Susilo Bambang Yudhoyono has become the first Indonesian president to be sworn in for a second term, consolidating political stability in the sprawling southeast Asian archipelago.

He was re-elected in July on a platform of reform and economic growth, and this could mean that his new cabinet would comprise more business professionals and fewer career politicians.

"By Allah I swear I will adhere to the constitution as faithfully as possible, and will commit myself to the country and the people," Yudhoyono said during the ceremony in Jakarta on Tuesday.

The 60-year-old leader has pledged to crack down on corruption, boost infrastructure spending, fight widespread poverty and advance bureaucratic reform.

"We have seen the good results of our efforts to build good government and fight against corruption but it still needs improvement.

"We also have decreased the number of poor but need to continue for people's welfare. I believe achievements that we have made will create new challenges," added Yudhoyono.

Tuesday's event was attended by foreign dignitaries including leaders of Australia, Brunei, East Timor, Malaysia and Singapore, as well as senior officials from around the world.

Historic win

The ceremony was held under tight security at the People's Consultative Assembly building in the city centre, where about 20,000 police backed by armoured vehicles were on hand to secure the area.

Regional leaders attended the ceremony in Jakarta under tight security [EPA]

He repeated his victory in July against Megawati and Jusuf Kalla, his vice-president, to become the first Indonesian leader to be democratically re-elected.

In his inauguration speech, Yudhoyono said Indonesia can still register positive growth despite being in the middle of the economic crisis.

"The essence of our programme for the next five years is to improve welfare, strengthen democracy and the legal system.

"But we cannot stay idle, as our tasks are far from over. Just like a ship moving forward, we will head through an ocean full of waves and storms," he warned, referring to volatile crude oil prices and stagnant investment.

The government has predicted economic growth of 4-4.5 per cent this year, third only to China and India in the G20 club of rich and major developing countries.

Indonesia's economy grew 6.1 per cent in 2008.