Tom Allard, Jakarta – As the frantic chase for Indonesia's most wanted man Noordin Mohammed Top moved into overdrive, Indonesian police came upon two men at a motorcycle repair shop in Temanggung in Central Java.

The men, Aris Susanto and Indra Arif, were, police believed, the terrorist bombmaker's look-outs. And they had valuable information to share. Noordin, the man allegedly responsible for the bombings of the JW Marriott and Ritz-Carlton hotels on July 17 – and terrorist attacks stretching back to the first Bali bombings – was hiding at a nearby farmhouse.

So began the 17-hour siege involving hundreds of heavily armed members of the police's elite Detachment 88 anti-terrorism and mobile brigade units. After countless rounds of automatic weapon fire, the detonation of explosive devices and use of high-tech robots, police hauled out a body last Saturday. They were giving each other high fives as camera crews recorded the celebrations.

There was only one problem. It wasn't Noordin. Rather, it was Ibrahim, the florist who worked at the two hotels and played the key role in smuggling explosives into the hotel.

Ibrahim's demise was an important scalp. But he was the only man in the house and he did not return fire during the siege. An unexploded bomb was reportedly recovered from the house after the siege. Questions are being asked as to why such a massive display of firepower was necessary. Could a nuanced operation have led to his capture alive, providing authorities with intelligence on Noordin?

Noordin's ability to avoid capture once again has highlighted the ongoing terrorism threat in Indonesia, and reveals something of his methods of evasion and the loyal servants who will do anything to protect him.

There are two possible scenarios behind his escape. He was in the house but managed to evade the huge police dragnet, with Ibrahim remaining behind to take on police and lay down his life. Or, more likely, he was never there and his look-outs gave false information to police to throw them off the trail.

Noordin is understood to travel with look-outs who are expert in creating diversions. They act as outriders, and the motorcycle helmet provides him with the perfect cover. According to Nasir Abas, the former Jemaah Islamiah leader who trained Noordin at the Hudaibiyah terrorist camp in the southern Philippines, Noordin is a master of disguise who relies on a wide network of sympathisers to hide him. "Noordin hides by constantly moving from one place to another," Nasir told the Jakarta Globe. "He takes advantage of people's friendly nature, and [sometimes] he wears a veil and a burqa."

As Agus Widjojo, a security adviser to the Indonesian President, Susilo Bambang Yudhoyono, puts it: "It's a Tom and Jerry game. The question is, is there the capability to cover off all of his avenues of passage? The answer is no. Indonesia is an easy place to hide."

Asked if Noordin had friends in the police who were tipping him off, Mr Widjojo rejected the notion. "I don't agree with that. He is the highest priority target. It's not something anyone in the police would risk."

Indonesia's police have made significant headway in the past month. As well as Ibrahim, they have killed or captured eight others believed to be part of Noordin's network.

They have also uncovered an apparent plot to blow up Dr Yudhoyono this month with a car bomb, after a raid in Bekasi, near Jakarta, last Friday. As well as hundreds of kilograms of explosives, police uncovered detonators and a suitcase full of ball bearings and bolts that would have become deadly shrapnel. The plot, according to police, was conceived after the hotel bombings, as retribution for the execution last year of the three Bali bombers, who Noordin idolised and may have visited when he was incarcerated on the prison island of Nusakambangan.

The intelligence came from Amir Abdillah, the man who checked into the JW Marriott's Room 1808, the nerve centre of the July 17 hotel bombing operation. He told police the car bomb plot was hatched at a meeting with Noordin at a safehouse close to Jakarta a few days after the hotel bombings. The fact that a plan to kill Dr Yudhoyono could apparently be organised so quickly highlights the ongoing risks.

Noordin still has the core of his group operational. His premier bombmaker, Reno (aka Tedi), has not been caught, along with several other key members.

In a nationally televised address yesterday, Dr Yudhoyono called on Indonesians to join together to fight terrorism. "Let us protect our citizens and our youth from misleading information and extremism... and help security officers by giving information about terrorism actors who are hiding in our society," he said.