The Wellington-based diplomat said his new role was aimed at increasing Indonesia's presence in the Pacific.
This is to be done through strengthening of economic, political, and people-to-people links with countries and territories in the region.
Tantowi Yahya was a driving force behind the launch last year of Jakarta's 'Pacific Elevation' strategy for greater connectivity with Pacific Islands countries.
According to Kumpuran News, the ambassadorial appointment by Indonesia's foreign ministry comes as it develops its Indo-Pacific Outlook.
The outlook is a framework for diplomacy focusing on several areas of co-operation relevant to the development of regional dynamics.
These include maritime, connectivity, and the sustainable development agenda.