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Nearly 2,800 people from at least 28 villages were evacuated from the slopes of Mount Ili Lewotolok, which is located on Lembata island of East Nusa Tenggara province, as the volcano began erupting, said Disaster Mitigation Agency spokesman Raditya Jati.
There were no reports of deaths or injuries from the eruption.
The Transportation Ministry said a flight warning had been issued after the eruption and a local airport had been closed as ash rained down on many areas of the island.
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The 5,423-meter (17,790-foot) mountain is one of three currently erupting in Indonesia along with Merapi on Java island and Sinabung on Sumatra island.
They are among more than 120 active volcanoes in Indonesia, which is prone to seismic upheaval due to its location on the Pacific “Ring of Fire,” an arc of volcanoes and fault lines around the Pacific Ocean.
After the eruption, the Disaster Mitigation Agency advised villagers and climbers to stay 4 kilometers (2.4 miles) from the crater and be aware of the peril of lava.