"It was very loud, it was like thunder, it was rather continuous, and then followed by the second explosion," said Vidi Tanza, who works near the hotel, describing the blasts.
PROGRESS SINCE SUHARTO FELL
The bombings will also be a blow for President Susilo Bambang Yudhoyono, re-elected last week in a crushing election victory that reflected the former general's steady leadership and firm stance on security.
Both parliamentary elections in April and the presidential poll this month passed peacefully, underscoring the progress made by the world's most populous Muslim nation since the chaos and violence that surrounded the downfall of ex-autocrat Suharto in the late 1990s.
"I would say it damages foreign investor confidence since the attacks appear aimed at Westerners, but not shatter it, so long as there is no further violence for some time," said Sean Callow, currency strategist at Westpac Bank in Sydney.
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