RNS Number:1212P
Telekomunikasi Indonesia (Persero)
28 August 2003

                                   PRESS RELEASE

                              No.TEL.362 /PR000/UHI/2003

              TELKOM SIGN LOAN AGREEMENT WITH THE KOREAN EXIM BANK

Jakarta, August 28, 2003. PT Telekomunikasi Indonesia, Tbk. ("TELKOM") hereby
announces that on August 27, 2003 in Seoul, South Korea, TELKOM and The
Export-Import Bank of Korea ("Korean Exim Bank") signed a Loan Agreement for the
amount of US$123,965,000 to finance the expenditure under the Master Procurement
Partnership Agreement dated December 23, 2002 ("MPPA"), between TELKOM and
Samsung Electronic's Co., Ltd ("Samsung") for the delivery of Fixed Wireless
Access CDMA 2000 1x system.

This Loan Agreement is set to provide finance for either the nationwide package
of Network Switching System procurement for TELKOM's Regional Divisions,
excluding Regional Division III, or the Regional package of Base Station System
procurement for Regional Division IV, V, VI and VII as specified in the MPPA.

This Loan Agreement is part of the requirement set under the MPPA.
.

WOERYANTO SOERADJI

Corporate Secretary

For further information, please contact:

Investor Relations Unit
PT Telekomunikasi Indonesia, Tbk
Phone     : 62-21-5215109
Fax          : 62-21-5220500
E-mail     : investor@telkom.co.id
Website   : www.telkom.co.id






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