First Quarter 2006 Results Page 1

PT Indosat Tbk

First Quarter 2006 Results

First Quarter 2006 Results Page 2

Key Achievements in 1Q 2006

Cellular revenues growth of 3.1% (YoY)

IDD traffic increased by 16.4%

EBITDA increased by 4.5%

MIDI revenues increased by 16.4% (YoY)

Net Income increased by 35.8%

First Quarter 2006 Results Page 3

Key Business Segment

Cellular Business Fixed Telecomm (Voice) Data Com & Broadband

Matrix – Postpaid for high end with advanced features

Mentari –Prepaid for general users

IM3 – Prepaid for the young & trendy

Indosat• International Leased Circuit• International Frame Relay/ATM• VSATs• Wholesale Internet Access

IDD 001 – Premium IDD

IDD 008 – Budget IDD

FlatCall 016 – Flat Rate IDD

StarOne – Fixed Wireless Access

GlobalSave – VoIP Service

• Domestic Leased Circuit• Domestic Frame Relay/ATM• VSATs• Corporate Solutions

• IP – Virtual Private Network• Dedicated and Dial Up Internets• Wi-Fi & HotSpots

First Quarter 2006 Results Page 4

Operators & Market Share at YE2005

Source: Company reports and estimates

GSM Operators (Major Holders)• Indosat (ST Telemedia)• Telkomsel (Singtel & Telkom)• Excelcom (Telekom Malaysia)

Fixed Wireless CDMA• Bakrie Telecom (Bakrie)• Telkom Flexi (Telkom)• “StarOne” (Indosat)

Mobile CDMA • Mobile-8 (Bimantara)

New License Holders• Hutchison CP Tel• LippoTelecom (Maxis)

INDOSAT, 26.9%

TELKOMSEL, 56.0%

XL, 17.1% GSM, 88%

CDMA, 12%

TELKOM, 67.1%

BAKRIE TELCO,

7.9% MOBILE8, 21.3%

StarOne, 3.7%

First Quarter 2006 Results Page 5

3,272

5,112

7,342

2,107 2,172

8,645

2002 2003 2004 2005 1Q05 1Q06

Cellular Subscribers Composition

Cellular Operating Revenues(Rp billion)

ARPU

0

50,000

100,000

150,000

200,000

250,000

300,000

1Q05 1Q06

Prepaid Postpaid Blended

Subs Composition as end of 1Q06

Non Java, 19%

Java, 81%

Subs composition as end of 1Q06 (in 000) Prepaid

95%

Postpaid5%

First Quarter 2006 Results Page 6

Revenues Composition (1Q06)

§ Fixed telecommunication contributed 9.4% to operating revenues mostly from IDD revenues.

Fixed Telecommunication (Voice)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2002 2003 2004 2005 1Q05 1Q06Outgoing Incoming

Trend in IDD Traffic(in thousands minutes))

60% 78%

27%40%

73% 84%

22% 16%

MIDI16%

Cellular75%

SLI9%

17% 14%

83% 86%

First Quarter 2006 Results Page 7

§ MIDI revenues increased 16.4% (YoY), mainly due to continued demand in Internet service and domestic leased circuit

Revenue

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2002 2003 2004 2005 1Q05 1Q06

Rev

enue

(In

Mil

lion

Rup

iah)

MIDI

Indosat : (Accumulated Numbers) Wholesale International High Speed Leased Circuit cct/64k 2,942 5,486 86.5% Domestic High Speed Leased Circuit cct/64k 19,624 33,843 72.5% Satellite Transponder Leased (external usage) # transp 11.6 12.5 7.8% Datacom International High Speed Leased Circuit cct/64k 592 736 24.3% Domestic High Speed Leased Circuit cct/64k 4,037 6,101 51.1% Frame Relay port 1,093 986 -9.8% IPVPN cct/64k 453 3,201 606.6% Lintasarta : (Accumulated Numbers) High Speed Leased Line (SDL) link 1,701 1,287 -24.3% Frame Relay access 4,357 4,219 -3.2% VSAT terminal 1,619 1,735 7.2% IPVPN link 1,403 2,151 53.3%

IM2 Internet Dial Up user 25,116 28,766 14.5% Internet Dedicated link 729 998 36.9% IPVPN link 304 171 -43.8%

MIDI Revenue

Change1Q061Q05UnitDescription

Data Communications & Broadband

First Quarter 2006 Results Page 8

Cellular Network Coverage

162Base Station Controllers51Mobile Switching Centers

5,971Base Transceiver Stations

1Q06

Indosat NationwideCellular Coverage

Number of BTS

Java, 63.5%

Non Java, 37.5%

First Quarter 2006 Results Page 9

Financial Performance (YoY) In billion Rupiah

Operating Revenues Rp2,899.6 3.0%

Operating Income Rp848.4 0.8%

EBITDA Rp1,684.9 4.5%

Other Income (Expenses) (Rp290.9) 32.8%

Net Income Rp383.9 35.8%

First Quarter 2006 Results Page 10

6,767

8,230

10,430

2,816 2,900

11,590

2002 2003 2004 2005 1Q05 1Q06

1,613 1,685

3,6624,386

6,0176,732

58.1%

57.3%

54.1%

58.1%57.7%

53.3%

2002 2003 2004 2005 1Q05 1Q06

EBITDA EBITDA Margin

Revenues and EBITDA growth

Indosat recorded healthy revenues and EBITDA growth

(Rp billion)

Revenues EBITDA and EBITDA Margin(Rp billion)

First Quarter 2006 Results Page 11

Sound Balance Sheet

53.3%

57.7% 58.1%57.3%

58.1%

2003 2004 2005 1Q05 1Q06

EBITDA Margin Interest Coverage

Debt to EBITDA Net Debt to Equity

190.7% 191.9%224.5%

171.4%213.5%

2003 2004 2005 1Q05 1Q06

48.9%41.6%

54.4%

42.2%

53.8%

2003 2004 2005 1Q05 1Q06

531.4%

559.2%

542.6%

564.4%

524.7%

2003 2004 2005 1Q05 1Q06

First Quarter 2006 Results Page 12

Composition of Assets & Liabilities

0

100

200

300

400

500

600

700

800

Others 416

Payables 210Bonds Payable 550Receivables 114Cash & Equivalent 230

Liabilities Assets Net

In US$ million as of 31 March 2006

§ Indosat is relatively hedged against currency and interest rate fluctuations (98% of debts had fixed interest rate as of 31 March 2006).

