Contract

Exhibit 4.2

Interconnection Agreement Between PT Indosat Tbk and PT Telekomunikasi Indonesia as perstipulated in Cooperation Agreement between PT Indosat Tbk and PT Telekomunikasi Indonesia Tbk on Interconnection between Jartaplok (Fixed Local Telecommunication Network) and Jartap-jj (Fixed Domestic Long Distance Telecommunication Network) & Jartapin (International Fixed Telecommunication Network) No. K.tel127/hk.810/ent-30/05, No. 242/100-ic0/lgl/05 dated 23 september 2005 and its Amendments as stipulated in Second Amendment to the PKS Cooperation Agreement On Interconnection Between Jartap (Fixed Telecommunication Network) Telkom and Jartap (Fixed Telecommunication Network) Indosat Between Perusahaan Perseroan (Persero) PT. Telekomunikasi Inodnesia Tbk Dengan Indosat Xx. 000/XX.000/XXX-X0000000/0000 xxx Xx. 000/X00-XX0/XXX/00 dated 28 December 2006.

I Cooperation Agreement between PT Indosat Tbk and PT Telekomunikasi Indonesia Tbk on Interconnection between Jartaplok and Jartap-jj & Jartapin No. K.tel127/hk.810/ent-30/05, No. 242/100-ic0/lgl/05 dated 23 september 2005.

The Parties:

1. Indosat; and

2. PT Telekomunikasi Indonesia Tbk (“Telkom”).

Scope of Agreement:

The Parties agree to operate Interconnection between Telkom’s and Indosat’s telecommunication network as follow (i) interconnection between Jartaplok Telkom with Jartap-JJ Indosat (“Jartap-JJ Indosat”); (ii) interconnection between Jartaplok Indosat with Jartap-JJ Telkom (“Jartap-JJ Telkom”); (iii) Interconnection between Jartap-JJ Telkom and Jartap-JJ Indosat; (iv) interconnection between Jartap Telkom with Jartapin Indosat; (v) interconnection between Jartap Indosat with Jartapin Telkom, so that customers of each Party may make or receive Interconnection calls.

Period of Agreement:

This Agreement is valid for 3 (three) years as from the signing date of this Agreement.

Interconnection Fee:

1. For SLJJ:

a. Tariff on Terminating fee for local segment = Rp. 240/minute;

b. Tariff for Terminating fee for SLJJ segment (including designated local segment) = Rp. 1.000/minute.

2. For SLI:

a. Originating Tariff:

(i) Access Tariff = Rp. 850/call;

(ii) Usage Tariff = Rp. 500/minute.

b. Terminating Tariff:

(i) Access Tariff = Rp. 850/call;

(ii) Usage Tariff = Rp. 550/minute.

The variant of the Interconnection Fee as mentioned in point (a) and (b) above shall not include the fees for billing process, collection fee to customers and bad debts of the customers.

Rights and Obligations of the Parties:

Rights and obligations of Indosat:

Determine the tariff for SLJJ service provided at Telkom Jartaplok and Telkom’s SLI “007” applied to Indosat’s Jartaplok user;

1. Receive payments of income on Telkom’s SLI “007” from Indosat’s Jartap User which is entitled to Indosat;

2. Receive data on Indosat’s Prepaid Numbers and the amendments thereof from time to time to ensure the invoiced Interconnections calls;

3. Conduct billing retail and Interconnection billing processes;

4. Provide Indosat with the data on Telkom’s Prepaid Numbers and the amendments thereof from time to time to ensure the invoiced Interconnections calls.

5. Bear the bad debt on the invoices for Telkom’s SLI “007” which was accrued by Indosat’s Jartaplok User, unless agreed otherwise.

Limitation for the Parties:

Each party is prohibited to conduct or let the occurrence of fraud in the form of technical engineering, administrative engineering and/or any other fraud.

The aforementioned technical engineering, administrative engineering and/or fraud shall include but not limited to:

1. Creating dummy numbers without the other party’s justification;

2. Changing, amending, adding and/or lessening the information/digit on the signaling system between the Jartels without any reason that can be justified by the other party;

Termination of Agreement:

The Parties agree to waive the application of Article 1266 of the Indonesian Civil Code so that a Party can unilaterally terminate the Agreement by providing a written notice no later than 3 (three) before the date of termination intended.

Assignment of Agrement:

No party shall sell, assign or transfer this Agreement, in part or in whole, to any third party.

Governing Law:

The laws of Indonesia.

Dispute Settlement:

The Parties agree to amicably settle any dispute arising with relation to this Agreement and if the Parties fail to reach such an amicable settlement within 60 days, the dispute shall then be referred to the BANI for settlement.

