By GREG ANSLEY and AGENCIES
The terrorist bombing on the resort island of Bali appears to have strengthened the position of moderate Muslims in Indonesia and may finally tip the balance against fundamentalism.
Under severe domestic and international pressure, the Government of President Megawati Sukarnoputri has introduced harsh new measures against terrorism and ordered the arrest of a leading militant cleric linked to al Qaeda.
Abu Bakar Bashir, chairman of the Indonesian Mujahideen Council and alleged leader of the radical Jamaah Islamiyah group suspected in the Bali bombing, is under arrest in hospital in the city of Solo.
The Government's new measures, written retrospectively to include the Bali bombing, introduce the death penalty for terrorism, allow the use of intelligence data as prima facie evidence, and permit detention of up to six months before charging.
Indonesian commentators have welcomed the move and believe the crackdown will win wide sympathy as the economic impact of the bombing spreads across Indonesia and affects the lives of ordinary Muslims.
The Centre for Strategic and International Studies in Jakarta estimates that the damage to the tourist industry - largely funnelled through Bali and heavily dependent on Australia and Japan - will cut economic growth by about one-third.
Even before the deaths of 187 people in Bali's entertainment centre on October 12, Megawati was being strongly criticised by both secular and Muslim advocates of tougher measures against terrorism.
Accused of vacillating because of the influence of militants in the higher levels of her Administration and the Army - many of whom supported the introduction of strict Muslim law - Megawati was described by the English-language Jakarta Post as weak and ineffective.
"Most Muslims here are peaceful and tolerant and are willing to work with their non-Muslim compatriots," the newspaper said in its editorial.
"However, their reputation can be ruined by very small groups who use Islamic jargon for their narrow-minded goals."
Several days after the Kuta bombs, as fury rose within Indonesia and speculation grew that local extremists were responsible, the radical Laskar Jihad shut its headquarters, closed its website and announced that it was disbanding.
Laskar Jihad volunteers supplied the militias responsible for the carnage in the Maluku capital of Ambon, but last week withdrew its fighters through Tanjung Perak port on the island of Surabaya.
After Laskar Jihad disbanded, leading Muslims said other militant groups should follow suit or be forcibly disbanded by the Government.
Other countries in the region have also moved to thwart terrorism.
* In the Philippines, where a wave of deadly bomb explosions has hit public targets in Manila and in the troubled south, additional police are being deployed for random checks in bus terminals, railway stations, sea and airports, and shopping malls.
* Malaysia has announced that foreigners seeking jobs will need a letter of endorsement from their Governments confirming that they are not members of any terrorist group.
* Thailand plans a telephone hot-line, to ward off potential attacks. National Security Council head General Vinai Pattiyakul said taxi drivers in Bangkok were among the best sources of intelligence that could be gathered through the hotline.
Bali messages and latest information on New Zealanders
New Zealanders who were in Bali, and their families and friends around the world, can exchange news via our Bali Messages page. The page also contains lists of New Zealanders who were in Bali and their condition.
Ministry of Foreign Affairs & Trade
* Latest travel advisory for Indonesia
* Bali Bombing Hotline: 0800 432 111
Full coverage: Bali bomb blast
Related links
Indonesian radicals losing support
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