Indonesia's President Joko Widodo sworn in for second term

Indonesian President Joko Widodo has been sworn in for a second five-year term leading the world's third-biggest democracy, after an election dominated by economic issues but also the growing influence of conservative Islam.

Widodo, 58, has pledged to cut red tape and keep building infrastructure to underpin growth in Southeast Asia's largest economy, but made improving education a top priority to encourage investment and create jobs for a youthful population of 260 million people.

"This will be a big problem if we fail to create enough job opportunities," Widodo told parliament after his inauguration on Sunday (local time), where he cited his dream of Indonesia becoming one of the world's top five economies by 2045 with a GDP worth US$7 trillion (NZ$11 trillion).

The president said he would push two bills to replace laws that have hampered job creation, as well as warning he could sack underperforming civil servants.

He earlier told reporters he would name his cabinet on Monday morning.

There was tight security at parliament for his swearing in alongside his vice president, Islamic cleric Ma'ruf Amin.

More than 30,000 security personnel were deployed in Jakarta following recent student demonstrations and after the country's security minister was stabbed by a suspected Islamic militant earlier this month.

The inauguration was attended by regional leaders including Australian Prime Minister Scott Morrison, Malaysia's Mahathir Mohamad and Singapore's Lee Hsien Loong.

Widodo grew up in a riverside slum and was the first national leader to come from outside the political and military elite.

Popularly known as Jokowi, his everyman image has resonated with ordinary voters, though he has been criticised for being too beholden to powerful party backers and surrounding himself with former generals from the era of late strongman leader Suharto.

Reuters