Australia won't be boosting its military presence in the Middle East despite deadly terror attacks in Jakarta but is urging other countries to increase their contributions.
Foreign Minister Julie Bishop has confirmed Australia's involvement in the fight against Islamic State would remain unchanged, after the terrorist group claimed responsibility for Thursday's attacks.
Two civilians and five assailants were killed during explosions and gunfire at a police post near a busy shopping mall and outside a Starbucks cafe in central Jakarta.
Three men were arrested on Friday in connection with the attacks.
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Ms Bishop said on Friday Australia had been "deeply concerned" for some time about the possibility of an attack in the region, as IS militants reach out beyond the Middle East.
Australia has offered Indonesia whatever support it needs, including law enforcement, security and intelligence.
Indonesia's Foreign Ministry spokesman Arrmanatha Nasir thanked countries including Australia for their support but said the situation was under control.
"What we need is long-term co-operation to address terrorism in various countries, not just for now but into the future," he told AAP on Friday.
"Roads have reopened, business has started again and Jakarta is back to normal."
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The attacks came one day after Defence Minister Marise Payne confirmed that Australia had declined a US request to boost its military involvement in the Middle East.
Ms Bishop said the US sent requests to more than 40 other countries and Australia encouraged other countries to increase their contribution.
"We are not going to increase our presence there," she said.
"Australia is already the second largest military contributor to the coalition effort on the ground in Iraq and in the air campaigns over Syria."
She confirmed no Australians were killed or wounded in the attacks.
Indonesia specialist Greg Fealy, from the Australian National University, said the attacks confirmed the growing threat IS posed in Indonesia, but warned the outcome could have been much worse.
While claiming responsibility for the attack, IS said it was carried out by a detachment of its forces in Indonesia who "targeted a gathering of crusader coalition citizens".
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But had the perpetrators been more efficient terrorists, many more people might have been killed, Associate Professor Fealy told AAP.
"It was very crude. And the perpetrators looked like amateurs."
He said the taking of hostages - one who was Algerian and a fellow Muslim - was "further indication that it was poorly planned and poorly carried out".
"Thankfully, because otherwise if they had been efficient terrorists they could have killed a large number of people in that place."
Prime Minister Malcolm Turnbull took to Twitter overnight to offer Australia's condolences over the attacks.
"Australians' thoughts, prayers and resolute solidarity are with the people of Indonesia as they respond to the terrorist attacks," he wrote.
The Indonesian Embassy in Canberra thanked Australia for its sympathy and support, insisting Indonesian police and anti-terrorism forces had brought the situation under control.
"Attacks on innocent people today will only strengthen our resolve and redouble our efforts to combat the scourge of terrorism in Indonesia," it said in a statement.
The Department of Foreign Affairs has updated its advice for Australians travelling to Indonesia, warning travellers to avoid the attack sites and follow the instructions of local authorities.
The overall advice level remains "exercise a high degree of caution".
