacity on an
         IRU basis shall be in accordance with the following:

         (i)      The MIU requirements of any Carriers from the same country as
                  a Terminal Party may be deducted from the Defined Capacity of
                  the Landing Party(ies) of that country, which shall have a
                  first priority in the said deduction. Such deduction shall be
                  communicated to the Network Administrator at the time of such
                  capacity acquisition.

         (ii)     Except as provided in Subparagraph 14.11(i), any sales of
                  capacity on an IRU basis prior to the disposal of all of the
                  Parties' Defined Capacity shall be from such Defined
                  Capacity. Funds from such sales of IRU capacity shall be
                  reimbursed to the Parties concerned based on the Defined
                  Capacity percentages specified in Schedule E. Thereafter the
                  MIU of such IRU sales shall be deducted proportionately from
                  each Party's Defined Capacity and Schedule E shall be amended,
                  as appropriate, to reflect the new levels of Defined Capacity
                  and share of funds from subsequent sales of capacity on an IRU
                  basis.

         (iii)    After all of the Parties' Defined Capacity has been disposed
                  of, subsequent sales of capacity on an IRU basis shall be from
                  the Unallocated Capacity. Funds from such sales of IRU
                  capacity shall be reimbursed to the Parties in the proportions
                  specified in Schedule B.

         (iv)     Carriers requesting capacity on an IRU basis pursuant to
                  Subparagraph 14.11 shall enter into an IRU Agreement, which
                  shall be subjected to the approval of the MC.

         (v)      The Network Administrator, pursuant to the Terms of Reference
                  as set forth in Annex 2 of this Agreement, shall be authorized
                  to execute such IRU agreement(s) on behalf of the Parties to
                  this Agreement.

                                     - 20 -
<PAGE>

14.12    No Party may make available any of its half-interests in any of the
         Path assignments, on any basis whatsoever, to another carrier, except
         with the approval of the MC.

14.13    No Party may reassign any of its Path assignments, except with the
         approval of the MC.

14.14    The Unallocated Capacity of TIS shall be owned by the Parties in common
         and undivided shares in accordance with Schedule B.

14.15    After the RFS Date, the MC may authorize to redistribute part or whole
         of the Unallocated Capacity to the Parties on a pro rata basis, in
         MIUs, in accordance with Schedule B.

14.16    The MC may authorize use of the Unallocated Capacity for restoration of
         telecommunications services. The terms and conditions of such use shall
         be determined by the MC based, in part, on terms to be agreed to by the
         relevant Terminal Parties of the TIS, in recognition of the technical
         and operational impact on the Terminal Station operations.

14.17    The MC may authorize the allocation and exchange of a portion of the
         Unallocated Capacity with other cable systems on such basis as is
         deemed mutually beneficial to the Parties. The terms and conditions of
         such allocation or exchange of capacity shall be agreed by the MC.

14.18    The communications capability of any capacity assigned in Schedule E
         may be optimized by the Carriers to whom such capacity is assigned by
         the use of equipment which will more efficiently use such capacity
         provided that the use of such equipment does not cause an interruption
         of or interference, impairment or degradation to the use of any other
         capacity in the TIS or prevent the use of similar equipment by other
         Carriers. Such equipment, if used shall not constitute a part of the
         TIS.

14.19    Schedules B, C, D, E, and F shall be modified by the NA as appropriate
         to reflect any revised assignments of capacity and/or IRU sales
         pursuant to this Paragraph 14.

14.20    The Parties shall be authorized to allow occasional use of the
         Unallocated Capacity, if available, on a commercial basis (hereinafter
         referred to as "Occasional Commercial Use" for the provisioning
         temporary or occasional telecommunications services, including but not
         limited to administration leases and ad-hoc restoration services, to
         any Carrier(s) or international telecommunications entity(ies), on the
         terms and conditions to be determined by MC. The net receipts from such
         Occasional Commercial Use shall be reimbursed to the Parties which
         shall be in proportion to the ownership capacity of the Parties.

                                     - 21 -
<PAGE>
14.21    Notwithstanding Subparagraph 14.20, any Party having Unassigned
         Capacity may utilize such capacity for its own interest in the
         temporary or occasional telecommunications services in accordance with
         the procedures to be established by T&OSC and to be approved by the MC.

15       CAPACITY ROUTING

         At times to be determined by the MC, including but not limited to those
         specified in Subparagraphs 16.2, 16.3 and 16.4 of this Agreement, the
         capacity routing of all Carriers shall be reviewed and established in
         such a way, as it necessary to allocate the capacity in all Links of
         the TIS to achieve the most efficient utilization of the entire TIS.
         Such routing shall be as determined by the NA pursuant of the Terms of
         Reference as set forth in Annex 2 of this Agreement, and shall be based
         on principles of capacity routing which shall be approved by the MC.

16       INCREASE OR DECREASE OF DESIGN CAPACITY

16.1     If, subsequent to the RFS Date, the Design Capacity of the TIS or any
         of its Link(s) thereof is increased or decreased pursuant to the
         Agreement of the Parties or otherwise, and such increase or decrease of
         the Design Capacity affects neither the routing of circuits assigned in
         the TIS nor the Allocated Capacity of the TIS or any of its Link(s),
         the additional or reduced Design Capacity will be added to or
         subtracted from the Unallocated Capacity, as appropriate, with no
         change to the Schedules of this Agreement.

16.2     In the event that the capacity which the TIS or any of its Link(s)
         thereof is capable of providing is reduced below the capacity assigned
         and/or required for use in such Links as a result of physical
         deterioration or for other reasons beyond the control of the Parties,
         the NA may reroute such circuits as are effected by the reduction of
         capacity in such a way as to ensure efficient utilization of the TIS.
         Should the other Links of the TIS be capable of supporting the
         rerouting of such assigned circuits, the additional or reduced Design
         Capacity will be added to or subtracted from the Unallocated Capacity
         as appropriate with no change to the Schedules of this Agreement.

16.3     In the event that the capacity which the TIS or any of its Link(s)
         thereof is capable of providing is lower than the capacity needed to
         support the routing of circuits assigned in the TIS, the path
         assignments of the Carriers in Schedule G may be reduced or changed as
         necessary and agreed by the Carriers affected and financial adjustments
         shall be made among the Carriers, as necessary on the terms and
         conditions to be agreed by the MC. Schedules B, C, D, E and F shall be
         modified,

                                     - 22 -
<PAGE>

         as appropriate, to reflect the revised Path Assignments associated with
         such increase or decrease of the Design Capacity.

16.4     The NA shall thereafter administer subsequent IRU sales in the TIS and
         routing of circuits assigned in the TIS in respect of such increase or
         decrease of Design Capacity.

17       EXPANSION OF EQUIPPED CAPACITY

17.1     Any upgrade of Equipped Capacity of TIS, including any costs, financial
         adjustments and allocation of capacity associated with such upgrade,
         shall be approved by a vote of members of the MC representing at least
         seventy five percent (75%) of the total voting interests as specified
         in Schedule B.

17.2     All Parties shall have the right to a pro-rata store of the upgrade
         capacity in accordance with revised Schedule C2. No Party shall be
         forced to participate in such an upgrade.

17.3     In the event of the first expansion of Equipped Capacity, the initial
         Unallocated Capacity shall be distributed on a pro-rata basis, in MIUs,
         in accordance with the percentages in Schedule C2 before such upgrade.

17.4     Schedules C2 and D shall be appropriately modified to reflect the
         revisions associated with such expansion of Equipped Capacity. Schedule
         B shall remain unchanged.

18       USE OF TERMINAL STATION

18.1     Each Carrier to whom capacity in the TIS is assigned pursuant to this
         Agreement shall acquire an IRU, for the duration of this Agreement, in
         Segment T1, T2 and T3 in which it has no ownership interests, to the
         extent required for the use of its assigned capacity (hereinafter
         referred to as "Terminal Station IRU"). Such Terminal Station IRU shall
         commence on the RFS Date of the TIS or from the date a Carrier first
         places any of its capacity into operation, whichever occurs first, and
         such Terminal Station IRU shall continue for the duration of this
         Agreement. Each Terminal Party shall bear its own Segment T capital
         costs in the construction of the TIS.

                                     - 23 -
<PAGE>

18.2     In the event that an Agreement for another cable system utilizing any
         Terminal Station of the TIS is terminated prior to the termination of
         this Agreement, the owner of the Terminal Station in question with the
         agreement of the Parties hereto, shall take all necessary measures to
         ensure that the Terminal Station in question will be available for the
         TIS for the duration of this Agreement on fair and equitable terms. If
         the Terminal Station in question is not available for the landing and
         terminating of the TIS for any reason, the relevant owner, with the
         agreement of the Parties hereto, shall take all necessary measures to
         ensure that another appropriate Terminal Station in the country of that
         owner will be available for the TIS for the duration of this Agreement
         on terms and conditions similar to those contained in this Agreement.

18.3     For the Terminal Station IRU granted in each of the Terminal Stations
         involved, the Carriers hereto shall pay the O&M costs of the relevant
         Terminal Station, including additions thereto, allocable to the TIS as
         set forth in Schedule D2.

18.4     Where the use of a Terminal Station or of certain equipment situated
         therein, such as power supply or testing and maintenance equipment, is
         shared by Agreement of the Parties, by the TIS and other communications
         systems terminating at that Terminal Station and the O&M costs of such
         shared Terminal Station or equipment (not solely attributable to a
         particular communications system or systems) shall be allocated among
         the systems involved in the proportion in which they use the shared
         equipment or facilities. For such purpose, use of a shared Terminal
         Station or of shared Terminal Station equipment or facilities therein
         attributable to a particular system shall be determined on the basis of
         the ratio of (i) the installed cost of the Terminal Station equipment
         or facilities (excluding shared equipment or facilities) associated
         with the particular Terminal System to (ii) the installed cost of the
         Terminal Station equipment of facilities (excluding shared equipment or
         facilities) associated with all systems, including the TIS, which make
         use of the shared equipment or facilities.

18.5     Capital costs, as used in this Paragraph 18 with reference to the
         provision and construction of each of the Terminal Stations (including
         land, access roads, cable rights-of-way, ducts and building at such
         station), or-causing them to be provided and constructed, or to
         installing or causing to be installed Terminal Station equipment, shall
         include all expenditures incurred which shall be fair and reasonable in
         amount and either to have been directly and reasonably incurred for the
         purpose of, or to be properly chargeable in respect of, such provision,
         construction, and installation, including, but not limited to, the
         purchase costs of land, building costs, amounts incurred for
         development, engineering, design, materials, manufacturing, procurement
         and inspection, installation, removing (with appropriate reduction for
         salvage), testing associated with installation, customs duties, taxes
         (except income tax imposed upon the net income of a Party), financial
         charges attributable to other Carriers' share of costs, supervision,
         overheads and insurance or a reasonable allowance in lieu thereof was
         not provided.

                                     - 24 -
<PAGE>

18.6     O&M costs, as used in this Paragraph 18 with reference to each of the
         Terminal Stations, shall include costs reasonably incurred in O&M the
         facilities involved, including, but not limited to, the cost of
         attendance, testing, adjustments, repairs and replacements, customs
         duties, taxes (except income tax imposed upon the net income of a
         Party) paid in respect of such facilities, billing activities,
         administrative costs, financial charges attributable made by or against
         other persons in respect of such facilities or any part thereof and
         damages or compensation payable by the Terminal Station owner on
         account of such claims. Costs, expenses, damages, or compensation
         payable to or by the Carriers acquiring a Terminal Station IRU in the
         respective; Terminal Station in the same proportions as they share the
         costs of the aforementioned Terminal Station.

18.7     Payments due under this Paragraph 18 shall be made in accordance with
         the following principles and such other billing and payment procedures
         as may be determined by the MC form time to time:

         (i)      Upon or after the RFS, Carriers acquiring Terminal Station IRU
                  for the use of its assigned capacity at the relevant Terminal
                  Station shall bear the portion of the O&M costs of the
                  Terminal Station specified in Schedule D.

         (ii)     The Carriers hereto shall be billed individually for, and
                  shall pay their proportionate shares of, the portion of any
                  O&M costs of a Terminal Station allocable to this Agreement
                  incurred after the grant to the Carriers hereto of the
                  Terminal Station IRU in such Terminal Station becomes
                  effective and of the portion of the operation and maintenance
                  costs of the Terminal Station allocable to this Agreement
                  commenting at the time such grant becomes effective, in
                  accordance with the following billing method:-

                  (a)      Unless the MC authorizes changes to the procedure for
                           the rendering of bills associated with the Terminal
                           Station O&M Costs, the Party shall promptly render
                           bills, in accordance with this Subparagraph 18.7(iii)
                           (a) and the billing and payment procedures
                           established by the F&ASC and approved by the MC, to
                           each of the Parties for such Party's pro rata shares
                           of these costs in accordance with Schedule D. Such
                           bills shall be rendered by the Terminal Parties not
                           more frequently than quarterly and shall contain a
                           reasonable amount of detail to substantiate them. On
                           the basis of such bills, each Party shall pay the
                           Terminal Parties, such amounts as may be owed by the
                           end of the calendar month following the calendar
                           month in which the bill was rendered.

                                     - 25 -
<PAGE>

                  (b)      In the case of bills containing costs billed on a
                           preliminary billing basis, appropriate adjustments
                           will be made in subsequent bills promptly after the
                           actual costs involved are determined. As soon as
                           practicable, the Terminal Parties shall make such
                           adjustments and render such bills or arrange for such
                           credits as appropriate due to changes in the cost
                           actually incurred.

                  (c)      The applicable financial charges and extended payment
                           charges shall be in accordance with Subparagraph
                           10.5, 10.6, 10.7 and 10.8.

13.8     With respect to the operation and maintenance costs of Segments T1, T2
         and T3 such books, records, vouchers and accounts of costs, as are
         relevant, shall be kept and maintained by CAT, SINGTEL and TELKOM for a
         period of five (5) years from the date on which the corresponding bills
         to the Carriers are rendered. CAT, SINGTEL and TELKOM shall afford the
         Parties the right to review said books, records, vouchers, and accounts
         of costs for a period of five (5) years. Such right shall only be
         exercisable by the F&ASC in accordance with the F&ASC's audit
         procedure.

18.9     Notwithstanding Subparagraph 18.1 of this Agreement, a Party thereby
         granted a Terminal Station IRU interests in Segment T1, T2 and T3 may,
         prior to the commencement of that Terminal Station IRU interest; elect
         to renounce its Terminal Station IRU interest entitlement and to
         instead have use of Segments T1, T2 and T3 for the duration of this
         Agreement on such terms and conditions as are agreed between that
         Parties and the owners of said Segments respectively, and in such event
         the provisions of Subparagraphs 18.1 -18.9 of this Agreements shall
         apply in relation to such use except insofar as they may be modified by
         such Agreements. The Subparagraphs 18.9 shall not operate to confer on
         a Party any benefit, financial or otherwise, to which that Party would
         not otherwise be entitled under this Agreement.

19       OBLIGATION TO PROVIDE TRANSITING FACILITIES TO EXTEND THE TIS CAPACITY

19.1     The Terminal Parties shall use all reasonable efforts to provide and
         maintain or cause to be provided and maintained in working order for
         the duration of this Agreement, the necessary transit facilities within
         their respective Countries as may be reasonably required for extending
         capacity in the TIS so as to provide connections to the other
         international cables transmission facilities.

                                     - 26 -
<PAGE>

19.2     During the term of the Agreement, each of the Parties hereto in
         other than the Terminal Parties countries shall use all reasonable
         efforts to furnish and maintain, or cause to be furnished and
         maintained, in efficient working order, such transmission facilities in
         its country as such other Parties may reasonably require to the
         terminals of other international communications systems in such country
         for the purpose of handling communications transiting such country.

19.3     The facilities provided pursuant to Subparagraphs 19.1 and 19.2 shall
         be suitable for extending capacity in the TIS and shall be furnished
         and maintained on terms and conditions which shall be no less favorable
         than those granted to other Carriers for transmission facilities of
         similar type and quantity transiting the location involved. Such terms
         and conditions shall not be inconsistent with applicable government
         regulations in the location in which the facilities are located.

19.4     The obligations to provide facilities under this Paragraph 19 shall not
         necessarily require the provision of intrinsically digital facilities,
         nor the provision of facilities which are Bit Sequence Independent at
         rates other than STM-1, STM-4, STM-16 and STM-64.

