Indonesian markets got off to a strong start on Thursday after Defence Minister Prabowo Subianto declared victory in the country's presidential election, while investors took heart from the prospect of policy continuation from incumbent Joko Widodo.
Former special forces commander Prabowo clinched about 58% of votes in Wednesday's election, according to unofficial "quick counts" by four independent pollsters, which in previous elections have proven to be accurate.
The official result is expected by March 20 at the latest.
A coalition of parties backing Prabowo had about 43% of votes, unofficial counts in the legislative contest show, while an alliance behind Anies had 29%, indicating a potential Prabowo government could have strong parliamentary backing.
"Winning by one round means political uncertainty removal, and there will be an expected continuity of Jokowi's programme - based on their campaign pledges," said Handy Yunianto, an analyst at Mandiri Sekuritas. "This is a short-term positive for the capital market, in our view."
Prabowo crucially has the tacit backing of the wildly popular president, who has bet on his former rival as a continuity candidate, bolstered by the inclusion of the president's son, Gibran Rakabuming Raka, as Prabowo's running mate.
