Islamic State-linked attackers struck the capital of Muslim-majority Indonesia on Thursday, executing a Westerner and blowing up a Starbucks in an assault that left seven dead, police said.

Five extremists launched what police said were Paris style attacks as they detonated explosives and shot at people in a Jakarta district packed with malls, embassies and United Nations offices.

The assault also left an Indonesian man dead, 20 people injured and a police post destroyed, in what the country's president called "acts of terror".