Indonesia added former president Suharto to a list of national heroes during a ceremony on Monday despite objections from activists and academics over the deceased military dictator's human rights record.

In a decree read by the presidential military secretary, Suharto was named among 10 honourees newly dubbed national heroes, joining a list of more than 200 people that includes the first democratically elected president, as well as prominent women's rights advocates, Islamic scholars and independence activists.

President Prabowo Subianto, Suharto's former son-in-law, presided over the National Hero Day ceremony.

In response to outcry over the plan to include Suharto, Prabowo's office had insisted he has the right to bestow the title upon whomever he chooses.

Former president Suharto, who died in 2008 aged 86, ruled Indonesia with an iron fist for more than three decades after grabbing power in 1967 following a failed military coup.

His rule was marred by allegations of corruption and human rights abuses, including violent crackdowns on political dissent.

Last week, around 500 civil society members, activists and academics published a letter sent to Prabowo requesting he not proceed with the hero designation.

The letter said awarding Suharto the title was a betrayal of his victims and of democratic values and constituted a dangerous distortion of history.

Prabowo himself has faced a series of violent protests since sweeping to electoral victory last year, mainly sparked by discontent over economic inequality and lavish perks for lawmakers.

The Commission for the Disappeared and Victims of Violence (Kontras), a local rights group, said designating Suharto a national hero was immoral and helped to normalise impunity.

"Suharto, as someone suspected of being involved in human rights violations, state violence and various offences related to human rights abuses, does not deserve to be awarded the title of national hero," Kontras coordinator Dimas Bagus Arya said.

State Secretary Prasetyo Hadi defended the government's decision.

"It is part of how we honour our predecessors, especially our leaders, who undoubtedly have made extraordinary contributions to the nation and the country," he said.

Suharto's daughter, Siti Hardiyanti Rukmana, and son, Bambang Trihatmodjo, were among the attendees at Monday's ceremony.

"Please remember what my father had done, from when he was young, until he was old, all his fights for this country and the Indonesian people," Siti said after the ceremony.

The other nine new heroes include slain labour activist Marsinah and former president Abdurrahman Wahid, who died in 2009. (AFP)