An Indonesian tug owner is ready to pay a ransom to free 10 crew being held by Abu Sayyaf militants in the southern Philippines.

United Tractors has agreed to hand over PHP 50m ($1.08m), according to coordinating minister for political, legal and security affairs, Luhut Pandjaitan.

"The next communications between the company and the hostage-taker may be on Wednesday or Thursday," Luhut said, according to the Straits Times.

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