Scotch College to become latest school to phase out Indonesian studies: As the federal government pursues closer economic ties with Indonesia, studies of the country's language and culture are on the decline across Australia.

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An elite Melbourne school will stop teaching Bahasa Indonesia, ending one of the country's longest running school Indonesian language programs in a move experts say is representative of a broader decline.

The director of the Monash Herb Feith Indonesian Engagement Centre, Sharyn Davies, last month wrote to Scotch College principal Scott Marsh urging him to reconsider the decision to end a "tradition" that began in the 1960s.

"While numbers for Indonesian language study have been declining across Australia, Scotch College has remained a beacon of leadership in this field," she wrote.

"Removing Indonesian from the curriculum would severely limit opportunities for Scotch alumni as they navigate employment in a fast-moving world increasingly dominated by Asia."

Scotch College did not respond to repeated requests for comment from the ABC.

A spokesperson for Indonesia's embassy in Canberra told the ABC it "deeply regrets" the end of Indonesian studies at Scotch College.

"The reason used was budget limitations & only the Indonesian language program was abolished," the embassy said.

"The Indonesian government is very concerned about the general...