There are no immediate reports of casualties or damage.
Scientists believe a portion of the volcano collapsing caused displacement, which led to the killer waves.
Indonesia has suffered its worst annual death toll from disasters in more than a decade.
UPDATED 5PM | The Malaysian Embassy in Jakarta says it is monitoring the situation.
Wan Azizah says that she prays Indonesians remain strong in facing the test.
UPDATED 4.20PM | Anak Krakatau erupts, triggering underwater landslide.
The system will enable the people to be alerted in case of an impending disaster, says Yeo Bee Yin.
Meanwhile, 10 Malaysian trucks arrive in Palu today with essentials for survivors.
US$5 million also set aside for technical assistance to ensure reconstruction is community-led.
Indonesian veep Jusuf Kalla says the rehabilitation and reconstruction will take about two years.
Help of both local and international kinds are being delivered at affected areas.
UPDATED 1.40PM | Death toll may rise to thousands, officials say.
UPDATED 4PM | The toll only accounts for victims in Palu and Donggala.
Indonesia's Vice President Jusuf Kalla says the toll could rise to thousands.
UPDATED 4PM | A tsunami up to six meters high swept through Palu on Friday.
Communications down, airport closed at tourist resort of Palu after tsunami landed.
Authorities instruct people in Central Sulawesi and West Sulawesi provinces to move to higher ground.
GE14 | Large crowds at rallies doesn't necessarily foretell victory, says Unisel’s Mohammad Redzuan Othman.
LETTER | The ground sentiment is no more one of race or religion.
The quake is apparently stronger than a devastating 1985 tremor that flattened swathes of Mexico City.
Commemorative activities organised every year since 2004 are to prepare locals in case another disaster strikes.
An earthquake with a magnitude of 7.4 struck central New Zealand just after midnight local time.