Federal Agriculture Minister Barnaby Joyce has postponed a planned trip to Indonesia in light of the ongoing spying scandal.

Jakarta has reacted angrily to news Australian spies tapped the phones of the Indonesian president, his wife and inner circle.

In a statement, Mr Joyce said he has been having ongoing talks with Indonesia about visiting the country.

He said in the circumstances he has agreed to postpone a trip planned for next week.

It comes amid reports a state-owned Indonesian firm has halted talks with the Australian cattle industry because of the spying revelations.

RNI's chief executive Ismed Hasan Putro told Reuters that it has frozen talks with Australian cattle stations until the Government apologises to Indonesia.

"This is very important to build our mutual trust, respect and equality in the future," he said.

Mr Putro, who declined to name the Australian companies involved, said RNI had already started talks with a New Zealand firm as an alternative candidate.

The firm had been exploring the possibility of buying up to four Australian stations with the view to importing more than 100,000 live head of cattle a year.

Mr Joyce's office said the cancellation of his trip is not linked with the report.

Backlash unlikely to hurt Australian graziers as protests continue

West Australian Pastoralists and Graziers Association president Rob Gillam said he would be surprised if Indonesia stopped buying Australian cattle.

"The Indonesians have only, in the last three-to-four months really, recommenced to start to take genuinely increased numbers," he said.

"And that was for the very reason of the fact that their beef was becoming so expensive and so they're trying to build up their numbers again now to control their beef prices.

"So the repercussions, although there may be some felt in Australia if that was the case, would be much greater in Indonesia."

Elders chief executive Malcolm Jackman says it is possible the Indonesians are bluffing.

"I'm sure that there might be [some bluffing]," he said.

"I don't know any of the details around that, but as I said, I think the live exporters in Australia and I think the cattle producers in Australia are all waiting and watching. Everybody's hoping that our two countries get our relationship back on track quickly.

"If the overall relationship is not at its best, then you certainly see some impact on trade, but I think this is a very, very important trade for both Indonesia and for Australia. I think wise heads will prevail."

Indonesia's state-owned enterprises minister Dahlan Iskan told reporters: "Indonesia must take a firm stance with Australia as a country... but business must not be mixed with politics."

Indonesian police had to use tear gas and riot shields to hold back protesters demonstrating for a second day outside the Australian embassy.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 2 minutes 30 seconds 2 m 30 s The fallout from the Jakarta spy scandal continues.

The embassy building was hit with eggs, red paint, and rocks hurled by demonstrators.

Outside the embassy, protesters burnt Australian flags and pictures of Prime Minister Tony Abbott.

Police pushed protesters back with canes. One tear gas canister was fired.

The protesters were mostly members of hardline Islamist groups.

In the city of Malang, East Java province, scores of protesters demonstrated outside the local government offices and set fire to an Australian flag.

Efforts to stop asylum seeker boats "unaffected": Morrison

Indonesia has frozen people smuggling cooperation measures since leaked documents revealed the extent of Australia's spying operations in Indonesia.

During his weekly briefing on Friday on asylum seeker arrivals, Immigration Minister Scott Morrison said he was sure Indonesia would continue with strong border protection measures because it is in Jakarta's "national interest".

He maintained Australia's efforts to stop the boats will go forward "unaffected".

But he said he would not be commenting further on the issue because it would "not assist" the national interest.

Opposition immigration spokesman Richard Marles said the Government is refusing to answer simple questions and the minister's Friday media briefings are becoming "a weekly embarrassment".

ABC/Reuters