Exhibit 4.88
PROCUREMENT AND INSTALLATION AGREEMENT OF MSOAN ACEH AREA --
DIVRE I SUMATERA NO. X.XXX. 189/HK.810/ITS-00/2006 DATED 16 AUGUST 2006
The Parties: 1. TELKOM; and
2. PT NEC Indonesia ("NEC").
Scope of Agreement: TELKOM has appointed NEC to commence the project
of procurement and installation of MSOAN Aceh Area
-- DIVRE I Sumatera.
Obligations of NEC: 1. NEC is responsible for all risks arising out
of the project and for its maintenance;
2. NEC must obtain all required license for the
project and comply with all related
regulation in order to ensure the safety of
TELKOM's equipments, the workers and the
public;
3. NEC must deploy all qualified employees and
workers to perform the project and to
supervise their works;
4. NEC must provide all supplies, equipments
and infrastructure in good quality to
execute the project and is responsible for
their safety;
5. NEC must report to the appointed supervisor
from TELKOM at the latest 7 days before
commencing the project. NECT must also make
a progress report to the TELKOM concerning
the project and other related activities.
6. NEC and its workers must keep the
confidentiality of all information,
statement and other documents relating to
the agreement.
Obligation of TELKOM: 1. TELKOM must provide the project site;
2. TELKOM must provide an entry/exit permit to
all workers of NECT for all working sites;
3. TELKOM must provide necessary recommendation
for NEC in order to obtain any required
licenses and permits.
Work Completion Period: The period varies depending on the site. It is
noted that the work must be completed between the
ranges
of 128 until 150 days and may be extended by
agreement between the parties.
Assignment: NEC must not assign the whole or part of the
project to any third party without prior written
consent from TELKOM.
Penalties: A one per mill (1 0/00) of the agreement price per
day penalty will be imposed for any delay of work
completion. The maximum penalty for each working
site is 5% of the agreement price.
Termination: TELKOM has the right to terminate the agreement if
one of the following occurs:
1. NEC has not started the project after 14
calendar days since the date of the
agreement;
2. The project is delayed for 1 month because
of series of force majeure;
3. The period of work completion is exceeded
for 50 calendar days or the amount of
penalty has reached the maximum limit of 5%;
4. NEC assigns the project to a third party;
5. The work is delayed for more than 1 month in
which the delay is caused by inability of
NEC to commence the work because its license
is revoked or declared bankrupt by a court's
decision.
Governing Law: The laws of the Republic of Indonesia.
Settlement of Dispute: 1. Amicable settlement;
2. If the parties are unable to reach any
amicable settlement, they shall refer the
dispute to the Indonesian National Board of
Arbitration (BANI).