20       OBLIGATION TO CONNECT THE TIS WITH INLAND SYSTEMS

20.1     Each of the Party hereto, at its own expense, on or after the RFS Date,
         shall do or cause to be done, all such acts and things as may be
         necessary within its opening country to provide and maintain throughout
         the period of this Agreement suitable connection of capacity in the TIS
         with appropriate inland communications facilities in its operating
         country.

20.2     The use of such inland connections for capacity pursuant to
         Subparagraph 14.8 shall be on a near-end basis and provided at the own
         expenses of the respective near-end Party.

21       SHARING OF CONTRACTUAL OBLIGATIONS AND LIABILITY

21.1     Each Party shall indemnify and shall keep indemnified and hold harmless
         the other Parties and each of their employees, servants, and agents to
         the extent hereinafter agreed from and against all claims, demands,
         actions, suits, proceedings, writs, judgments, orders and decrees
         brought, made or rendered, against them or any of them and all damages,
         losses and expenses suffered or incurred by them or any of them
         howsoever arising out of or related to any respect of providing,
         constructing and maintaining the TIS. This indemnity shall not,
         however, relieve the PG of their obligations undertaken pursuant to
         Paragraphs 7.

                                     - 27 -
<PAGE>

21.2     If a Party assumes obligations, commits monies in the name or on behalf
         of the other Parties pursuant to this Agreement or to an assignment
         under the provisions of this Agreement or is obliged by final judgment
         of a competent tribunal or under the settlement by the MC to discharge
         any claim in damages or other liability, including costs or expenses
         associate therewith to any person or entity which is not a Parties to
         this Agreement and resulting from any aspect of providing,
         constructing, laying or installing the TIS or of its O&M, that Party
         shall be entitled to reimbursement from the other Parties in the
         proportions set forth in Schedule C.

21.3     If a claim, demand, action, suit, proceeding, writ, judgment, offer or
         decree as referred to in Subparagraph 21.1 is brought, made or rendered
         against a Party or any Party suffers or incurs any damages, losses or
         expenses in respect thereof; that Party shall, as a condition of
         reimbursement under Subparagraph 21.2, immediately notify all other
         Parties and give them the opportunity to advise and recommend through
         the MC on the means to defend or to settle and, to the extent permitted
         by the relevant jurisdiction, to be joined in any proceedings relating
         thereto.

21.4     Except as provided for in Subparagraph 12.11, as a precondition to the
         initiation of any legal proceedings by any Party or Parties on behalf
         of and for the benefit of any other Party or Parties, the Party or
         Parties planning to initiate such proceedings shall give notice,
         appropriate under the circumstances to all other Parties.

21.5     The costs and benefits of any proceedings referred to in Subparagraph
         21.4 shall be shared between the Carriers in the manner described in
         Subparagraph 21.2.

21.6     If any Party is obliged by a final judgment of a competent tribunal or
         under a settlement approved by the MC, to discharge any claim by a
         third party, including all costs and expenses associated therewith,
         resulting from the implementation of this Agreement, the Party which
         has discharged the claim shall be entitled to receive from the other
         Parties reimbursement in the proportions as set out in Schedule B.

21.7     If any claim is brought against a Party in connection with the TIS,
         the Party shall, as a condition of reimbursement under Subparagraph
         21.1, give written notice thereof to the MC as soon as practicable and
         shall not admit, liability nor settle, adjust or compromise the claim
         without the approval of the MC.

21.8     Upon termination of this Agreement pursuant to Paragraph 28, the
         Parties shall not be relieved from any liabilities, costs, damages or
         obligations which may arise in connection with claims made by third
         parties with respect to the TIS, or any part thereof, or which may
         arise in relation to the TIS due to any law, order or regulation made
         by any government or international convention, treaty or

                                     - 28 -
<PAGE>

         agreement. Any such liabilities, costs, damages or obligations shall be
         divided among the Parties in the proportions as set out in Schedule B.

22       OBTAINING OF APPROVAL

22.1     The performance of this Agreement by the Parties is contingent upon the
         obtaining and continuance of such governmental approval, consent,
         authorization, licenses, and permits as may be required or be deemed
         necessary by the Parties and as may be satisfactory to them, and the
         Parties shall use all reasonable efforts to obtain and to have
         continues in effect such approval, consent, authorization, licenses,
         and permits.

22.2     CAT shall handle matters in Thailand, SINGTEL shall handle matters in
         Singapore and TELKOM shall handle matters in Indonesia relating to the
         obtaining and continuance of governmental approval, consent,
         authorization, licenses, and permits for the landing, construction and
         operation of the TIS in their respective countries.

23       ASSIGNMENT OF RIGHTS AND OBLIGATIONS

         Except as otherwise provided for in Paragraphs 14, 15, 16 and 24,
         during the continuance of this Agreement, no Party shall, without the
         consent of the other Parties sell, assign, transfer, or dispose of its
         rights and obligations under this Agreement or of any interest in the
         TIS except to a legal successor of, such Party, in which case written
         notice shall be given in a timely manner by the Party making such sale,
         assignment, transfer, or disposition and in the case if any assignment
         of capacity in the TIS pursuant to this Paragraph 23, the consent of
         the other Party or Parties to whom the capacity is jointly assigned is
         obtained.

24       DEFAULT

24.1     If any Party fails to make any payment required by this Agreement on
         the date when it is due and such default continues for a period of at
         least one (1) month after the payment due date, the NA or Terminal
         Parties shall notify the billed Party and the MC in writing the status
         of the matter and its intent to reclaim the Party's capacity as
         provided for in this Paragraph 24, if full payment is not received
         within one (1) month after such notification to the billed Party. If
         full payment is not received within such specified period, the Party's
         capacity will be immediately reclaimed unless otherwise determined by
         the MC, Unless otherwise decided by MC, the default in payment by any
         Party shall not in any way increase

                                     - 29 -
<PAGE>

         the liability of the other Parties in respect of their obligations for
         payments under the Supply Contract required by this Agreement.

24.2     The MC shall consider any extenuating circumstances not within the
         specific control of the billed Party in determining whether or not to
         defer the reclamation of the capacity assigned to such billed Party
         pursuant to Subparagraph 24.1 above or, under what conditions, if any,
         the defaulting Party may be re-admitted as a Party to this Agreement
         after such reclamation. In the event of reclamation, the defaulting
         Party shall not be entitled to any payment or credit for the reclaimed
         capacity, nor is the defaulting Party entitled to any reimbursement of
         any amounts it had paid under this Agreement. All rights of a
         defaulting Party under this Agreement shall terminate as of the time
         all its capacity in the TIS is reclaimed: and concurrent with such
         reclamation of capacity, the defaulting Party will no longer be deemed
         to be a Party to this Agreement. Such reclamation shall not relieve the
         defaulting Party from its obligations under this Agreement, including
         but not limited to the payment of its unpaid accounts, which have been
         incurred prior to the actual reclamation. The MC shall determine
         arrangements for disposition of any reclaimed capacity. In such
         circumstances, the Schedules shall be revised to reflect the default of
         a Party and the reallocation of interests pursuant to the arrangements
         determined by the MC.

24.3     Notwithstanding Subparagraph 24.2, reclamation of a Terminal Party's
         capacity will not release the Terminal Party from providing, operating
         and maintaining its respective Terminal Station until a reasonable
         agreement is negotiated in order to ensure the continuous operation of
         the said Terminal Party's Terminal Station after reclamation of its
         capacity.

24.4     If a Party files a petition in bankruptcy, or if a trustee in
         bankruptcy, receiver, conservator or similar officer is appointed to
         take charge of all or party of a Party's property, the Party shall send
         all notices related to such proceedings to the Terminal Parties and NA
         until notified otherwise.

25       SETTLEMENT OF DISPUTES AND INTERPRETATION OF AGREEMENT

25.1     If a dispute should arise under this Agreement between or among the
         Parties, they shall make every reasonable effort such dispute. However,
         in the event that they are unable to resolve such dispute, the matter
         shall be referred to the MC which shall either resolve the matter or
         determine the method by which the matter should be resolved (including
         arbitration if appropriate). This procedure shall be the sole and
         exclusive remedy for any dispute that may arise under this Agreement
         between or among the Parties. The performance of this Agreement by the
         Parties shall continue during the resolution of any dispute.

                                     - 30 -
<PAGE>

25.2     If any difference shall arise between or among the Parties or any of
         them in respect of the interpretation or effect of this Agreement or
         any part or provision thereof or their rights and obligations
         thereunder, and by reasons thereof there shall arise the need to decide
         the question by what municipal or national law this Agreement or such
         part or provision thereof is governed, the following facts shall be
         excluded from consideration, namely that this Agreement was made in a
         particular country and that it may appear by reason of its form, style,
         language or otherwise to have been drawn preponderantly with reference
         to a particular system of municipal or national law; the intention of
         the Parties being that such facts shall be regarded by the Parties and
         in all courts and tribunals wherever situated as irrelevant to the
         question aforesaid and to the decision thereof.

25.3     In the event the dispute is not resolved by MC within agreed timeframe.
         The Parties may refer the dispute to arbitration, in accordance with
         the United Nations Commission on International Trade Law (UNCITRAL)
         Arbitration Rules as at present in effect with the following
         conditions:

         (i)      The place of arbitration shall be agreed by the Parties in
                  disputed, however, if they are unable to agree the place of
                  arbitration shall be Hong Kong; and

         (ii)     The language to be used in the arbitration proceedings shall
                  be English.

         (iii)    The tribunal shall consist of three arbitrators, who shall be
                  selected by agreement of the Parties in dispute.

         (iv)     The award rendered by arbitration shall be final and binding
                  upon the Parties in dispute.

         (v)      All costs related to arbitration under this Paragraph 25 shall
                  be borne by the Parties in dispute unless otherwise determined
                  by the MC.

26       RELATIONSHIP OF PARTIES

         The relationship between or among the Parties shall not be that of
         partners and nothing herein contained shall be deemed to constitute a
         partnership between or among them, and the common enterprises among the
         Parties shall be limited to the express provisions of this Agreement.

                                     - 31 -
<PAGE>

27       PRIVILEGES FOR DOCUMENTS OR COMMUNICATIONS

         Each Party specifically reserves, and is granted by each of the other
         Parties, in any action, arbitration or other proceeding between or
         among the Parties or any of them in a country other than that Party's
         own country, the right of privileges, in accordance with the laws of
         that Party's own country, with respect to any documents or
         communications which are material and pertinent to the subject matter
         of the action, arbitration or other proceeding in which privilege could
         be claimed or asserted by that Party in accordance with those laws, and
         such privilege, whatever may be its nature and whenever it may be
         claimed or asserted, shall be allowed to that Party as it would be
         allowed if the action, arbitration or other proceeding has been brought
         in a court of, or before an arbitrator in, the Party's own country.

28       DURATION OF AGREEMENT AND REALIZATION OF ASSETS

28.1     This Agreement shall become effective on the date and year first above
         written and shall continue in operation for at least an initial period
         of fifteen (15) years following the RFS Date (hereinafter referred to
         as "Initial Period") and shall be terminable by agreement of the
         Parties. However, any Party may terminate its participation in this
         Agreement at the end of the Initial Period or any time thereafter by
         giving not less than one (1) year prior notice thereof, in writing, to
         the other Parties.

28.2     This Agreement may be terminated at any time during the Initial Period
         by agreement in writing of all Parties. If unanimous agreement cannot
         be reached between all the Parties for the retirement of the TIS during
         its specified" useful life, this subject matter shall be referred to
         the MC for such resolution in accordance with Subparagraph 3.4 but in
         this case requiring a seventy five per cent (75%) majority of the total
         voting interests as specified in Schedule B.

28.3     If a Terminal Party terminates its participation in this Agreement
         pursuant to Subparagraph 28.1 of this Agreement, after the Initial
         Period, the remaining Parties and said Terminal Party will negotiate a
         reasonable agreement in order to ensure the continuous operation of
         said Terminal Party's Terminal Station after the Initial Period.

28.4     Upon the effective date of termination of participation of a Party,
         Schedules A, B, C, D, E and F of this Agreement shall be appropriately
         modified. The remaining Carriers shall assume the capital, O&M
         interests of the Party terminating its participating in proportion to
         their allocation of costs as specified in Schedule C and D immediately
         preceding such effective date of termination, except for the continuing
         rights and obligations of the terminating Party as specified in

                                     - 32 -
<PAGE>

         Subparagraphs 28.6 and 28.7. No credit for capital cost will be made to
         a Party that terminates its participation in accordance with
         Subparagraph 28.1.

28.5     The interests of a Party or Parties in the Segment S of the TIS which
         come to an end by reason of the termination of its or their
         participation in this Agreement or the termination of this Agreement
         shall be deemed to continue for as long as is necessary for effecting
         the purposes of Subparagraphs 28.6 and 28.7 and in the case of
         interests which come to an end by reason of a Party or Parties
         terminating its or their participation in this Agreement, the Segment S
         shall accordingly thereafter be held with respect to such interests at
         the first time any Party terminates its participation in this
         Agreement, upon the appropriate trusts by the Parties who are the
         owners thereof. Should the doctrine of trusts not be recognized under
         the laws of the country where the property to which such interests
         relate is located, then the Party or Parties who are the owners thereof
         shall nevertheless be expressly bound to comply with the provisions of
         Subparagraphs 28.6 and 28.7.

28.6     Upon termination of this Agreement, the Parties shall use their efforts
         to liquidate the Segment S of the TIS within a reasonable time by sale
         or other disposition between the Parties or any of them or by sale to
         other entities or persons, but no sale or disposition shall be effected
         except by agreement between or among the Parties who have interests in
         the subject thereof at the time this Agreement is terminated. In the
         event agreement cannot be reached, the decision will be carried on the
         basis of a simple majority of the total voting interests as specified
         in Schedule B. The costs or net proceeds of interests of every sale or
         other disposition shall be divided between or among the Parties who
         have or were deemed to have interests in the subject thereof at the
         time this Agreement is terminated, in the proportions in which such
         Party's allocation of costs is specified in Schedule C immediately
         preceding the first time any Party terminates its participation in this
         Agreement or this Agreement is terminated pursuant to Subparagraph
         28.1, whichever occurs first. The Parties shall execute such documents
         and take such action as may be necessary to effect any sale or other
         disposition made pursuant to this Paragraph 28.

28.7     Unless the MC shall otherwise determine, a Party's termination of its
         participation in this Agreement or the termination of this Agreement
         pursuant to Subparagraph 28.1 shall not relieve the Party or Parties
         from any liabilities, costs, damages or obligations which may arise in
         connection with claims made by third Parties with respect to the TIS,
         the facilities that comprise the TIS or any part or portion thereof, or
         which may arise in relation to the TIS due to any law, order or
         regulation made by any government or supranational legal authority
         pursuant to any international convention, treaty or agreement. Any such
         liabilities, costs, damages, or obligations shall be divided among the
         Parties in the proportions in which such Parties allocation of costs is
         specified in Schedule C immediately preceding the first time any Party
         terminates its participation in this Agreement or

                                     - 33 -

<PAGE>

         this Agreement is terminated pursuant to Subparagraph 28.1, whichever
         occurs first.

29       BILLS PAYMENTS AND NOTICES

29.1     Unless otherwise designated by the Party concerned, NA and Terminal
         Parties shall render bills under this Agreement addressed to the
         respective Parties or Carriers by airmail, dispatch of which shall be
         advised by facsimile or e-mail giving a summary of the payments due and
         expenses concerned.

29.2     Payments under this Agreement shall be made by wire transfer to the
         designated bank account indicated in the bills rendered.

29.3     All amounts billed or payable under this Agreement shall be paid in
         full, free and clear of any taxes, duties or other withholdings.
         Charges incurred for the wire transfer pursuant to Subparagraph 29.2
         shall be borne by the remitting Party or Carriers.

29.4     Notices issued under this Agreement shall be addressed to the
         respective Parties or Carriers by airmail, express courier, facsimile
         or e-mail, as appropriate.

30       WAIVER

         The waiver by any Party of a breach of, or a default under, any of
         provisions of this Agreement, or the failure of any Party, on one or
         more occasions, to enforce any of the provisions of this Agreement or
         to exercise any right or privilege hereunder shall not thereafter be
         construed as a waiver of any subsequent breach or default of a similar
         nature, or as a waiver of any such provision, right, or privilege
         hereunder.

31       PARAGRAPH HEADINGS

         The paragraph headings do not form part of this Agreement and shall not
         have any effect on the interpretation thereof.

                                     - 34 -

<PAGE>

32       EXECUTION OF AGREEMENT

         This Agreement shall be executed in one (1) original in the English
         language. Identical counterparts may be executed and when so executed
         shall be considered as an original. Such counterparts shall together,
         as - well as separately, constitute one and the same instrument. TELKOM
         shall be the custodian of the original and shall provide certified
         photocopies to Parties to this Agreement.

