Terror: how real is the threat to business? The smiling face of Bali bomber Amrozi bin Nurhasyim, cheering as his own death penalty was handed down in a Denpasar court in early August, has been one of the most chilling images so far in Asia's war on terror.

Amrozi's capture and trial, along with fellow bombers Iman Samudra, Ali Imron and suspect Ali Ghufron, have kept terrorism in the news spotlight.

Further threats from terror group Jemaah Islamiyah, plus various governments' continuing aggressive stance on combating militant groups, seem to paint a bleak picture for Asia's security situation. Business, particularly now exporters to the region, could be forgiven for giving up and seeking "safer" places to trade. But is the perception of "terror" greater than the reality of doing business in Asia, particularly in supposed hotspots like Indonesia?

Terror threat

On the surface, the situation looks grim for business. Newspapers and television news across the region have kept a strong focus on terrorism as tragedies and successes occur.

The most apparent threat seems to be that of regional terrorist group Jemaah Islamiyah (JI), the organisation blamed for last year's Bali bombing and the Jakarta car bombing in August. JI is believed to be linked to global terror group al-Qaeda and has stated its intention of setting up an Islamic state in South East Asia.

The region's governments, stung into action by events such as Bali, have cracked down on the group, last month securing the capture of JI's suspected operational chief Hambali in Thailand. More than 200 people have also been detained in Indonesia, Singapore and Malaysia for their links to JI.

Concerns that more attacks will occur, however, are still high. The International Crisis Group, an independent organisation that monitors conflicts worldwide, says JI probably has "thousands of members" spread across the Indonesian archipelago and "remains dangerous" despite the recent arrests and tightened security measures.

The ICG report, titled "Jemaah Islamiyah in South-East Asia...