Don't fear terrorist label, says Indonesian cleric

SOLO, Indonesia, June 16 (Reuters) Indonesian hardline cleric Abu Bakar Bashir told a Muslim congregation today, two days after his release from jail, to fight for Islam and ignore criticism branding those involved in the struggle as terrorists.

Bashir, who Western and regional intelligence officials say was once spiritual leader of the al Qaeda-linked Jemaah Islamiah militant network, was freed on Wednesday after serving time over the 2002 Bali bombings that killed 202 people.

In a Friday sermon at the Al-Mukmin Islamic school he co-founded, the 67-year old cleric told students and sympathisers the movement to spread Islam to the world is a costly campaign.

Bashir said being called ''terrorists'' or ''hardliners'' during the struggle was a light price to pay.

''The Prophet was accused of being crazy. The infidels have not yet accused us of being crazy. I was accused as a terrorist but they said I was still sound,'' he said, referring to the obstacles Prophet Mohammad faced when introducing Islam in the 7th century.

''Do not hesitate in maintaining the faith until death. The form is through jihad whether defined as struggling or combating infidels. From preaching to education and jihad ... that's already a war,'' said Bashir, wearing a white skull cap and shirt.

''For what? Only for one purpose. To uphold the faith. The faith is more expensive than any wealth in the world, more valuable than children, wife or even life itself,'' said the preacher, whose sermon was heard by hundreds sitting silently on the floor of the school mosque.

Western nations, especially Australia which lost 88 nationals in the Bali attacks, have protested the release of the frail-looking but sharp-tongued cleric, but Indonesian officials say Bashir's jail sentence and release were mandated by courts.

Australian Prime Minister John Howard has sent a letter to Indonesian President Susilo Bambang Yudhoyono saying the release caused disappointment and pain in his country.

Indonesian Vice President Jusuf Kalla said in Jakarta today that he could understand the Australian emotions.

''Their perception is Bashir was the player. However, law cannot rely on perceptions. It needs proof. We cannot take steps without legal evidence,'' he told reporters.

Bashir has denied any involvement in bombings and said on the day of his release that perpetrators behind attacks in Indonesia were wrong to use that strategy in what he called a peaceful zone.

Howard, who is expected to meet Yudhoyono next week, has said his country still would work with Jakarta to fight terrorism.

The June 26 summit itself had been expected to cap an improvement in ties after a flap over Australia granting asylum to 42 people from Indonesia's restive Papua province.

Hidayat Nur Wahid, chief of Indonesia's supreme legislature, told reporters Yudhoyono should protest the Australian reaction at the Batam talks because Canberra had interfered too far.

''(Australia) should respect our laws and not terrorise its neighbour Indonesia. Every nation has its own views on law enforcement, justice and ways to combat terrorism,'' he said, referring to complaints from Australian leaders on Bashir's release.

Despite ups and downs in other aspects of their relationship, the two countries have cooperated closely since the Bali blasts in pursuing violent militants, with Australia providing key technical and expert aid to Indonesia.

REUTERS SB BST1720