SECURITY has been ramped up in Bali after a local government office received a terror threat on Wednesday.
The letter said IS, the terror organisation that claimed responsibility for the deadly blasts in Jakarta last week, would "blow up" the Balinese cities of Denpasar and Singaraja.
It also threatened attacks on shopping centres, offices and tourism destinations
A Balinese police spokesman said the letter could be a hoax but police had to be "vigilant".
Australia's travel advice for people travelling to Indonesia did not change.
"We advise you to exercise a high degree of caution in Indonesia, including Bali, at this time due to the high threat of terrorist attack," the Department of Foreign Affairs and Trade's advice said.
The death toll from last Thursday's attacks rose to eight on Saturday when an man who was shot in the head by one of the attackers died in hospital.