An expert on Indonesian politics from Curtin University in Western Australia says the latest suicide bombings in Jakarta could permanently damage tourism and trade in the region.
The Foreign Minister Stephen Smith says diplomat Craig Senger and businessman Nathan Verity are now presumed dead.
Grave fears are held for a third Australian Garth McEvoy.
Friday’s bombing were the latest in a series of attacks in Jakarta and Bali since 2002.
Doctor Ian Chalmers says the nation has shown signs of recovery in recent years but the latest bombing could have a lasting effect.
“It took some time to recover after the first Bali bombing and then the second it took some time to recover so once again I think this will be of great more difficulty to Indonesia’s economic outlook,” he said.