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JAKARTA, Sunday (AFP)

At least 182 people, including many foreigners, were killed when a car bomb ripped through two packed bars on the resort island of Bali, Indonesian President Megawati Sukarnoputri said Sunday.

"According to the latest reports from the bombing in Kuta, 182 dead victims have been recorded and 132 others injured, while the fate of some others remain unknown," Megawati told a hastily convened press conference at her residence here.

"There are a large number of foreigners who died and were injured." Megawati said her government "strongly condemned the act of bombing".

The blast came just weeks after the United States reopened its diplomatic missions in Indonesia following a shutdown over the September 11 anniversary caused by fears of new attacks by the al-Qaeda network.

The massive explosion was caused by a car bomb, a police spokesman said Sunday.

"Car bomb, once again I repeat, car bomb," Saleh Saaf told a press conference when asked about the cause of the blast in Bali late on Saturday evening.

Indonesian President Megawati Sukarnoputri said Sunday she and her armed forces chief would travel to Bali following the bomb blast.

Megawati told a hastily convened press conference at her residence here she would leave immediately for the resort island, taking with her armed forces chief General Endriartono Sutarto and Foreign Minister Hassan Wirayudha..

Meanwhile the Islamic militant group Jemaah Islamiyah (JI), named by Australia as a suspect in the bombing massacre in Bali, is an al-Qaeda linked group whose alleged leader lives openly in Indonesia despite intense international pressure for his arrest. Warnings that JI was planning major terrorist attacks have come thick and fast recently, from countries including Malaysia, Singapore and Australia.

All three have pointed to Indonesian Islamic cleric Abubakar Ba'asyir as a leader of the organisation, but the Indonesian government has said it had no evidence against him, and he has sued Time magazine for making a similar accusation.

Less than a week ago, Australian Foreign Minister Alexander Downer said during a regional meeting in Malaysia: "The organisation that we are most concerned about is a group called Jemaah Islamiyah. We think Ba'asyir is a significant figure in JI."

Downer said: "Jemaah Islamiyah does have links to al-Qaeda and it's conceivable that an organisation like that could be behind this action."

Australia is one of Washington's staunchest supporters in the war launched against al-Qaeda following the September 11 terrorist attacks on the United States. Ba'asyir, 64, is a self-confessed admirer of al-Qaeda leader Osama bin Laden, but says Jemaah Islamiyah does not exist and he has no links to terrorism.

Malaysia, a neighbouring Muslim state, says differently.

Two weeks ago, police chief Norian Mai, announcing the arrest of what he called a "prime" terror suspect, said he was a member of the Malaysian Militant Group (KMM) which was linked to JI.

"We believe they receive instructions from the same figures as quoted by Singapore, that is Hambali and Abubakar Ba'asyir. These two are the leaders of the movement," Norian said.

Last week, the US ambassador to Indonesia reportedly warned that he could withdraw some embassy staff unless authorities improve security after a September 23 grenade explosion near an embassy residence.

And Australia sent security alerts to all its foreign missions last Friday reminding them to keep high vigilance for possible attacks by al-Qaeda and linked groups.

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