Australians are being reminded to to exercise caution when travelling to Indonesia.

Travel warnings have been updated after three suspected terrorists were killed and a fourth arrested in the raid of a home near Jakarta.

A counter-terror squad also uncovered a bomb in the raid.

While the threat level has not been increased, the Australian Government has updated its travel warning in the area.

The warning says ‘terror attacks could occur anywhere at any time in Indonesia, including in Bali.’

Australians travelling to the popular Indonesian tourist town of Bali over summer are being urged to use caution.

Fairfax Indonesia correspondent Jewel Topsfield told Tony Jones the risk is ‘very real’.

Ms Topsfield advised travellers to avoid mass celebrations on Christmas and new year’s eve.

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