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At least three bombs went off in the popular tourist resorts of Kuta and Jimbaran Beach in the south of the Indonesian island as holidaymakers and locals thronged the areas at around 6.50pm local time.
Reports said at least 25 people were killed and more than 100 injured, including many foreigners, when the bombs detonated almost simultaneously at a restaurant in Jimbaran and at the Matahari department store in Kuta.
The attack came almost three years to the day when 202 people- including 26 Britons - were murdered in a terrorist attack by an al Qaida-linked group.
The Foreign Office said there was no reports that Britons were involved but the British Ambassador to Jakarta, Charles Humfrey, was on his way to the affected area.
A spokeswoman said a helpline had been set up, adding: “We are also sending an emergency deployment team from Hong Kong and supplementing this with staff from London.
“There is no word on British casualties.” The Foreign Office confirmed that an international rugby team, with some British members, was safe as well as a large volunteer operation, also with some British workers.
The emergency deployment team would be made up of experts who were “used to dealing with crisis situations” whether terrorist attacks or natural disasters, she added.
News of the bombs came as Londoners united against terrorism in defiance of the Tube and bus bombings that rocked the capital on July 7.
Thousands of people gathered in the West End shopping street to attend a pop concert.
It was in Kuta on October 12, 2002 that terrorists associated with al Qaida set off two bombs close to each other that killed 202 people and injured another 209.
The dead - mostly foreign tourists - were killed when bombs ripped through two nightclubs at Kuta beach.
Kuta is a busy tourist area featuring hundreds of hotels, restaurants and bars.
Jimbaran Beach is 10 minutes’ drive from the Ngurah Rai international airport and is well known for its five star resorts and beach restaurants.
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