Australia should reciprocate Indonesia's move to waive visa requirements for tourists, the Indonesia Institute says.
The Indonesian government announced the move to cut visa fees for Australia and 46 other countries on Tuesday, to take effect in October.
Indonesia Institute president Ross Taylor said it's a welcome step and Indonesia, which was facing a significant economic downturn, was keen to boost its inbound tourism industry.
Mr Taylor said Indonesia's execution of Australian drug traffickers Andrew Chan and Myuran Sukumaran appeared to have had no impact on Australians travelling to Indonesia.
But recent flight delays caused by volcanic ash had caused huge inconvenience to tourists.
"Indonesian authorities are keen to entice Aussies back to their favourite playground," he said in a statement.
Mr Taylor said China was set to supplant Australia as the largest source of tourists visiting Bali but Australians would still remain a key part of the Balinese economy.
"We are essentially individual travellers so our dollars are shared by taxi drivers, small store owners and restaurants throughout Bali," he said.
Mr Taylor said Australia should now reciprocate by making it easier for Indonesian families and young people to visit Australia.
"A Balinese family of four must pay $540 for visas even before they depart for Australia on a holiday. Then they must complete a mountain of paperwork," he said.
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