Patrick Walters – Indonesian President Susilo Bambang Yudhoyono has pledged to intensify his country's counter-terrorism fight, promising close surveillance and pre-emptive measures against suspected terrorists.

Dr Yudhoyono's strong rhetoric has given John Howard greater confidence that Jakarta will keep a close watch on Jemaah Islamiah spiritual leader Abu Bakar Bashir, who was released from prison earlier this month.

During their summit meeting on the Indonesian island of Batam on Monday, the two leaders had a long discussion about terrorism and the role of the radical Muslim cleric.

In a letter to the Prime Minister last week, Dr Yudhoyono said Indonesia had done its best to uphold the law in the case of Bashir. "As a democracy, we are are obliged to respect the decision of our independent courts." He said he fully understood the anguish felt by Australians at the "great losses" suffered in the terrorist attacks in Bali in 2002.

Bashir served only 25 months of a 30-month sentence for condoning the Bali attack, triggering outrage from victims, their families and Labor. "This feeling is also felt by the Indonesian people who have lost their loved ones from a series of terrorist attacks in recent years, and continue to face this threat," Dr Yudhoyono said. "Indonesia and Australia therefore are natural partners as we stand side by side in fighting this common enemy."

While he did not spell out how Indonesian security authorities would treat Bashir, Dr Yudhoyono pledged not to let the archipelago become a haven for terrorists or a staging post for terrorists to launch attacks.

Indonesia was mindful that the success of counter-terrorism efforts would require "active preventive and pre-emptive measures and close surveillance of anyone suspected of involvement in terrorist activities".

"We are also committed to implement all international obligations and conventions to eradicate terrorism and to bring those engaged in violent criminal acts to justice," the President said.

Mr Howard said he would continue to urge Indonesia to take a hard line on Bashir, but acknowledged the strong anti-terrorism stance taken by the Indonesian leader. "I don't think anybody can doubt that Indonesia worked very hard to bring to justice the people who murdered 88 Australians in Bali," he said.

Indonesian officials have disagreed about whether Bashir would be monitored after his release. The head of the national intelligence agency, Syamsir Siregar, has said the radical Muslim cleric would be free to travel.

In a letter to Dr Yudhoyono last week, Mr Howard urged him to get tough on Bashir and reminded the President of Indonesia's international obligation to restrict the cleric's movements and prevent him from becoming a security risk.

Greg Fealy, an expert on Indonesian politics at the Australian National University, said Dr Yudhoyono's letter implied Indonesian authorities would monitor Bashir "very closely".