It also might give greater powers to the armed forces or police, analysts said.

An outcry against such proposals has emerged from human rights and pro-democracy groups, who see any increase in executive power as a regression from freedoms fought for since the fall of former president Suharto in 1998.

Members of parliament, whose approval the president needs, said they hoped the decree would allow for detention without trial.

Legislators from the Suharto-era Golkar party and the Islam-based Star Crescent Party said they would support such a move.

Minister for State Enterprises Laksamana Sukardi said Ms Megawati needed emergency powers.

'The president is drafting a decree on how to handle this emergency situation. This is an emergency in the sense that we have declared war on terror. We had declared this before but now it's more obvious,' he said.

The tools should include strengthened armed forces.

Mr Laksamana said the cabinet had decided on Monday that parliament must be persuaded to fast-track presidential proposals for dealing with the security crisis, which was further hit when the US government urged all Americans to leave the country.

Ministers and MPs claim the public would support a stronger executive branch of government. 'The people would be behind her [Ms Megawati]. An event like this [in Bali] will unite the people,' Mr Laksamana said.

An expert on the Indonesian military, Marcus Mietzner, warned such a claim might only be true if Ms Megawati grabbed the momentum of the Bali tragedy within the next two or three days. 'If she fails to take this moment quickly, the political environment will return to its focus on infighting and delay,' he said.

Lawmakers have dragged their feet for years on the question of how to replace the pre-1998 Anti-Subversion Act, which was used by Suharto to jail opponents.

An anti-terrorism bill has been drawn up but it has yet to be tabled despite four years of deliberations.

Attempts to replace a 1959 emergency law were stalled when public protest forced its withdrawal in 1999.

Opponents fear both draft laws would not target militant groups but would allow the armed forces to go after separatists in Aceh, Papua and the Malukus.

A further indication that the military sees Bali as an opportunity to consolidate its waning power was seen in comments made by army chief Ryamizard Ryacudu.

'Ryamizard said that what happened in Bali shows what happens when a civilian government does not allow the armed forces to act,' Mr Mietzner said.

'Anyone can get any kind of weapons or explosives in and around the country so long as they can bribe the military or the police. This is the real problem, not whether there are decrees and laws,' he said.

Vaudine England in Kuta, Bali