The last suicide bombing was more than 2 1/2 years ago on Bali island.
"The government ... has disrupted, arrested and prosecuted numerous terrorist elements," U.S. Ambassador Cameron Hume said Sunday in announcing the decision to lift the warning, which was put in place after several bombs went off in the capital, Jakarta, in 2000.
It was the twin Bali nightclubs attacks in 2002, however, that really thrust Indonesia onto the front lines in the war on terrorism. The country has suffered three smaller bombings since then, all blamed on the regional terror network Jemaah Islamiyah.
Altogether more than 240 people died, many of them foreign tourists.
Indonesia has convicted and arrested hundreds of Islamic militants since then, leaving the group severely weakened and winning praise from the international community. Several foreign governments, however, continue to warn citizens against travel to Indonesia.
"The U.S. has lifted the warning due to objective improvements made by Indonesia in its current security situation," Hume said in a statement e-mailed to media organizations, calling the move "significant."
He said the embassy would not modify security precautions in light of this development and urged public facilities in Indonesia to maintain their current high level of security, since threats continue to exist.
He said he expected more American business people, tourists and scholars to visit Indonesia to help expand trade, tourism and educational exchange between the two countries.
Indonesia's top anti-terror official, Maj. Gen. Ansyaad Mbai, said that while he welcomed the U.S. decision it would in no way slow down efforts to battle terrorism. If anything, he said, "it will push us to be more effective in handling security matters."
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