Anti-terrorism squad kills six terrorist suspects

Indonesia police anti-terrorism squad has shot dead six terrorism fighters and arrested another man during an all-night standoff in Jakarta, officials said.

"The shootout started late on Tuesday when most Indonesians were preparing for New Year's Eve celebrations and ended Wednesday," Brigadier-General Boy Rafli Amar, a National Police spokesman, said.

He said those who were killed had refused to surrender and instead fired guns and lobbed homemade bombs at security forces, injuring one police officer.

Explosive materials and firearms were also seized from the house.

Police believe the men are part of a larger group involved in robberies carried out to fund "terrorist activities", mainly aimed at police, and also plan to investigate any links to a plot to bomb the Myanmar Embassy.

Earlier on Tuesday, Indonesia's anti-terrorism police squad, Detachment 88, arrested Ato Margono for escorting a suicide bomber to a police station on the island of Sulawesi in June.

The bomber killed only himself and injured a construction worker with the bomb made of nails.

Margono is linked to the country's most-wanted terrorism suspect, Santoso.