33.      ALTERATIONS AND ADDITIONS

33.1     Subject to Subparagraph 33.3, this Agreement and any of the provisions
         hereof may be altered or added to only by another agreement in writing
         signed by a duly authorized person on behalf of each and every Party to
         this Agreement. Only one (1) original of such supplemental agreement
         shall be executed.

33.2     TELKOM shall be responsible for the prompt distribution of certified
         photocopies of any amendments or supplemental agreements hereto to all
         other Parties and shall retain such signed original amendments or
         supplemental agreements. Such Party shall accord access to such
         documents to a requesting Party upon reasonable notice. A notarized
         copy of any amendment or supplemental agreement shall be provided to a
         Party upon request and at the requesting Party's expense.

33.3     Subparagraph 33.1 shall not apply to any Schedule modified in
         accordance with  any other provision of this Agreement and any Schedule
         so modified shall be deemed to be a part of this Agreement in
         substitution for the immediately preceding version of that Schedule.

33.4     In the case of a Party changing the categorization of its capacity, the
         modified Schedules shall be certified by the NA on behalf of the
         Parties. The NA shall require in such instances written instructions by
         Parties wishing to reassign capacity and shall obtain the MC's
         approval, which can be by correspondence. The NA shall be responsible
         for issuing such modified Schedules.

34       SUCCESSORS BOUND

         This Agreement shall be binding on the Parties, their successors, and
         permitted assigns.

                                     - 35 -

<PAGE>

35       FORCE MAJEURE

         If any Party cannot fulfill its obligations in this Agreement due to an
         event beyond its reasonable control, including but not limited to
         lightning, flood, exceptionally severe weather, fire or explosion,
         civil disorder, war or military operations, national or local
         emergency, anything done by government or other competent authority, it
         shall not be liable to the other Parties for such delay in performance
         or failure to perform and shall, give notice to the other Parties as
         soon as reasonably practical after the event has occurred.

36       SEVERABILITY

         If any of the provisions of this Agreement shall be invalid or
         unenforceable, such invalidity or unenforceability shall not invalidate
         or render unenforceable the entire Agreement, but rather the entire
         Agreement shall be construed as. If not containing the particular
         invalid or unenforceable provision, or provisions, and the rights and
         obligations of the Parties shall be construed and enforced accordingly.

37       ENTIRE AGREEMENT

37.1     This Agreement supersedes all prior or written understandings between
         or among the Parties and constitutes the entire agreement among the
         Parties with respect to the subject matter of this Agreement.

37.2     This Agreement supersedes the MOU. Any liabilities which any Party has
         incurred arising out of or by virtue of the MOU shall be dealt with in
         accordance with the provisions of this Agreement.

38       CONFIDENTIALITY

38.1     All data and information that is acquired or received by any Party in
         connection with TIS in anticipation of or under this Agreement shall be
         held confidential and shall not be divulged in any way to any third
         party, without the prior approval of the Management Committee.

38.2     Notwithstanding Subparagraph 38.1, any Party may, without such
         approval, disclose such data and information to:

                                     - 36 -

<PAGE>

         (i)      the extent required by any applicable laws, or the
                  requirements of any recognized stock exchange in compliance
                  with its rules and regulations, or in the case of a Party
                  wholly owned by a sovereign government, by the rules of
                  governance of the Party; or

         (ii)     any government agency lawfully requesting such information; or

         (iii)    any Court of competent jurisdiction acting in pursuance of its
                  powers.

38.3     Any Party may disclose such data and information to such persons as may
         be necessary in connection with the conduct of the operations of TIS
         upon obtaining similar undertaking of confidentiality from such persons
         to whom such information may be disclosed.

38.4     Each Party shall remain bound by the provisions of this Paragraph 38
         during the period of this Agreement and for the period of five years
         following termination of this Agreement.

39       ADMISSION OF ADDITIONAL PARTIES

39.1     The MC shall be empowered on one or more occasions prior to the RFS
         Date to consider the admission of Carrier not signatories hereto as
         additional parties (hereinafter called "Additional Parties") provided
         the following conditions are met:

         (i)      the Carrier incorporated as a recognized international
                  telecommunications operator only after this Agreement was
                  executed by the Parties, in which case the said Carrier shall
                  be required to furnish satisfactory documentation of such
                  incorporation to the MC which shall decide on the issue; or

         (ii)     the Carrier incorporated as a recognized international
                  telecommunications operator before this Agreement was executed
                  by the Parties but at a timeframe which was deemed by the MC
                  as insufficient for the Carrier to be admitted as a Party to
                  this Agreement; and

         (iii)    the Carrier in question agrees to acquire an investment share
                  in the TIS at least correspond to a level of MIU to be
                  determined by the MC.

39.2     The admission of Additional Parties pursuant to subparagraph 39.1 shall
         be at the sole discretion of the MC, and nothing in this Paragraph 39
         shall be construed as assuring the admission of Carrier not signatory
         hereto as an Additional Party.

                                     - 37 -

<PAGE>

39.3     In being so admitted, an Additional Party shall acquire the same rights
         and obligations as the other Parties subject to the followings:

         (i)      the admission of Additional Parties shall be on terms and
                  conditions to be determined by the MC;

         (ii)     the Additional Party accepts responsibilities to pay its
                  proportionate share of any cost incurred under this Agreement
                  prior to its becoming a Party; and

         (iii)    the Additional Party accepts and abides by the terms and
                  conditions of this Agreement and all decisions properly taken
                  under this Agreement prior to its becoming a Party.

39.4     Parties acquiring jointly-assigned MIUs with Additional Parties
         admitted pursant to this Paragraph 39 shall be permitted to acquire
         such capacity on an ownership basis at the time such Additional Parties
         are admitted to this Agreement.

39.5     Additional Parties shall be admitted by supplemental agreements to this
         Agreement. The Terminal Parties are hereby authorized to act as
         representative and agents of all Parties to execute such supplemental
         agreements for the Additional Parties. Such supplemental agreements
         shall be approved by the MC prior to execution. Schedules A, B, C, D, E
         and F shall be appropriately modified.

40       COMPLIANCE WITH LAW

         The Parties shall comply with all applicable laws of all countries,
         territories and places having jurisdiction over the activities
         performed under or contemplated by this Agreement.

41       INTEGRATION WITH OTHER CABLE NETWORK

         The Parties hereto may consider to integrate the TIS with other cable
         network. The integration arrangement shall be subject to MC decision.

                                     - 38 -

<PAGE>

TESTIMONIUM

IN WITNESS WHEREOF, the Parties hereto have severally subscribed these presents
or caused them to be subscribed in their names and on their behalf by their
respective officers thereunto duly authorized.

For and on behalf of
The Communications Authority of Thailand

/s/ Kittin Udomkiat
- --------------------------
Mr. Kittin Udomkiat
(Senior Executive Vice President (Telecommunications System))

For and on behalf of
PT Telekomunikasi Indonesia Tbk

/s/ Kristiono
- --------------------------
Mr. Kristiono
(President Director/ CEO)

For and on behalf of
Singapore Telecommunications Limited

/s/ Ng Seng Sum
- --------------------------
Mr. Ng Seng Sum
(Vice President, International Network)

                                     - 39 -

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.34
<SEQUENCE>33
<FILENAME>u92256exv4w34.txt
<DESCRIPTION>EX-4.34 AMENDED & RESTATED KSO AGREEMENT,JAN.20/04
<TEXT>
<PAGE>
                                                                    Exhibit 4.34



                       AMENDED AND RESTATED KSO AGREEMENT

                                     BETWEEN

                         PERUSAHAAN PERSEROAN (PERSERO)

                        PT TELEKOMUNIKASI INDONESIA, Tbk.

                                       AND

                    PT MITRA GLOBAL TELEKOMUNIKASI INDONESIA

                             DATED JANUARY 20, 2004
<PAGE>



                                Table of Contents

<TABLE>
<CAPTION>
<S>      <C>                                                                                   <C>
1.       INTERPRETATION ..................................................................      3

         1.1  Definitions ................................................................      3

         1.2  Attachments ................................................................     10

         1.3  Headings ...................................................................     11

         1.4  Extended Meanings ..........................................................     11

2.       KSO in DIVRE IV .................................................................     12

         2.1  Cooperation ................................................................     12

         2.2  DIVRE IV operations ........................................................     12

         2.3  Status of DIVRE IV .........................................................     12

         2:4  Protection of TELKOM's Interest ............................................     13

         2.5  Protection of the Investor's Interest ......................................     13

3.       CONSTRUCTION ....................................................................     14

         3.1  Ownership of New Installation ..............................................     14

         3.2  Completion of any New Installation and Other Capital Expenditure ...........     14

         3.3  TELKOM Construction Right ..................................................     14

4.       PERFORMANCE OBJECTIVES ..........................................................     15

5.       MANAGEMENT AND OPERATIONS PLAN ..................................................     15
</TABLE>

                                       -i-

<PAGE>


<TABLE>
<S>      <C>                                                                                   <C>
         5.1  Approval of Plan ...........................................................     15

         5.2  Changes to Plan ............................................................     16

         5.3  Content of Plan ............................................................     16

6.       OPERATION AND MANAGEMENT OF DIVRE IV ............................................     17

         6.1  Role of TELKOM .............................................................     17

         6.2  Head of Regional Division ..................................................     17

         6.3  Appointment of Head of Regional Division and Senior KSO Management .........     18

         6.4  Telkom Representative ......................................................     18

         6.5  Auditor ....................................................................     18

         6.6  Insurance ..................................................................     19

         6.7  Indonesian Resources .......................................................     19

7.       REPORTS AND AUDITS ..............................................................     20

         7.1  Fiscal Year ................................................................     20

         7.2  Monthly Reports ............................................................     20

         7.3  Annual Audit and Report ....................................................     20

8.       FINANCE .........................................................................     21

         8.1  Source of Funds ............................................................     21

         8.2  KSO Account ................................................................     21

         8.3  Revenues ...................................................................     22
</TABLE>

                                      -ii-

<PAGE>



<TABLE>
<S>      <C>                                                                                   <C>
         8.4  Use and Segregation of Funds ...............................................     22

         8.5  Investor Revenues ..........................................................     22

         8.6  KSO Operating Expenses .....................................................     24

         8.7  Balance of KSO Revenues ....................................................     25

         8.8  TELKOM Deficiency Undertaking ..............................................     26

         8.9  Effect of Termination ......................................................     26

         8.10 Late Payment ...............................................................     26

         8.11 Transition Payment Mechanics ...............................................     27

9.       PERSONNEL .......................................................................     27

         9.1  Employees of DIVRE IV ......................................................     27

10.      REPRESENTATIONS AND WARRANTIES ..................................................     27

         10.1 Representations and Warranties of the Investor .............................     27

         10.2 Representations and Warranties of TELKOM ...................................     28

11.      OBLIGATIONS OF TELKOM ...........................................................     28

         11.1 Good Faith .................................................................     28

         11.2 Access to Information ......................................................     29

         11.3 Existing Installation ......................................................     29

         11.4 Co-Operation ...............................................................     29

         11.5 Indemnification ............................................................     29

         11.6 Access .....................................................................     30
</TABLE>

                                      -iii-

<PAGE>


<TABLE>
<S>      <C>                                                                                   <C>
12.      OBLIGATIONS OF THE INVESTOR......................................................     31

         12.1 Good Faith..................................................................     31

         12.2 Limitation on Encumbrances..................................................     31

         12.3 Indemnification.............................................................     32

         12.4 Ownership of Investor.......................................................     32

13.      EVENTS OF DEFAULT................................................................     33

         13.1 Events of Default by TELKOM.................................................     33

         13.2 Remedy upon Default.........................................................     33

14.      TERMINATION......................................................................     34

         14.1 Termination at End of KSO Period............................................     34

         14.2 Representations and Warranties..............................................     34

         14.3 Waiver of Article 1266......................................................     35

         14.4 Licenses and Warranties.....................................................     35

15.      DISPUTE RESOLUTION...............................................................     35

         15.1 Co-operative Negotiation....................................................     35

         15.2 Decision by Minister........................................................     36

         15.3 Arbitration.................................................................     36

         15.4 Binding Effect..............................................................     36

         15.5 Good Faith..................................................................     36

         15.6 Costs.......................................................................     37
</TABLE>

                                      -iv-

<PAGE>


<TABLE>
<S>      <C>                                                                                   <C>
16.      GENERAL .........................................................................     37

         16.1  Notice ....................................................................     37

         16.2  Governing Law .............................................................     38

         16.3  Language ..................................................................     38

         16.4  Interpretation ............................................................     38

         16.5  Confidentiality ...........................................................     39

         16.6  Force Majeure .............................................................     39

         16.7  Entire Agreement ..........................................................     40

         16.8  Severability ..............................................................     40

         16.9  No Waiver .................................................................     41

         16.10 Further Assurances ........................................................     41

         16.11 Benefit of this Agreement .................................................     41

         16.12 Assignment ................................................................     41

         16.13 Taxes .....................................................................     42

         16.14 Amendments ................................................................     42

17.      MISCELLANEOUS ...................................................................     42

         17.1 Mutual Waivers .............................................................     41

         17.2 Accounts Receivable ........................................................     43

         17.3 KSO Construction Agreement .................................................     43

         17.4 Loss of Exclusivity ........................................................     43

         17.5 Undertaking to Indosat .....................................................     43
</TABLE>

                                       -v-

<PAGE>


<TABLE>
<S>   <C>                                                                                      <C>
17.6  Prohibition on Payments in U.S. Dollars ............................................     44

17.7  License ............................................................................     44

Attachment A Description of the Territory.................................................     46

Attachment B License......................................................................     47

Attachment C Investor Revenues............................................................     48

Attachment D Irrevocable Payment Instruction..............................................     49

Attachment E Transition Payment Mechanics.................................................     52

Attachment F Power of Attorney (Pursuant to Section 13.2).................................     54

Attachment G Form of Mutual Waiver Between the Company and TELKOM.........................     57

Attachment H Form of Mutual Waiver Between Selling Shareholders and TELKOM................     62
</TABLE>

                                      -vi-
<PAGE>

                            AMENDED AND RESTATED KSO
                                    AGREEMENT

                          No.TEL 06/HK.810/UTA-00/2004

This AMENDED AND RESTATED KSO AGREEMENT (hereinafter referred to as the
"Agreement") is made on January 20, 2004,

BETWEEN:

Perusahaan Perseroan (Persero) PT. TELEKOMUNIKASI INDONESIA, Tbk, a limited
liability state owned public company for telecommunication operator established
under the law of the Republic of Indonesia, for which the Articles of
association have been published in the State Gazette of the Republic of
Indonesia Number 5 dated 17 January 1992, Supplement Number 210, as amended
several times and the latest amendment has been published in the State Gazette
of the Republic of Indonesia Number 45 dated 4 May 2002, Supplement Number 5495,
having its head office at Jalan Japati Number 1, Bandung 40133, Indonesia, in
this legal act duly represented by KRISTIONO, President Director, hereinafter
referred to as "TELKOM"

                                     - and-

PT. MITRA GLOBAL TELEKOMUNIKASI INDONESIA, a limited liability company owned by:

PT Alberta Telecommunication (99.99%)

Alberta Capital Partners Limited (0.01%)

for which the Articles of Association have been published in the State Gazette
of the Republic of Indonesia Number 97 dated 5 December 1995, Supplement Number
9985, as amended several times and lastly amended by Deed Number 70 dated 18
June

                                       1
<PAGE>

2002, made before Aulia Taufani, SH., substitute to Sutjipto, SH., Notary in
Jakarta, which has been reported to the Minister of Justice and Human Rights of
the Republic of Indonesia evidenced by his receipt dated 2 July 2002 Number C-
11893.HT.01.04.Th.2002 and has been registered with the South Jakarta Company
Registration Office on 10 September 2003 under Number 1110/RUB 0903/IX/2003,
having its registered office at Grata Surya Intemusa 10th Floor, Suite 1003,
Jalan HR Rasuna Said, Kav. X-O, Jakarta 12950, duly represented for this legal
action by Sandiaga Salahuddin Uno, President Director, hereinafter referred to
as the "Investor".

