CANBERRA  – Indonesia's president confirmed Wednesday that a suspected Bali bombing mastermind with a 10-million-dollar bounty on his head had been killed, as Australia lauded Jakarta's drive to fight extremists.

President Susilo Bambang Yudhoyono told a luncheon in Australia's parliament house that Al-Qaeda-trained bomber Dulmatin was killed during a raid by counter-terrorism forces in the Indonesian capital on Tuesday.

"We can confirm that one of those that were killed was Mr Dulmatin, one of the top Southeast Asian terrorists that we have been looking for," Yudhoyono said through an interpreter in Canberra.

An Indonesian police source had said officers believed that Dulmatin was among three people killed in two raids in Jakarta, but had refused to formally identify the dead until forensic tests had been carried out.

Dulmatin was a leader of the Southeast Asian militant group Jemaah Islamiyah (JI). The news comes as US President Barack Obama, whose country had offered the 10-million-dollar reward, prepares to visitIndonesia and Australia.

"Very professional operation"

Dulmatin was accused of helping JI plan and carry out the 2002 Bali bombings that killed 202 people on the Indonesian resort island, most of them foreign tourists, including 88 Australians.

Australian Prime Minister Kevin Rudd praised Indonesia's efforts to dismantle terror networks as the two nations also vowed to step up their joint fight against people-smuggling after several high-seas standoffs.

Just before Yudhoyono confirmed Dulmatin's death, Rudd congratulated the president on the raids in Jakarta.

"This has been a very professional operation by the Indonesian security forces and it comes on top of other successful operations in recent times," Rudd told a joint news conference.

"The breakthroughs which Indonesia has made in undermining various terrorist networks have been significant."

People smuggling

Ahead of a historic address by Yudhoyono to Australia's parliament, the leaders announced they had also agreed to crack down on people-smuggling. Related article: Indonesia, Australia pledge on people smuggling

"This will enhance and intensify our cooperation on dealing with this complex regional and global challenge," Rudd said.

The issue has long plagued relations as asylum-seekers from the world's trouble-spots transit Indonesia en route to Australia, which has seen dozens of boats arrive in recent months.

"Australia is a destination country and Indonesia is a transit country," Yudhoyono said. "We cannot resolve this issue by ourselves. Every country must be on board... and also international institutions have to cooperate."

During his visit Yudhoyono was Wednesday to become the first Indonesian president, and only the fifth leader of any country, to address Australia's parliament, underlining Canberra's push for better Asian ties.

Rudd said links between Australia and its giant, mainly Muslim northern neighbour now stood at a "new level" after years of flare-ups. — AFP