Commemorations have been held on the Indonesian island of Bali to mark the bombings 10 years ago that killed 202 people, BBC News reported.

People from 21 nations died in the bombings, blamed on the Jemaah Islamiah militant group, on October 12, 2002.

Security was tight after Bali police on Wednesday warned of possible attacks against visiting dignitaries.

The bombs ripped through Paddy's Irish Bar and the nearby Sari Club in Bali's popular Kuta tourist district.

Australian Prime Minister Julia Gillard, former PM John Howard and opposition leader Tony Abbott all attended the commemorations. Eighty-eight Australians were among the dead.

Speaking at the early morning memorial service in Jimbaran, Gillard said Australia and Indonesia were "closer than we had ever been before''.

She paid tribute to rescuers who ''ran towards terror'', and to police and leaders in both Australia and Indonesia for how they handled the aftermath of the blasts. ''This is a day of contesting emotions,'' she added, addressing visibly emotional family members of victims attending the ceremony.

An estimated 1,000 Australians had travelled to the island for the commemorations.