In consideration of and based on the following premises:

A.       whereas the Investor and TELKOM entered into the Original KSO Agreement
as defined below;

B.       whereas the Investor has planned, designed, constructed, financed and
operated in excess of 350,000 Access Line Units within the framework of a
co-operative joint operating scheme ("KSO") with TELKOM in the Territory on the
terms and conditions set forth in me Original KSO Agreement and the Original KSO
Construction Agreement as defined below;

C.       whereas the Investor and TELKOM wish to make certain adjustments to the
operational and financial terms of the Original KSO Agreement to permit more
efficient and effective operation of DIVRE IV and the KSO System during the
remaining term of the Original KSO Agreement; and

D.       whereas to give effect to such adjustments, the Investor and TELKOM
wish to amend and restate the Original KSO Agreement in its entirety, as
provided

                                       2
<PAGE>

herein.

NOW THEREFORE the parties hereto agree as follows:

ARTICLE 1 - INTERPRETATION

1.1      Definitions

         In this Agreement, unless the context otherwise requires:

(a)      Affiliate of any person means any party which controls, is controlled
by or under common control with such person, whether directly or indirectly. For
this purpose the term controls means the ownership of at least 50% of the voting
interests in the subject person and/or the ability to control in fact the
business and affairs of the subject person;

(b)      Auditor means the independent auditor of DIVRE IV appointed in
accordance with Section 6.5;

(c)      [reserved]

(d)      License Fee means the fee payable by DIVRE IV to the Department for the
Investor pursuant to the License;

(e)      KSO Operating Expenses has the meaning ascribed thereto in Section 8.6;

(f)      Department means the Department of Communications of the Republic of
Indonesia (DEPHUB);

(g)      Director General means the Director General of Post and
Telecommunications of the Department of Communications;

(h)      Head of Regional Division means the head of DIVRE IV appointed from
time to

                                       3
<PAGE>

time by TELKOM in accordance with Article 6, being the chief executive of DIVRE
IV;

(i)      Business Day means a day, other than a Saturday, Sunday or official
Indonesian holiday, on which commercial banks are open for business during
normal business hours in Jakarta;

(j)      License means the approval granted by the Minister to the Investor in
respect of the KSO, a copy of which is attached hereto as Attachment B;

(k)      DIVRE IV Employees means all the employees of TELKOM who are assigned
from time to time to DIVRE IV;

(l)      Telkom Representative means the non-executive officer appointed from
time to time by TELKOM in accordance with Article 6.

(m)      KSO means "Kerjasama Operasi" (joint operation scheme), which is the
cooperative arrangement entered into between TELKOM and the Investor pursuant to
the Original KSO Agreement and the Original KSO Construction Agreement for
purposes of the KSO Project;

(n)      Senior DIVRE IV Management means the top 3 levels of DIVRE IV
management (including the Head of Regional Division), as described in the
Management and Operations Plan, and the chief executive of each of the regions
(KANDATELs) in DIVRE IV, all as appointed from time to time hi accordance with
Article 6;

(o)      KSO Period means the period of time from the Implementation Date to the
later of 31 December 2010 and the date this Agreement is terminated pursuant to
Article 14;

                                       4
<PAGE>

(p)      Investor Revenues shall have the meaning set forth in Section 8.5;

(q)      Minister means the Minister of Communications of the Republic of
Indonesia;

(r)      Government means the Government of the Republic of Indonesia;

(s)      Balance of KSO Revenues for any calendar month means the net revenues
of DIVRE IV for that month stated in Rupiah and determined by deducting from the
Total KSO Revenues for that month:

         i)       the Rupiah equivalent of the Investor Revenues for that month
(calculated by multiplying the U.S. Dollar amount of the Investor Revenues by
the midpoint between the buying and selling rates of Bank Indonesia for the
Rupiah against the U.S. Dollar on the payment date); and

         ii)      the KSO Operating Expenses for that month;

(t)      Original KSO Construction Agreement means the KSO Construction
Agreement dated 20 October 1995 (as amended) which is terminated by this
Agreement as stated in Section 17.3;

(u)      Original KSO Agreement means the KSO Agreement dated 20 October 1995
and all schedules attached thereto, as amended, restated or supplemented from
time to time in accordance with the terms thereof including but not limited to:
Notes of Clarification (Side Letter) of the KSO Agreement, No.
PKS.8/HK830/UTA-00/1996, dated 9 January 1996, and the Memorandum of
Understanding on the Amendment of KSO Agreement, No.K.TEL51/HK810/UTA-00/98
dated 5 June 1998;

                                       5
<PAGE>

(v)      Existing Project means TELKOM's ongoing, planned and committed
telecommunication construction projects in the Territory on the Implementation
Date;

(w)      KSO Project means the planning, design, engineering, financing and
construction of the New Installation pursuant to the Original KSO Construction
Agreement including the upgrading of the Existing Installation, and the
management, operation, repair and maintenance of the KSO System by DIVRE IV
during the KSO Period;

(x)      KSO Account means the bank account of DIVRE IV established in
accordance with Section 8.2;

(y)      Management and Operations Plan means the annual management and
operations plan of DIVRE IV from time to time as approved pursuant to Article 5;

(z)      New Installation means the new telecommunications facilities and all
related supporting facilities, buildings, furnishings, computer and other
equipment, systems and other assets and resources, including replacements and
non maintenance related upgrades to the Existing Installation, required to be
provided or constructed by the Investor in accordance with the Original KSO
Construction Agreement, being comprised of the Minimum New Installation and the
Additional New Installation, if any;

(aa)     Minimum New Installation means the new telecommunications facilities
and all related supporting facilities, buildings, furnishings, computer and
other equipment, systems and other assets and resources, including replacements
and non maintenance related upgrades to the Existing Installation,

                                       6
<PAGE>

provided or constructed by the Investor pursuant to the Original KSO
Construction Agreement so as to provide a minimum of 350,000 new Access Line
Units in the Territory provided that subscriber drops and telephone sets are
required to be installed only on subscriber demand;

(ab)     Additional New Installation means the new telecommunications
facilities, if any, and all related supporting facilities, buildings,
furnishings, computer and other equipment, systems and other assets and
resources, including replacements and non maintenance related upgrades to the
Existing Installation, provided or constructed by the Investor following written
approval by the Minister pursuant to an addendum agreement entered into between
the Investor and TELKOM supplementing the Original KSO Construction Agreement;

(ac)     New TELKOM Installation means the new telecommunications facilities, if
any, and all related supporting facilities, buildings, furnishings, computer and
other equipment, systems and other assets and resources, including replacements
and non maintenance related upgrades to the Existing Installation and New
Installation, provided or constructed by TELKOM after the Effective Date in
accordance with Section 3.3;

(ad)     Existing Installation means:

         i)       all TELKOM's existing telecommunications facilities in the
Territory, including all related supporting facilities, reasonable test and
installation equipment and spare equipment and a

                                       7
<PAGE>

reasonable supply of parts inventories, relating to those existing
telecommunications facilities together with buildings, furnishings, computer and
other related equipment, systems and other assets and resources but excluding
the assets and resources relating to:

- -        TELKOM's head office functions,

- -        TELKOM Network Division, Atelier Division, SISFO (Information Systems
Centre) Division and Training Centre Division, to the extent they are not used
directly in the operation of TELKOM's existing telecommunications facilities
mentioned above,

- -        TELKOM's mobile wireless facilities,

- -        TELKOM's long distance network, including the Secondary Centers (SC)
and Tertiary Centers (TC), "Backbone Transmission" and facilities connecting
such centers and extending beyond them to connect with facilities of
international carriers, other KSO systems and TELKOM's local operating
territories;

         ii)      the new facilities constructed under the Existing Projects and
any other facilities constructed by TELKOM or a third party in accordance with
the Original KSO Construction Agreement;

         iii)     all maintenance related upgrades to the facilities referred to
in i) and ii) made by DIVRE IV during the KSO Period; and

         iv)      all new fixed telecommunications facilities constructed
pursuant to PBH revenue sharing agreements, if any, in respect of the Territory;

                                       8
<PAGE>

(ae)     Access Line Unit means all of the access and switching plant and
equipment, including one telephone set and, where necessary drops, feeder and
distribution plant, support facilities and structures and all related outside
plant, switching and transmission facilities required to provide subscribers
with access to the local telecommunications systems operated by DIVRE IV and the
long distance telecommunications systems operated by other TELKOM divisions;

(af)     KSO System means the integrated combination of the Existing
Installation, the New Installation and any New TELKOM Installation built in the
Territory by TELKOM after the Effective Date;

(ag)     Implementation Date means 1 January 1996;

(ah)     Effective Date means the date on which this Agreement is both (x)
signed by both parties and (y) title to 100% of the shares of the Investor is
registered in the Investor's share register in the names of PT. Alberta
Telecommunication and Alberta Capital Partners Limited as owners.

(ai)     Total KSO Revenues means the collected total revenues of DIVRE IV from
the operation of the KSO System and all interest earned thereon including
installation charges, fixed monthly charges and charges for other
telecommunications services offered to subscribers, pulse charges (except in the
case of international calls where only TELKOM's portion of the subscriber
revenues collected on pulse charges will be included), all revenues derived from
PBH basic telecommunications (wireline) services operations in the Territory,
TELKOM's portion of any settlement payments from international network providers
for international calls terminating in the

                                       9
<PAGE>

Territory, and payments from third party telecommunications network or service
providers such as interconnecting wireless telecommunications operators, WARTELs
and pay-phone operators. The term Total KSO Revenues shall include amounts
received by TELKOM following the end of the KSO Period in respect of the
operations of the KSO System during the KSO Period;

(aj)     DIVRE IV means TELKOM's Regional Division IV responsible for the
management and operation of the KSO System during the KSO Period, constituted as
a division of TELKOM and managed and operated by TELKOM in accordance with this
Agreement;

(ak)     Territory means the Regional Division IV Central Java
telecommunications operating area and the Special Territory of Yogyakarta, more
particularly described in Attachment A hereto.

1.2      Attachments

         The following arc the attachments attached hereto which are
incorporated herein by reference and deemed to be a part of this Agreement:

Attachment A - Description of the Territory
Attachment B - License
Attachment C - Investor Revenues
Attachment D - Irrevocable Payment Instruction

Attachment E - Transition Payment Mechanics
Attachment F - Power of Attorney
Attachment G - Mutual Waiver between TELKOM and the Investor

                                       10
<PAGE>

Attachment H - Mutual Waiver between TELKOM and the former shareholders of
               Investor

In the event of any inconsistencies between any of the Attachments and the main
body of this Agreement, the provisions of the main body of this Agreement shall
prevail. In the event of any inconsistencies between the provisions of the
License and the provisions of this Agreement the provisions of the License shall
prevail.

1.3      Headings

         The division of this Agreement into Articles and Sections and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation of this Agreement The terms "this Agreement",
"hereof", "hereunder" and similar expressions refer to this Agreement and not to
any particular Article, Section or other portion hereof and include any
agreement supplemental hereto. Unless something in the subject matter or context
is inconsistent therewith, references herein to Articles and Sections are to
Articles and Sections of this Agreement.

1.4      Extended Meanings

         In this Agreement words importing the singular number only shall
include the plural and vice versa, words importing gender shall include all
genders and words importing persons shall include individuals, sole
proprietorships, partnerships, associations, trusts, joint ventures,
unincorporated organizations, corporations, States, governments and governmental
entities.

                                       11
<PAGE>

ARTICLE 2 - KSO IN DIVRE IV

2.1      Cooperation

         TELKOM and the Investor agree to work co-operatively, diligently and in
good faith in the implementation of this Agreement.

2.2      DIVRE IV Operations

         DIVRE IV shall manage, operate, repair and maintain the KSO System
during the KSO Period in accordance with this Agreement and all applicable law.
DIVRE IV shall be managed in accordance with Article 6. During the KSO Period,
the Investor shall make available and provide to DIVRE IV the New Installation
(including the land and leasehold interests on which certain of the New
Installation is situated) for the use by DIVRE IV. TELKOM acknowledges that the
Investor provides and makes available the New Installation and such land and
leasehold interests to DIVRE IV on an "as is, where is" basis as of the
Effective Date, and the Investor and TELKOM agree that DIVRE IV and TELKOM shall
bear full responsibility for the upkeep and maintenance of and repairs to the
New Installation and for payment of all rents and other amounts relating to the
land and leasehold interests during the KSO Period.

2.3      Status of DIVRE IV

         DIVRE IV is a division of TELKOM managed and operated by TELKOM in
accordance with this Agreement. The business of DIVRE IV shall be fully
segregated from the other business operations of TELKOM, including the operation
and management of other TELKOM divisions. Except as provided herein, during the
KSO Period, TELKOM will allocate the DIVRE IV Employees, the Existing
Installation and any

                                       12
<PAGE>

telecommunication facilities built in the Territory by TELKOM after the
Effective Date to the exclusive use of DIVRE IV.

2.4      Protection of TELKOM's Interest

         The Investor hereby expressly acknowledges and agrees that it shall
have no right or interest in the Existing Installation or New TELKOM
Installation or any other assets of TELKOM other than as expressly provided for
in this Agreement. During the KSO Period, DIVRE IV and the Investor shall take
all such action as may be necessary to protect and safeguard TELKOM's right,
title and interest in the Existing Installation and New TELKOM Installation and
shall not sell, transfer, pledge, assign or otherwise encumber all or any part
of the Existing Installation or New TELKOM Installation.

2.5      Protection of the Investor's Interest

TELKOM hereby expressly acknowledges and agrees that it shall have no right or
interest in the New Installation or any other assets of the Investor other than
as expressly provided for in this Agreement. During the KSO Period, DIVRE IV and
TELKOM shall take all such action as may be necessary to protect and safeguard
the Investor's rights, title and interest in the New Installation and shall not
sell, transfer, pledge, assign or otherwise encumber all or any part of the New
Installation.

                                       13
<PAGE>

ARTICLE 3 - CONSTRUCTION

3.1      Ownership of New Installation

         Until ownership is transferred to TELKOM in accordance with this
Agreement, the New Installation shall be and remain the exclusive property of
the Investor and without limiting the generality of the foregoing TELKOM shall
not acquire any right or interest therein during the KSO Period other than
pursuant to this Agreement.

3.2      Completion of any New Installation and Other Capital Expenditure

         From and after the Effective Date, TELKOM shall be solely responsible
for completing any uncompleted construction on the Effective Date deemed
feasible by and in accordance with TELKOM's program, and TELKOM acknowledges
that after the Effective Date the Investor shall have no financial or other
obligation of any kind to complete any of the New Installation or incur any
other capital or operating expenditure whatsoever, provided, however, that the
Investor shall be responsible for paying operational capital expenses incurred
from the Effective Date until 31 December 2003 in an amount not to exceed Rp.
500 million.

3.3      TELKOM Construction Right

         From and after the Effective Date, TELKOM shall be entitled at any time
to construct at its sole discretion and at its sole expense (and not at the
expense of DIVRE IV or Investor) any New Telkom Installation in the Territory.

                                       14
<PAGE>

ARTICLE 4 - PERFORMANCE OBJECTIVES

         DIVRE IV shall at all times cooperate with TELKOM and other
telecommunications operators in Indonesia including other TELKOM divisions to
ensure that there is an adequate and timely flow of information between them
such that (i) appropriate network planning and provisioning can occur and (ii)
below-target or otherwise unacceptable performance of the KSO System or the
systems operated by such other telecommunications operators is not due to
inadequate or untimely provision of such traffic demand or other information.

ARTICLE 5 - MANAGEMENT AND OPERATIONS PLAN

5.1      Approval of Plan

         DIVRE IV shall be operated at all times in accordance with a Management
and Operations Plan approved annually under this Article 5. The Head of Regional
Division shall prepare and submit to TELKOM a draft Management and Operations
Plan for each year. Following discussion and consultation in good faith with
TELKOM, the Head of Regional Division shall make changes, if any, to such plan
as he deems advisable and shall thereafter approve such plan in writing prior to
the start of the applicable year. A copy of all final Management and Operations
Plans approved pursuant to this Section 5.1 shall "be delivered forthwith by the
Head of Regional Division to TELKOM and the Investor on or before 31 December of
each year during the KSO Period.

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<PAGE>

5.2      Changes to Plan

         An approved Management and Operations Plan may be changed from time to
time with the approval of the Head of Regional Division. Prior to approving any
such change, the Head of Regional Division shall give notice to TELKOM setting
out in detail the proposed change and any relevant background information.
Following discussion and consultation in good faith with TELKOM, Head of
Regional Division shall approve the proposed change with such modifications, if
any, as recommended to him. Notice of all approved changes to a Management and
Operations Plan, including a copy of the revised plan, shall be delivered
forthwith by the Head of Regional Division to TELKOM and the Investor.

