Islamic State terror group claims responsibility for Jakarta attacks

Islamic State terrorists have claimed responsibility for the deadly attacks in Indonesia.

Reports are emerging that a media agency linked to the terrorist group says it was targeting foreigners and security forces when explosions and gun fire rang out in central Jakarta on Thursday afternoon.

Police in Jakarta have also said they believed the attacks were the work of a group with links to the Syria-based terrorist group, which had been targeted in recent raids by Indonesian authorities.

Gun battles between police and a group of attackers armed with guns and grenades broke out near UN offices and a shopping centre after a series of explosions.

Late on Thursday evening The Associated Press quoted Jakarta police spokesman Colonel Muhammad Iqbal saying authorities had finally regained control after the attacks near the Sarinah shopping mall.

He says: “We believe there are no more attackers around Sarinah. We have taken control.”

It was not immediately clear if other attackers remained at large.

At least seven people were killed in the violence, including an unconfirmed number of attackers. At least one police officer died. Other reports suggested three officers may have been killed.

Several of the dead are believed to be suspected terrorists. At least one Dutch national has been reported dead.

Earlier, Indonesian police said they had killed four suspected attackers after a series of explosions and a echoed through the centre of the nation's capital.

There have been conflicting reports on the involvement of suicide bombers.

Media earlier reported at least six bombs went off and a Reuters witness saw three dead people and as the gunfight broke out.

One blast went off in a Starbucks cafe and security forces were later seen entering the building.

Other reports suggested as many as eight explosions.

Local media source KompasTV later reported a bombing at a police station at Palmerah in west Jakarta.

Witnesses said a Starbucks coffee shop was the first to be hit.

"The Starbucks cafe windows are blown out. I see three dead people on the road. There has been a lull in the shooting but someone is on the roof of the building and police are aiming their guns at him," said a Reuters photographer.

A witness named Husaini told reporters at the scene the first explosion came from inside the Starbucks.

A man then emerged from the chaos with several guns and began shooting randomly, but particularly at police, he said.

Local media reported that ten to 14 perpetrators were involved in the attack.

Indonesia's president Joko Widodo condemned the killings as an act of terror.

"The state, the nation and the people, they, we, can't be afraid, can't be defeated by this act of terror," he told reporters.

A police post on a main street was damaged in the initial blasts which killed at least three people were killed. There have been conflicting reports as to whether a grenade or a suicide attack destroyed the post.

Three bodies were seen lying in the street after the explosion.

An outbreak of gunfire followed, according to Jeremy Douglas, who works at the United Nations building on Jl Thamrin, where the chaos was unfolding around 11am on Thursday.

"Serious exchange of gunfire in downtown Jakarta," he tweeted.

The Australian embassy in Indonesia has warned people to limit their movements until the situation is under control, amid reports of more explosions.

"We have seen media reports of further explosions, including in Palmerah area. Until situation is clearer, all should limit their movements," Australian Ambassador Paul Grigson tweeted.

"All Australians should stay clear of these areas, limit their movements and follow the instructions of local authorities."

The Associated Press reports Indonesia has been on high alert after authorities said they had foiled a plot by Islamic militants to attack government officials, foreigners and others. About 150,000 police officers and soldiers were deployed during New Year's Eve to guard churches, airports and other public places.

More than 9,000 police were also deployed in Bali, the site of Indonesia's deadliest terror attack, which killed 202 people in 2002.

National Police spokesman Major General Anton Charliyan said security is focused on anticipating attacks in vulnerable regions, including Jakarta.

On Tuesday, the jailed radical Islamic cleric Abu Bakar Bashir appealed to an Indonesia court to have his conviction for funding a terror training camp overturned, arguing that his support for the camp was an act of worship.

The 77-year-old leader of the Jemaah Islamiyah militant network filed a judicial review of his 2011 conviction, when he was sentenced to 15 years in jail for setting up the camp in Aceh province. A higher court later cut the sentence to nine years.

Indonesia, the world's most populous Muslim nation, has suffered a spate of deadly attacks by the Jemaah Islamiyah network in the past. But strikes in recent years have been smaller and less deadly, and have targeted government authorities, mainly police and anti-terrorism forces.