Notes:

The terms of the Agreement has been partially amended as provided for in the Second Amendment to the PKS Cooperation Agreement On Interconnection Between Jartap Telkom and Jartap Indosat Between Perusahaan Perseroan (Persero) PT. Telekomunikasi Inodnesia Tbk Dengan Indosat Xx. 000/XX.000/XXX-X0000000/0000 xxx Xx. 000/X00-XX0/XXX/00 dated 28 December 2006.

II. Second Amendment to the PKS Cooperation Agreement On Interconnection Between Jartap Telkom and Jartap Indosat Between Perusahaan Perseroan (Persero) PT. Telekomunikasi Inodnesia Tbk Dengan Indosat Xx. 000/XX.000/XXX-X0000000/0000 xxx Xx. 000/X00-XX0/XXX/00 dated 28 December 2006.

The Parties:

1. Indosat; and

2. PT Telekomunikasi Indonesia (“Telkom”).

Background:

The Parties have signed the following agreements:

1. Cooperation Agreement between Telkom and Indosat No. PKS 162/HK.810/OPSAR-00/2002–No. 26/DNI/HK.720/02 dated 3 September 2002 on Coopreration Agreement on Interconnection between Jartap Telkom and Jartaplok Indosat and Settelement of Rights and Obligations of Financial Interconnection, the latter has been added with the First Addendum No. Tel.56/HK.810/JAR-30/2005–No. 065/100-ICO/Rel/05 dated 31 Maret 2005;

1. Cooperation Agreement between Telkom and Indosat No. K.Tel.127/HK.810/ENT-30/05 No. 242/I00-ICO/LGL/05 dated 23 September 2005 on Interconnection between Jartaplok and Jartap-JJ and Jartapin which is amended with the First Addendum No. 41/HK.820/CISC-00/2006- No. 005/C00-CC0/LGL/06 dated 13 Juli 2006;

2. Joint Operational Agreement (PKSO) on Interconnection between PSTN network Telkom and Jartap and Jartapin as follow:

a. PKSO No. X.Xxx 135/HK.810/NET-83/02 xxx No. 132/GND/HK.810/02 dated l 14 Oktober 2002 between Telkom Divisi Network dengan Indosat;

b. PKSO No. K.TEL.140/HK.810/NET-80/1999 xxx No. PKS.001/STL/INT/III/1999 dated 4 November 1999 between Telkom Divisi Network and Indosat;

c. PKSO No. K.Tel.056/HK.810/NET-80/1999 xxx No. PKS.001/STL/INT/III/1999 dated 25 Maret 1999 and Telkom Divisi Network and Satelindo (reffered now to as Indosat);

(Hereinafter reffered to as “PKS Interconnection”)

Scope of Agreement:

The Parties agree to make several changes to PKS Interconnection for the purpose of the implementation of Offering Interconnection Telkom DOcument (DPI) in relation to the implementation of Regulation of m Minister of Communication and Information Technology No. 08/Per/M.Kominf/02/2006 on Interconnection Agreement (“Permen 08/2006”).

Period of Agreement:

Transition Period of the implementation of Permen 08/2006 in this Second Amendment entered into force as from 1 january 2007 until the signing date of the new PKS Interconnection no later than 31 December 2007.

Tariff:

The Parties agree to implement interconnection fee allocation principle which is entered into force per 1 January 2007 in accordance with the provisions regulated in Permen 08/2006 with the following call scenario:

1. Interconnection and Call Scenario Telkom Services pursuant to DPI Telkom used by Indosat to:

a. Terminate to Jartap Lokal Telkom;

b. Transit using Telkom network;

c. Originate from Telkom network.

2. Interconnection and Call Scenario Telkom Services pursuant to DPI Telkom used by Telkom to:

a. Terminate to Jartaplok Indosat;

b. Organate from Jartap Indosat;

c. Internasional Transit.

Proposed type of services and tariffs as follows:

1. Terminating Services:

a. Local Terminating

ID		LOCAL TERMINATING SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
TL02a		From Indosat Domestic Jartap (local call services) to Domestic Jartap		73		Direct
TL02b		From Indosat Domestic Jartap (long distance call services) to Telkom Domestic Jartap		174		Direct

b. Long Distance Terminating

ID		LONG DISTANCE TERMINATING SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
TJ02		From Indosat Domestic Jartap to From Telkom Domestic Jartap		569		Direct

c. Domestic Terminating

ID		DOMESTIC TERMINATING SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
TD01		From Indosat International Jartap to Telkom domestic Jartap		549		Direct

