Indonesia blames al-Qaida for bombs

INDONESIA yesterday blamed the al-Qaida network for the Bali bomb explosions that killed 181 people conceding for the first time that the group was operating in the Muslim country.

Police said they had names of individuals connected to the attacks and Defence Minister Matori Abdul Djalil told reporters the blasts were the work of professionals.

"I am convinced that there is a domestic link with al-Qaida," he said. Djalil's comments appear designed to head off criticism from Indonesia's neighbours that it is not doing enough to combat terrorism.

Frustrated that months of warnings fell on deaf ears, those neighbours have piled pressure on Jakarta finally to clamp down on Islamic militants suspected of being behind the attacks on nightclubs along Bali's Kuta Beach packed with foreign tourists.

Throughout Monday, distraught relatives leafed through photographs in a Bali morgue to identify loved ones.

Australian survivors of Saturday's explosions began streaming home through Sydney airport, some clutching surfboards and souvenirs as they fell sobbing into the arms of family and friends.

Hundreds more frightened and injured tourists headed for Bali's airport to catch flights home. A few were in wheelchairs, others on crutches and swathed in bandages.

The Jakarta stock market dived more than 10% and the rupiah currency slumped, partly on fears that foreign investors will flee the world's fourth most populous nation.

"We're finished," said Aburizal Bakrie, chairman of the Indonesian Chamber of Commerce and Industry. "Our defence to convince people that doing business in Indonesia is safe is finished."

Meanwhile, a young Irishwoman injured by the explosion in Bali was still in a serious condition last night.

Niamh Holohan, from Loughrea, Co Galway, was relaxing on a two-week holiday with friends.

Ms Holohan, an accountant in her mid-twenties, was due to return back to Galway tomorrow. Her brother flew to Singapore yesterday to be at her bedside.

Her mother, Frances, and her twin brother, Brian, are due to fly out today.

Her father John said that it was a terrible time for the family but they are hopeful she will make a good recovery.

Travel agents are currently re-routing clients to Thailand. The managing director of Destinations Ireland is confident of providing alternatives for people who have booked Bali packages.

"Our programme is extensive and covers Thailand, Malaysia, Vietnam, Dubai, South Africa and Mauritius," said John Quinn.