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Police say a sweeper has found a grenade in the parking lot of the heavily guarded Hilton hotel in Jakarta, just days after warnings that militants might attack one of the three Hiltons in Indonesia.
"It's about the size of a fist, it has been taken away," Jakarta police spokesman Tjiptono said.
Another officer says the bomb squad are examining the device, which he calls a pineapple grenade.
Emeraldo Parengkuan, public relations director at the Jakarta Hilton, says a staff member found a suspicious package wrapped in a can.
The discovery follows warnings from Western governments led by Australia, that militants might target an international hotel in the world's most populous Muslim nation during the Christmas and New Year period, particularly one of the Hiltons.
A hand grenade has been found in the grounds of Jakarta's Hilton hotel, after last week's warnings that extremists were planning to attack the chain's Indonesian hotels.
A local police official said the grenade was discovered inside a rusty tin by a gardener working outside the Hilton, and was later retrieved by a police bomb squad alerted by the hotel's security.
US jazz singer Norah Jones has became the latest in a string of performers to cancel a concert in Indonesia after foreign governments warned of an imminent attack by extremists.
Jones, whose 2002 album "Come Away With Me" won eight Grammy awards, was scheduled to play in Jakarta on March 1 2005, but scrapped her appearance without giving any reason, concert organisers Java Musikindo said in a press release.