Prime Minister Tony Abbott has laid a wreath at the site of the 2002 Bali bombing that killed 202 people, including 88 Australians.
Three days short of the terror attack's 11th anniversary, Mr Abbott used the event to confirm his Government would backdate a victims of terrorism compensation scheme.
Mr Abbott said he was humbled at being able to lay a wreath in honour of the "brother and sister human beings" killed by the suicide bombers.
"So I think it's appropriate that the Prime Minister should take some time out to attend this spot, sacred to the memory of so many people - to honour the dead, to commiserate with those who were injured on that night," he said.
The ceremony was attended by Bali Governor Made Pastika, Australian Ambassador to Indonesia Greg Moriarty and Australian consul general in Bali, Brett Farmer.A special attendee was bombing survivor Peter Hughes whose advocacy helped secure the compensation scheme.
When Mr Abbott was Health Minister in the Howard Government, he was holidaying in Bali in 2005 when the second bombing happened.
He volunteered in the local hospital and the experience made him determined to see Australian victims of terrorism compensated.Labor's scheme, introduced last year, was not made retrospective, despite coalition agitation of the Gillard Government.
Under the terrorism compensation scheme, victims or their families will receive up to $75,000 for attacks dating back to September 10 2001.
This includes the Australian victims of the September 11, 2001, attacks in the United States; Bali 2002; Bali 2005; London 2005; Egypt 2005; Mumbai 2008; Jakarta 2009 and Nairobi 2013.
The scheme will cost approximately $30 million and benefit around 300 individuals and families.
The PM said it was appropriate that terrorism victims be given compensation because they were targeted simply because they were Australia.
"Now when someone has suffered simply because they are Australian I think our nation has a special level of duty towards them," Mr Abbott said.
Mr Abbott said it was still the Government's intention to ensure a Peace Park was built on the vacant lot where the Sari Club once stood.
An ownership dispute has prevented the site, which is directly opposite the permanent memorial, from being developed.
Governor Pastika said the Balinese Government was intent on seeing the Peace Park concept delivered.
The PM said the Commonwealth would help fund the proposal.Mr Abbott and the PM's entourage head to the oil-rich sultanate of Brunei later today for the two-day East Asia Summit.