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BANDA ACEH, Indonesia, Friday (Reuters) Indonesia's military said on Friday it had killed 38 rebels in Aceh province since a fresh offensive began, but added the campaign was tough and separatists were melting into the civilian population.

With questions being raised over the plight of civilians, the BBC on its Web site said a witness alleged troops executed eight villagers.

The military has denied killing non-combatants since the offensive began on Monday to end the Muslim rebels' 27-year campaign for independence for Aceh, an oil and gas-rich province on the northern tip of Sumatra island.

"Our latest number of killed separatists is 38, valid up until last night. Reports are still coming in, most of them from Bireun where fights are intensifying," Aceh military spokesman Firdaus Komarno told Reuters early on Friday, referring Bireun district on the northern coast.

He said another 11 rebels had been captured.

A spokesman for the Free Aceh Movement (GAM) has insisted no separatists have been killed while saying nearly 50 civilians have died in military operations, amid reports troops executed villagers in one location.

The BBC quoted a witness at the village of Mata Mamplam in Bireun district who alleged troops executed eight villagers, all males aged 11 to 20. They has been shot in the head. The cost for Aceh's war-weary people from the offensive has grown, with 15,000 Acehnese forced to flee their homes. One official has predicted the refugee situation would get worse for the province's staunchly Muslim population of four million. Firdaus said clashes had been sporadic on the whole.

"I think they will follow the same pattern (as before). Indeed we will face difficulties because they're blending with people, but we have expected this," he said.

"We won't be emotional and wipe them out in a hurry. We will hold back whenever they use people as human shields."

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