Indonesian police have shot dead five suspected militants on Bali island

The men, killed in two raids on Sunday, had targeted several locations in Bali, the chief of Indonesia's anti-terror unit told the BBC.

Officers also seized firearms and ammunition on the island, where a bombing in 2002 killed more than 200.

The five are believed to be linked to the Jemaah Islamiah (JI), a regional group that is linked to al-Qaeda.

"This is... a splinter group of Jemaah Islamiah,'' National police spokesman Saud Usman Nasution told Reuters news agency.

JI, which has carried out attacks across South-East Asia, was responsible for the 2002 Bali bombings.

The suspects killed late Sunday are believed to be linked to a militant group that carried out bank robberies in Medan, Sumatra in western Indonesia in 2010.

The group had also reportedly been responsible for setting up paramilitary training in Aceh and in Solo, central Java, authorities said.

'Resisted arrest'

Indonesian police told the BBC the five men had been under police surveillance for a month.

They were planning to carry out robberies on the island to raise funds for terror related activities, police said.

Indonesia has struggled with home-grown extremism in recent years but has been relatively successful in stamping it out through the use of its elite anti-terror unit Densus 88, says the BBC's Karishma Vaswani in Jakarta.

The two raids took place in Bali's capital city, Denpasar and at a hotel in Sanur, a popular tourist district.

Three men were killed at the hotel and another two died in Denpasar.

Densus 88, which carried out the operation in Bali, has often come under criticism for being too quick to kill, but says the men were shot at and killed because they resisted arrest.

JI's last major attack was in 2009 in Jakarta when two luxury hotels were attacked.

Since the Bali bombings, scores of militants associated with the group have been jailed or killed.

Umar Patek, a high-profile suspect alleged to have been one of the masterminds of the 2002 Bali attack, went on trial in Jakarta last month.