As the death sentence was read out against Amrozi bin Nurhasyim, a loud cheer went up from the public gallery, where many of the Bali bombing's victims and their relatives were sitting.
Amrozi has previously said he would be 'happy to die a martyr'
"It's sensational, it's a weight off my shoulders," survivor Brad Phillips told reporters outside the courtroom.
Amrozi had appeared at court on Thursday morning in a white shirt and green head-covering made for him by his wife.
The BBC's Clive Myrie, who was at the court, says Amrozi arrived smiling, as he has done throughout his trial, and chanted furiously to the courtroom.
"God is great," he shouted, and "Oh Jews, the army of Mohammed is marching back to victory".
Sat on a solitary chair in front of the judges, he sometimes looked a bit bored by proceedings, as the 200-page judgement took seven hours to read out.
When it became clear that the presiding judge was coming to a verdict, a hushed silence descended over the court room.
The judge announced the verdict in a clear, strong voice, but his final words were almost drowned out by applause from the public gallery, according to the BBC's Rachel Harvey, who was also at the trial.
Amrozi reacted in characteristically defiant style. He raised his right hand and punched the air.
Then he twisted around in his chair, a broad grin on his face, and made a thumbs-up sign to those gathered in the packed courtroom.
But the victims and relatives he addressed were also smiling.
This was the moment they had waited for - Amrozi was guilty and sentenced to death.
Nearly half of those who died in the Bali bombings were Australians, killed as they enjoyed the island's famous nightlife.
A BBC correspondent in Sydney, Phil Mercer, says there was a sense of relief and satisfaction in Australia that Amrozi was found guilty.
Kevin Paltridge, whose 20-year-old son Corey died in the blast, told Australian radio that he wanted Amrozi to die for his crime.
"Amrozi is just one man - he cost 200 people their lives. One
life for all those lives doesn't mean a lot but I think it's
something," he said.
But others are unhappy that Amrozi now faces a firing squad.
Trent Thompson, whose brother Clint died in the blast, said he would rather Amrozi "live a long and unhappy life".
"The death penalty is the easy way out," he said.
Jun Hirst, whose British boyfriend Daniel Braden died in the bombing, said the death penalty would "cause more violence, more terror attacks".
"I don't want him to die thinking that he's completed his work, that he's done everything that God wants him to do, " she told BBC Breakfast News.
A lone voice in Amrozi's home village of
Lamongan, on Java island, also said she did not agree with the sentence.
"It is so unfair," Amrozi's sister Tasmiah told Reuters news agency.
"As Amrozi stayed in prison, bombs are
still exploding in Jakarta. Everything has been orchestrated. I do not believe Amrozi is capable of making bombs that big."
But many Indonesians feel that death would be a just reward for Amrozi's actions, our correspondents say.
"I want to punch Amrozi in the face," said Niluh Pasek,
a noodle stallholder near the courthouse.
"The Bali bomb has caused nothing but
misery for the people here," he said.
A message posted on a fence amongst the rubble that was once the Sari Club - where one of the Bali bombs was detonated - sums up the feelings of many.
"You must die, Amrozi," it said.