Indonesia's national police chief says the wife and child of an arrested Islamic militant died in an explosion during a siege of their home in North Sumatra.

Dedi Prasetyo told The Associated Press on Wednesday that the woman is believed to have blown herself up hours after throwing a home-made bomb when police tried to search the house in Sibologa district.

Prasetyo said the incident was believed to have happened around 1:30 a.m.

He said: "Police are now still conducting sterilization at the crime scene and finding a safe way to evacuate bodies of the woman and her child."

Prasetyo said the arrested militant known as Husein was a member of Jemaah Anshorut Daulah, a militant network affiliated with the Islamic State group.