"We do have some information about possible specific terrorist attacks," Alexander Downer told reporters.
He did not give any details of potential specific attacks, but said churches and other places had been targeted in the past during Christmas time in Indonesia, the world's most populous Muslim nation.
"There have in the past been terrorist attacks, particularly on churches and on other religious institutions, during Christmas," Downer said.
The Australian government has recently upgraded its warnings to Australians in Indonesia warning "of the possibility of terrorist attacks over the holiday period."
Indonesian authorities said Friday they had no reason to believe terrorists are plotting attacks over the Christmas holidays, but thousands of troops will be deployed to guard churches in the world's most populous Muslim nation.
"The security situation is good, but we remain on alert," intelligence chief Syamsir Siregar said Friday.
Indonesia has been hit by annual terror attacks in recent years blamed on the al-Qaida-linked militant group Jemaah Islamiyah, and with 2006 so far bomb-free many people worry another attack is imminent.
Jemaah Islamiyah has been blamed for the 2002 twin nightclub bombings on Bali island, 2003 blasts at the J.W. Marriott Hotel, 2004 bombings at the Australian Embassy and last year's restaurant bombings on Bali.
The attacks together killed more than 240 people, many of them foreign tourists.