§ Net liabilities in US$ was US$416.2 million of which US$350 million was hedged as of 31 March 2006.

Cash and its Equivalent(Per 31 Mar 2006 Total Rp 4,136.1 bio)

Rupiah41% US$

59%

Payables(Per 31 Mar 2006 Total Rp12,087 bio)

US$ 41%

Rp 59%

First Quarter 2006 Results Page 13

Public

Listed on the JSX, SSX and NYSE

Note:(1) Per 31 March 2006

Republic of Indonesia

40.37% 45.19% 14.44%

§ Indosat’s shares are majority owned by public investors (45.19%)

§ ST Telemedia through Indonesia Communications Limited owns (40.37%)

§ Indonesian Government owns 14.44% including Series A share

Committed Shareholders

First Quarter 2006 Results Page 14

Key initiatives in 2006

Focus on Customers Acquisition and Servicing

Productivity enhancements and cost savings in networks, IT, and Call Centers

Enhance network Coverage, Quality and CapacityAround US$700 million capex in 2006, 80% for cellular

More network elements, backbone and infrastructure (7,200 base stations)

Submarine cable to connect Java, Sumatera, Sulawesi and Kalimantan

Enhanced Distribution and Channel Management

Sales and Performance Focus Organization Structure

First Quarter 2006 Results Page 15

Sales Focused Organization Structure

Deputy President Director

Kaizad B. Heerjee

Deputy President Director

Kaizad B. Heerjee

Information Technology

Director

Joseph Chan

Information Technology

Director

Joseph Chan

Network Director

Raymond Tan

Network Director

Raymond Tan

Marketing Director

Wahyu Wijayadi

Marketing Director

Wahyu Wijayadi

Finance Director

Wong Heang Tuck

Finance Director

Wong Heang Tuck

Corporate ServicesDirector

S. Wimbo S. Hardjito

Corporate ServicesDirector

S. Wimbo S. Hardjito

Regional Sales

Director

Wityasmoro S. H.

Regional Sales

Director

Wityasmoro S. H.

Jabotabek& Corporate

Sales Director

Johnny S. Sjam

Jabotabek& Corporate

Sales Director

Johnny S. Sjam

President Director

Hasnul Suhaimi

President Director

Hasnul Suhaimi

Regional OfficesRegional Offices Senior Vice PresidentsSenior Vice Presidents

First Quarter 2006 Results Page 16

Marketing Initiatives

First Phase Marketing Initiative• Was launched in mid April

• Intended to enhance mid-end brands (“Mentari”) position

• Comprises FreeTalk, FlatZone, I-Ring and I-Say

Initial Response• Demands for Mentari increases

• Increased end user starter pack price

• Strong Mentari net sales in April

• Positive support from dealers and distributors

Next Phase Marketing Initiatives• In preparation, to be launched in the near future

First Quarter 2006 Results Page 17

Recent Development

§ The regulator requires operator to conduct mandatory prepaid registration to be completed in 28 April 2006. There is an indication that Indonesian Government may extend the deadline until May 2006. Unregistered customers can only use the services for either incoming only or SMS only. Customers can register by SMS, website, phone and walk-in centers.

§ As of May 12 2006, 11.02 million prepaid subscribers have been registered or 88.16% of our total customers.

§ The 3G tender have been finalized and Indosat won 5 MHz with thelowest bid at Rp. 160 billion and upfront fee Rp. 320 billion.

§ The 3G services will be launched in second half this year.

§ Indosat will roll out 3G network in 2 major areas (Jakarta and Surabaya) with covering 10% of population in 2006.

Prepaid Registration

Preparation for 3G Services

§ The regulator requires operators to issue Reference InterconnectOffer (RIO) which contains terms and conditions interconnection.

§ Dominant operators should have their RIO approved by regulator.

§ All operators should submit their RIO to regulator by April 2006.

New Interconnection

Scheme

First Quarter 2006 Results Page 18

Recent Development

§ Indosat fully repaid the principal and interest of Series A and Series B of the Indosat Bond I in Year 2001 which was due on 12 April’06.

§ This repayment reduces the Company’s interest expenses by around Rp172 billion per annum, starting from the second quarterof 2006.

Fully Repaid Indosat Bond I

year 2001

§ On May 12, 2006, Indosat obtained a credit facility from Finnish Export Credit (FEC) amounting to US$38 million which will be used to finance the purchase of telecommunications equipment. The loans bear fixed interest rate of 4.15% and will mature in 5 years.

Indosat obtained Export Credit

Facility

§ Indosat launched service of Fixed Wireless Access (FWA) with their brand Jagoan and StarOne Postpaid for Batam and Pekanbaru area.

§ This Fixed Wireless Access services is designed to meet the demands of the society for telecommunication with cheap tariff and complete features, such as voice service, SMS, and data with limited mobility.

Launched new FWA Service areas

First Quarter 2006 Results Page 19

Thank You