Indonesia's president says ties with Australia have been "damaged" by reports that Canberra spied on his phone calls and those of his ministers.
Susilo Bambang Yudhoyono said it was a"hurtful action" and that Australia had"belittled" the row. Jakarta would review co-operation, he said.
Australian PM Tony Abbott expressed regret but said he would not apologise.The allegations published by Australian mediacame from documents leaked by whistleblowerEdward Snowden.
Mr Abbott said he regretted "any embarrassment" caused by the reports."I regard President Yudhoyono as a good friend of Australia, indeed as one of the very best friends that we have anywhere in the world," he said, speaking in parliament on Tuesday.
However, he added: "I don't believe that Australia should be expected to apologise for reasonable intelligence-gathering operations, just as I don't expect other countries or other governments to apologise for their reasonable intelligence-gathering operations."
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