Indonesian president Joko Widodo. Picture: AFP

Mr Widodo phoned Malcolm Turnbull this morning to advise him of the decision and to reassure him that the scheduled visit _ his first official state visit since his election in 2014 _ would be rescheduled.

The cancellation came just hours after one of the largest rallies Jakarta has seen in years erupted in violence, with two police vans burnt and several police injured before rioting spilled over into suburbs dominated by ethnic-Chinese Indonesians.

One Chinese-owned minimart was burned to the ground, stoking fears of a repeat of the 1998 anti-ethnic Chinese riots in which thousands of homes and business were burned. One elderly man died of an asthma attack during the protests.

“It is with the deepest regret that the visit of President Jokowi scheduled for 6-8 November has been postponed,” the foreign ministry said in a statement yesterday.

“Current development has required the President to stay in Indonesia. The President has tasked the Indonesian foreign minister to discuss with her Australian counterpart new dates for the visit in the near future.”

The statement also noted that bilateral relations between the two neighbours were in the “best shape” and that both countries were committed to strengthening ties.

Mr Turnbull later issued his own statement saying he “entirely understood the need for him to remain in Indonesia at this time”.

“While disappointing, we agreed the postponement will not affect the need for continued and enhanced cooperation across a range of shared interests and challenges, including the threat of terrorism to our region,” he said. Work would continue on concluding the Indonesia Australia Economic Cooperation Agreement

Friday’s rally was called to demand Jakarta’s ethnic-Chinese, Christian governor Basuki “Ahok” Tjahaja Purnama be charged over alleged-blasphemous statements he made in response to a September edict by hard-line Islamic groups that the Koran forbid Muslims from voting for non-Muslim candidates.

Ahok responded by saying voters had been lied to and that the Koranic verse referred to did not preclude Muslims from voting for a non-Muslim candidate.

He has repeatedly apologised for the remark but Islamic conservatives, who have long-opposed the outspoken liberal governor, seized on the issue as a rallying point for Muslim voters ahead of next February’s Jakarta gubernatorial elections.

In recent weeks there was evidence that Islamic militant groups were also capitalising on growing anger over Ahok’s blunder, calling on supporters in Indonesia to “fan the flames of jihad”.

As many as 100,000 protestors joined Friday’s rally, many dressed in conservative Islamic robes and prayer caps and some of them chanting slogans such as “kill the blasphemer”.

In a statement issued overnight President Jokowi blamed the violence on “political actors (who) hijacked the rally and took advantage of the chaos”.

He promised swift and transparent legal action on the police investigation of blasphemy allegations against his former deputy, and asked for all remaining protestors camped outside the presidential palace in central Jakarta to go home.

Though President Jokowi spent the week calling for calm and appealing to political rivals to control their followers, his administration has been criticised for not acting sooner to prevent political opportunists and extremist groups from capitalising on the issue.

Evan Laksmana, security analyst with Indonesia’s Centre for Security and International Studies, said there were now no easy solutions for Jokowi and “ideal solutions like waiting for the legal procedure to go ahead may not temper short-term tensions”.

Police spokesman Boy Rafli Amar said police had done everything they could to keep the protest peaceful but had no choice but to use water cannons and tear gas after some protestors armed with bamboo poles, bottles and rocks attacked security officials.

Ten people from outside Jakarta had been arrested and were being held for questioning, and 160 people were being treated for the effects of teargas.

“There were negotiations between protestors and security officials late afternoon and we have facilitated their desire to meet senior government officials,” he said.

“It was explained during the meeting that in the two weeks to come there will be investigations towards (Ahok). We hope in the next two weeks we can make a decision whether to go forward with the case or not.

“People need to understand it takes time to collect evidence and question witnesses. Ahok himself will be summoned for questioning on Monday.”

Additional reporting by Nivell Rayda