A powerful earthquake with a magnitude of 7.9 hit Indonesia Wednesday caused a tsunami that took the lives of at least ten people.

Waves between one and three metres tall crashed into the town of Padang, killing one man and injuring dozens of others. Reports trickling in place the death toll in total at around 10 people.

The Pacific Tsunami Warning Centre said, "Earthquakes of this size have the potential to generate a widespread destructive tsunami that can affect coastlines across the entire Indian Ocean Basin."

Officials said the quake was centered about 15.6 km underground in the southern Sumatra area.

Many houses were destroyed, one person told a news agency, but he had no word on possible casualties. Electricity and phone lines were down.

The tremor could also be felt in the Indonesian capital, Jakarta, 600 kilometres away, where office workers streamed down the stairwells of tall, swaying buildings. Some people in high-rises in neighbouring countries including Malaysia, Singapore and Thailand also felt the quake.

In December 2004, a massive earthquake struck off Sumatra and triggered a tsunami that killed more than 230,000 people in a dozen countries.