The RX-420 rocket took off from a launch pad in Garut regency, West Java province, around 8:00am (0100 GMT).
"The RX-420 rocket was successfully launched this morning. We're very happy," Aeronautics and Space Agency spokeswoman Elly Kuntjahyowati said.
Another type of rocket the RX-320 which was successfully tested last year will be combined with the RX-420 to carry a satellite into orbit in 2014, she said.
"We test the rockets one by one," Kuntjahyowati said.
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