A Lake Macquarie woman who survived a deadly attack in Bali's major tourism district two decades ago says she is shocked the bombmaker behind the act of terrorism has been let out of jail early.
Indonesian authorities released Umar Patek on parole on Wednesday morning, having served little more than half his 20-year sentence.
Patek will remain on parole until 2030.
Two hundred and two people, including 88 Australians, were killed by bombs that were set off at Paddy's Bar and the Sari Club - two busy night-time venues on Kuta's main strip - about 11pm on October 12, 2002.
Another bomb was detonated about the same time outside the US consulate office in Denpasar, a few kilometres away.
Hundreds of people were injured in the attack, which remains the deadliest act of terror against Australian citizens.
The now 55-year-old Patek, a former member of Islamic militant group Jemaah Islamiyah, was convicted of helping build the car bomb that was detonated outside the Sari Club.
Eleebana woman Leah Lee was on the top floor of Paddy's Bar when a bomb exploded on the ground level.
Ms Lee told the Newcastle Herald on Thursday it was "shocking" to hear that Patek had been released after less than 12 years.
"It's hard to get my head around, actually. I think he has played the same part as everybody else who was involved. He knew [what the bomb] was going to be used for," she said.
"It's really hard to comprehend how they can let this person out.
"Do any of the lives that were taken in Bali matter?"
Deputy Prime Minister Richard Marles said the news would bring a "difficult day" for Australians and families who lost loved ones in the Bali bombings.
He told ABC radio the government had advocated against Patek's early release and would urge the Indonesian government to ensure he had "constant surveillance" while on parole.
Energy Minister Chris Bowen said the development was concerning but the government respected Indonesia's legal system.
He said it was important to keep dialogue open between the two nations.
"Indonesians and Australians were killed by these terrible murders, Indonesians and Australians went through this terrible ordeal together," he told ABC News on Thursday.
"Now we are dealing with the ramifications together, understanding and respecting that Indonesia has their own legal system ... [which] does tend to lead to long sentences with early release."