RELATED PARTY INFORMATION continued

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2004 AND 2005, AND FOR YEARS ENDED DECEMBER 31, 2004 AND 2005 Figures in tables are presented in millions of Rupiah, unless otherwise stated - 103

45. RELATED PARTY INFORMATION continued

c. Indosat continued

The principal matters covered by the agreement are as follows: i. 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 VoiceData Telecommunications “AVD”, hotline and teleconferencing. ii. The Company and Indosat are responsible for their respective telecommunications facilities. iii. Customer billing and collection, except for leased lines and public phones located at the international gateways, are handled by the Company. iv. The Company receives compensation for the services provided in the first item above, based on the interconnection tariff determined by the Minister of Communications of the Republic of Indonesia. The Company has also entered into an interconnection agreement between the Companys fixed- line network and Indosats cellular network in connection with the implementation of Indosat Multimedia Mobile services and the settlement of the related interconnection rights and obligations. The Company also has an agreement with Indosat for the interconnection of Indosats GSM mobile cellular telecommunications network with the Companys PSTN, enabling the Companys customers to make outgoing calls to or receive incoming calls from Indosats customers. The Companys compensation relating to leased lineschannel services, such as International Broadcasting System “IBS”, AVD and bill printing is calculated at 15 of Indosats revenues from such services. Through year-end 2003, Indosat leased circuits from the Company to link Jakarta, Medan and Surabaya. In 2004 and 2005, Indosat did not use this service. The Company has been handling customer billings and collections 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 1, 1995, plus the billing process expenses which are fixed at a certain amount per record.