Abu Bakar Bashir, the reputed founder of the Jemaah Islamiyah network, was released today after 26 months in prison for conspiracy in the 2002 Bali nightclub bombings which killed 202 people.

Around 150 supporters gathered with police and journalists outside Jakarta's Cipinang prison to welcome their leader's release with cries of "Allah Akbar [God is Great]".

Wearing his trademark white skullcap and spectacles, the bearded 68-year-old attempted to give a speech to the crowd but his voice was drowned out by cheers. "I thank Allah that I am free today," he said, smiling broadly.

The radical cleric, seen as the inspiration to a generation of young Muslim militants, added: "I call on all Muslims to unite behind one goal, that is the implementation of Sharia [Islamic] law," before ducking into a waiting car.

He was then taken back to his hometown of Solo in West Java, around 350 miles south-east of Jakarta, where he was to undergo a health check before returning to al-Mukmin, the notorious boarding school which he helped to found.

Bashir was sentenced to 30 months in jail after being found guilty of blessing the 2002 Bali attacks, but cleared of more serious terrorist charges, including heading Jemaah Islamiyah.

His sentence - already criticised by the United States and Australia for being too lenient - was cut in August 2005 as part of regular remissions handed out to prisoners. Had he been convicted on all charges, he would have faced a death penalty.

In Sydney and Washington, politicians condemned his release as a victory for terrorists and demanded that he be put under 24-hour surveillance.

John Howard, the Australian Prime Minister, told Parliament: "Many Australians will see that particular outcome as an extremely disappointing result," adding that he shared this sentiment.

"Can I say something to Indonesian politicians, both those here and those who may be listening or reading in Indonesia. I want them to understand from me on behalf of the government how extremely disappointed, even distressed, millions of Australians will be at the release of Abu Bakar Bashir."

The Bali bombings thrust Indonesia, the world’s most populous Muslim nation, on to the frontline of Washington’s so-called War on Terror. Several men convicted of direct involvement in the bombing have been sentenced to death.

Bashir's release has raised concerns that he could re-energise Indonesia’s small, Islamic radical fringe by making impassioned speeches at rallies and mosques, although few believe that he will play any direct role in terrorism in the future.

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