The Indonesian military has been blamed for systematic violence, including rape, arson and torture, in the province of West Papua, according to a new report by Australian researchers.

The Australian Democrats have criticised the federal government for ignoring the human rights abuses to avoid upsetting Indonesia.

The Genocide in West Papua report, released by Sydney University's Centre for Peace and Conflict Studies, sets out detailed accounts of Indonesian military involvement in violent acts. The report took up to four years to compile.

Democrats Senator Natasha Stott Despoja, who launched the report along with the Australian Greens party in Canberra, said Australia needs to do more to tackle the issue.

"You have constant stories of torture, of death, of attacks on the citizens and yet, in terms of Australia, very little action or response," Senator Stott Despoja told ABC radio before the launch. "In fact, we're so timid in our response to West Papua. We're terrified of upsetting our relationship with the Indonesian government," she said.

Centre director Stuart Rees echoed her comments, saying the Australian government needs to take the issue seriously. "We're saying that Australia is a signatory to the convention on genocide and that makes us have a legal obligation, as well as a moral obligation, to tell a wide public what is going on," Professor Rees said.

The report warns that the survival of Papua's indigenous people will be under threat if the concerns raised are not addressed.

West Papua, also known as Irian Jaya, is a former Dutch colony 250 kilometres north of Australia. Indonesia took control of the jungle-clad, resource-rich region in 1962, and a referendum found most West Papuans opted to stay with Indonesia after a territorial tussle with the Netherlands.

Earlier this week, Indonesian President Susilo Bambang Yudhoyono highlighted the Papuan insurgency, foreshadowing a limited self-rule method similar to the Aceh deal.

His comments come after the US Congress last month passed a bill calling for access to investigate how Indonesia gained control of Papua 40 years ago and also pointed at human rights abuses in the province.

Guerrillas in Papua have waged a separatist war since 1963 over complaints they do not get a fair slice of revenues gained through the province's rich natural resources.