Re Agreement

RNS Number:1683Q
Telekomunikasi Indonesia (Persero)
25 September 2003


                                   PRESS RELEASE
                              No.TEL.394/PR000/UHI/2003


                    TELKOM AND SIEMENS CONSORTIUM SIGN AGREEMENT
                      FOR DEVELOPMENT OF BACKBONE TRANSMISSION
                             IN KALIMANTAN AND SULAWESI


Jakarta, September 25, 2003 - It is hereby announced that PT. Telekomunikasi
Indonesia, Tbk ("TELKOM") has signed a Partnership Agreement for Procurement and
Installation of Network Backbone Transmission/T-21 Kalimantan and Sulawesi (the
"Agreement") with  SIEMENS Consortium, which consist of Siemens Ag, PT Siemen
Indonesia, PT LEN Industri and Corning Cable System ("SIEMENS Consortium"). The
Agreement between TELKOM and SIEMENS Consortium consist of two package
transactions for the development of fiber optic backbone network transmission in
Kalimantan (Package -1)  and Sulawesi (Package-2).

  * The Package-1 consists of the construction of fiber optic transmission
    between Banjarmasin and Samarinda of approximately 946 km with a
    transmission capacity of 1,308 equal to E1 (2 Mega bit per second) with a
    total contract value of USD3,776,269 and IDR74,020,633,646 (excluding value
    added tax 10%).

  * The Package-2 consists of the construction of fiber optic transmission
    between Makasar and Palu of approximately 949 km with a transmission
    capacity of 1,564 equal to E1 (2 Mega bit per second) with a total contract
    value of USD3,815,295 and IDR70,732,644,265 (excluding value added tax 10%).

The scope of work for the Agreement includes: development of fiber optic
backbone network transmission, network management system and spare-part
configuration. SIEMENS Consortium shall implement survey, design, planning,
procurement and/or manufacturing, delivery, and integration to the existing
system. Period of the Agreement is 17 months as of the signing of the Agreement.
This project will be funded through TELKOM internal funds.


WOERYANTO SOERADJI
Corporate Secretary


For further information, please contact:

Investor Relations Unit
PT Telekomunikasi Indonesia, Tbk
  Jakarta
  Telp      : 62-21-5215109
  Fax       : [phone]
  E-mail    : [e-mail]
  Website   : www.telkom.co.id




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