Police have used tear gas as hundreds of members from various hardline Islamic groups moved towards the Australian embassy compound in Jakarta.
Some called for Australian blood to be spilt, amid ongoing fallout from revelations Indonesian President Susilo Bambang Yudhoyono's phone was tapped.
Police armed with riot shields and tear gas formed a defensive line in front of the embassy to stop members of the Islamic Defenders Front moving forward.
The embassy was pelted with eggs earlier on Friday, while a photo of Prime Minister Tony Abbott and an Australian flag were set alight by protesters demonstrating in front of the compound.
A senior member from Hizbut Tahrir, speaking through a PA system erected on a truck in front of the embassy, called for Australian ambassador Greg Moriarty to be expelled.
He told supporters it was regrettable that the bombing of the building in 2004 was not more successful.
"When a bomb exploded here, in front of the embassy, it was only a problem because it didn't get inside," he said.
Members of the Islamic Defenders Front also shouted: "Burn, burn, Australia, burn Australia from now on."
There were also calls for Australians to be swept out of Indonesia, with one of the group telling supporters Australians were "just trash" and the "accomplice of Christians and Jews".
"Hopefully after we leave from here this place will be on fire," he said.
Punches were thrown by the mob as they surged forward with police retaliating by beating the crowd back with canes and using tear gas.
A fake coffin bearing a photo of Mr Abbott was laid on the street outside the embassy.
The protesters dispersed about 3.30pm (1930 AEDT).
More than 1600 police had been deployed near the Australian and US embassies and several other potential targets in the capital after violent demonstrations on Thursday.
Indonesians are angry over claims Australia tapped President Yudhoyono's phone in 2009 and have demanded Mr Abbott apologise for it.
