An unidentified Indonesian police official displays the mug shot of the face of wanted Al Qaeda-trained bomb specialist Dulmatin during a press conference in Jakarta in Jakarta on March 10, 2010 following official confirmation of his identiy. Dulmatin, suspected Bali bombing mastermind was killed by Indonesian anti-terrorist forces during March 9 raid in the outskirts of a Jakarta in a major blow to Indonesia's Islamic militants. AFP PHOTO / ROMEO GACAD

MANILA, Philippines - The death of suspected Bali bomber mastermind Dulmatin could deal a severe blow to militants in Indonesia and the Philippines.

Dulmatin, who once trained with al Qaeda in Afghanistan, was one of three militants killed in a shootout with police in Jakarta Tuesday, Indonesia's President Susilo Bambang Yudhoyono said on Wednesday.

"Today I can announce to you that after a successful police raid against the terrorists hiding out in Jakarta yesterday, we can confirm that one of those that was killed was Dulmatin, one of the top Southeast Asian terrorists," Yudhoyono said in a speech in Australia's parliament house in Canberra.

Dulmatin's body was identified after DNA tests and also by his chin shape, eyebrows and freckles, police said on Wednesday. The other two men killed were said to be his body guards.

Dulmatin, an electronics specialist, was a top bomb technician for the Southeast Asian Islamist militant group, Jemaah Islamiyah. Authorities say he helped plan the suicide bombings that ripped apart two night clubs in Bali and killed 202 people in 2002.

He fled to Mindanao in 2003 and the US government had a $10 million reward for his capture. About a year and a half ago, he "disappeared" from the radar screen of Filipino and US intelligence despite reports that he had been wounded after escaping a raid by Philippine security forces.

Analysts said Dulmatin's emergence in Indonesia with a new group showed a worrisome ability of local militants to forge international links, including with al Qaeda-affiliated outfits.

His death came after the Indonesia's counter-terrorism unit, Detachment 88, discovered a militant Islamist training camp in Aceh last month. Aceh's governor, Irwandi Yusuf, was quoted by the Jakarta Post as saying on Tuesday the group planned to set up a Southeast Asian jihadist network in the Sumatran province.

Sidney Jones, an expert at the International Crisis Group, said the new group was a splinter of Jemaah Islamiyah, likely calling itself the Aceh branch of al Qaeda for Southeast Asia (Tandzim Al Qoidah Indonesia Wilayah Serambi Makkah).

Jones said that the militants were probably planning attacks but the recent arrests and deaths should have damaged their capacity to carry them out for now.

But the analyst said it was unclear if there were other Aceh-like cells and the re-emergence of Dulmatin in Indonesia showed the worrying extent of the international links Indonesia militants have forged.

"This means that there probably was far more coordination with the Philippines over the last five years than we had any appreciation of," she said.

Another security analyst, Dynno Chressbon, said Dulmatin's group was believed to have supplied about 27 weapons including M-16s and AK-47s to the group in Aceh. National Police chief Bambang Hendarso Danuri said Dulmatin's group had secured 500 million rupiah ($54,500) to buy weapons and for military training, with more money available.

Training of Filipino militants

In the Philippines, Dulmatin was last thought to be operating with the al Qaeda-linked Abu Sayyaf group, along with another Indonesian wanted over the Bali bombings, Umar Patek.

Maria Ressa, ABS-CBN News and Current Affairs chief and author of the book "Seeds of Terror", said Dulmatin taught bomb-making technology to local militants as early as 2003. She said intelligence reports and interviews with Dulmatin's wife showed that the two previously stayed in the main Moro Islamic Liberation Front (MILF) headquarters in Camp Darapanan, Sultan Kudarat province.

Ressa said local security officials believe that there are at least a dozen Indonesian militants still working here in the Philippines who have been integrated into various homegrown groups including the Abu Sayyaf. She added that local Filipino militants who trained under Dulmatin also learned bomb-making capabilities courtesy of the JI terrorist.

"They change affiliations depending on how things work. You have the alKhobar group. They started bombing Transco towers and telecommunication lines. They also bombed bus stations for extortion. Some of those militants trained by JI actually became terrorists-for-hire. That became a trend about a year and a half ago," she said.

Ressa said Dulmatin's death was the result of Indonesian President Yudhoyono's intensified campaign to marginalize extremists and deactivate parts of the splintered JI network. She said Filipino security officials should also take credit for the recent arrests of suspected Abu Sayyaf members in Metro Manila.

Still, she said stalled peace negotiations between the Philippine government and the MILF could be used as a reason to strengthen local extremist groups.

"The fact that there is no peace process that's moving forward, that's worrisome. Because the technology is there and it can be activated. These are terrorists for hire. So the peace process is really important to ensure stability...As long as we have peace and order in Mindanao, the better it is for the entire region," she said.  With a report from Reuters