In a travel alert, the Department of Foreign Affairs has recommended that all non-essential travel to Indonesia, including the holiday island of Bali, be deferred in view of potential threat to Australians and Australian interests.

"Jemaah Islamiah continue to have the capability and intent to mount attacks in the region," the latest travel advisory said. "The threat extends beyond the formal commemorative venues and events," it added.

The fresh alert came as many Australians prepared for a trip to Bali on the first anniversay of the 12 October bombings that killed 202 people including 88 Australians.

"The government is mindful, however that many of these Australians may judge their attendance at commemorative services to be essential travel and is supporting family members," the advisory said.

"Jemaah Islamiah continue to have the capability and intent to mount attacks in the region"

Travel Advisory

Commemoration

A service for the victims of the bombings will be held on 12 October in Bali, with the Australian government funding any victims and relatives who want to attend.

Prime Minister John Howard and opposition Labour leader Simon Crean will also attend.

The fresh Australian warning followed similar cautions from the Indonesian police, who blame the Jamaah Islamiah for the bombings. 

"There are strong indications of future terror plans. We can't give details," Zainuri Lubis, an Indonesian police spokesman said.

Indonesian courts have convicted three men till date for the bombings. While two have been handed down death sentences, the third has been jailed for life.