Gaunty's summation of the situation in his post on page two is highly accurate and his advice on how to respond is pretty spot on too. I suggest a second reading.
Indonesia has been soft on terrorism for a long time and that, coupled with a corrupt government, legal system and army are the root of the problem.
All those fancy international hotels in Bali are owned by government cronies anyway so most dollars you spend in country go straight to the pockets of the people causing the problem.
I do have sympathy for the lower level employees and small business that will suffer because of this - although in today's SMH it was reported that taxi drivers tried to rip off victims of the attack by charging outragoeus sums to take people away from the scene in the immediate aftermath
