JAKARTA, Aug 21 (Reuters) An Indonesian court today dismissed a lawsuit filed by controversial Muslim cleric Abu Bakar Bashir that called for the Southeast Asian nation's anti-terrorism unit be disbanded, his lawyer said.

The class action suit initiated by Bashir charged that Detachment 88, a police unit funded and trained by the United States and Australia, targets innocent Muslim activists and does the bidding of Western powers hostile to Islam.

Judges at the South Jakarta district court said the case could not continue because it did not name Muslim activists alleged to have become victims of unlawful arrests and police torture, said Achmad Michdan, a lawyer for the plaintiffs.

''We are not happy with the decision. This lawsuit was not intended to seek financial compensation. That's why we didn't list the names of the plaintiffs,'' he said.

Dozens of Bashir's supporters who filled the court's gallery shouted ''God is Great!'' after the judges read their verdict, the state Antara news agency reported.

Regional and Western governments allege that Bashir was the spiritual leader of Jemaah Islamiah (JI), a militant group blamed for a string of deadly attacks in Indonesia.

Bashir has denied this.

Hundreds of Muslim militants suspected of having links to JI have been arrested since the 2002 nightclub bombings in the resort island of Bali that killed 202 people, mostly foreigners.

In a recent crackdown, Detachment 88 arrested two alleged top JI leaders, including Abu Dujana, who confessed to heading the group's military wing.

Indonesia is the world's fourth most populous country, and about 85 per cent of its people follow Islam. While the vast majority of Indonesia's Muslims are relatively moderate, a militant minority has become increasingly vocal.

REUTERS SV PM1322