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ndonesia'€™s benchmark price index hit a record high on Friday, driven by palm oil-related stocks as a significant increase in biofuel subsidy is expected to boost palm oil demand in Southeast Asia'€™s largest economy.

The Jakarta Composite Index (JCI), the main price barometer at the Indonesia Stock Exchange (IDX), advanced 1.18 percent on a daily basis to a record high of 5,342.51.

The agriculture sub-index rose the most, with a 3.68 percent gain, followed by consumer goods'€™ 2.58 percent increase.

The House of Representatives and the government recently agreed to increase biodiesel subsidy to Rp 4,000 (30 US cents) per liter, nearly three times the Rp 1,500 last year.

Shares of crude palm oil-related (CPO) firms Astra Agro Lestari (AALI) and Unilever Indonesia (UNVR) were among the day'€™s daily movers, growing by 8 percent and 4 percent, respectively.

Plantation firms PP London Sumatera (LSIP) and Eagle High Plantation (BWPT) also recorded significant growth on Friday, rising by 5 percent and 7 percent, respectively

'€œ[Increasing CPO stocks] is in line with rising commodities prices following the House of Representative'€™s approval to add [to the] biofuel subsidy, which is expected to boost demand in Indonesia as the world'€™s biggest palm-oil producer and consumer,'€ according to a study by KDB Daewoo.

Indonesian Biofuel Producers'€™ Association (Aprobi) secretary-general Togar Sitanggang said Friday that biodiesel consumption might climb to 2.2 million kiloliters (kl) this year, up nearly 30 percent from 1.7 million kl last year.

State-owned oil and gas firm PT Pertamina is expected to absorb 1.7 million kl of biodiesel to meet the requirement of mixing 10 percent of the palm-oil derivative under the government'€™s B10 program. Other firms, such as oil company Shell and fuel distributor AKR Corporindo, are expected to consume the rest.

Futures climbed 5.1 percent to Rp 8.3 million ($648) a metric ton on the Bursa Malaysia Derivatives on Thursday, the biggest advance at close since October 2010, Bloomberg reported.

Other than the House'€™s endorsement on the government'€™s biodiesel push, Friday'€™s record day was also driven by increasing confidence in Indonesia'€™s growth prospects among investors throughout the region.

'€œInvestors believe that the country can perform better this year, as most firms'€™ financial results show improving performances. Positive global sentiment also plays a significant role in pushing up the JCI, which is especially supported by rebounding oil prices,'€ Investa Saran Mandiri analyst Kiswoyo Adi Joe said.

The price of West Texas Intermediate (WTI) '€” a global oil price reference '€” for March contracts went up by 4.3 percent to $52.66 a barrel, Bloomberg data show.

Most of the regional indexes ended in green on Friday except for Hong Kong'€™s Hang Seng, Chinas'€™s SSE Index and India'€™s S&P Sensex. Indonesia'€™s JCI was the only one recording better than 1 percent growth. Japan'€™s Nikkei 225 was the second-highest gainer in the region, rising 0.8 percent on the day.