PRESS DIGEST-Indonesian Newspapers - May 29

Following are some leading stories in the main Indonesian newspapers on May 29.

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JAKARTA POST

- CENTRAL BANK SAYS BANK LENDING SET TO INCREASE

Bank lending is expected to pick up, following cuts in the central bank's key interest rate and amid signs of an improving economy, senior deputy governor Miranda Goeltom said.

- INDIKA ENERGY TO SET ASIDE $300 MLN FOR MORE ACQUISITIONS

Indonesian coal miner PT Indika Energy Tbk (INDY.JK) is ready to spend up to $300 million on acquisitions once it has completed its purchase of engineering firm PT Petrosea Tbk (PTRO.JK), finance director Azis Arman said.

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INVESTOR DAILY

- COAL MINER BUKIT ASAM TO PAY 853.8 BLN RPH DIVIDEND

Indonesian state-owned coal miner PT Tambang Batubara Bukit Asam Tbk (PTBA.JK) plans to pay out 853.8 billion rupiah ($83 million) in dividends, equivalent to half of its 2008 net profit, president director Soekrisno said.

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KORAN TEMPO

- GOVERNMENT PLANS TO INCREASE ELECTRICITY SUBSIDY

The government has proposed a 43.25 trillion rupiah electricity subsidy for the 2010 state budget, an increase from the 42.46 trillion rupiah subsidy in 2009, because of expectations of higher electricity consumption, said Purwono, director general for electricity and energy.