"It is seen that there are countries from where terrorists are free to launch their operations against other countries. This cannot be tolerated as the world is paying a heavy price for such mindless policies," Antony said in Jakarta.
The Defence Minister is in Indonesia on a three-day visit.
"No country should allow its territory to be used for any form of terrorism, directed against any other country or its people," the Defence Minister added.
India has been asking Pakistan to stop providing support to terror groups operating from there and launching attacks on Indian security forces and people in Jammu and Kashmir and other parts of the country.
New Delhi has also provided evidence to Islamabad about the involvement of Pakistani authorities in terror attacks such as the 26/11 Mumbai attacks.
Giving an overview of India's perspective on global and regional security, Antony, "Terrorism perpetuated by both state and non-state actors affects all of us equally."
"Sometimes acts of individual terrorists and terrorist bodies are also actively or otherwise encouraged by allowing such organisations safe refuge and other forms of support," the Defence Minister said.