The Department of Foreign Affairs travel advisory was advising on Wednesday "a high degree of caution in Indonesia, including Bali, at this time due to the high threat of terrorist attack" and to reconsider the need to travel.

Thousands of Australians holiday in Indonesia during the southern summer months of December, January and February.

"We continue to receive information that indicates that terrorists may be planning attacks in Indonesia, which could take place at any time," the online advisory said.

The US embassy in Jakarta on Saturday warned of threats against US-associated hotels and banks in Indonesia's second-biggest city Surabaya.

"You should exercise particular caution around locations that havea low level of protective security and avoid places known to be possible terrorist targets," the latest travel advice said.

"Australia is monitoring this situation very closely," Foreign Minister Julie Bishop told reporters late Tuesday.

Some 88 Australians were among 202 people killed in the Bali nightclub bombings on October 12, 2002.

Indonesia has waged a crackdown on extremist groups over the past decade following attacks against Western targets.

But in recent months authorities have raised concerns that a wave of potential jihadist sympathisers is emerging from the world's most populous Muslim nation.

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