"Based on credible information, the terrorists have planned to target the Bali bombing commemoration event with a terror attack," Bali deputy police chief I Ketut Untung Yoga Ana told AFP.

"Security at all entry points to Bali, such as airports and seaports will be intensified," he said, adding that security was at the "highest level".

"We are taking extraordinary security measures following this threat," he said, after earlier announcing that 1,000 security personnel including snipers, heavily armed police commandos and intelligence agents had been deployed.

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