Police say their anti-terror squad shot and killed six suspected militants and arrested another in an all-night standoff at a house near Indonesia's capital.

National police spokesman Brig. Gen. Boy Rafli Amar says the shootout started late Tuesday when most Indonesians were preparing for New Year's Eve celebration and ended Wednesday. Intelligence gathered from earlier arrests allowed police to storm hideouts in Ciputat on Jakarta's southern outskirts.

He says those who were killed had refused to surrender and instead fired guns and lobbed homemade bombs at security forces, injuring one police officer.

Police believe the men are part of a larger group involved in robberies carried out to fund terrorist activities, mainly aimed at police, and also plan to investigate any links to a plot to bomb the Myanmar Embassy.