Malacanang rejected on Wednesday a demand by the Abu Sayyaf for a P30 million ransom to release a German hostage.

In a statement, Presidential Spokesperson Ernesto Abella said the military will continue with its operation to secure the release of Jurgen Kanter.

"The government stands firm on our no-ransom policy. The AFP (Armed Forces of the Philippines) has been directed to continue and intensify its military operations," he said.

He said the Duterte administration will continue efforts to rescue all hostages held by the Abu Sayyaf terrorists. There are 27 hostages being held by the Abu Sayyaf, of which 21 are foreigners.

"It is also working closely with the concerned local governments as well as other sectors to facilitate the safe rescue of Mr. Jurgen Kantner," Abella added.

But Presidential Peace Adviser Jess Dureza, in a text message to the Daily Manila Shimbun, said :”no ransom policy stays but family may nego(tiate) to save life of loved one and gov’t will not be in the way.’

The Abu Sayyaf is demanding ransom of P30 million for Kanter be paid before 3 pm of February 26 or else he will be beheaded.

The message was flashed in a two minute,19 second video circulating on Facebook with Kanter, wearing an orange shirt, kneeling in a forest. Three men were carrying long firearms while one was holding a large blade.

Kanter and his companion, Sabine Merz, were on their yacht when they encountered the Abu Sayyaf in Sulu in November 2016. Merz was found dead inside the yacht. Celerina Monte/DMS