National crisis as Indonesia cuts ties with Australia over spying scandal

Indonesian President Susilo Bambang Yudhoyono's rage over the targeting of his phone and those of his wife and senior officials exploded last night as he called the spying illegal and added: "now is not the era of the Cold War."

The phones were targeted by the Defence Signals Directorate weeks after three Australians were killed in terrorist bombings in Jakarta in 2009.

Prime Minister Tony Abbott and Indonesian President Susilo Bambang Yudhoyono. Source: News Corp Australia  

Prime Minister Tony Abbott spoke in parliament last night to address the crisis, saying "there are very serious issues that do need to be worked through in the near future."

"I want to express my deep and sincere regret about the embarrassment to the President and to Indonesia that has been caused by recent media reporting," he said.

"The President indicated he would shortly be writing to me I would like to reassure the House I will be responding to the President's letter swiftly, fully and courteously.

"I am absolutely committed to building the closest possible relationship with Indonesia because that is overwhelmingly in the interests of both our countries."

Earlier Mr Abbott had told parliament he would not "over react," citing the restraint shown by former Prime Minister John Howard when a former Indonesian spy chief revealed the country had tapped Australian MPs phones during the East Timor crisis in 1999.

Opposition Leader Bill Shorten said Labor, on whose watch the spying took place, would cooperate with the government's efforts in what he called a "team Australia moment."

President Yudhoyono said he had suspended military and border protection cooperation, including coordinated naval patrols and a planned military exercise in Darwin, pending an explanation from Mr Abbott.

Cooperation by Australian and Indonesian authorities in recent months had prevented thousands of asylum seekers boarding dangerous vessels.

"If Australia wants to maintain a good relationship with Indonesia in the future, there must be an official explanation," he said.

Foreign Minister Marty Natalegawa foreshadowed the President's dramatic intervention, saying the relationship with Australia had been "downgraded."

The President later said: "Indonesia and Australia is not in the position of confronting each other or in enmity."

It came as it appeared Australia had quietly told Indonesia's intelligence agency it would stop targeting the phones of government figures.

FLIP-FLOP GREENS HYPOCRISY Gemma Jones

Prime Minister Tony Abbott, Greens Leader Christine Milne and Opposition Leader Bill Shorten. Source: News Corp Australia

THEY have spent years verbally berated Indonesia but it was the Greens yesterday accusing Tony Abbott of behaving like a "hairy chested" politician for refusing to back down over the spying controversy.

Greens Deputy Leader Adam Bandt suggested the Prime Minister was "risking the relationship with Indonesia for the red neck vote" by refusing to bow to calls for an apology.

Mr Bandt himself accused Indonesia of subjecting Australian animals to "incredible cruelty" as he attempted to shut down the entire live export trade after some abattoirs abused cattle.

Greens Leader Christine Milne was slightly more restrained than her deputy yesterday.

"The only way Tony Abbott can smooth this and help rebuild the relationship with Indonesia is to pick up the phone to President Yudhoyono and have a personal discussion, just as President Obama did with Angela Merkel (after a US spying controversy)," Ms Milne said.

Her calls to appease Indonesia are in stark contrast to her own Senators rhetoric on the country over its human rights record.

Senator Richard De Natale accused the Indonesian military of oppressing West Papuans with training and arms supplied by Australia.

Just last month he said three West Papuans who left the Australian consulate in Bali "effectively had a gun to their heads."

He said if handed to the Indonesian police "prison, torture and even disappearance often follow."

The Greens last year promoted a forum about "genocide on our doorstep" and in 2011 called for a suspension of military cooperation between Australia and Indonesia.

In 2010, the Greens accused Indonesia of running a "torture unit" among police fighting terrorism.

A Greens spokesman said the Greens had not been hypocritical and believed Australia had wronged Indonesia.