2. Transit Services:

a. Cascade Local Transit

ID		LOCAL TRANSIT SERVICES OF CASCADE		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
RLC05a		From Indosat Domestic Jartap to access searcher local Jartap (local call services)		165		Telkom + Terminating
RLC05b		From Indosat Domestic Jartap access searcher local Jartap (long distance call services)		266		Telkom + Terminating
RLC06a		From Indosat Domestic Jartap to access searcher cellular Jarber (local terminating)		453		Telkom + Terminating
RLCo6b		From Indosat Domestic Jartap to access searcher cellular Jarber (long distance terminating)		563		Telkom + Terminating
RLC07		From Indosat Domestic Jartap to access searcher satellite Jarber		2592		Telkom + Terminating

b. Cascade Long Distance Transit

ID		LONG DISTANCE SERVICES OF CASCADE		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
RJ05		From Indosat Domestic Jartap to access searcher local Jartap		510		Telkom + Terminating
RJ06a		From Indosat Domestic Jartap to access searcher cellular Jarber		697		Telkom + Terminating
RJ06b		From Indosat Domestic Jartap to access searcher cellular Jarber (long distance terminating)		807		Telkom + Terminating
RJC07		From Indosat Domestic Jartap to access searcher cellular Jarber		2836		Telkom + Terminating

c. International Direct Transit

ID		INTERNATIONAL DIRECT TRANSIT SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
RID01		From access searcher local Jartap to Indosat international Jartap		355		Direct
RID02		From Indosat international Jartap to access searcher local Jartap		355		Direct
RID03		From access searcher cellular Jarber to Indosat international Jartap		355		Direct
RID04		Dari Indosat international Jartap to access searcher cellular Jarber		355		Direct

3. Originating Services:

ID		INTERNATIONAL ORIGINATNG SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
RID01		From access searcher local Jartap to Indosat international Jartap		355		Direct
RID02		From Indosat international Jartap to access searcher local Jartap		355		Direct

4. Directory Access:

ID		INTERNATIONAL ORIGINATING SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
108		Telkom Costumer number information		basic telephony interconnection tariff + Rp. 500/call		Direct
147		Informasi produk xxx layanan Telkom products and services information		basic telephony interconnection tariff + Rp. 500/call		Direct

5. Emergency Services:

ID		EMERGENCY SERVICES		TARIFF (RP/MINUTE)		ACCOUNTING METHOD
110		Police Station		basic telephony interconnection tariff		Direct
112		Special emergency call for mobile network user		basic telephony interconnection tariff		Direct
113		Fire Department		basic telephony interconnection tariff		Direct
115		SAR		basic telephony interconnection tariff		Direct
117		information center for disturbance of Telkom’s Jartel		basic telephony interconnection tariff		Direct
118		Ambulance		basic telephony interconnection tariff		Direct
103		Time information		basic telephony interconnection tariff		Direct
107		International Operator Assistance		basic telephony interconnection tariff		Direct
109		Telephony billing information for Telkom’s customer		basic telephony interconnection tariff		Direct

6. Continues Services Tariff of Basic Telephony:

NO.		CONTINUES SERVICES TARIFF OF BASIC TELEPHONY		TARIFF (RP/MINUTE)						ACCOUNTING METHOD
				RETAIL CALLER		RIGHT OF INDOSAT		RIGHT OF TELKOM
1.		Telkom free		Rp.0		Jarber: Rp. 360 Jartap: Rp. 73		Retail		Direct
2.		Telkom split charging		Max Rp. 110		Rp. 750		Rp. 350		Direct
3.		Telkom vote		Max Rp. 1200		Rp. 630		Rp. 570		Direct
4.		Telkom uni		Max Rp. 750		Rp. 550		Rp. 200		Direct
5.		Telkom premium		Max Rp. 3800		Rp. 1700		Rp. 2.100		Direct
6.		Telkom call center		Max Rp. 750		Rp. 200		Rp. 200		Direct

7. Termination to Indosat Local Fixed Line:

REF		TERMINATION SERVICES		TARIFF (RP/MINUTE)
TE23		Local termination from Telkom fixed line to Indosat local fixed line		Rp. 73/minute
TE24		Long distance termination from Telkom fixed line to Indosat local fixed line		Rp. 569/ minute
TE26		Termination from Telkom, as the International direct call operator to Indosat local fixed line.		Rp. 549/ minute
TE27x		Local termination from Telkom, as the long distance call operator to Indosat local fixed line.		Rp. 174/ minute
TE28x		Long distance termination from Telkom, as the long distance operator to Indosat local fixed line.		Rp. 569/ minute
-		Local termination from local partner of local Jartap via Telkom (local call)		Rp. 73/ minute
-		Local termination from transit partner of local Jartap via Telkom		Rp. 174/ minute
-		Local termination from transit partner of Jarber via Telkom		Rp. 152/ minute
-		Domestic termination from transit partner of Jarber satellite via Telkom		Rp. 564/ minute

8. SMS Termination to Indosat cellular Network and/or local fixed line

REF		TERMINATION SERVICES		XXXXXX
XX00		SMS Termination to Indosat cellular network and/or local fixed line		Rp. 38/SMS

9. Origination services from Indosat Fixed Line:

REF		TERMINATION SERVICES		XXXXX
XX00		International call origination from Indosat local fixed line using Telkom 00x code access		Rp. 549/minute