Southeast Asia Beats Back al-Qaida

Indonesian boy holds a rose to commemorate the 5th anniversary of Bali bombing in Denpasar, Bali, Indonesia, Thrusday, Oct, 11, 2007. On Oct. 12, 2002, two bombs ripped through Bali nightclubs, killing 202 people. Most of the victims were foreign tourists. This first major strike by Islamic extremists on Westerners in Asia thrust Southeast Asia onto the front lines of the war on terror. (AP Photo/Firdia Lisnawati) (Firdia Lisnawati - AP)

"Even with their last ounce of energy and last dollar of funds, they will do something to prove they're not completely gone," said Philippine anti-terror official Ric Blancaflor.

The Philippines is battling the Abu Sayyaf militant group, which has been blamed for deadly bombings, high-profile ransom kidnappings and beheadings. At least two top Indonesian terrorists are also believed to be on the run in the country.

In Indonesia, the turnaround followed intense pressure from Western governments, which repeatedly warned that al-Qaida militants fleeing Afghanistan could find safe haven here.

The U.S. and Australia poured millions of dollars into training, high-tech surveillance and forensic equipment for Indonesia's security forces.

Regional authorities boosted cooperation. Thai police arrested Hambali, an Indonesian terror leader with strong links to al-Qaida, in 2003. Philippine police picked up another Indonesian militant, Fathur Rohman Al-Ghozi, in 2002, along with dozens of other suspects.

The Indonesian government also ended three years of fighting between Muslim and Christians in eastern Indonesia that had killed thousands and served as a training ground and recruitment tool for militants.

Also playing a role is what the Indonesian government calls a "soft approach" used in Saudi Arabia and other Arab countries, building up an extensive web of paid informants and former militants working to persuade hard-liners to change sides.

The party at Brig. Gen. Dharma's house brought together more than 20 hard-liners and former terrorists who had shown a commitment to helping authorities and expressed regret for their actions.

As ceremonies were held Friday to mark the fifth anniversary of the Bali bombings, which killed 88 Australians, Australian Prime Minister John Howard said he was "absolutely disgusted" about the party, adding that his government would lodge a protest with the Indonesian government.

"I will certainly see that there is an objection communicated," Howard told Southern Cross Broadcasting.

Howard said he believed the party did not reflect Indonesia's broader approach to fighting militants.

"That doesn't mean I'm not entitled to express outrage at this kind of thing, because I know how the families of these people will be feeling," Howard said of the victims.