Indonesia has frozen a broad range of cooperation with Australia in response to revelations that Australian intelligence tapped the phones of the Indonesian president, his wife and top officials.
The decision, announced by Susilo Bambang Yudhoyono in a television address on Wednesday, follows increasingly tense relations between the neighbours since Tony Abbott became Prime Minister in September this year, Reuters reports.
On Tuesday, Indonesia demanded an apology and explanation within two days over revelations from fugitive American intelligence analyst Edward Snowden that Australia tried to listen in on Mr Yudhoyono's phone calls in 2009.
The Sydney Morning Herald reports the sudden deterioration in ties sent the Abbott government into crisis talks, with Prime Minister Tony Abbott requesting time to address the House of Representatives at short notice to emphasise his respect for the relationship and his desire to see it repaired.
''I want to express here in this chamber my deep and sincere regret about the embarrassment to the President and to Indonesia that's been caused by recent media reporting,'' he said.
I also regret the statement of Australian Prime Minister that belittled this tapping matter on Indonesia, without any remorse. *SBY*
— S. B. Yudhoyono (@SBYudhoyono) November 19, 2013