5.3      Content of Plan

         The Management and Operations Plan shall contain plans for the
management and operation of DIVRE IV and the KSO System to a world class
standard and shall include at a minimum a detailed work program, business plan
and personnel plan and financial performance targets for the year and planning
outlines for future years, detailed information in respect of the organizational
and management structure of DIVRE IV, the job descriptions and qualifications
for the Senior DIVRE IV Management, the identity, terms of engagement and scope
of work to be performed by any third party contractors, the business approach to
operations and service provisioning and the specific steps to be taken with a
view to achieving all applicable, performance targets, the marketing strategy
and the system for monitoring and evaluating marketing performance, the approach
to maintenance and repair of the

                                       16
<PAGE>

KSO System including performance measurement and quality controls measurement
methodologies and the human resources and research and development plans to be
pursued hereunder.

ARTICLE 6 - OPERATION AND MANAGEMENT OF DIVRE IV

6.1      Role of TELKOM

         Except as expressly provided for herein, during the KSO Period, DIVRE
IV will operate under the management, supervision, control and responsibility of
TELKOM. Without limiting the generality of the foregoing, TELKOM shall promptly
take all action necessary to delegate to the Head of Regional Division the
broadest possible powers to manage and direct the operation of DIVRE IV and the
KSO System. TELKOM shall maintain or obtain or shall cause DIVRE IV to maintain
or obtain, as the case may be, all the licenses that ore required for the
operations of DIVRE TV and the KSO System.

6.2      Head of Regional Division

         DIVRE IV shall be headed by the Head of Regional Division appointed by
TELKOM in accordance with Section 6.3. Except as provided for herein, the Head
of Regional Division shall have full and complete day to day management,
financial and operational control and responsibility for DIVRE IV. Without
limiting the generality of the foregoing and subject always to the terms of this
Agreement, the Head of Regional Division shall be responsible for the
implementation of Management and Operations Plans and to implement the
appointment, replacement and determination of the terms of employment of the
Senior DIVRE IV Management and all DIVRE IV Employees and subcontractors. The
salary and benefits

                                       17
<PAGE>

payable to the Head of Regional Division shall be determined and paid by
TELKOM.

6.3      Appointment of Head of Regional Division and Senior KSO Management

         TELKOM shall appoint the Head of Regional Division and Senior DIVRE IV
Management from time to time in its sole discretion.

6.4      Telkom Representative

         The Telkom Representative shall be appointed by TELKOM with full rights
of substitution at any time. The Investor shall rely on the directions,
approvals, agreements and determinations of the Telkom Representative as the
official directions, approvals, agreements and determinations of TELKOM.

6.5      Auditor

         The Auditor of DIVRE IV shall be the reputable, international firm of
auditors appointed from time to time as the independent auditor of TELKOM or if
no such independent, international auditor is appointed, a reputable,
independent, international auditor appointed by TELKOM. The Auditor shall audit
and report on the annual financial statements of DIVRE IV and shall perform such
other services as may be provided for in this Agreement or as may be requested
from time to time by the Head of Regional Division. The reasonable fees and
expenses of the Auditor incurred in respect of DIVRE IV shall be paid by DIVRE
IV. Unless required by this Agreement or applicable law, the Auditor shall
perform all audits and other tasks using reasonable commercial assumptions and
Indonesian generally accepted accounting principles, consistently applied.

                                       18
<PAGE>

6.6      Insurance

         DIVRE IV shall obtain and maintain in force during the KSO Period such
insurance in respect of its operations, the KSO System and all other assets
owned or used by DIVRE IV from time to time comparable to the insurance in
effect during the life of the KSO System prior to the Effective Date. All such
insurance shall be provided by a reputable insurance company operating in
Indonesia on terms approved in advance by the Head of Regional Division.

         All proceeds arising from an insurance claim for damages or loss to the
New Installation shall be used or applied to repair or replace the damaged
property. TELKOM acknowledges that damages or destruction to the KSO System, no
matter how extensive and whether or not insured, will not affect the right of
the Investor to receive Investor Revenues and other amounts as provided in this
Agreement.

6.7      Indonesian Resources

         DIVRE IV shall, to the extent reasonably possible in the circumstances,
make maximum use in its operations of available Indonesian domestic human and
material resources, goods and services. Without limiting the generality of the
foregoing, TELKOM resources and services, including the Personnel Assessment
Center (Bandung), the Training Center (Divisi Pelatihan), the Information
Systems Center (Divisi SISFO), Network Division, Atelier Division and the repair
centers and property management, shall be utilized by DIVRE IV where such
services are appropriate to the requirements of DIVRE IV. All such

                                       19
<PAGE>

resources and services shall be made available to DIVRE TV by TELKOM on
reasonable commercial and competitive terms pursuant to arrangements made
between the Head of Regional Division and TELKOM.

ARTICLE 7 - REPORTS AND AUDITS

7.1      Fiscal Year

         DIVRE IV shall have a fiscal year ending 31 December in each year.

7.2      Monthly Reports

         DIVRE IV management shall prepare monthly financial statements for
DIVRE IV in accordance with Indonesian generally accepted accounting principles,
consistently applied. The unaudited monthly financial statement shall be
submitted to TELECOM and the Investor within 15 days after the closing of the
books of each month during the KSO Period. Within 30 days after the closing of
the books for that month, the Head of Regional Division shall prepare and submit
to TELKOM and the Investor monthly reports on the management; operations and
finance of DIVRE IV, including copies of monthly financial statements (audited
if required by law), all calculations required to be set out therein for
purposes of this Agreement, progress reports made with reference to the
Management and Operations Plan and reports on any other matters which the Head
of Regional Division may deem relevant.

7.3      Annual Audit and Report

         DIVRE IV management shall prepare annual financial statements for DIVRE
IV in accordance with Indonesian generally accepted accounting principles,

                                       20
<PAGE>

consistently applied. Such annual financial statements shall be audited by the
Auditor. Within 90 days after the end of each year during the KSO Period, the
Head of Regional Division shall prepare and submit to TELKOM and the Investor an
annual report on the management, operations and finance of DIVRE IV during the
preceding year including copies of the audited financial statements with the
Auditor's notes and comments thereon, all calculations required to be set out
therein for purposes of this Agreement, progress reports made with reference to
the Management and Operations Plan for the preceding year, and reports on any
other matters which the Head of Regional Division may deem relevant.

ARTICLE 8 - FINANCE

8.1      Source of Funds

         It is intended that the operations of DIVRE IV shall be funded
exclusively out of Total KSO Revenues. However, if at any time DIVRE IV is
unable to finance its operations, TELKOM shall be required to contribute funds
to finance such operations. In no circumstances shall the Investor be required
to contribute funds. DIVRE IV shall not enter into any agreement for the lending
or borrowing of funds.

8.2      KSO Account

         At all times DIVRE IV shall maintain the KSO Account at a reputable
foreign bank in Indonesia acceptable to both the Investor and TELKOM and shall
establish such banking procedures and signing authorities in respect of such
account as TELKOM may from time to time direct in accordance with this
Agreement.

                                       21
<PAGE>

8.3      Revenues

         All DIVRE IV revenues shall be deposited to the KSO Account immediately
on receipt. DIVRE IV shall diligently pursue the collection of all such revenues
and TELKOM shall lend all such assistance, including the pursuit of legal
action, as may be requested by the Head of Regional Division to ensure all DIVRE
IV revenues are collected in a timely manner. No accounts receivable of DIVRE IV
will be written off except in accordance with Indonesian generally accepted
accounting principles, and in accordance with the prevailing laws and
regulations.

8.4      Use and Segregation of Funds

         Funds standing to the credit of the KSO Account shall be used each
month only for payment of the following amounts and such funds shall be applied
in the following order. First, for payment in full of the Investor Revenues;
second, for payment in full of the KSO Operating Expenses; and third, for the
payment of Balance of KSO Revenues. Without limiting the generality of the
foregoing, no security interest may be granted over the KSO Account or Total KSO
Revenues. Total KSO Revenues and any interest earned thereon shall at all times
be kept separate from and shall not be co-mingled with any other revenues or
funds of TELKOM or the Investor. Except for rights and interests expressly
provided for hereunder, TELKOM and the Investor hereby expressly waive any
proprietary right or interest in Total KSO Revenues or any interest earned
thereon.

8.5      Investor Revenues

The Investor Revenues means, in respect of any month during the KSO Period, the
U.S.

                                       22
<PAGE>

Dollar amount payable in respect of that month as set out in Attachment C (the
"Investor Revenues"). The Investor Revenues shall be paid to the Investor from
the KSO Account in U.S. Dollars in accordance with Attachment C monthly.
Notwithstanding the previous sentence, for the first six payments of the
Investor Revenues, the Investor may, hi its sole discretion upon timely written
notice to TELKOM and DIVRE IV, direct that part or all of the Investor Revenues
constituting one or more of these first six payments be paid in Rupiah
calculated based on the midpoint between the buying and selling rates of Bank
Indonesia for the Rupiah against the U.S. Dollar on the date the payment is
made. The Investor Revenues shall be paid within 7 days of the end of the month
to which it relates by automatic transfer to a bank account designated by the
Investor. (If the date 7 days after the end of the month falls on a day which is
not a Business Day, then the payment shall be made on the immediately following
day which is a Business Day, except that for the first six payments of the
Investor Revenues, if the day 7 days after the end of the month falls on a day
which is not a Business Day then the payment shall be made no later than the
immediately preceding day which is a Business Day.) For (he avoidance of doubt,
the first payment of the Investor Revenues shall be made on the day not later
than 7 days after the month in which the Effective Date occurs, and the last
payment of the Investor Revenues shall be made on the day not later than the
7th day of the first month after the end of the KSO Period. TELKOM shall
provide or shall cause DIVRE IV to provide an irrevocable payment instruction,
in form and substance as set forth in Attachment D, to the KSO Account on the
Effective Date and annually thereafter no fewer than two Business Days before
the seventh day of every calendar year during the KSO Period, instructing that
the monthly payment of the Investor Revenues be made as set forth in

                                       23
<PAGE>

Attachment C.

8.6      KSO Operating Expenses

         The KSO Operating Expenses shall be paid out of the KSO Account as and
when due. For purposes of this Agreement, "KSO Operating Expenses" means the
total non capital expenses directly incurred by DIVRE IV in the operation of the
KSO System, including:

(a)      remuneration and benefits paid to DIVRE IV Employees;

(b)      general and administration;

(c)      materials and transportation;

(d)      repairs and maintenance;

(e)      training;

(f)      research and development;

(g)      refunds paid to subscribers;

(h)      value-added tax;

(i)      payment on behalf of the Investor of License Fee payments (the parties
agree that the cost of the License Fee will be paid on behalf of the Investor
and borne by DIVRE IV);

(j)      interconnection charges paid to other carriers and arising from calls
or services originating in the Territory;

(k)      licence fees for radio frequency;

(l)      revenue shares paid to PBH operators;

                                       24
<PAGE>

(m)      all other direct operating expenses including the cost of insurance
obtained in accordance with Section 6.6;

provided, however, that the following amounts shall not be included in KSO
Operating Expenses:

         (i)      depreciation, amortization, interest and financing charges in
respect of the Existing Installation, the New Installation and any other
installation;

         (ii)     income taxes payable by TELKOM or the Investor in respect of
DIVRE IV revenue; and

         (iii)    the expenses of the Investor and TELKOM incurred outside DIVRE
IV including head office administration costs and management fees payable to
shareholders of the Investor.

8.7      Balance of KSO Revenues

         TELKOM is entitled to all of the Balance of KSO Revenues.

         At the end of each month the Head of Regional Division will calculate
the amount, if any, of the Balance of KSO Revenues as of the last day of such
month, and at the latest within 10 days of the end of the month to which the
payment relates the amount so calculated shall be paid from the KSO Account by
Rupiah by automatic transfer to the account designated by TELKOM. (If the
payment date falls on a day which is not a Business Day, then the payment shall
be made on the immediately following day which is a Business Day). (For the
avoidance of doubt, the final payment of Balance of KSO Revenues will be made
during the month immediately following the last month of the KSO Period.) Any
dispute arising between the Investor and TELKOM with respect to the amount or
the calculation of the Balance of KSO Revenues shall be

                                       25
<PAGE>

referred to the Auditor, and the Auditor's decision shall be final and binding
and not subject to arbitration. No payment of Balance of KSO Revenues shall be
made to TELKOM unless and until all payments of Investor Revenues for that month
and all prior periods have been paid in full.

8.8      TELKOM Deficiency Undertaking

         In the event DIVRE IV has insufficient funds to pay the Investor
Revenues owing and payable to the Investor with respect to any month (the amount
of such insufficiency, the "Deficiency"), TELKOM shall, with no requirement for
demand by the Investor, pay on the due date for such payment the full amount of
the Deficiency to the account to which such payment is payable. TELKOM's
obligation to pay the Deficiency during the KSO Period shall be unconditional
and shall rank pari passu with TELKOM's other unsecured obligations. TELKOM'S
right to receive the Balance of KSO Revenues pursuant to Section 8.7 is
subordinated to the Investor's right to receive the Investor Revenues.

8.9      Effect of Termination

         Within 7 days following the termination of this Agreement pursuant to
Section 14.1, TELKOM shall pay to the Investor any Investor Revenues which have
not been previously paid. The obligations of TELKOM under this Section 8.9 shall
survive termination of this Agreement.

8.10     Late Payment

         If DIVRE IV or TELKOM fails to pay when due the Investor Revenues or
any

                                       26
<PAGE>

other amount payable to the Investor, then interest shall accrue on such unpaid
amount until the date of payment in full at the rate of 2% per month for each
month or partial month. Such interest shall be payable on demand by the
Investor. By way of illustration, a payment that is late by one month and one
day shall accrue interest calculated as 4% of such late payment.

8.11     Transition Payment Mechanics

         Set forth in Attachment E are instructions for making payments of
Investor Revenues and the Balance of KSO Revenues with respect to the month in
which the Original KSO Agreement is amended and restated by this Agreement.

ARTICLE 9 - PERSONNEL

9.1      Employees of DIVRE IV

         The DIVRE IV Employees shall remain employees of TELKOM. The
compensation and other benefits payable to, and other applicable rules and
policies for the DIVRE IV Employees during the KSO Period shall be as determined
by DIVRE IV management and must be approved in advance in writing by TELKOM.
The Head of Regional Division shall consult with TELKOM prior to making any
change in the organizational structure of DIVRE IV.

ARTICLE 10 - REPRESENTATIONS AND WARRANTIES

10.1     Representations and Warranties of the Investor

                                       27
<PAGE>

         The Investor hereby represents and warrants to TELKOM as follows:

(a)      the Investor is a limited liability company established and operating
under the laws of the Republic of Indonesia with the legal status, power and
capacity to enter into this Agreement and to perform its obligations hereunder
and thereunder; and

(b)      this Agreement constitutes legally valid and binding obligations of the
Investor enforceable against the Investor in accordance with their respective
terms and the person or persons signing this Agreement on behalf of the Investor
are duly empowered to do so.

10.2     Representations and Warranties of TELKOM

         TELKOM hereby represents and warrants to the Investor that it has the
requisite legal status power and capacity to enter into this Agreement and to
perform its obligations hereunder and thereunder and that this Agreement
constitutes legally valid and binding obligations enforceable against TELKOM in
accordance with their respective terms and the person or persons signing this
Agreement on behalf of TELKOM are duly empowered to do so.

ARTICLE 11 OBLIGATIONS OF TELKOM

11.1     Good Faith

         TELKOM shall perform its obligations under this Agreement promptly,

                                       28
<PAGE>

diligently, in good faith and in a cooperative spirit in accordance with all
applicable law and shall promptly take all action within its power to cause
DIVRE IV and the DIVRE IV Employees to comply with and perform this Agreement.

11.2     Access to Information

         TELKOM shall on written request without charge and within a reasonable
time grant the Investor access to all pertinent information related to the
operation of the KSO System which is not subject to an obligation of
confidentiality and shall give all such further assistance in due time as may be
reasonably requested in writing by the Investor or DIVRE IV for purposes of
carrying out the provisions of this Agreement in accordance with applicable law.

11.3     Existing Installation

         TELKOM shall ensure that the Existing Installation is at all times
during the KSO Period available for use in the KSO System by DIVRE IV.

11.4     Co-Operation

         TELKOM shall not knowingly take or omit to take any action which could
interfere with or interrupt the normal functioning of the KSO System in the
Territory except in accordance with applicable law or with reasonable cause
relating to the safe and proper operation of the Indonesian telecommunications
network.

