The Jakarta Composite Index finished up 0.48 percent at 735.25 points on moderate turnover estimated at 560.77 billion rupiah ($60.49 million).
Indonesia's largest car distributor, PT Astra International Tbk, led the gains on the optimistic outlook for auto sales.
"Astra's sales are pretty robust this year. They also have less exposure to foreign exchange as the amount of dollar denominated debts had been reduced. Some foreign brokerages have increased their target prices for its shares," one local dealer said.
Astra's share price jumped 5.17 percent to 6,100 rupiah on the back of robust demand for cars and motorcycles in the world's fourth most populous nation.
US investment bank Merrill Lynch reinstated coverage of Astra earlier this month, setting a target price of 7,500 rupiah, an upside of 23 percent.
But negative sentiment in the cigarette manufacturing sector capped Thursday's gains on the Jakarta bourse.
Investors are worried the government will move to increase cigarette excise taxes to help finance its fuel subsidy bill amid high global oil prices.
The country's number one cigarette maker, PT Gudang Garam Tbk, shed 3.53 percent to 12,300 rupiah.
It's rival, the second largest listed tobacco company, PT Hanjaya Mandala Sampoerna Tbk, fell nearly three percent to 5,000 rupiah.