JAKARTA: Indonesia's main stock index rose nearly 1 percent by midday on Friday as political tensions eased and with president-elect Joko Widodo planning to raise the prices of subsidised fuel within two weeks of taking office.
The index rose to as much as 4,998.44 from 4,951.61 on Thursday.
Indonesia's losing presidential candidate Prabowo Subianto finally congratulated Widodo on Friday and said his party would support Widodo, but would not hesitate to criticise any policies that they opposed. Earlier, Widodo also met other party leaders from the opposition coalition.
"There is optimism after Joko Widodo and the opposition parties started to show more constructive communication," said Norico Gaman, head of research at BNI Securities. "He (Widodo) is trying to show the market that there is some semblance of political stability in the country."
Widodo also plans to raise the price of subsidised gasoline and diesel by around 50 percent within two weeks of taking office, a move that will save the government nearly $13 billion next year.
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