The eruption on the eastern tourist island of Flores sent ash drifting in multiple directions over several villages around Lewotobi Laki-Laki, the Centre for Volcanology and Geological Hazard Mitigation (PVMBG) reported.
The ash cloud could be seen from cities located up to 140km from the mountain, the PVMBG said.
Jetstar, Qantas Airways' low-cost airline, cancelled four flights between Australia and Bali on Wednesday morning.
Virgin Australia also cancelled several flights with Air India, Air New Zealand, Singapore's TigerAir and China's Juneyao Airlines scrapping flights "due to the volcano", Bali's international airport website said.
"Ngurah Rai is still operating normally but it depends on the flight schedule, but some of the flights are cancelled due to a volcano. It depends on the route and also the airline," a Bali airport customer service agent said.
Authorities advised residents, visitors and tourists to avoid all activities within a 2km radius of volcano's crater.
Additional exclusion zones included a 3km sector to the north-northeast and a 5km sector to the northeast.
At least 10 people were killed after the volcano erupted in November last year.
Lewotobi Laki-Laki, which rises to 1584m above sea level, is one of two volcanoes in the Lewotobi group, which has a history of intermittent eruptions.
Indonesia sits on the Pacific Ring of Fire and has more than 120 active volcanoes, making it one of the most volcanically active countries in the world.
Agencies
