This is one of those things that is really hard to gauge. Central Java is not the safest area currently and is home to Laskar Jihad (Holy Warriors) militia
(Who are Laskar Jihad: http://news.bbc.co.uk/1/hi/world/asi...c/770263.stm.)

Hotels and bars in Solo (the main city say about two hours away from the Resort) were subject to "sweeping" which quote:
". . . concerned the incursion into several hotels by dozens of militants seeking foreign guests to warn them to leave Indonesia due to the group's objection to US policy with Afghanistan."

http://baliwww.com/wtc_info/jateng.htm

Although this happened in September 2001, any action in Iraq could lead to possible further problems with some Indonesians holding a view that a war on Iraq is a war on Muslims. http://abc.net.au/asiapacific/news/G...BNA_775797.htm

I don't think you'd be in any real physical danger, but the possibility of armed militants demanding I leave the country wouldn't make for a great vacation.

Unless you are getting a once in a life time rate I'd postpone any travel. But that's just me and I have often been called a wimp