PRESS DIGEST-Indonesian newspapers - Aug 26

Following are some leading stories in the main Indonesian newspapers on Aug 26.

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KOMPAS

- GOVT TO HIKE VEHICLE TAXES

The government plans to increase vehicle taxes and implement electronic road pricing on selected roads in a bid to curb fuel consumption, a senior finance ministry official said.

- PDI-P AND GOLKAR EXPLORE COALITION

Two major Indonesian parties -- the Indonesian Democratic Party of Struggle (PDI-P) and Golkar -- are exploring the possibility of a coalition for the 2009 presidential election, a senior PDI-P member said.

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JAKARTA POST

- COAL MINERS MAY HAVE TO PAY PENALTIES-MINISTER

Six coal firms that have not paid their royalties to the government in seven years may have to pay penalties as well, Energy Minister Purnomo Yusgiantoro said.

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BISNIS INDONESIA

- INDOFOOD TO EXPAND INTO DAIRY BUSINESS

The world's largest instant noodle maker, PT Indofood Sukses Makmur Tbk (INDF.JK), said it plans to expand into the dairy business by fully acquiring Drayton Pte Ltd, which controls a 68.57 percent stake in local dairy firm PT Indolakto.