Dozens of flights to and from Indonesia's resort island of Bali were cancelled on Wednesday, authorities said, after a volcano in the archipelago's east erupted, shooting an ash tower 10 kilometres into the sky.

Mount Lewotobi Laki-Laki, a 1,584-metre volcano on the tourist island of Flores, erupted on Tuesday, with authorities raising its alert status to the highest level of a four-tiered system.

"Due to the volcano activity of Lewatobi Laki-Laki in East Nusa Tenggara, several flights at I Gusti Ngurah Rai Airport are cancelled," airport operator Angkasa Pura Indonesia said.

The flights cancelled included Jetstar and Virgin Australia services to cities across Australia, with Air India, Air New Zealand, Singapore's Tigerair and China's Juneyao Airlines also cancelling flights, Bali's international airport said on its website.

Jetstar confirmed cancellations to and from Bali in a statement on its website Wednesday.

"Forecasts show the ash cloud is expected to clear by later tonight. As a result, this afternoon's flights will be delayed to operate later this evening," it said.

Several domestic AirAsia flights leaving for popular tourist hotspot Labuan Bajo on Flores were also cancelled.

Bali's Ngurah Rai airport said 32 flights in and out of the island had been cancelled on domestic and international routes.

The Fransiskus Xaverius Seda Airport, a relatively smaller airport in nearby Maumere on Flores island was closed until Thursday morning, its authorities said on social media.

Volcanic ash rained down on several villages around Lewotobi Laki-Laki and forced the evacuation of at least one village late on Tuesday, the country's disaster mitigation agency said.

Agency spokesman Abdul Muhari said tremors and eruptions were still being detected on Wednesday morning.

"No less than 450 families from affected villages... have settled in temporary housing equipped with electricity and clean water facilities," he said. (AFP)