By BERNARD ORSMAN and AGENCIES
American diplomats are concerned that the Bali bombings represent a shift to softer targets.
America's ambassador to Indonesia, Ralph Boyce, said terrorist groups were targeting Westerners and using the most outrageous means to harm foreigners.
United States President George W. Bush condemned the bomb attacks on Bali as a "heinous" act of terrorism and urged the world to confront the global menace of terrorism.
Mr Bush offered American help to "bring these murderers to justice" as pressure mounts on Indonesia to crack down on Islamic groups with alleged links to al Qaeda, particularly Jemaah Islamiyah, which wants to set up a fundamentalist Islamic state across Indonesia, Malaysia and the southern Philippines.
Mr Bush was joined by world leaders condemning the terrorist act and sending sympathies to the families of the dead and injured.
British Foreign Secretary Jack Straw said the attack had been "committed by the most evil and perverted people", while Indian Prime Minister Atal Behari Vajpayee called on the world to eliminate the "cancer" of religious extremism.
Pakistan, scene of attacks since President Pervez Musharraf abandoned the country's pro-Taleban policy last year, sent "deep condolences" to the bereaved families.
Mr Boyce told the Associated Press that while it was not possible to pin the attack on al Qaeda, there had been growing evidence that the network of Osama bin Laden was reaching out to local militants.
"In recent weeks, we have been able to put to an end a year of speculation as to whether al Qaeda might be in Indonesia, or relocating to Indonesia, or using Indonesia as a base of operations," Mr Boyce said.
CNN terrorism analyst Peter Bergen said on the television news network that the sprawling Indonesian archipelago, the most populous Muslim country in the world, would be a good place for al Qaeda to relocate to.
"It's quite possible that a number of al Qaeda have gone to Indonesia or Southeast Asia in general," he said.
"I think that what we're seeing this week - this is the first time, if indeed this is linked to al Qaeda, that they've attacked tourists. And if you take this together with the attack on the Yemen tanker ... it represents, I think, a shift in al Qaeda's tactics to really attack economic targets."
The US and Indonesia's neighbours have urged Jakarta for months to pass an anti-terrorism law that has been languishing in Parliament. Without the law, Indonesia security forces cannot arrest suspects without clear evidence they have committed a crime.
While its neighbours have arrested scores of militants from Jemaah Islamiyah, Jakarta has done little and denied that it is a haven for terrorists.
Adding to pressure on Jakarta, the American Embassy said it was considering plans to start scaling back the American diplomatic presence in the country.
Malaysian Deputy Prime Minister Abdullah Ahmad Badawi condemned the bombing as despicable and said "we do not want to see incidents of terror in the region".
Such acts would reflect badly on other Southeast Asian countries, Badawi said.
East Timor Foreign Minister Jose Ramos-Horta said the bomb blast underscored the "determination" of extremists linked to al Qaeda.
"They aim to destabilise Indonesia by targeting the most peaceful and prosperous part of the entire country," he said. The attack "will finally sound the alarm in Indonesia so that [this country] will take the terrorist threat more seriously."
In Indonesia, President Megawati Sukarnoputri said the bombing was a "warning to all of us that terrorism is a real danger and potential threat to national security ... the Indonesian Government will continue co-operation with the international community to overcome terrorism".
Bali messages
New Zealand travellers in Bali, and their families in New Zealand, can post messages on our Bali Messages page.
Foreign Affairs advice to New Zealanders
* Travellers should defer travel to Bali
* NZers in Bali should keep a low profile and remain calm
* Foreign Affairs Hotline: 0800 432 111
Feature: Bali bomb blast
Pictures from the scene of the blast
Related links
Blast feared to signal shift to softer targets
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