Indonesian troops have been stepping up their operations against separatist rebels in Aceh province. Local reports say that in one incident, at least eight villagers were shot dead in the eastern Bireun area after being lined up by security forces. Indonesia's Foreign Ministry dismissed these reports saying they were stories aimed at discrediting Jakarta. But what about military counter-claims that GAM rebels are themselves targetting civilians?

Presenter/Interviewer: Linda Mottram

Speakers: Tim Palmer, Indonesia correspondent

Tim Palmer: Certainly, I haven't personally been able to see that yet, although we're heading into the area where most of those claims are emerging from right now. But one of the wire services, the AFP has seen 11 bodies in the area where villagers were claiming at least 18 people were killed, and in the majority of cases are telling stories of men and in some cases boys as young as 12 being ordered from their homes during military sweeps through the area and either led away where they've disappeared or being shot nearby. Those people being unarmed.

Now, Indonesia's Army did say that it killed a number of people in that area yesterday, around seven people was their original number, claiming that they were all members of the GAM movement. So clearly a significant difference again emerging in accounts there but it does certainly appear that some of the people were shot through the head having been led away from their houses unarmed. So we will hopefully know more about that tomorrow.

Linda Mottram: There've been suggestions that the Indonesian authorities are intending to move civilians out of what they're calling "strategic areas". Are you seeing that happening?

Tim Palmer: Again, we haven't seen it happen but GAM rebels have contacted the ABC in the past few hours and told us of a story that's happening just off the provincial capital, Banda Aceh.

Indonesia last night announced that it had moved on two islands there with Navy backed up by Marines taking over especially one island, which it says has been used for arms smuggling and for recruiting and training members for the Free Aceh rebels, or GAM.

GAM, when they contacted the ABC last night, told a story that 500 families had been forcibly expelled from the island, a significant part of the population of the island has essentially been cleared, and that those families have been taken onto three Navy warships which GAM named, which are just off the coast here.

So again, we'll be investigating that over the next few hours. That story happened, we were told happening late yesterday.

Linda Mottram: And what about the general climate and the feeling, I mean we're seeing an escalation of operations here, is that very evident to you?

Tim Palmer: It is. The situation here feels like it is deteriorating. On the main road yesterday, as it was the day before when we travelled it, there was virtually no traffic and at one point in fact the main highway, which basically is a lifeline for a large part of this province, was blocked for five hours after GAM rebels ambushed a convoy of trucks, cars and busses and then torched them on a bridge blocking the highway, then waited for Indonesian soldiers to respond and fought them off with gunfire and apparently with some light grenades as well at some stage during that attack.

So there's clearly a real climate of fear and as well as these claims of executions during Indonesian Army sweeps through the northern part of Aceh, there have been suggestions of kidnappings in the past day. Two women disappeared in Bireun, having approached a military checkpoint, haven't been since and, you know, we aren't hearing in fact, many reports coming from the western part of the island, which was even more remote and where initially in the first day we'd been told a similar story, that villagers had been ordered out of their, out of their villages to leave the area and if they stayed would be identified as GAM and dealt with as such.

So you know, as news filters in it's clear that there are widespread operations across the island, that there is a real level of fear growing, especially in the outlying areas.