Unplugged: Jakarta Bombings and Al Qaeda's Involvement

Since 2005, Zarate said, the Indonesian government has been able to successfully crack down on "J.I.", or Jemmah Islamia, a terrorist cell associated with Al Qaeda. But "you still have cells out there," he warned. "J.I. is down but it is not out."

Zarate noted that the group's spiritual leader has recently been freed from detainment.

"It's important for folks to remember that this is part of the broader global ideological movement that Al Qaeda purports to lead and Jemmah Islamia sees itself as the Southeast Asian outpost for that strategy," he explained.

Zarate said the discovery of materials used to make the bombs at the site is "absolutely" helpful for investigators. He noted that one of the J.I.'s primary bomb makers may be behind this handiwork and if the investigators confirm this was his work they will be "very worried...because it will suggest that he is not only active but he is part of the plotting of the attacks."

Orr asked why the group decided to bomb the hotels now. "First and foremost when you look at Al Qaeda or related groups like J.I. they will attack when they are ready," Zarate said. "In this case it looks like both individuals actually checked into both hotels a couple of days before."

Zarate also admitted that Al Qaeda and associated terrorist cells also "look for symbolism" in planning their attacks. The recent Indonesian election, which was "viewed as a symbol of democratic reform," may have been the impetus.

Watch the full interview above as well as a preview of political satire "In The Loop" on "Washington Unplugged."