Exhibit 4.86
AGREEMENT FOR PROCUREMENT AND INSTALLATION FOR OPTICAL ACCESS NETWORK
(OAN) PROJECT PACKAGE-IV NO. K.TEL.397/HK.810/ITS-00/2006, DATED 18
DECEMBER 2006
Parties: 1. Perusahaan Perseroan (Persero) PT Telekomunikasi
Indonesia, Tbk. ("TELKOM"); and
2. Alcatel-Inti Consortium, Consisting of: (1) Alcatel
Shanghai Bell Co., Ltd.; and (2) PT Industri
Telekomunikasi Indonesia (Persero) ("ALCATEL-INTI
CONSORTIUM").
Scope of Agreement: TELKOM has assigned and appointed ALCATEL-INTI CONSORTIUM
to execute OAN Project Package IV (DIVRE VI KALIMANTAN).
Obligation of
ALCATEL-INTI
CONSORTIUM: 1. ALCATEL-INTI CONSORTIUM shall ensure the good
performance of OAN until the expiry of warranty
period;
2. ALCATEL-INTI CONSORTIUM shall ensure all services
quality.
Assignment: ALCATEL-INTI CONSORTIUM may not assign the right to any
party without the prior written consent of TELKOM. TELKOM
reserves the right to assign the agreement without prior
approval of ALCATEL-INTI CONSORTIUM to and investor
provided the investor gives ALCATEL-INTI CONSORTIUM
satisfactory payment assurances in accordance to this
agreement. TELKOM reserves the right to assign the
agreement, with the prior approval of the ALCATEL-INTI
CONSORTIUM to any of TELKOM's subsidiaries or related
companies.
Termination: TELKOM shall be entitled to unilaterally, without any
claim from ALCATEL-INTI CONSORTIUM, terminate a part or
the entire agreement, if the following events occur:
1. If ALCATEL-INTI CONSORTIUM fails to materially
execute the works or neglects to perform its
obligation;
2. If ALCATEL-INTI CONSORTIUM becomes subject to
bankruptcy, insolvency, liquidation or winding up
proceedings;
3. If ALCATEL-INTI CONSORTIUM is in material breach of
its obligation or repudiates this agreement;
4. If the Project is failed during the acceptance test
Dispute Resolution: 1. Both parties shall use their best efforts and shall
co-operate and negotiate in good faith to resolve any
and all disputes;
2. In the event that such disputes cannot be settled
amicably, the parties shall submit the dispute to
arbitration under the rules of the Indonesian
National Board of Arbitration ("BANI").
Governing Law: The agreement is governed by, construed and interpreted in
accordance with the laws of the Republic of Indonesia.
