Foreign Minister Julie Bishop says that deadly attacks like those seen in Jakarta had been expected by experts and authorities.
Multiple blasts and bombings in the Indonesian capital yesterday killed seven people, including five attackers.
Islamic State militants have claimed responsibility for the attack.
Ms Bishop said that attacks of this type had been expected by authorities, prompting an agreement to coordinate counter-terrorism efforts last month.
She told the ABC that warnings had “been coming for some time”.
“There has been an expectation that an attack would take place in our part of the world at some time,” she said.
“Experts have been expecting some type of attack at some point.”
Ms Bishop said authorities understood there was a terror cell within Indonesia, and Australians on the ground have been warned to exercise a high degree of caution.
“The Australian government absolutely condemns these horrific attacks in Jakarta, and I spoke with my Indonesian counterpart yesterday to convey that Australia stands with Indonesia at this shocking time and offering whatever support Indonesia may need in the investigation of these attacks.”
Attorney-General George Brandis said Australia has offered police and intelligence assistance to Indonesia following the attacks in Jakarta.
In a statement, Senator Brandis said he contacted his counterpart in Indonesia yesterday to make the offer as an example of closer co-operation on counter-terrorism between Australia and Indonesia.
“The offer follows our recent meeting at the Inaugural Indonesia-Australia Ministerial Council on Law and Security in which we agreed to closer operational and technical counter terrorism cooperation,” he said.
Prime Minister Malcolm Turnbull has also expressed his sympathy over the Jakarta attacks overnight.
In a tweet, Mr Turnbull says Australians’ thoughts, prayers and resolute solidarity are with the people of Indonesia as they respond to the terrorist attacks.
Justice Minister Michael Keenan could not disclose details on what form any assistance from the government might take, but said that Australia would “provide them with whatever they need”.
He told the ABC that there would also be a review of security at the Australian Embassy in the wake of the attack, though noted that it has always been tight.