THE Federal Government has stressed the need for Australians to be careful travelling in Indonesia after the United States issued a fresh warning of possible terrorist attacks.

The US in recent days warned of a heightened terrorism threat against American interests in Indonesia's second largest city, Surabaya. Australia's Department of Foreign Affairs has since updated its own travel advice urging travellers to show a "high degree of caution" though it does not call for people to reconsider visiting Indonesia.

Foreign Minister Julie Bishop said the renewed advice from her department had come "in response to advice from the security agencies".

"Australia is monitoring this situation very closely," she said. "We work very closely with the Indonesian security and intelligence and law enforcement agencies."

The heightened alert came as Prime Minister Abbott, visiting Australian troops in the United Arab Emirates, refused to rule out increasing troop levels to help in the fight against the extremist Islamic State organisation.