ICG, 24 Jul 09: Indonesia: The Hotel Bombings
On 17 July 2009, suicide bombers attacked two hotels in the heart of a Jakarta business district, killing nine and injuring more than 50, the first successful terrorist attack in Indonesia in almost four years. While no one has claimed responsibility, police are virtually certain it was the work of Noordin Mohammed Top, who leads a breakaway group from Jemaah Islamiyah (JI), the regional jihadi organisation responsible for the first Bali bombing in 2002. One of the hotels, the Marriott, was bombed by Noordin’s group in 2003; this time, a meeting of mostly foreign businessmen appears to have been the target. The restaurant of the nearby Ritz-Carlton was also bombed.

The attack sets back Indonesia’s counter-terrorism efforts, but its political and economic impact has been minor. On 23 July President Yudhoyono was declared the winner of the 8 July elections with more than 60 per cent of the vote; nothing about the bombing is likely to weaken his government or prompt a crisis. The impact on the business community, which lost four prominent members, has been devastating, but economic indicators are stable.....