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Indonesian authorities have tightened security for this weekend's Eid al-Fitr holiday REUTERS/Ari Bowo Sucipto/Antara Foto

Suspected Islamist militants killed an Indonesian police officer in a knife attack in the city of Medan, a police spokesman said on Sunday (25 June).

The officer died from his wounds after being stabbed by the militants. One suspect was shot dead by the police while another one was arrested after the attack on a police post.

Police spokesman Rina Sari Ginting told Reuters that two suspected militants, wielding a knife and a machete, had scaled the fence of the police post near police headquarters in western Indonesia and shouted "Allahu Akbar" (God is greatest) before stabbing the officer.

Indonesian authorities have tightened security for this weekend's Eid al-Fitr holiday marking the end of the fasting month of Ramadan.

"They want to execute an IS command that tells their followers to carry out attacks anywhere with whatever they have," Ginting added.

Indonesia, the world's most populous Muslim nation, has carried out a sustained crackdown on militants since the 2002 Bali bombings that killed 202 people.

This attack has spread fear across Southeast Asia. The Islamic State (Isis) will seek footholds elsewhere as it loses ground in the Middle East.

"Authorities are investigating whether the attackers were inspired by Islamic State and acting on the instructions of Bahrun Naim, an Indonesian who went to fight for the militants in Syria," Setyo Wasisto, the national police spokesman said.

President Joko Widodo has urged parliament to accelerate plans to tighten anti-terrorism laws to meet new dangers. The plans include giving police the power to detain suspects without trial and to arrest people for hate speech or for spreading radical content and joining proscribed groups.

About 40 suspected militants had been detained in the last few weeks, National Police Chief Tito Karnavian said last week.

Last month, three police officers were killed in a suicide bomb attack by Isis-inspired militants at a bus station in the capital, Jakarta.