Windows in nearby buildings were shattered by the blast before dawn on Friday in a posh district in the western part of the city, French radio station Europe 1 reported, quoting firemen at the scene.
"It was caused by a package bomb placed just in front of the embassy," the radio's reporter on the scene said.
"The explosion was quite strong ... several vehicles were damaged and windows in neighbouring apartments were shattered."
Indonesian president-elect Susilo Bambang Yudhoyono said the blast was a terrorist act, and called on France and Indonesia's outgoing president to take appropriate action.
"I strongly condemn the terrorist act done at the Indonesian embassy in Paris. I do hope the government of France will take appropriate action to bring the perpetrator to justice," he told reporters.
"And I do hope also President Megawati, who is still in power now, (will) conduct appropriate action and good cooperation with the government of France," he said, referring to incumbent Megawati Sukarnoputri.
De Villepin: This is clearly an
act with criminal intentions
"This is clearly an act with criminal intentions," said French Interior Minister Dominique de Villepin.
"As far as we know, there was no specific threat but we are investigating," he said.
Nine of the 10 injured were taken to hospital. Most appeared to have slight cuts from flying glass or to be suffering from shock, reporters at the scene said. Some of the injured were embassy personnel.
President Jacques Chirac, on a visit to Hanoi, reassured Jakarta of France's support following the blast.
"All means will be deployed to shed light on this criminal act," he told the Indonesian representative at an Asia-Europe meeting, Dorod Jatun Kundjoro-Jakti.
Jakarta said it was looking into the explosion. "We are trying to contact embassy staff. We are looking into details of the incident," foreign ministry spokesman Yuri Thamrin said.