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The U.S. Geological Survey measured the quake at 7.5 magnitude and said it was centered 135 kilometers northwest of Gorontalo, on Sulawesi.
There have been no reports of any casualties or damage.
Officials say the quake was followed by two aftershocks measuring around 5.5.
In 2004, a tsunami triggered by a massive earthquake in the Indian Ocean killed more than 200,000 people, most of them in Indonesia.
Indonesia is located on a geological fault line circling the Pacific Basin, known as the Ring of Fire. Earthquakes and volcanic eruptions are common in the region.
Last week, Indonesia launched a high-tech tsunami warning system which detects undersea earthquakes and predicts the size and severity of potential waves.
Some information for this report was provided by AFP, AP and Reuters. Reported by VOA News.