One can safely assume that the man who has called for the destruction of the United States, England, Australia, Singapore, Thailand and the Philippines will be watched closely by the Indonesian authorities. Nevertheless, his release will have an important impact in Southeast Asian counter-terror operations, because he will likely become a rallying point for Islamic radicals throughout the region.

Bashir had earlier been found guilty of plotting to overthrow the government, but the court said there was no proof he led the JI network, which is believed to be responsible for a string of major terrorist attacks.

JI stands accused of carrying out a series of church bombings across Indonesia in 2000, the Bali nightclub bombings, attacks in the Indonesian capital in 2003 and 2004 and triple suicide bombings on Bali last October. Together, these attacks claimed more than 260 lives.

An appeals court overturned Bashir's treason conviction but sentenced him to three years for immigration-related offences.

In March 2004, the Supreme Court announced that his sentence would be reduced to 18 months, or roughly time already served. On April 30, 2004, as he was released from prison, Bashir was rearrested on retroactive terrorism charges.

Using intelligence gleaned from Hambali, the JI terrorist arrested in Ayutthaya in August 2003, and the testimony of senior JI member Mohammed Nasir bin Abas, who has renounced JI and cooperated with the police, the Indonesian state prosecutor was confident of building a stronger case.

Although charges linking Bashir directly to the Balinese bombings were dropped, the cleric was slapped with a number of charges. They included planning and inciting acts of terrorism, such as the establishment of a training camp on the Philippine island of Mindanao and withholding information about acts of terrorism. Specifically, the indictment says he gave permission to key Bali bomber Amrozi to proceed with the crime. The Indonesian court convicted him of being part of an "evil conspiracy".

By comparison, Schapelle Corby, a 27-year-old holiday-maker who was allegedly caught with just over four kilograms of cannabis in her luggage, was sentenced by an Indonesian court to 20 years.

After Bashir's release this week, the charismatic leader wasted no time in calling for an Islamic state under shariah law. Some might dismiss that as a domestic Indonesian problem. However, it cannot be ignored that many people share his mindset and are even willing to resort to violence to achieve their political aims.

Indonesia is the world's fourth-largest country in terms of population and the biggest Muslim nation. It has worked hard to put in place democratic institutions after decades of strong-arm rule by former president Suharto.

Bashir does not simply constitute a great challenge to democracy in this secular state. The very values he embraces poses a challenge to Muslim communities worldwide, including Malay-speaking southern Thailand, where insurgent violence has claimed more than 1,200 lives over the past two-and-a-half years.

While Islam is an important factor in the fight against the Thai state, the separatist groups in southern Thailand, no matter how vicious they have proven to be, have always used Malay nationalism as their rallying point - not the global jihadist mentality embraced by JI or al-Qaeda members worldwide.

But experts have warned that groups like JI or al-Qaeda are adept at exploiting situations by turning domestic disputes between Muslim communities and central governments into an Islamic cause. Indeed, Thailand is no exception. If the problem is painted as one of Muslims versus Buddhists, one can be sure jihadists will not wait for an invitation to intervene.