Mount Lokon on Sulawesi island spewed grey ash up to 800 metres (2,600 feet) high early today as it continued to rumble.
"The evacuees are placed in eight shelter points. No one has died because of the direct impact of the eruption," disaster management agency spokesman Sutopo Purwo Nugroho said.
"The disaster management agency has assisted them by disbursing 300 million rupiah (35,000 dollars) of emergency funds, logistics, equipment and personnel," he said.
The 1,580-metre Mount Lokon is one of the most active volcanoes in Indonesia. It erupted in 1991, killing a Swiss tourist.
The Indonesian archipelago has dozens of active volcanoes and straddles major tectonic fault lines known as the "Ring of Fire" between the Pacific and Indian oceans.
The country's most active volcano, Mount Merapi in central Java, killed more than 350 people in a series of violent eruptions last year.