Security threats overshadowed commemoration ceremony of the 10th anniversary of Bali bombings slated on Friday following the police's finding of possible terror attack scheme framed by Muslim extremists in the country's most popular tourist destination island during the event.

In March this year, Indonesian police's anti-terror squad of Special Detachment 88 (Densus 88) identified a clue that a terrorist group planning suicide mission had arrived in Bali.

The clue came up after members of Densus 88 killed five operatives of Indonesian Muslim radical organization of Jamaah Ansharut Tauhid (JAT) believed of planning bomb attacks in Bali and other areas in the country. One person assigned to carry out the suicide bombing still on the loose as he escaped from the squad's raid at that time.

The JAT organization is led by the now-jailed Muslim defiant cleric Abu Bakar Bashir who was sentenced to nine years in prison since 2011 after being proved of funding terrorist training camp in Aceh.

Bashir and his militant organization intend to set up an Islamic state in Indonesia, the largest Muslim community as they represent 80 percent of 240 million population in the nation.

Marking a decade of the deadly Bali bombing this year, Indonesia planned to stage a big ceremony to be attended by Indonesian President Susilo Bambang Yudhoyono and Australian Prime Minister Julia Gillard.

The ceremony is aimed at remembering those who perished in the Bali bombing on Oct. 12, 2002 that killed a total of 202 people among whom 88 were Australians. The commemoration will also serve as a call to end terror acts that cost civilians'lives.

In his brief remarks to mark decade of Bali bombing, Yudhoyono said that the Bali bombing carried out by terrorists failed to achieve its objective. It even made interfaith cooperation in the country increased since then.

"Whatever the motivation and calculation of the terrorists, the Bali bomb attack did not produce its desired effects,"he said Thursday.

"In fact, it resulted in just the opposite. Throughout Indonesia, Muslims, Hindus, Christians and Buddhists overwhelmingly condemned the attack and repudiated those who misused religion to carry out acts of violence. The entire nation galvanized to defend freedom, democracy and tolerance,"he added.

Indonesian government has arrested those involved in the bombing and tried them in civil court. Part of them were sentenced to death with executions against them had been done.

Some 4,000 people are expected to attend the ceremony centered at Garuda Wisnu Kencana park in the capital city of Bali province, including 800 family members of Australian victims.

Indonesia deployed at least 1,000 police and 1,000 military personnel to secure the event. Australian Federal Police would also be dispatched to guarantee the security of Australian participants.

Indonesia saw more bomb attacks in Bali and other places after the 2002 Bali bombing. In 2003, a high explosive bomb went off in an American hotel, JW Marriott, in Jakarta, killing 12 people and injuring 150 others. In 2005, 20 civilians most of whom were tourists died in a suicide bombing attack in Bali in 2005.

In 2009, two bombs exploded in two American hotels, JW Marriott and Ritz Carlton located close to each other in Jakarta, killed seven people and injured around 50 others.

Most of the bombings were carried out by militants joining the Jamaah Islamiyah (JI) terror organization.

According to data released by Indonesian police, more than 700 militants have been arrested over the past decade, including 84 last year. Dozens have been killed in explosion attacks since the Bali bombings.