Indonesia has expressed alarm at the opening of a Papuan People's office in Vanuatu.

The Indonesian embassy in Canberra has issued a statement saying it may review diplomatic ties with Vanuatu.

It says it learned from credible sources the office was set up in the capital Port Vila last week. Indonesia has asked the government of Vanuatu for an explanation.

The Papuan independence movement has close links with groups in Vanuatu.