The encounter took place in the mountain village of Taunca only a day when the country was shocked by terror attacks in Jakarta on Thursday leaving seven people dead including all five attackers and two civilians and scores of others injured.
Poso is one of remaining two hot spots beside Papua in the country. In Papua , the trouble makers are separatists and in Poso are radicals.
Poso police chief Adj Sr. Comr.Rony Suseno said the armed contacts took place for three hours starting at 07.000 local time.
"One of the group of armed civilians was killed and his body was already evacuated," Rony said here .
A 60 member troop including members of the police mobile brigade and military were then sent to that location after receiving information that suspected terrorist were set up camps in that place, he said.
"The terrorists resisted even started shooting. Exchange of fires lasted for three hours before they finally ran away leaving the body of their dead member," he said.
He said there were around 15 armed men in that place believed to be followers of Santoso, the leader of Mujahiddin fighters for Eastern Indonesia.
A locally assembled bomb was found left by the suspected terrorists in that place only 20 kilometers from the village of Taunca .
The government has been more on the alert after the terror attack in Jakarta .