The attack, blamed on the militant Jemaah Islamiyah network linked to Al-Qaeda, claimed the lives of 202 people from 22 countries.
Australian ambassador Bill Farmer read a statement from Prime Minister Kevin Rudd during a ceremony attended by some 100 people at the Australian consulate on the resort island.
"The 12 October 2002 tragedy shocked
"We think of the families and friends of the victims. Our thoughts and sympathies will always be with them," he added.
Tearful mourners took turns placing bouquets of flowers at a wooden cross memorial built by victims families at the Australian consulate in the Balinese capital Denpasar.
"We can be proud that the partnership between
Farmer added that it was hoped terrorists would continue to be brought to justice.
The anniversary was held amid a promise from the Indonesian government that the three key bombers -- Amrozi, Imam Samudra and Ali Ghufron -- would be executed by the end of the year.
Indonesian prosecutors had earlier put plans on hold to execute the bombers before the Muslim holy month of Ramadan on September, citing bureaucratic delays.
Lars Bergander, a Swedish man whose teenager daughter was killed said he eagerly awaited the execution.
"I’m glad that your government managed to arrest the terrorists. But I don’t understand why they postponed the execution from time to time," he told AFP.
Balinese Ray Yulia said her father, working as a driver, was killed when he was waiting for a passenger outside the Sari Club devastated by the blasts.
"I always feel the pain, especially when I’m invited in this kind of ceremony," a high school student said.
"I really hate the terrorists," she added.
The bombers, who have shown no regret for the attacks, promised last week "retribution" if they were executed.
"The people who will execute us, if they do this execution they will be cursed by God," Mukhlas told reporters at the island prison off southern Java where they are being held.