11.5     Indemnification

         TELKOM shall indemnify and save harmless the Investor in respect of all

                                       29
<PAGE>

damages, losses or costs incurred by the Investor as the result of any material
breach by TELKOM or any of its employees or subcontractors of any term,
representation, warranty, covenant or other obligation in this Agreement. TELKOM
shall further indemnify and save harmless the Investor in respect of all
damages, losses or costs incurred by the Investor as a result of any action,
suit, proceeding or claim made by third parties who have suffered loss, injury
or damage in connection with this Agreement. The indemnification provided for in
this Section 11.5 shall survive the termination of this Agreement. In no case
shall the Investor be entitled to its indirect or consequential losses or
damages, whether or not such losses or damages are subject to this indemnity.

11.6     Access

         TELKOM shall without charge provide the Investor, upon prior notice
from the Investor and during working hours, with access to information, the
sites, locations and other facilities as may be reasonably required by the
Investor hereunder, and will also provide such access to the Investor as
required by the Investor to defend itself against any legal actions, lawsuits,
proceedings or claims made by third parties who have suffered loss, injury or
damage in connection with the Original KSO Agreement or otherwise in any manner
related to the Original KSO Construction Agreement. Upon TELKOM's request, the
Investor shall provide to TELKOM evidence of such legal actions. For the
avoidance of doubt, the Investor's right to access as described in this Section
11.6 does not mean that the Investor has any right to participate in the
management or operation of the KSO except as specifically provided in this
Agreement.

                                       30
<PAGE>

ARTICLE 12 - OBLIGATIONS OF THE INVESTOR

12.1     Good Faith

         The Investor shall perform each of its obligations under this Agreement
promptly, diligently, in good faith and in a cooperative spirit in accordance
with applicable law to comply with and perform this Agreement.

12.2     Limitation on Encumbrances

         During the KSO Period the Investor shall take all such action as may be
necessary to protect and safeguard its right, title and interest in the New
Installation and shall not sell, transfer, pledge, assign or otherwise encumber
any of its rights in or to all or any part of the New Installation without the
prior written consent of TELKOM, provided however, that the Investor may
mortgage, pledge or otherwise encumber its interest in the New Installation in
favor of a third party, if such third party agrees in writing to subordinate its
interest in the New Installation to the rights of TELKOM:

(a)      to use such New Installation in the KSO System during the KSO Period
in accordance with this Agreement; and

(b)      to acquire the New Installation free and clear of any encumbrances in
accordance with Sections 14.1 and 14.2.

                                       31
<PAGE>

12.3     Indemnification

         The Investor shall indemnify and save harmless TELKOM in respect of all
damages, losses or costs incurred by TELKOM as a result of any material breach
by the Investor or any of its employees of any term, representation, warranty,
covenant or other obligation in this Agreement. The indemnification provided for
in this Section 12.3 shall survive the termination of this Agreement. In no case
shall TELKOM be entitled to its indirect or consequential losses or damages,
whether, or not such losses or damages are subject to this indemnity.

12.4     Ownership of Investor

         The Investor shall not make or permit any change in its ownership
structure during the KSO Period without the prior consent of TELKOM, except a
change in the ownership of the Investor that results from a transfer of
ownership to its Affiliate, a merger of the Investor and an Affiliate whereby
the Investor will be the surviving company, a transfer of ownership to a
reputable financial institution in relation to a pledge or other encumbrance of
such shares or a pledge of the Investor's shares, all of which shall not require
prior consent The Investor shall provide reasonable documentary evidence to
TELKOM that the transferee is its Affiliate. The Investor shall promptly notify
TELKOM of any proposed change in its ownership structure.

                                       32
<PAGE>

ARTICLE 13 - EVENTS OF DEFAULT

13.1     Events of Default by TELKOM

         The Investor may take the actions set forth in Section 13.2 upon the
occurrence of an uncured material breach by TELKOM of any of its material
obligations under this Agreement.

13.2     Remedy upon Default

         Upon the occurrence of an uncured material breach by TELKOM of any of
its material obligations under this Agreement, the Investor may give written
notice to TELKOM stating the nature and extent of the default and, if such
notice is given and the default is not remedied to the reasonable satisfaction
of the Investor within 7 Business Days (in the case of a payment default) and
10 Business Days (in the case of all other defaults) of the date of such notice,
the Investor may take the following actions at the end of the said 7 or 10, as
relevant, Business Days period by notice of the Investor. Upon delivery by the
Investor of such notice to TELKOM, the Investor may in its sole discretion
assume full operational and financial control of DIVRE IV and the KSO System
(including control of the Total KSO Revenues and signature authority with
respect to the KSO Accounts) and TELKOM shall take all steps necessary to permit
the Investor to assume such operational and financial control (including
provision to the Investor on the Effective Date of irrevocable powers of
attorney in the form of Attachment F required by the Investor to assume such
financial and operational control, including control of the Total KSO Revenues
and signature authority with respect to the KSO Accounts, such powers of
attorney to become effective with no further action upon the occurrence of an

                                       33

<PAGE>

uncured material breach by TELKOM of any of its material obligations under the
Agreement), and Total KSO Revenues shall be applied in payment of amounts owing
to the Investor under this Agreement, with such operational and financial
control being returned to TELKOM upon payment in full of amounts owing to the
Investor under this Agreement.

ARTICLE 14 - TERMINATION

14.1     Termination at End of KSO Period

         This Agreement shall terminate on 31 December 2010, at which time all
right, title and interest of the Investor in the New Installation shall be
transferred to TELKOM, on an "as is where is" basis, effective without requiring
any further action by any party, or payment by TELKOM to the Investor; provided,
however, that if amounts are owed to the Investor under the Agreement on 31
December 2010, the KSO Period shall be extended, and the New Installation shall
not be transferred to TELKOM, until all amounts owed to the Investor have been
fully paid.

14.2     Representations and Warranties

         The Investor shall, at the time of transfer of the New Installation to
TELKOM in accordance with this Article 14, be deemed to represent and warrant to
TELKOM that the New Installation is being

                                       34

<PAGE>

transferred to TELKOM free and clear of any liens, charges, encumbrances or any
other rights of others.

         This representation and warranty of the Investor made pursuant to this
Section 14.2 shall survive the termination of this Agreement and shall remain
enforceable against the Investor notwithstanding such termination and this
Agreement shall remain in force for such purpose.

14.3     Waiver of Article 1266

         The parties expressly waive Article 1266 of the Indonesian Civil Code
to the extent necessary to effect termination of this Agreement in accordance
with this Article 14 without the need for a court decision.

14.4     Licenses and Warranties

         Any licenses for the use of intellectual property rights, product or
equipment warranties or other rights or contracts in the name of the Investor,
if any and deemed necessary by TELKOM, relating to the New Installation or its
operation within the KSO System shall be assigned or otherwise transferred to
TELKOM at the expense of TELKOM on the date of transfer of the New Installation
to TELKOM pursuant to this Article 14.

ARTICLE 15 - DISPUTE RESOLUTION

15.1     Co-operative Negotiation

         The parties hereto shall use their best efforts and shall co-operate
and negotiate in good faith to resolve any and all disputes which may arise
between them relating to this Agreement or the KSO Project

                                       35

<PAGE>

(hereinafter in this Article 15 referred to as a "Dispute"). The Parties agree
that for a period of 30 days after the receipt by one party of a written notice
from the other party of the existence of a Dispute, they will attempt to settle
the Dispute by amicable discussion between the Parties.

15.2     Decision by Minister

         Any Dispute which relates to the implementation of regulatory or policy
matters dealt with in the License shall be referred to and decided by the
Minister. A decision of the Minister in respect of such a Dispute shall be final
and binding and shall not be subject to appeal to any Court or arbitral
tribunal.

15.3     Arbitration

         If the parties hereto are unable to reach a written agreement to settle
the Dispute within the 30-day period set forth in Article 15.1, then either
party may submit the Dispute to arbitration under the Rules of Conciliation and
Arbitration of the International Chamber of Commerce in Geneva by one or more
arbitrators appointed in accordance with the said Rules.

15.4     Binding Effect

         The parties hereto hereby consent and agree that any arbitral award
made pursuant to Section 15.3 shall be final and binding and may be used as a
basis for enforcement thereon in the Republic of Indonesia or elsewhere.

15.5     Good Faith

         Each party agrees to participate in

                                       36

<PAGE>

negotiation or arbitration pursuant to this Article 15 in good faith and in a
co-operative manner with a view to resolving any and all Disputes on an
equitable and expedited basis and, without limiting the generally of the
foregoing, agrees to make available in such process all documents, data and
members of its personnel, including its senior management and officers, to the
extent reasonably necessary in the circumstances.

15.6     Costs

         Subject to the award of the arbitral tribunal, each party shall be
responsible for its own costs and expenses incurred in connection with any
Dispute resolution process hereunder and the costs and expenses of the
arbitrators and the forum shall be borne equally by the parties.

ARTICLE 16 - GENERAL

16.1     Notice

         Any demand notice or other communication to be made or given hereunder
shall be in writing and made by facsimile transmission or by personal delivery
addressed to the respective party as follows:

To TELKOM:

         Perusahaan Perseroan (Persero)
         PT Telekomunikasi Indonesia
         Jl. Japati No. 1
         Bandung 40133
         Attention: President Director
         Facsimile: (022)440-313

                                       37

<PAGE>

To the Investor:

         PT Mitra Global Telekomunikasi
         Indonesia
         Jalan Medan Merdeka Barat No. 21
         Jakarta 10110
         Attention: President Director
         Facsimile: (021) 344-6018

or to such other address, person or telecopy or facsimile number as any party
may from time to time notify to the others in accordance with this Section 16.1.
Any demand, notice or other communication made or given pursuant hereto shall be
conclusively deemed to have been made or given on the day of actual delivery
thereof if delivered during the normal business hours of the recipient and, if
delivered outside such hours, on the day on which such normal business hours
next occur.

16.2     Governing Law

         This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the Republic of Indonesia without giving effect to
the conflicts of law provisions thereof.

16.3     Language

         This Agreement is concluded in both bahasa Indonesia and English. In
the event of any inconsistency or contradiction between the bahasa Indonesia and
English texts the bahasa Indonesia text shall govern and prevail.

16.4     Interpretation

         Each of the parties hereto expressly acknowledges its intention that
this Agreement be construed, interpreted and enforced in accordance with the
true spirit, intent, meaning and purpose hereof and in light of the
circumstances in which it was made.

                                       38

<PAGE>

16.5     Confidentiality

         Except to the extent required by applicable law, no party to this
Agreement may communicate or use any confidential information ("Confidential
Information") or permit the communication or use of Confidential Information to
or by any person other than its own shareholders, lenders, professional
advisers, management, personnel, employees and sub-contractors who need to know
or use such Information for purposes related to the KSO Project. For purposes of
this Section 16.5, Confidential Information shall mean all technical and
commercial information in whatever form having technical or commercial value
which is obtained by a party hereto as a result of or in connection with the KSO
System and which is not in the public domain. All information marked
"Confidential" by a party hereto shall be treated for all purposes by the
parties hereto as Confidential Information under this Section 16.5 unless and
until it is clearly demonstrated by a party hereto that such information is not
Confidential Information as herein defined. The provisions of this Section 16.5
shall survive the termination of this Agreement.

16.6     Force Majeure

         The obligation of any party hereunder, except for the obligation to
make payments of money when due, shall be suspended to the extent and during the
period that performance is prevented by any labor dispute, act of God, law,
regulation or order of any government or governmental entity, judgment or order
of

                                       39

<PAGE>

any courts, act of war or condition arising out of or attributable to war,
whether declared or undeclared, riot, terrorism or other criminal activity,
insurrection or rebellion, fire, explosion, earthquake, storm, flood, volcanic
eruption, drought or other severe and unusual adverse weather conditions,
accident, or any other cause similar to the foregoing. The parties agree that
there shall be no renegotiation of the terms or conditions of this Agreement on
account of changes in economic conditions or the condition of the business of
DIVRE IV or for any other reason.

16.7     Entire Agreement

         This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and cancels and supersedes any
prior understandings and agreements between the parties hereto with respect
thereto. There are no representations, warranties, terms, conditions,
undertakings or collateral agreements expressed, implied or statutory between
the parties other than as expressly set forth in this Agreement

16.8     Severability

         If any provision of this Agreement is determined to be invalid or
unenforceable in whole or in part, such invalidity or unenforceability shall
attach only to such provision or part thereof and the remaining part of such
provision and all other provisions hereof shall continue in full force and
effect.

                                       40

<PAGE>

16.9     No Waiver

         Failure on the part of a party hereto to exercise any right under this
Agreement or failure on the part of a party to insist that another party adhere
to the strict terms of this Agreement will not constitute a repudiation of the
terms of this Agreement and will not be considered waiver by such party of its
right to demand at a later date strict adherence to the terms of this Agreement.

16.10    Further Assurances

         Each of the parties hereto shall from time to time execute and deliver
all such further documents, instruments and further assurances and do or refrain
from doing all such further acts and things as the other party may from time to
time reasonably require to effectively carry out or better evidence or perfect
the true spirit, intent, meaning and purpose of this Agreement.

16.11    Benefit of this Agreement

         This Agreement shall enure to the benefit of and be binding upon the
panics hereto and their respective successors and permitted assigns.

16.12    Assignment

         The rights of a party arising under this Agreement may not be assigned
by any party without the prior written consent of the other party, except to its
Affiliate or a reputable financial institution. The parties agree that formal
notice of assignment will constitute a notice under Article 613 paragraph 2 of
the Indonesian Civil Code. The obligations of a party arising under this
Agreement may only be delegated by either party to any person with the prior
consent of

                                       41

<PAGE>

the other party.

16.13    Taxes

         Except as otherwise provided for in this Agreement, all taxes and other
duties in connection with the implementation of the Agreement shall be the
responsibility of each party in accordance with the prevailing laws and
regulations.

16.14    Amendments

         No modification or restatement of or amendment or supplement to this
Agreement shall be valid or binding unless set forth in writing and duly
executed by all parties hereto. For the avoidance of doubt no modification or
restatement of or amendment or supplement to Section 1(o), Section 1(aj),
Section 2.3, Section 3.3, Article 6, Article 7, Section 8.5, Section 8.7 and
Attachment C will be permitted during the KSO Period.

ARTICLE 17 - MISCELLANEOUS

17.1     Mutual Waivers

         TELKOM will enter into mutual waivers, substantially in the form of
Attachments G and H hereto, with each of the Investor and the former
shareholders of the Investor, pursuant to which TELKOM will release such parties
and such parties will release TELKOM from all liabilities arising under the
Original KSO Agreement and the Original KSO Construction Agreement for the
period ending on the Effective Date. It is intended that TELKOM will enter into
the mutual waivers with the Investor and the former shareholders of the
Investor, respectively, prior to the Effective Date, although the mutual waivers
will only

                                       42

<PAGE>

take effect upon the Effective Date.

17.2     Accounts Receivable

         All accounts receivable owing to the Investor under the Original KSO
Agreement on the Effective Date shall be paid by DIVRE IV to the Investor in
three equal installments on the 7th day of each of the next three calendar
months following the month on which the Effective Date occurs. If a payment date
falls on a day which is not a Business Day, it shall be made on the immediately
following day which is a Business Day.

17.3     KSO Construction Agreement

         With effect on the Effective Date, the Original KSO Construction
Agreement is hereby terminated and shall be deemed null and void.

17.4     Loss of Exclusivity

         The Investor hereby transfers to TELKOM all its right, title and
interest in, and any claim it may have with respect to, payments or compensation
to which the Investor is entitled as a result of the loss of the Investor's
exclusivity under its License.

17.5     Undertaking to Indosat

         TELKOM acknowledges that the Investor's shareholders have provided an
undertaking to PT. Indonesian Satellite Corporation Tbk ("Indosat"), pursuant to
which the shareholders have agreed not to, and have agreed to cause the Investor
not to, take any action to prohibit, deny or handicap the provision by Indosat
directly or indirectly of telecommunications networks or services in the
Territory or the roll out by

                                       43

<PAGE>

Indosat of a telecommunications network in the Territory and not to exercise any
rights the Investor may have under the License or the Agreement to prevent the
provision either directly or indirectly of such networks or services by Indosat
or the rollout of such network, and TELKOM agrees that it will not attempt to
prevent the Investor's shareholders or the Investor from performing such
undertaking.

