PRESS DIGEST-Indonesian Newspapers - July 31

Following are some leading stories in the main Indonesian newspapers on July 31.

Reuters has not verified these stories and does not vouch for their accuracy. Telephone: Editorial: +62-21-384-6364. Fax: +62-21-344-8404 or Help Desk: +803-061-2124 (toll free).

- - - -

JAKARTA GLOBE

- YUDHOYONO SAYS INDONESIA NEEDS TO CURB RADICALISM

President Susilo Bambang Yudhoyono said that Indonesia would seek to quash the radicalism after recent bombings of two luxury Jakarta hotels by promoting appropriate religious education, and reducing poverty and illiteracy. He called on the community to police their own neighbourhoods for suspicious activity.

- DEFAMATION EMAIL CASE TO BE RE-TRIED

A Jakarta woman recently acquitted of defamation charges after she wrote an email complaining about the service at a local hospital will face trial again for the same charge, the Banten High Court has ruled.

- BE READY FOR EL-NINO: YUDHOYONO

President Yudhoyono said the government had earmarked 1 trillion rupiah ($100.5 million) to help stabilise rice prices and would launch a subsidised rice programme next year in case of interrupted production caused by the El-Nino weather pattern. He also ordered all government agencies to ensure all dams and water catchments were functioning properly and to prepare for the possibility of forest fires.

- GOVERNMENT CANCELS SIX OIL AND GAS CONTRACTS

The energy ministry has cancelled six oil and gas contracts because the firms holding contracts had not yet discovered enough reserves, said ministry official Sutisna Prawira. The contracts were held by ConocoPhillips Nila, Santos (NTH Bali), Pertamina, Petronas Carigali, BP Bawean and Energy Equity.

- SEX CULT LEADER JAILED FOR BLASPHEMY

The leader of a religious cult whose followers were involved in sex orgies has been sentenced by a South Jakarta court to two and a half years for blasphemy, after prosecutors said he stopped his Muslim followers from praying or fasting.

- - - -

INVESTOR DAILY

- BNI PLANS TO ALLOCATE 1 TRLN RPH FOR PERTAMINA LOAN

Indonesia's fourth-largest lender PT Bank Negara Indonesia Tbk (BBNI.JK) plans to disburse about 1 trillion rupiah ($100.5 million) loan for state-owned oil firm Pertamina, said corporate director Krishna R Suparto.

- CITI INDONESIA EYES 15 PCT GROWTH IN CREDIT CARD HOLDERS

Citibank's (C.N) Indonesian unit aims to increase new credit card holders by 15 percent this year from 1.5 million card holders at the moment, said marketing director Rico Frans.

- PUBLIC WORK MINISTRY PROPOSE ADDITIONAL BUDGET

The public work ministry has proposed an additional budget of 9.8 trillion rupiah ($984.9 million) to parliament to help finance infrastructure development, said the ministry's general secretary Agoes Widjanarko.

- TELKOM PREPARES $50 MLN OF FUNDS FOR SATELLITE

Indonesia's largest telecoms firm, PT Telekomunikasi Indonesia Tbk (TLKM.JK), has prepared $50 million worth of funds to build a satellite this year, which will be derived from its internal cash, said chief director Rinaldi Firmansyah.

- - - -

KOMPAS

- PARLIAMENT URGES HIGHER DIVIDEND RATIO AFTER CALLING OFF PRIVATISATION PLAN

Indonesian state-owned firms have been urged to pay a higher dividend pay-out ratio to help plug the 2009 budget deficit after parliament agreed to shelve a plan to sell shares of some state-owned firms, including home lender PT Bank Tabungan Negara, to the public this year, said Suharso Monoarfa, vice chairman of parliamentary budget committee.

- - - - ($1 = 9,950 rupiah)