The Jakarta head of the Special Detachment 88 anti-terror squad, Rudi Sufahriadi, said the exercise had been requested by President Susilo Bambang Yudhoyono to anticipate a terrorist strike such as the one in the Indian city.

'It's a practice session to gear up for a bigger joint drill with the military this Sunday,' he added.

The lunchtime exercise involving 400 police simulated an attack and hostage-taking by militants and included heavily armed members of the anti-terrorist squad.

Indonesia has a history of violent bombings by Islamist extremists, but has not suffered a major attack since the 2005 suicide bombings on Bali that killed 20 people. -- AFP