Indonesia has welcomed Kevin Rudd's appointment as Australia's new foreign minister, saying the bilateral relationship will benefit from his knowledge and experience of the Asia-Pacific.

A spokeswoman for Prime Minister Julia Gillard has confirmed Mr Rudd, a Mandarin-speaking former diplomat who was Labor foreign affairs spokesman in opposition, would take over the job from Stephen Smith.

Indonesian Foreign Ministry spokesman Teuku Faizasyah said that while it was somewhat "curious" for Mr Rudd to go from being prime minister to foreign minister, it was a welcome appointment.

"While he was prime minister the bilateral relationship was steady and growing," he told AAP. "We have had close cooperation with him in the past and we can always benefit from his knowledge and experience in the region."

Mr Faizasyah said Indonesia was looking forward to continuing to work with Mr Smith in his new role as defence minister.