Umar Patek was a leading member of the al Qaida-linked network Jemaah Islamiyah, which is blamed for the bombings at two nightclubs in Kuta Beach.
Indonesian authorities have said Patek was successfully reformed in prison and they will use him to influence other militants to turn away from terrorism.
Patek, 55, whose real name is Hisyam bin Alizein, received a total of 33 months of sentence reductions, which are often given to prisoners on major holidays, said Rika Aprianti, spokesperson for the Corrections Department at the Justice Ministry.
Most recently, he was granted a five-month reduction on August 17, Indonesia’s Independence Day.
That meant he has fulfilled the parole requirement of serving two-thirds of his current sentence, she said.
Patek was found guilty by the West Jakarta District Court of helping build a car bomb that was detonated by another person outside the Sari Club in Kuta, moments after a smaller bomb in a backpack was detonated by a suicide bomber inside the nearby Paddy’s Pub nightclub. The attacks killed 202 people — mostly foreign tourists — including 88 Australians, leaving a deep scar in that country.
In August, Albanese said the federal government would make “diplomatic representations” to Indonesia, opposing Patek’s release.
“I feel a great deal of common distress, along with all Australians, at this time,” Albanese said at the time.
“We had been advised by the Indonesian government of this further reduction.
“This will cause further distress to Australians who were the families of victims of the Bali bombings.”
Patek was sentenced to 20 years in prison a decade after the bombing. He left Bali just before the attacks and spent nine years on the run, during which he was considered one of Asia’s most wanted terror suspects.