He said Thailand has the right to protect its sovereignty and to retaliate if its rights are violated.
He believed the Indonesian observers would help deter clashes between soldiers of the two countries.
On the coming visit of United Nations Educational, Scientific and Cultural Organisation (Unesco) representatives this Friday, the prime minister said preparations had been made to fully brief them on the real problems between Thailand and Cambodia, so they would understand.
The Unesco representatives would be asked to make suggestions on how to end the problems, he said.
Mr Abhisit said he did not know about reports the villagers of Phum Srol village in Si Sa Ket's Kantharalak district were planning to file a lawsuit with the International Court of Justice to demand compensation from Cambodia for property damage and loss of life during the fighting earlier this month.
The government's immediate responsibility was to help repair their houses, which were damaged by the cross-border fire, he said.
Phum Srol village chief Virayut Duangkaew said the lawsuit will demand three billion baht in damages from Prime Minister Hun Sen, who was in charge of the Cambodian army during the border clashes earlier this month.
He said a 59-year-old villager was killed, six other villagers were injured, and 177 houses and 664 rai of plantations in Phum Srol destroyed by Cambodian fire during the fighting.
"We Thais have always helped the Cambodians, but Hun Sen in response decided to hurt us.
"Now we cannot make a living because we are afraid to go out to work on our farms," the village chief said.
Mr Virayut said he will submit the lawsuit to the government through the provincial governor.
He said the government has the responsibility to take care of its people.
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