Now I'm stuck at Mekar or whatever his name is. Cheap long range ray attack...
You can beat him with pretty standard SMT tactics. Load out one team that resists/nulls Ice and just wail on him with Zan and Wind Dance. For example, I loaded out Io with Zan and Dia, paired her with Jaki Mokoi and Divine Angel, and she just won the battle all by herself. The only difficult part was keeping all the bombs and spawning demons at bay.
And as was stated above, keep everyone out of the middle three squares. If you don't stand there, he won't fire the laser at you.
I love this game so far, but it feels like an expansion to the first game more than a real sequel so far. It's the Broodwar to the original's Starcraft. This isn't a bad thing, since the original was a really good game, but I feel like it could have been a lot better still.