The Antara news agency was reporting comments by the country's foreign minister Retno Marsudi on Thursday.
Ms Marsudi said Indonesia always discussed Palestine's independence in its bilateral talks with Pacific island countries and with those yet to recognise Palestine as a state.
Vanuatu recognised Palestine in 1989 soon after its Declaration of Independence in 1988.
Papua New Guinea followed in 1995.
The two countries are the only Pacific island countries listed among 137 states at the UN which recognise the State of Palestine.
