The investigation into the Bali terrorist attacks gathered pace today after police said that one of the alleged masterminds narrowly escaped capture in a raid and that they were closer to identifying the suicide bombers.

New terror fears gripped Asia today, sparking security scares at embassies and travel alerts, but Indonesia shrugged off calls to outlaw the elusive militant group suspected in deadly suicide bombings on Bali island.

Two men have been detained for questioning over the suicide bombings at three crowded restaurants on Indonesia’s Bali island, police said today.

The alleged deputy commander of a militant group linked to al-Qaida and blamed for last year’s Bali nightclub bombings has been arrested in Indonesia.

INDONESIAN police yesterday said they expected to capture more accomplices following the arrest of a leading suspect in the Bali bombing the first major breakthrough in the inquiry.