(Adds Indonesian police comment)

SYDNEY, July 8 (Reuters) - Australia warned on Sunday of possible imminent terrorist attacks in Indonesia, including on the resort island of Bali, and told its citizens to think twice before traveling there.

In an upgraded travel advisory, the Australian Department of Foreign Affairs and Trade said terrorists were actively planning attacks that could take place at any time.

The advisory says Australians should reconsider their need to travel to Indonesia.

"There have been recent arrests of high-level terrorist operatives in Indonesia, but we assess terrorists are continuing active planning of attacks," it said.

In 2002, bombs ripped through two nightclubs on Bali, a predominately Hindu island.

Members of the Southeast Asia militant group Jemaah Islamiah were convicted of the blasts, which killed 202 people, including 88 Australian holidaymakers.

Two years later the Australian embassy in Jakarta was bombed and in October 2005, 23 people, including four Australians, died in suicide attacks on Bali restaurants.

More attacks "could take place at any time and could be imminent," DFAT said. "Particular care should be taken at this time to avoid known terrorist targets."

These included Bali and the capital Jakarta, DFAT said.

"Ask yourself whether, given your own personal circumstances, you're comfortable traveling to Indonesia including Bali, knowing that there is a very high threat from terrorism and you may be caught up in a terrorist attack," the advisory said.

Asked about the Australian warning, an Indonesian police spokesman, Bambang Kuncoko, said the security situation was "favourable".

"So far there's nothing to worry about," he said.

"It is the right of every country to issue a travel advisory. With or without travel advisories, we continue to be pro-active to maintain security," he said.

Last month Indonesian police arrested two alleged top Jemaah Islamiyah leaders, including Abu Dujana, who admitted to heading its military wing.

Australia is probing whether attempted bombings in London and Glasgow last week could be linked to home after questioning at least six Indian doctors, one of whom remains in police custody.

Australian Prime Minister John Howard on Sunday fast-tracked changes to immigration screening which match intelligence data with a person's travel and financial history to determine if they might be a security threat to Australia.

(Additional reporting by Ade Mardiyati in JAKARTA)

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