Counter-terrorism chief Ansyaad Mbai said the men were part of a violent Islamist group and were shot as the anti-terror police unit Detachment 88 conducted a raid on the street in an East Java town.
"Detachment 88 had sought the men over a recent attempted suicide bombing and a case of hacking to fund militant activities," Mbai told AFP.
The police squad ambushed the men as they waited for public transport in Tulungagung district, national police spokesman Boy Rafli Amar said.
"Two suspects died and the other two surrendered and were arrested," Amar said.
The other suspect shot dead was identified only as Rijal.
Police seized a revolver and a bag containing a homemade bomb.
Mbai connected the men to an attempted suicide bombing in June on a police compound in Poso -- a district on Sulawesi island known for militant activity.
The bomber blew himself up, only injuring a construction worker.
It was the first suicide attack in Indonesia since September 2011, when a bomber injured dozens in an attack on a Central Java church.
The group hides out in the jungles around Poso and is suspected of carrying out a series of attacks, including police killings.
Santoso appeared in a video posted online earlier this month urging "jihad" and calling Detachment 88 a "real enemy".
Indonesia has been waging a campaign against Islamist terror groups for more than a decade and has largely dismantled some of the deadliest groups, with only low-impact attacks carried out in recent years.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
