Jakarta says it will monitor the implications of Australia's decision to ban asylum seekers recently arrived in Indonesia and will act if it affects its national interests.
Australia will continue to resettle some refugees who registered with the UN High Commissioner for Refugees in Indonesia before July 1, 2014, but fewer places will be allocated.
Those who've arrived in Indonesia since that date will be refused the chance to settle in Australia.
There are 10,507 people on the UNHCR's books in Indonesia.
Of them, 6202 are asylum seekers and the rest have been deemed refugees.
Between January 1, 2014 and the end of October, an average of 443 people registered with the UNHCR Jakarta office every month.
This is 36 per cent lower than the whole of 2013, when an average of 694 people registered monthly.
Foreign ministry spokesman Michael Tene on Wednesday said Indonesia would monitor the new policy closely.
"Should it have adverse implications to the interests of Indonesia then naturally necessary measures will be taken in due course to protect our interests," he said.
"Indonesia continues to hold the view, we're of a firm view actually, that the issue of asylum seekers and refugees in this region, in our region, must and can only be effectively addressed though a comprehensive approach, through the origin, transit and destination countries."
Mr Tene called for all nations to work within the framework of the Bali process "that covers all steps, prevention, early detection, protection as well as prosecution".
While Indonesia was not a party to the UN convention, it had complied with its basic principles, he said, "particularly with regard to the issue of expulsions, return and refoulement as well as co-operation with UN agencies.
"We do hope countries other than Indonesia will continue to uphold their shared responsibilities."
WHERE INDONESIA'S ASYLUM SEEKER POPULATION IS FROM:
Afghanistan (59 per cent)
Iran (10 per cent)
Somalia (6 per cent)
Iraq (6 per cent)
WHERE THE REFUGEE POPULATION IS FROM:
Afghanistan (37 per cent)
Myanmar (19 per cent)
Sri Lanka (8 per cent)
Somalia (8 per cent)
(Source: UNHCR Jakarta)
