A SUICIDE bombing attack outside a busy bus terminal in the Indonesian capital Jakarta has killed three police officers, the latest assault to hit the Muslim-majority country as it struggles with a surge of terror plots.

Two explosions hit the parking lot next to the Transjakarta bus terminal in the Kampung Melayu district about 9pm Wednesday (midnight Thursday AEST), according to The Jakarta Post.

Five other police officers and five civilians were injured when two bombers launched the attack in a street next to the station.

Human body parts — including a severed head — and shattered glass were strewn across the road following the attack, which happened as police were helping to secure a parade by a local group.

Ledakan Bom Bunuh diri di Terminal Kampung Melayu sory ya gak gw upload tubuh korban..

Yg jelas 2 tewas. 1 pelaku 1 polisi 4 Polisi luka pic.twitter.com/3NPjAZeqlD — Kent ARock'ers 👀 (@reporterjail) May 24, 2017

It was not clear who was behind the attack but Indonesia, the world’s most populous Muslim-majority country, has been on high alert after a string of plots and attacks in recent times by militants inspired by Islamic State.

The Kampung Melayu terminal in east Jakarta — which is frequented by locals and is not popular with foreign visitors — had been busy when the attack happened, and witnesses described scenes of panic as two blasts rang out minutes apart.

Dicky Wahyudin, 37, said he had been drinking a coffee across the road when the attack happened, prompting people to flee.

“Suddenly I heard two explosions, which were big — I immediately ran away,” he told AFP.

A local shopkeeper, Rosmala — who like many Indonesians goes by one name — added: “At first I saw smoke and shattered glass, the earth was shaking, I was shocked. After a few minutes there was another blast.”

Witness Sultan Muhammad Firdaus told TV station Kompas TV he heard two explosions about 10 minutes apart.

“The explosions were quite loud, I could hear them clearly,” he said.

Witness Rohimat told detik.com: “It was at the Kampung Melayu Terminal. Residents panicked, and ran. The explosion was very loud.” He also said there was a strong smell after the blasts.

National police spokesman Setyo Wasisto told reporters that two suicide bombers had been involved in the attack and three police officers had died. He had earlier said he believed only one attacker was involved.

“I have to convey my deepest condolences because three police officers died,” he said.

The terminal is a local hub served by minibuses and buses.

Indonesia has long struggled with Islamic militancy and hundreds of radicals from the Southeast Asian state have flocked to fight with IS, sparking fears that weakened extremist outfits could get a new lease of life.

A gun and suicide attack in Jakarta left four attackers and four civilians dead in January last year, and was the first assault claimed by the Islamic State group in Southeast Asia.

Indonesia has suffered a series of Islamic militant attacks in the past 15 years, including the 2002 Bali bombings that killed 202 people, including Australians.

A sustained crackdown weakened the most dangerous networks but the emergence of IS has proved a potent new rallying cry for radicals.

BREAKING: Video has emerged showing the moment of explosion at Kampung Melayu Jakarta. #Indonesia pic.twitter.com/bxXNJRaNoL — Timothy Simamora (@JTmor) May 24, 2017

The horror explosions come after two men, aged 20 and 23, were caned for having sex with each other in a province on the northern tip of Indonesia’s Sumatra island.

It marked the first time the punishment has been handed down for homosexuality since a sharia regulation banning the practice in Aceh was introduced in 2014.