Indonesia's president has warned traders and transport officials against price hikes during a tour of several towns around Jakarta as protests and strikes continued for a second day after the government raised fuel costs.

At a transport terminal in the west Java town of Rengas Dengklok, Yudhoyono urged drivers to "Please, pity the small people" after they told him they had raised fares by 25 percent.

Yudhoyono, along with several government ministers, then visited the town's main market where traders told him prices had already begun to climb after the fuel price increase.

Indonesia on Monday announced a fuel price hike averaging 29 percent that came into effect on Tuesday.

Senior economy minister Abu Rizal Bakrie said the cash-strapped government was forced to act after spending some 61 trillion rupiah (6.4 billion dollars) on subsidies last year.

Yudhoyono has said the government will compensate by providing more direct targeted assistance to the poor.

Officials have said a total of 16.4 trillion rupiah (1.77 billion dollars) would be channeled to the poor in medical, rice, social and education assistance.

As anger over the fuel price hike failed to subside Wednesday, hundreds of members of the Hisbut Tahrir Muslim group protested in the West Capital province in Bandung while some 100 students occupied a state radio station and a petrol kiosk in Central Java, the ElShinta radio reported.

Student protests were also reported in central Sumatra's Jambi.

Public transport drivers were on strike demanding higher fares in several cities, the state Antara news agency said.

Yudhoyono ordered security forces not to clash with protesters, as National Police Chief General Da'i Bachtiar ordered two-thirds of his officers to remain on standby in case of violence.

In Jakarta, more than 13,000 police, soldiers and city personnel were on hand.

The president also called on governors and mayors to check price spikes in markets and transportation sectors, Antara reported.

"Make sure there are no uncontrolled rise in prices. This is the duty of the government," he said.

Thousands rallied Tuesday in at least 25 cities and towns around Indonesia and legislators said they would enter a motion to investigate the government over the fuel price adjustment, which they say was made without their approval.