Indonesian anti-terrorism police have killed three suspected militants after a gunfight at a house south of Jakarta, where a bomb was found.
Wednesday's raid came soon after police had said they were interrogating 14 suspects after a series of arrests relating to planned suicide attacks in the capital, Jakarta, and elsewhere.
"During the raid, we tried to be careful but they threw something from inside the house and it was a bomb but it did not explode. Then they fired from inside," national police spokesman Rikwanto told Metro TV.
Indonesian television footage showed a bomb squad officer wearing a blast-resistant suit entering the house in South Tangerang, as locals watched from behind a police tape.
"Inside the house we found a bigger bomb and now we are investigating it to try to detonate it," Rikwanto said.
He said one suspect had been found alive.
Ayi Supardan, a senior officer from South Tangerang police, said after initial interrogation of the suspect who was found alive, it appeared there was a plan to use the larger bomb at the end of the year.
There was no indication of any possible target.
On Tuesday, Indonesian police said they were interrogating 14 suspects related to planned suicide attacks in Jakarta and outside the most populous island of Java.
The suspects held over the planned Jakarta attack had been communicating with, and received money from, Bahrun Naim, an Indonesian militant known to be fighting with Islamic State in Syria, police said.
President Joko Widodo later commended security forces for preventing attacks and called on the public to be vigilant against the spread of radicalism.
"We hope the public can also help fortify this country against terrorism and radicalism," Widodo said in a statement.
Indonesia has suffered several major militant attacks over the years, the worst of which was the 2002 Bali bombing that killed 202 people, including 88 Australians.