The NYT report on Bali includes the information that:

The Laskar Jihad, the most prominent face of militant Islam in Indonesia, said it had disbanded and would withdraw its militia forces from the Moluccas islands where they have fought in a vicious conflict with indigenous Christians.

Further detail is given later in the article:

The leader of Indonesia’s high profile militant group Laskar Jihad said his organization had disbanded.
Jafar Umar Thalib denied the move was linked to the Bali bombings. He said the group made the decision to close and bring home its fighters from the Moluccas islands on October 7, days before the Bali explosions.

Nevertheless, Laskar Jihad is struggling. Thalib is currently on trial for inciting violence, and there are reports his group, which analysts say is sponsored by segments of the armed forces, is now running short of cash.

If correct, this report is good news on a number of fronts. Laskar Jihad was the other obvious suspect after Jemaah Islamiyah. Even if this group wasn’t responsible for Bali it has committed hundreds, if not thousands, of murders in Ambon and elsewhere. And, given all the criticism of the Indonesian government, much of it justified, the fact that they’ve apparently been able to beat a group with notoriously powerful military sponsors (or perhaps to scare those sponsors into pulling out) is an encouraging sign.