Indonesian share prices closed 1.61 percent higher on Thursday, outperforming firmer regional markets, with gains led by Telkom and Perusahaan Gas Negara (PGN) on company-specific leads, dealers said.
The Jakarta Stock Exchange composite index added 17.099 points at 1,078.179 on volume of 1.54 billion shares worth 1.38 trillion rupiah (137 million dollars.) Advancers led declines 71 to 28, with 70 stocks unchanged.
The rupiah was at 10,050/10,060 to the dollar in late afternoon trade compared to Wednesday's 10,052/10,057.
Dealers said Telkom rose ahead of its planned share buyback while PGN gained after announcing plans to raise gas prices for industrial users by 11 percent.
"Telkom's buyback program is worth waiting for," said Panca Global Securities analyst Betrand Raynaldi.
Telkom plans to buy back five percent of its shares from the open market for a total of 5.25 trillion rupiah. The company will seek shareholders' approval next month and the buyback will then be carried out over an 18-month period.
Investors sought Perusahaan Gas Negara (PGN) on the gas price hike news and after the company said its South Sumatra-West Java gas pipeline project is proceeding on schedule, Raynaldi added.
He said renewed hopes of an economic recovery, given the recent declines in fuel prices, also improved market sentiment.
State oil and gas company PT Pertamina earlier said it will cut fuel prices for industrial users for December in line with lower world oil prices.
Lower fuel prices and a subsequent easing in inflation could prompt Bank Indonesia to keep its interest rate steady, Raynaldi said.
Telkom gained 150 rupiah to 5,300 while Indosat fell 50 to 5,200. PGN was up 700 rupiah at 6,200.
Bank Central Asia added 75 rupiah to 3,300.
Car dealer Astra International rose 150 rupiah to 9,250.