Al-Qaida link group suspected in bomb blast

AL-QAIDA-linked fanatics were being hunted in Indonesia last night after a car bomb blast outside the Australian embassy in Jakarta killed nine people and wounded 160.

The bombing the first attack linked to regional terror group Jemaah Islamiyah in more than a year could affect the Australian elections, in which Prime Minister John Howard is running on a pro-American, anti-terror platform in a tight race.

The blast, which left body parts and bloody corpses strewn across the busy road, was also a reminder of the continuing threat of terrorism in the world's most populous Muslim nation, despite a slew of arrests and convictions.

No one inside the heavily fortified building was killed, although several Australian, Greek and Chinese citizens were wounded in the attack.

The bomb exploded in front of the embassy's gate, flattening a section of the steel fence and shattering scores of windows in high-rise office buildings up to 500 yards away.

Police were investigating whether a suicide bomber triggered the blast.

Most of the nine dead were Indonesian policemen, embassy security guards and passers-by. The 160 injured were mainly office workers from nearby buildings, cut by flying shards of glass and debris, health officials said.

Police chief General Dai Bachtiar said the bombing was likely the work of Azahari Husin, a Malaysian engineer who has eluded capture for nearly three years.

Husin, one of Asia's most-wanted men and an alleged Jemaah Islamiyah member, has been linked to numerous bombings in Indonesia.

Jemaah Islamiyah has been blamed for the 2002 Bali bombings that killed 202 people and the August 2003 suicide bombing at the JW Marriott hotel, near the site of yesterday's blast.

Australia is a key regional supporter of Washington's war on terrorism and sent 2,000 troops to participate in the Iraq invasion, which remains deeply unpopular in Indonesia. It still has more than 850 military personnel stationed in or around Iraq.

Mr Howard is facing criticism in the campaign over his decision to join Washington in the Iraq war, which his opponents say has made Australia more vulnerable to terror attacks.

"This is not a nation that is going to be intimidated by acts of terrorism," Mr Howard said yesterday.

Analysts were divided on how the blasts would affect Australia's October 9 election.

Mr Howard is considered stronger on national security than his Labour challenger, Mark Latham who has pledged to bring most of the Australian troops in Iraq home before Christmas and may benefit from the perception that Australia is under attack.