17.6     Prohibition on Payments in U.S. Dollars

         If DIVRE IV or TELKOM shall be prevented by prevailing law or
regulation from making a payment required by this Agreement to be made in U.S.
Dollars, DIVRE IV or TELKOM, as relevant, shall make the payment in Rupiah, for
this purpose converting the U.S. Dollars into Rupiah by multiplying the U.S.
Dollar amount of the payment times the midpoint between the buying and selling
rates of Bank Indonesia for the Rupiah against the U.S. Dollar on the payment
date.

17.7     License

         TELKOM and the Investor set forth the following mutual agreements and
understandings with respect to the License:

         (a)      TELKOM and the Investor acknowledge that it is TELKOM's
intention to seek the approval of the Minister to operate the KSO during the KSO
Period under TELKOM's national license and to pay a license fee thereunder, and
for no License Fee to be payable with respect to the License, notwithstanding
anything to the contrary herein;

                                       44

<PAGE>

         (b)      during the KSO Period, the Investor shall not utilize the
License or any of its rights thereunder to carry on any telecommunications
business except as expressly contemplated under this Agreement;

         (c)      the Investor shall assist TELKOM upon TELKOM's request in
providing information and negotiating with the Minister and any other relevant
departments and agencies to achieve a mutually agreeable understanding with the
Minister and such other departments and agencies in relation to TELKOM's
intentions with respect to the licensing matter as reflected in this section;
and

         (d)      TELKOM undertakes that pending approval of the Minister to
operate the KSO during the KSO Period under TELKOM's national license, TELKOM
shall cause DIVRE IV to pay the License Fee to the Department as provided in
this Agreement.

IN WITNESS WHEREOF the parties have signed this Agreement under the hand of
their duly authorized representatives:

PERUSAHAAN PERSEROAN                        PT MITRA GLOBAL
(PERSERO) PT TELEKOMUNIKASI                 TELEKOMUNIKASI INDONESIA
INDONESIA TBK
                                            [STAMPED]

Oleh /s/ Kristiono                          Oleh  /s/ Sandiaga Salahuddin Uno
     ---------------------------                  ---------------------------
Nama    : Kristiono                         Nama    : Sandiaga Salahuddin Uno
Jabatan : Direktur Utama                    Jabatan : Direktur Utama

[STAMP OF METERAI TEMPEL]

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.35
<SEQUENCE>34
<FILENAME>u92256exv4w35.txt
<DESCRIPTION>EX-4.35 SERVICE LEVEL AGREEMENT, MARCH 24,2003
<TEXT>
<PAGE>

                                                                    EXHIBIT 4.35

                         PERUSAHAAN PERSEROAN (PERSERO)
                        PT TELEKOMUNIKASI INDONESIA TBK.

                                       AND

                                  MOTOROLA INC.

                             SERVICE LEVEL AGREEMENT

                              DATED MARCH 24, 2003
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
NO.                                                                                      PAGE
- ---                                                                                      ----
<S>                                                                                      <C>
1.     Definitions .............................................................           1

2.     Force Majeure ...........................................................           3

3.     Assignment and Subcontracting ...........................................           3

4.     Governing Law and Language ..............................................           4

5.     Settlement of Disputes ..................................................           4

6.     Notices and Authorized Representatives ..................................           6

7.     Termination .............................................................           7

8.     General provisions ......................................................           8

9.     General Principles ......................................................           9

10.    Fault Management ........................................................          11

11.    On-line Information/Reporting ...........................................          13

12.    Hardware Change Management ..............................................          14

13.    Software Update .........................................................          15

14.    Operation and Maintenance Assistance ....................................          18

15.    Escalation Procedure for Service Level Failures .........................          19

16.    Payment Amount ..........................................................          19

17.    Evaluation of Key Performance Indicators ("KPIs") Compliance ............          20
</TABLE>

Appendix A - Help Desk Contact Information
Appendix B - Fault Management Service
Appendix C - Compensation for Revenue Loss
Appendix D - On-Line Information Service Requirements
Appendix E - Spare Part Turn Around Time
Appendix F - Operation and Maintenance Assistance Service-Tasks
Appendix G - Operation and Maintenance Assistance Service-Composition
Appendix H - KPI Compliance and Payment
Appendix I - KPI Measurement Methodology
Appendix J - SLA Fee Calculation
Appendix K - PARTNER Service Proposal
Appendix L - Scope and Responsibilities of TELKOM's Operations and Maintenance
             Services

<PAGE>

                             SERVICE LEVEL AGREEMENT

THIS SERVICE LEVEL AGREEMENT is made as of 24 March 2003.

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 Jl. 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)      MOTOROLA INC., a corporation established under the laws of the State of
         Delaware, U.S.A., acting through its Global Telecom Solutions Sector,
         having offices at 1501 Shure Drive, Arlington Heights, IL60004, U.S.A.,
         duly represented by Allen Ma, in his capacity as Vice President &
         General Manager, Asia, hereinafter 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 Procurement Partnership
         Agreement of even date ("MPPA") for the procurement of radio access and
         core network assets contemplated in the T-21 Program and for
         implementing the T-21 Program.

B.       TELKOM has requested PARTNER to render operation and maintenance
         support services, and PARTNER has agreed to provide these services in
         accordance with this Service Level Agreement.

C.       Accordingly, pursuant to the MPPA, 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 MPPA (including the technical
         terms defined in Appendix 23 - (Technical Terms) of the MPPA) 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"       means the first day after the
                                            Commissioning of the Deliverables in
                                            the first Purchase Order which will
                                            be issued under the Master
                                            Procurement Partnership Agreement,
                                            or earlier as requested by TELKOM.

                                        1
<PAGE>

         (c)      "FAULT MANAGEMENT"        means all measures and procedures to
                                            prevent and/or resolve Network
                                            faults to meet the KPIs as defined
                                            in this Service Level Agreement.

         (d)      "HELP DESK"               means the help-desk support service
                                            to be provided by PARTNER as set out
                                            in Article 10.1.

         (e)      "KPI" (KEY PERFORMANCE
                  INDICATORS)               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,
                                            PDN's NEM (these mentioned equipment
                                            are grouped as PDN) and other
                                            similar or related equipment
                                            supplied by PARTNER, including all
                                            associated software and components
                                            acquired from PARTNER.

         (h)      "SYSTEM"                  means two or more Sub-systems
                                            forming a network that is ready for
                                            commercial service.

         (i)      "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 document issued by
                                            PARTNER's support desk identifying
                                            the problem alerted.

         (l)      "TSC1"                    means TELKOM's support personnel
                                            located at each Location dealing
                                            with operation and maintenance
                                            activities.

         (m)      "TSC2"                    means PARTNER's support
                                            infrastructure located in Jakarta or
                                            Medan and/or PARTNER's specialized
                                            technical support staff and
                                            designers who have the capability of
                                            evaluating complex network problems.

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.

                                        2
<PAGE>

1.4      Plural; Gender; Persons. Words importing the singular include the
         plural and vice versa; words importing a gender include every gender,
         and references to persons include bodies corporate or 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 otherwise defined or the
         context otherwise requires, references to a "day" shall mean a calendar
         day covering 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 re-
         enacted.

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 manufacture, deliver or perform when caused by any of
         the following which are beyond the reasonable control of the delayed
         Party, including but not limited to acts of God, acts of the public
         enemies, acts of civil or military authority, 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

2.2      Any occurrence belonging to a Force Majeure category shall be notified
         immediately to the other party not later than fourteen (14) days after
         such occurrence.

2.3      In the event that due to Force Majeure the implementation of this
         Service Level Agreement or relevant agreement, acceptance test,
         integration, drive test or other matters provided for in this Service
         Level Agreement 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
<PAGE>

3.1      PARTNER shall not, without the prior written consent of TELKOM (such
         consent not to be unreasonably withheld or delayed), transfer its
         obligations under this Service Level Agreement. Notwithstanding this
         agreement, TELKOM hereby agrees that PARTNER may assign or sub-contract
         the in country Services portion of this Agreement to its subsidiary, PT
         Motorola Indonesia, but only to the extent that such assignment or
         sub-contracting (i) does not prejudice PARTNERS's Local Content
         obligations under the MPPA, (ii) does not relieve PARTNER of
         responsibility under this Service Level Agreement; and (iii) does not
         encumber any of the moneys due or becoming due under this Service Level
         Agreement. The Parties agree that TELKOM shall not be required to give
         its consent to any encumbrance of moneys due or becoming due under this
         Service Level Agreement if by reason or consequence of such consent the
         assignee shall have direct or indirect recourse to TELKOM.

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 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 shaft 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.

                                       4
<PAGE>

5.       SETTLEMENT OF DISPUTES

5.1      If any disputes arising between TELKOM and PARTNER in connection with
         or arising out of this Agreement or the breach, termination of validity
         thereof (a "Dispute"), the Parties shall attempt for a period of thirty
         (30) days after receipt by one Party of a notice from the other Party
         of the existence of the dispute, to settle such Dispute in the first
         instance by mutual discussions between senior executives of the
         Parties.

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 Parry 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 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
<PAGE>
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 the Dispute or any arbitration conducted under
         this Agreement in relation to that Dispute, in each case subject to
         those disclosures permitted by Article 5.

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 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 time to time notified in writing:

         For TELKOM:
         Perusahaan Peseroan (Persero) PT Telekomunikasi Indonesia Tbk.
         Jl. Japati No. 1, Bandung 40133
         Attention : President Director
         Fax       : (022) 440-313

         For PARTNER:
         Motorola Inc.
         c/o PT Motorola Indonesia
         Gedung BKI II, Suite 3001
         Jalan Jend, Sudirman Kav, 44-46
         Jakarta 10210, Indonesia
         Fax       : (61-21) 571-9064
         Attention : General Manager

         Cc:      Motorola Electronics Pte. Ltd.
                  12 Ang Mo Kio St 64
                  Motorola Innovation Center Level 3A
                  Ang Mo Kio Industrial Park 3
                  Singapore 569088

                  Fax       : (65) 6484-0933
                  Attention : Commercial Contracts Manager

         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.



                                       6
<PAGE>

         The initial point of contacts are listed below:

         PARTNER's Point of Contact:
         Project Manager
         c/o PT Motorola Indonesia
         Gedung BRI II, Suite 3001
         Jalan Jend. Sudirman Kay. 44-46
         Jakarta 10210, Indonesia
         Tel    : (021) 251-3050
         Fax    : (021) 571-9064
         E-mail : didit.herawan@motorola.com

         TELKOM Point of Contact:
         Head of Fixed Wireless Division (as Project Manager)
         Jl, Kebun Sirih, Kav. 12
         Jakarta, Indonesia

         Tel     : (021) 385-7777
         Fax     : (021) 344-0707
         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 remain 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 the 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

                                       7
<PAGE>

         (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;

         (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;

         (c)      an event of Force Majeure continues for a period in excess of
                  6 months; or

         (d)      termination 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 dale 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
<PAGE>

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).

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 Service Level Agreement shall enure to the
         benefit of and be binding upon the Parties and their respective
         successors and permitted assigns.

8.8      This Agreement does not establish an employer-employee relationship and
         PARTNER is for all purposes, an independent contractor.

8.9      No modification, amendment or other change may be made to this
         Agreement or any part thereof unless reduced to writing and executed by
         authorized representatives of both Parties.

8.10     TELKOM agrees to comply with all applicable export laws and regulations
         of the United States of America, the United Kingdom, or such other
         country of origin. Specifically, but without limitation, TELKOM agrees
         that it will not resell or re-export Motorola products or technical
         data in any form without obtaining appropriate export or re-export
         licenses from the respective governmental authority of the United
         States of America, the United Kingdom or other country of origin.

8.11     The Parties agree that to their knowledge there are no laws or
         regulation specifically applicable to sales to an entity owned or
         partly owned by a government entity which would apply to the Parties in
         the specific circumstances of this Service Level Agreement.

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
<PAGE>

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 mutually agree that PARTNER'S personnel within;
         Indonesia will be based at Medan, Sumatera, provided that PARTNER will
         also provide support services throughout DIVRE 1 during the period of
         this Service Level Agreement.

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 suitably 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;

         (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, subject to the terms of this Agreement.

9.7      In the event a defect occurs during the period of this Service Level
         Agreement, PARTNER will repair or replace the product or take other
         appropriate remedial actions, provided that in taking any such actions
         the extent of PARTNER's liability shall be as stated in this Service
         Level Agreement.

9.8      In connection with the Services to be provided by PARTNER under this
         Service Level Agreement, Motorola shall take the appropriate remedial
         actions but shall not incur financial liability and TELKOM agrees to
         waive all penalties that may arise under this Service Level Agreement
         in respect of the following:

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<PAGE>

         (a)      acts of vandalism;

         (b)      acts or omissions amounting to negligence or intentional
                  misconduct of TELKOM employees; or

         (c)      events of force majeure.

         The costs and other terms and conditions of the remedial action
         required to be taken pursuant to this Article 9.8 shall be as mutually
         agreed between the Parties.

9.9      Neither Party shall in any circumstance be liable to the other for
         indirect or consequential losses or damages.

9.10     Article 36 of the MPPA (Change Request Procedures) shall apply, mutatis
         mutandis, to this Service Level 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 or Medan. 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 (by phone call only) 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
                  actual 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 in accordance with Appendix B (to be more or
                  less critical) after consultation with PARTNER.

                                       11
<PAGE>

         (h)      After notification to TELKOM, the PARTNER Help Desk will close
                  the corresponding Trouble Ticket when one of the following
                  conditions is met:

                  (i)      TELKOM agrees to close a Trouble Ticket; or

                  (ii)     the resolution proves to work and is confirmed by
                           TELKOM; or

                  (iii)    initial diagnosis has been completed, the suggestion
                           or data collection for a possible next occurrence has
                           been provided but the problem does not occur for
                           thirty (30) days; or

                  (iv)     an investigation action is pending with TELKOM but
                           the action has not been completed within fourteen
                           (14) days, unless otherwise agreed; or

                  (v)      a reasonable resolution has been provided but TELKOM
                           does not implement it within thirty (30) days, unless
                           otherwise agreed.

         (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.

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)      Except with respect to Critical faults which shall be analyzed
                  and discussed with TELKOM immediately after being resolved,
                  PARTNER shall hold meetings with TELKOM at least monthly 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.

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<PAGE>

10.3     The Emergency Support Service

         (a)      The Help-Desk will provide the Emergency Support Service.

         (b)      The Emergency Support Service shall be available 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 at the Help Desk relating to an
                  emergency problem.

         (e)      PARTNER will provide a Temporary Fix within sixty (60) minutes
                  (after arriving at the site of the problem, if remote support
                  is not capable of resolving the problem).

         (f)      Except in circumstances where a software patch is required
                  necessitating a longer period of time, PARTNER will provide a
                  Permanent Fix within 24 hours of receiving the call.

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

                                       13
<PAGE>

         (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 that
                  have occurred within the past month based on TELKOM requests.

         (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 facility or a
                  mutually agreed location.

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 Cut in Appendix E, All spare 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 needed to fully operate the Network 24 hours a day, 7
                  days 8 week, 365/366 (as relevant) days a year and PARTNER
                  shall supply critical spare parts 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. PARTNER will supply the required spares and
                  TELKOM will arrange to stock the spares at TELKOM offices in
                  each city where Sites will be located, provided that PARTNER
                  staff will be responsible for inventory maintenance and
                  transport of spares from the city offices to any Sites.

         (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, provided
                  that upon PARTNER delivering a notice to TELKOM of the end of
                  life of a particular hardware product, PARTNER shall continue
                  to provide at least repair and return support for that product
                  for a period of five (5) years from the date of such
                  end-of-life notice, such support period to extend, as
                  applicable, beyond the period of the Service Level Agreement
                  and provided further that in its end-of-life notification to
                  TELKOM, PARTNER shall inform TELKOM of the proposed date
                  through which TELKOM shall be able to buy additional spares.

                                       14
<PAGE>


         (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, subject to the Software License.

         (b)      PARTNER shall provide software services under this Agreement
                  that shall consist of software updates (including bug fixes,
                  software release updates, patches and software maintenance
                  services) required for the proper functioning of the Network.
                  Additionally PARTNER shall achieve inter-operability with the
                  applicable NSS vendor at no extra cost to TELKOM. For the
                  avoidance of doubt, any further inter-operability required of
                  PARTNER by TELKOM subsequent to the first case of successfully
                  achieving inter-operability shall be performed by PARTNER,
                  provided that PARTNER's obligations in such instance shall be
                  subject to agreement on the terms and conditions, including
                  payment of costs for the services provided. PARTNER will bear
                  all of its costs for achieving inter-operability until the
                  first successful inter-operability has been achieved in
                  accordance with the inter-Operability Commitment Agreement.

