Jakarta hunts bombers

Mr Caday believes he knows who planted the bomb

Indonesian police have launched a massive security operation in Jakarta as they investigate Tuesday's deadly bomb blast outside the Philippine ambassador's home.

I have a very strong suspicion as to who is behind this

Philippine President Joseph Estrada

They are stepping up security at embassies and the offices of multinational companies and say they will check all guests at every hotel in the city.

Tuesday's blast killed two people and wounded around 20 others, including Philippine ambassador Leonides Caday.

Indonesian President Abdurrahman Wahid has linked the attack to a Muslim separatist campaign in the southern Philippines.

Manila has placed its diplomatic posts abroad on the highest state of alert.

Philippine President Joseph Estrada said he had a very strong suspicion who was behind the bomb attack, but would reserve final judgement for the time being.

"The ugly head of terrorist forces has taken the lives and injured hardworking diplomatic representatives of the Philippines," he added.

Mr Estrada, who is on a trip to the United States, said he was awaiting reports on the blast from the Indonesian Government and the Philippine intelligence services.

Target

Mr Caday, 70, was seriously wounded in the explosion but Philippine officials said he was out of danger after an operation.

The ambassador's house was badly damaged

Philippine Vice-President Gloria Macapagal-Arroyo said Mr Caday had told her he thought he knew who was behind the attack.

"Caday already has a suspect. He told me who the suspect is but I don't want to say who... until we have corroborating evidence," she told Manila radio DZBB.

"Caday's belief is that this was personal against him."

She said he believed the attack was carried out by a Filipino who had come from the Philippines and was not based in Jakarta.

Jihad

The bomb exploded at lunchtime on Tuesday outside Mr Caday's house on Imam Bonjol street in central Jakarta.

Two people were killed - a security guard and a woman who was hit by shrapnel.

The ambassador's house was partly destroyed in the blast and nearby homes and government buildings were damaged.

The Moro Islamic Liberation Front (MILF), the bigger of two groups fighting for an independent Islamic state in the southern Philippines, has denied any involvement.

A second rebel group, the Abu Sayyaf, is holding dozens of hostages on Jolo island in the south.

The two groups have declared a jihad, or holy war, against the Manila government.