Terrorist refuses to denounce deadly attacks

EXCLUSIVE: An Indonesian terrorist, jailed for his role in the Bali bombings that killed 88 Australians, is free and working for another militant group.

He refuses to denounce the deadly attack and says Australia still remains the enemy.

Son Hadi has been convicted and jailed for harbouring Bali bombing planner Noordin Top.

In April, the US Government officially declared Hadi a terrorist, stating that he also handled the explosives used in the 2004 Australian Embassy bombing.

But in Jakarta, he walks the streets a free man, and America says he has links to al Qaeda.

"Osama bin Laden for some or a big part of Muslims he is someone who is a hero," Hadi says.

Hadi refuses to denounce the Bali bombing that killed 202 people, saying it was revenge, for Iraq and Afghanistan.

“The attack was actually addressed to the Government, warning the Government that you should not send troops there," Hadi says.

He believes Australia has become the enemy because of our military involvement in Iraq and Afghanistan.

Drug offenders like Schappelle Corby are punished severely in Indonesia, but that's not always the case for those involved in terrorism.

Authorities in Indonesia make hundreds of arrests involving terrorism, some as early as last week, but in dozens of cases the militants simply serve a few years in prison before ending up back on the streets.

Son Hadi was sentenced to four years prison and served less than three years.

Hadi is now spokesman for militant group JAT, an offshoot of Jemaah Islamiya responsible for the Bali bombings.

Counter-terrorism chiefs say Hadi and JAT are a major threat but they are waiting for him to repeat his action, then they can arrest him.

“This is the problem of the legal system," Indonesian Counter-Terrorism Agency Inspector General Ansyaad Mbai says.