A Virgin Australia Airlines official said there had not been an attempt to hijack the aircraft but a "flight emergency" after a drunk passenger had tried to enter the cockpit.
An Indonesian air force spokesman said all passengers were unharmed and being taken off the aircraft at Denpasar, in Bali.
Earlier, Indonesia's Metro TV had cited an Indonesian air force spokesman as saying the plane had been hijacked.
Indonesian television cited police as saying the passenger who tried to enter the cockpit had been arrested after the plane landed in Bali.