                  (i)      Software updates. PARTNER shall implement all
                           software release updates, bug fixes and patches
                           released by PARTNER with support from TELKOM. 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;

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<PAGE>

                           -        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 system(s) 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 13.1(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.

13.2     The Software Upgrade Support Service

         (a)      When software upgrades are available, and subject to Article
                  13.2, PARTNER will provide such software upgrades when
                  requested by TELKOM to meet its internal and external business
                  requirements.

         (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

                                       16
<PAGE>

                  (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 and in circumstances where full backward
                           compatibility does not exist, PARTNER shall provide
                           full disclosure to TELKOM of all technical aspects of
                           such incompatibility. In circumstances where existing
                           hardware may need to be upgraded or replaced, such
                           hardware upgrades will be done as per mutually agreed
                           terms, conditions and prices. 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
                           TELECOM 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, the following actions have been agreed:

                  (i)      if the discontinuance of software support is the
                           result of a software maintenance policy mandated by
                           PARTNER, then PARTNER shall provide an upgrade to the
                           next version within three (3) months of the notice of
                           end of life, at no extra cost to TELKOM;

                  (ii)     if the discontinuance of software support is
                           necessitated because the software has reached its end
                           of life, and in circumstances where TELKOM has
                           notified PARTNER in writing that it does not wish an
                           upgrade to the new version, then (A) if these
                           circumstances occur within the initial 3-year period
                           of this Service Level Agreement, PARTNER shall
                           continue to provide software support until the end of
                           such initial 3-year period, or (B) if these
                           circumstances occur outside the initial 3-year period
                           of this Service Level Agreement, then the software
                           support to be provided by PARTNER shall be on
                           mutually agreed terms and conditions;

                  (iii)    if the discontinuance of software support is
                           necessitated because the software has reached its end
                           of life, and in circumstances where TELKOM has
                           notified PARTNER in writing that it wishes an upgrade
                           to the new version, then PARTNER shall provide the
                           next version upgrade within three (3) months of the
                           notice of end of life, and the

                                       17
<PAGE>

                           cost of the upgrade software (but not the cost of the
                           services to perform the upgrade, such costs being
                           included in the cost of the Services) shall be on
                           mutually agreed terms and conditions.

         (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)      Except as to costs in the circumstances referred to in Article
                  13.2(e)(i), 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.

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 personnel will be provided to
                  provide operation and maintenance services on a case by case
                  basis during the period of this Agreement. 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.

                                       18
<PAGE>

         (e)      PARTNER shall make available the required skills and
                  competencies to ensure the Deliverables meet the required
                  tasks description as 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:

                  (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. TELKOM will
                  evaluate improvements in network performance and in the
                  ability of its technicians on an annual basis pursuant to the
                  criteria specified in Appendices H and I.

         (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;

         (e)      thirdly, by discussions between their respective
                  Account/Business Managers;

         (d)      finally, by discussions between the senior executives of
                  PARTNER and the senior executives of TELKOM.

                                       19
<PAGE>

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, within thirty (30) days of correct invoicing as
         described below, based on calculations of a 60% Basic Fee and 40%
         Variable Fee (based on the cumulative installed lines - SLA variable
         cost per line calculated based on the deployment plan in Appendix 7 of
         the MPPA)

         (a)      Basic Fees payable in equal quarterly 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 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 rate basis.

16.3     The Services are provided on a fixed fee basis. The only additional
         costs for which TELKOM shall be liable are the actual unit price
         of replacement spare parts where the part replaced is shown to be
         damaged by reason of the events set forth in Article 9.8. 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.

16.4     In the event withholding taxes are applied to any payments made by
         TELKOM to PARTNER under this Service Level Agreement, TELKOM shall
         provide PARTNER with a copy of the withholding tax receipt within
         fourteen (14) days from the date of payments.

                                       20
<PAGE>

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)                  MOTOROLA INC.
PT TELEKOMUNIKASI INDONESIA Tbk.

                                                        [STAMP]

By /s/ Kristiono                                By /s/ Allen Ma
   -----------------------                         -----------------------------
Name  : Kristiono                               Name  : Allen Ma
Title : President Director                      Title : Vice President & General
                                                        Manager, Asia

                                       21

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.36
<SEQUENCE>35
<FILENAME>u92256exv4w36.txt
<DESCRIPTION>EX-4.36 INDEMNITY AGREEMENT, DATED FEB.9,2004
<TEXT>
<PAGE>

                                                                    Exhibit 4.36

                              INDEMNITY AGREEMENT

                                    BETWEEN

                        PT TELEKOMUNIKASI INDONESIA TBK.

                                      AND

                      KAP HANS TUANAKOTTA MUSTOFA & HALIM


                             DATED FEBRUARY 9, 2004
<PAGE>
                             [LETTERHEAD OF TELKOM]

                                                                February 9, 2004

KAP Hans Tuanakotta Mustofa & Halim
Registered Public Accountants
Wisma Antara 12th Floor
Jl. Medan Merdeka Selatan No.17
Jakarta 10110
Indonesia

Confidential

                      RE: 2000 AND 2001 AUDIT REPORTS FOR
                   PT TELEKOMUNIKASI INDONESIA TBK. ("TELKOM")

Dear Sirs:

         Reference is made to your request for a limited indemnity in accordance
with the terms of the SEC No Action Letter (Price Waterhouse LLP, October 3,
1995).

         In consideration of your consenting to the inclusion in TELKOM's Annual
Report on Form 20-F for 2002 ("2002 Form 20-F") of your audit reports on
TELKOM's consolidated financial statements as of and the for the years ended
December 31, 2000 and 2001 (the "Audit Reports") and executing formal consents
for filing with the United States Securities and Exchange Commission for such
purpose, TELKOM agrees to indemnify KAP Hans Tuanakotta Mustofa & Halim
("HTM+H") for the payment of any and all legal costs and expenses reasonably
incurred by HTM+H in its successful defense of any legal action or proceeding
that arises as a result of the consent of HTM+H to the inclusion of the Audit
Reports in the 2002 Form 20-F, provided however that the foregoing indemnity
shall be void and inoperative, and HTM+H agrees to immediately reimburse TELKOM
for all amounts paid by TELKOM under this indemnity, if a court, after
adjudication, determines that HTM+H is liable for professional malpractice.

         For the purpose of this letter agreement, a "successful defense" means
a defense in which the defendant is neither decreed to have been culpable nor
pays any part of the plaintiff's damages as a result of judgment or settlement.

         This letter agreement shall be governed by and interpreted in
accordance with the laws of the State of New York without regard to its
conflicts of laws principles.

         If this letter agreement is satisfactory, please sign a copy and return
it to us.

Yours faithfully,

<PAGE>
/s/ KRISTIONO
- --------------
Name: Kristiono
Title: President Director
for and on behalf of PT Telekomunikasi Indonesia Tbk.



Agreed to and acknowledged by:
/s/ Paul Capelle
- ----------------
Name: Paul Capelle
Title: Senior Partner
for and on behalf of KAP Hans Tuanakotta Mustofa & Halim,
a member firm of Deloitte Touche Tohmatsu



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>36
<FILENAME>u92256exv12w1.htm
<DESCRIPTION>EX-12.1 CERTIFICATION PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>Ex-12.1 Certification Pursuant to Section 302</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">Exhibit&nbsp;12.1</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION</FONT></B>

<DIV align="center">
<B><FONT size="2">PURSUANT TO SECTION 302</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">THE SARBANES-OXLEY ACT OF 2002</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">I, Kristiono, certify that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">1.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">I have reviewed this annual report on
    Form&nbsp;20-F of PERUSAHAAN PERSEROAN (PERSERO)
    P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk.;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">2.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on my knowledge, this report does not
    contain any untrue statement of a material fact or omit to state
    a material fact necessary to make the statements made, in light
    of the circumstances under which such statements were made, not
    misleading with respect to the period covered by this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">3.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on my knowledge, the financial statements,
    and other financial information included in this report, fairly
    present in all material respects the financial condition,
    results of operations and cash flows of the company as of, and
    for, the periods presented in this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">4.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The company&#146;s other certifying officer and I
    are responsible for establishing and maintaining disclosure
    controls and procedures (as defined in Exchange Act
    Rules&nbsp;13a-15(e) and 15d-15(e)) for the company and have:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(a)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">designed such disclosure controls and procedures,
    or caused such disclosure controls and procedures to be designed
    under our supervision, to ensure that material information
    relating to the company, including its consolidated
    subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is
    being prepared;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(b)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">evaluated the effectiveness of the company&#146;s
    disclosure controls and procedures and presented in this report
    our conclusions about the effectiveness of the disclosure
    controls and procedures, as of the end of the period covered by
    this report based on such evaluation; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(c)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">disclosed in this report any change in the
    company&#146;s internal control over financial reporting that
    occurred during the period covered by the annual report that has
    materially affected, or is reasonably likely to materially
    affect, the company&#146;s internal control over financial
    reporting; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">5.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The company&#146;s other certifying officer and I
    have disclosed, based on our most recent evaluation of internal
    control over financial reporting, to the company&#146;s auditors
    and the audit committee of the company&#146;s board of directors
    (or persons performing the equivalent functions):
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(a)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">all significant deficiencies and material
    weaknesses in the design or operation of internal control over
    financial reporting which are reasonably likely to adversely
    affect the company&#146;s ability to record, process, summarize
    and report financial information; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(b)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any fraud, whether or not material, that involves
    management or other employees who have a significant role in the
    company&#146;s internal control over financial reporting.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Date: February&nbsp;9, 2004
</FONT>

<P align="left">
<FONT size="2">/s/ Kristiono
</FONT>

<DIV align="left">
<HR size="1" width="37%" align="left" noshade>
</DIV>

<DIV align="left">
<FONT size="2">Name:&nbsp;Kristiono
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Title:&nbsp;&nbsp;&nbsp;President Director
</FONT>
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.2
<SEQUENCE>37
<FILENAME>u92256exv12w2.htm
<DESCRIPTION>EX-12.2 CERTIFICATION PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>Ex-12.2 Certification Pursuant to Section 302</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">Exhibit&nbsp;12.2</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION</FONT></B>

<DIV align="center">
<B><FONT size="2">PURSUANT TO SECTION 302</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">THE SARBANES-OXLEY ACT OF 2002</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">I, Guntur Siregar, certify that:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">1.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">I have reviewed this annual report on
    Form&nbsp;20-F of PERUSAHAAN PERSEROAN (PERSERO)
    P.T.&nbsp;TELEKOMUNIKASI INDONESIA Tbk.;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">2.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on my knowledge, this report does not
    contain any untrue statement of a material fact or omit to state
    a material fact necessary to make the statements made, in light
    of the circumstances under which such statements were made, not
    misleading with respect to the period covered by this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">3.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Based on my knowledge, the financial statements,
    and other financial information included in this report, fairly
    present in all material respects the financial condition,
    results of operations and cash flows of the company as of, and
    for, the periods presented in this report;
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">4.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The company&#146;s other certifying officer and I
    are responsible for establishing and maintaining disclosure
    controls and procedures (as defined in Exchange Act
    Rules&nbsp;13a-15(e) and 15d-15(e) for the company and have:
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(a)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">designed such disclosure controls and procedures,
    or caused such disclosure controls and procedures to be designed
    under our supervision, to ensure that material information
    relating to the company, including its consolidated
    subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is
    being prepared;
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(b)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">evaluated the effectiveness of the company&#146;s
    disclosure controls and procedures and presented in this report
    our conclusions about the effectiveness of the disclosure
    controls and procedures, as of the end of the period covered by
    this report based on such evaluation; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(c)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">disclosed in this report any change in the
    company&#146;s internal control over financial reporting that
    occurred during the period covered by the annual report that has
    materially affected, or is reasonably likely to materially
    affect, the company&#146;s internal control over financial
    reporting; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">5.&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The company&#146;s other certifying officer and I
    have disclosed, based on our most recent evaluation of internal
    control over financial reporting, to the company&#146;s auditors
    and the audit committee of the company&#146;s board of directors
    (or persons performing the equivalent functions):
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(a)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">all significant deficiencies and material
    weaknesses in the design or operation of internal control over
    financial reporting which are reasonably likely to adversely
    affect the company&#146;s ability to record, process, summarize
    and report financial information; and
    </FONT></TD>
</TR>

</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(b)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">any fraud, whether or not material, that involves
    management or other employees who have a significant role in the
    company&#146;s internal control over financial reporting.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Date: February&nbsp;9, 2004
</FONT>

<P align="left">
<FONT size="2">/s/ Guntur Siregar
</FONT>

<DIV align="left">
<HR size="1" width="37%" align="left" noshade>
</DIV>

<DIV align="left">
<FONT size="2">Name:&nbsp;Guntur Siregar
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Title:&nbsp;&nbsp;&nbsp;Director of Finance
</FONT>
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.1
<SEQUENCE>38
<FILENAME>u92256exv13w1.htm
<DESCRIPTION>EX-13.1 CERTIFICATION PURSUANT TO SECTION 906
<TEXT>
<HTML>
<HEAD>
<TITLE>Ex-13.1 Certification Pursuant to Section 906</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">Exhibit&nbsp;13.1</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION PURSUANT TO</FONT></B>

<DIV align="center">
<B><FONT size="2">18 U.S.C. SECTION&nbsp;1350,</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">AS ADOPTED PURSUANT TO</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">SECTION&nbsp;906 OF THE SARBANES-OXLEY ACT OF
2002</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the Annual Report on
Form&nbsp;20-F of Perusahaan Perseroan (Persero)
PT&nbsp;Telekomunikasi Indonesia, Tbk. (the &#147;Company&#148;)
for the yearly period ended December&nbsp;31, 2002 as filed with
the Securities Exchange Commission on the date hereof (the
&#147;Report&#148;),&nbsp;I, Kristiono, President Director of
the Company, certify, pursuant to 18 U.S.C. &#167;1350, as
adopted pursuant to &#167;906 of the Sarbanes-Oxley Act of 2002,
that, to the best of my knowledge:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the Report fully complies with the requirements
    of Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of
    1934; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the information contained in the Report fairly
    presents, in all material respects, the financial condition and
    results of operations of the Company.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">/s/ Kristiono
</FONT>

<DIV align="left">
<HR size="1" width="37%" align="left" noshade>
</DIV>

<DIV align="left">
<FONT size="2">Name:&nbsp;Kristiono
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Title:&nbsp;&nbsp;&nbsp;President Director
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Date:&nbsp;&nbsp;February&nbsp;9, 2004
</FONT>
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-13.2
<SEQUENCE>39
<FILENAME>u92256exv13w2.htm
<DESCRIPTION>EX-13.2 CERTIFICATION PURSUANT TO SECTION 906
<TEXT>
<HTML>
<HEAD>
<TITLE>Ex-13.2 Certification Pursuant to Section 906</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right">
<B><FONT size="2">Exhibit&nbsp;13.2</FONT></B>

<P align="center">
<B><FONT size="2">CERTIFICATION PURSUANT TO</FONT></B>

<DIV align="center">
<B><FONT size="2">18 U.S.C. SECTION&nbsp;1350,</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">AS ADOPTED PURSUANT TO</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">SECTION&nbsp;906 OF THE SARBANES-OXLEY ACT OF
2002</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the Annual Report on
Form&nbsp;20-F of Perusahaan Perseroan (Persero)
PT&nbsp;Telekomunikasi Indonesia, Tbk. (the &#147;Company&#148;)
for the yearly period ended December&nbsp;31, 2002 as filed with
the Securities Exchange Commission on the date hereof (the
&#147;Report&#148;),&nbsp;I, Guntur Siregar, Director of Finance
of the Company, certify, pursuant to 18 U.S.C. &#167;1350, as
adopted pursuant to &#167;906 of the Sarbanes-Oxley Act of 2002,
that, to the best of my knowledge:
</FONT>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the Report fully complies with the requirements
    of Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of
    1934; and
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">(2)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">the information contained in the Report fairly
    presents, in all material respects, the financial condition and
    results of operations of the Company.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">/s/ Guntur Siregar
</FONT>

<DIV align="left">
<HR size="1" width="37%" align="left" noshade>
</DIV>

<DIV align="left">
<FONT size="2">Name:&nbsp;Guntur Siregar
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Title:&nbsp;&nbsp;&nbsp;Director of Finance
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Date:&nbsp;&nbsp;February&nbsp;9, 2004
</FONT>
</DIV>
</BODY>
</HTML>

</TEXT>
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