Doubtless a source of great comfort to the maimed survivors of the Bali bombing and the families of those killed.
I guess those were the moderate muslims we've heard so much about since 9/11.
Australians continue to be a major part of Indonesia's tourist industry, and nothing of a similar magnitude has happened since, so it was an unusual event. The Indonesian security forces were caught napping by the Bali incident, but they have slowly, but surely, killed or imprisoned everyone involved. To the extent that extremism means the resort to armed attacks on non-Muslims, I'd say Indonesians are pretty moderate. At 20m people, there is no shortage of non-Muslims for extremists to attack, and yet there are few such incidents. That's not even counting the hordes of Australians who are a major source of Indonesia's tourism revenues.
We are discussing a military alliance with a large nation.
The fact that they have a nasty terrorist minority is only marginally important.
Britain, India and the Philippines also have nasty terrorist minorities, but these are not grounds for objections it seems.