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.
"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.