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One major concern this year is the possibility of retaliatory attacks by Islamic militants for the execution of the three Bali bombers last month.
The recent terrorist strike on hotels and a train terminal in Mumbai was also clearly on Indonesian security officials' minds when they launched a four-day drill this week involving nearly 7,000 officers across six cities.
Hotels and transport hubs were among the sites of the mock raids.
TV footage yesterday showed balaclava-clad officers scaling down the side of a Bandung hotel in a simulated hostage rescue operation.
On Wednesday, officers conducted a drill involving a Mumbai-style raid on the Jakarta Stock Exchange. Counter-terrorist operations will also be conducted in the waters of the Malacca Strait.
According to Antara news agency, one scenario involves the rescue of hostages from a hijacked tanker.
Meanwhile, plans were underway to deploy nearly 48,000 police officers at churches, bus and train stations, shopping malls and other public recreational centres as a precautionary measure.
'Operation Candle 2008 will last for 10 days from Dec 24,' said national police spokesman Abubakar Nataprawira yesterday, referring to the efforts to safeguard the Christmas and New Year celebrations.
Particular attention will be paid to three heavily populated cities: Jakarta, Medan and Surabaya, he added.
In 2000, a series of coordinated bombings of churches on Christmas Eve in Jakarta and eight other cities killed 19 people and injured many others.
Since then Indonesia has made it a point to step up patrols in late December.
The past few years have been relatively trouble-free, but this Christmas will be the first since the executions of three Jemaah Islamiah terrorists, whose bomb attacks on the island of Bali left over 200 people dead.
Since their execution by firing squad on Nov 9, bomb threats via phone and text messages have been sent to foreign embassies, shopping malls and office buildings, raising fears of revenge attacks by Muslim radicals.
Mr Abubakar said yesterday that while no attacks have occurred following the rash of threats, police could not afford to let their guard down.
While the authorities have made a number of arrests over the years, the terrorist threat remains.
Police foiled a plan recently to blow up the country's biggest fuel depot in north Jakarta, and, in July, police found bombs stored in the ceiling of a house in Palembang.
Several JI militants are still at large, including Noordin Mohammad Top, the Malaysian national believed to be a key player behind some of JI's bloodiest attacks, including the 2002 Bali bombings.
