Slain Islamist militant leader Dulmatin has been buried in his home village in Indonesia, surrounded by a large crowd of mourners and hundreds of police.

上海性息

A crowd of more than 2,000 shouted “Allahu Akbar” – God is great – as the Jemaah Islamiah bomb specialist was laid to rest in the village of Pemalang in Central Java.

“The funeral has gone well, with no problems or difficulties. Everybody in this village came and helped us,” Dulmatin’s eldest brother Azam Ba’afut said after the body was driven by ambulance from the Indonesian capital.

“This shows that my brother was a good man,” he said.

Dulmatin, 39, and two other people were shot dead on Tuesday in a gunfight with counter-terrorism forces on the edge of Jakarta.

It was the latest in a series of raids just ahead of a visit to Indonesia by US President Barack Obama.

$10m bounty offered

Dulmatin’s identity was confirmed the next day by President Susilo Bambang Yudhoyono, who called the al-Qaeda trained extremist “one of the top Southeast Asian terrorists”.

Dulmatin had a $US10 million ($A10.9 million) bounty on his head.

He was accused of being a mastermind of the 2002 Bali bombings by Jemaah Islamiah (JI), which killed 202 people, mostly foreign tourists.

“He was not a terrorist but a holy warrior,” another relative, Sahid Ahmad Sungkar, was quoted by Antara news agency as saying.

“His death is the will of Allah, who will decide who’s right or wrong,” he added.

Radical cleric Abu Bakar Bashir declared Dulmatin should be remembered as an Islamic fighter.

Bashir – the former JI spiritual leader who was imprisoned over the attacks but later released on appeal – said he accepted Dulmatin had broken the law.

Security forces crackdown

“What cannot be tolerated is calling him a terrorist because he’s an Islamic fighter,” Bashir told reporters.

Dulmatin’s death came after Indonesian security forces conducted several raids nationwide since discovering an extremist training camp in far-flung Aceh province in late February.

Twenty-eight suspects, including firearms suppliers and financiers, have been arrested and three policemen killed in the crackdown.

Police have also seized nine weapons, tens of thousand of bullets and remote-controlled bomb detonators.

“Dulmatin’s role was to prepare military training, buy weapons and bullets and finance military training activities with funds of 500 million rupiah ($A59,380),” national police chief Bambang Hendarso Danuri said on Wednesday.

JI, an al-Qaeda inspired group whose mission is to create a Muslim caliphate across Southeast Asia, is blamed for multiple incidents across Indonesia including the 2002 carnage in Bali (which killed 88 Australians) and attacks on Jakarta hotels last year.