Jakarta stocks ended more than one percent higher on Monday driven by telecoms and tobacco shares and with trading sentiment helped by softer oil prices.
But analysts said the market would remain volatile due to a weaker rupiah as well as unstable oil prices.
Stocks have been on a roller-coaster ride in the past few weeks, hit by foreign selling amid fears of US interest rate hikes, a possible investment slowdown in China and soaring crude oil prices.
The Jakarta Composite Index gained 1.05 percent to 732.58 points in moderately high turnover of 821.18 billion rupiah ($90 million).
"Trading in telecom shares and some cigarette stocks helped the market today," one local dealer said.
Some analysts said the market brushed off news about the country's GDP, which grew at a higher than expected rate of 4.46 percent. They said the high component of private consumption in the GDP might not be sustainable to maintain future growth.
Crude oil for July delivery eased to $39.59 per barrel from over $40 last week following weekend Opec talks during which Saudi Arabia said it wanted to raise output by two to 2.5 million barrels a day.
The Indonesian rupiah extended its losses on Monday, breaking the 9,100 to a dollar level from around 9,070 rupiah earlier.
The rupiah has lost nearly eight percent this year on political worries as investors exit Asia.
Traders said last week the central bank, Bank Indonesia, was believed to be selling dollars to defend the currency.
The country's second largest telecommunications firm, PT Indonesian Satellite Corp, jumped 1.97 percent to 3,875 rupiah, while PT Telekomunikasi Indonesia Tbk, the largest stock on the Jakarta bourse, rose 1.33 percent to 7,600.
Also lending support was the bourse's third largest company, PT Gudang Garam Tbk, which gained 1.83 percent to 13,900 rupiah, while rival PT HM Sampoerna Tbk was up one percent at 5,050 rupiah.
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