AUSTRALIAN travellers are being warned to avoid bird markets as fears of a bird flu pandemic in the Asian region grow.

The Department of Foreign Affairs and Trade (DFAT) has stopped short of advising people to stay away from the affected countries, but has told long-term residents to ensure they have access to the anti-viral drug in the event of a large-scale outbreak.

The Indonesian government yesterday warned of a possible bird flu epidemic after two girls aged two and five died, and 10 patients with bird flu-like symptoms were treated in hospitals.

Four Indonesians have died since July from the H5N1 strain of bird flu, which has killed 64 people in four Asian countries since late 2003.

But while the Australian government was stockpiling the anti-viral medicine known as Tamiflu, and issuing protective face masks to Australian officials and their families in 16 eastern and south-east Asian nations, others were playing down the threat.

Australia's chief medical officer Professor John Horvath, who chairs the national pandemic council on avian influenza, said an outbreak in Indonesia would not signal the start of an influenza pandemic.

"Of greatest importance is the question of whether these recent events in Indonesia signal the start of an influenza pandemic," Prof Horvath said.

"I am advised that currently there is no evidence that this has happened."

But DFAT has warned travellers to stay vigilant to avoid infection.

Long-term residents of the affected areas are being told to make sure they have access to the anti-viral drug and many are rushing to clinics already out of stock to place orders.

"People are at risk of contracting avian influenza if they have close contact with infected birds," DFAT said in a statement today.

"The virus does not spread easily from birds to people," it said.

But it also said Australian travellers could reduce the risk of infection by avoiding farms and bird markets, washing hands thoroughly after handling uncooked poultry and eggs, and cooking both of these well before eating.

But Labor said the government should do more to protect Australians in the event of a pandemic.

Opposition foreign affairs spokesman Kevin Rudd said the government should use its foreign aid budget to develop a regional action plan in south-east Asia.

"South-east Asia is Australia's frontline in the war against avian influenza," he told reporters today.

"Early confirmation of an outbreak is very important in terms of early containment."

Mr Rudd also called for a regional summit of foreign ministers to establish networks and coordinate a response to the threat of a killer flu pandemic.peThe affected countries are: Vietnam, Cambodia, Indonesia, Thailand, Brunei, China, East Timor, Hong Kong, Malaysia, Philippines, Burma, South Korea, Singapore, Taiwan, Japan and Laos.