The Federal Opposition is backing away from a Government proposal for Australia to resume military ties with elite Kopassus units from the Indonesian Army.

The move has been proposed by Defence Minister Robert Hill, as part of the response to the Bali bombings.

But in Jakarta the Opposition's Foreign Affairs spokesman, Kevin Rudd, has said there are concerns about the Indonesian Army's alleged involvement in the ambush near the Freeport mine, and the military's connections to the radical Islamic militia, Laskar Jihad.

"We have a big concern about whether Kopassus has been actively engaged operationally with an Islamic terrorist organisation in this country," he said.

"We think that frankly Senator Hill's proposal is way wide of the mark. We don't support it. We think the Prime Minister should now rule it out completely."