An expert on Indonesian politics from Curtin University says the latest suicide bombings in Jakarta could permanently damage tourism and trade in the region.
At least eight people, including at least two Australian men, were killed when suicide bombers targeted two luxury hotels in the Indonesian capital on Friday.
It was the latest in a series of attacks in Jakarta and Bali after four years of stability in the Muslim nation.
As well as Australians and Indonesians, the casualties included citizens of the United States, South Korea, the Netherlands, Italy, Britain, Canada, Norway, Japan and India.
Dr Ian Chalmers from Curtin University says the nation has shown signs of recovery in recent years but the latest bombing could have a lasting effect.
"It took some time to recover after the first Bali bombing, and then the second [attack] it took some time to recover," he said.
"Once again, I think this will be of great more difficulty to Indonesia's economic outlook."
Dr Chalmers says he is shocked at the latest suicide bombings because the Government appeared to be making progress targeting terrorism.
He says Indonesia has committed a lot of resources to targeting terrorism, and it appeared the message was getting across.
"The first thing they have been doing is of course jailing people," he said.
"There was a very successful campaign run a few years ago when they killed some of the prominent terrorists and then they jailed some of the Bali bombers who were executed last year," he said.
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