''Now if there's people smugglers breaking the law in Indonesia, we will handle it ourself.'' Indonesia newspaper Koran Tempo's headline translates as "SBY must be tougher". Until now it's been believed that the damage from this week's phone tapping revelations was largely symbolic because it was quarantined to military co-operation between the two countries, which is minimal or non-existent. In further a reprisal, Indonesian Trade Minister Gita Wirjawan has asked parliament to revise Law No. 18/2009 on Husbandry and Animal Health to allow Indonesia to import live cattle from countries other than Australia. To date, only imports from Australia have been allowed because it is entirely free of foot-and-mouth disease. The law change would allow imports from foot-and-mouth-free zones, particularly Brazil. The change has been flagged several times in the past, but the diplomatic spat over spying has given it fresh impetus. However, the minister conceded it was not possible to suddenly stop cattle imports from Australia because it would affect prices at home, and the live trade from Australia is actually growing fast as Indonesia tries to reduce a stubbornly high beef price by importing 200,000 head from Australia. The ship Ocean Drover is currently being loaded with 18,000 head in Darwin.

Continued pressure from Indonesia contrasted with a bullish attitude from Australia's Immigration Minister Scott Morrison, who said on Friday that the withdrawal of Indonesian co-operation on anti-people smuggling efforts left Operation Sovereign Borders ''unaffected''. Indonesian Trade Minister Gita Wirjawan, who has called for Indonesia to buy live cattle from outside Australia, meets with former Australian Trade Minister Craig Emerson in 2012. Credit:Andrew Meares Mr Abbott is continuing to wrestle with his reply to a stern letter from Dr Yudhoyono about the phone-tapping affair. Late on Friday his office offered no response to the latest developments on boats and beef, and refused to even say if the letter had been completed. Privately, Mr Abbott is understood to be deeply unhappy at the public comments of his predecessor, Julia Gillard.

In an interview on American television on Friday, Ms Gillard said Australia should follow the US lead and apologise to the Indonesian President as Barack Obama had apologised to German Chancellor Angela Merkel after her phone was tapped. Former Labor foreign affairs minister Gareth Evans has also weighed in, declaring Mr Abbott's refusal to apologise had added insult to injury. The suspension of police co-operation is another blow to Mr Abbott's policy of stopping the boats and will weaken Indonesia's ability to intercept asylum seekers before they get on boats, and to arrest and prosecute people smugglers. Under the co-operative framework, Australian Federal Police collect intelligence from asylum seekers in both Australia and Indonesia and feed it back to the Indonesian National Police. General Sutarman said other types of co-operation such as education and training through the Jakarta Centre for Law Enforcement Cooperation “might be impossible for us to stop”.

The Indonesia military chief, General Moeldoko, also confirmed that troops who had been on joint operations with Australian troops in Darwin were “Now back in Kupang [West Timor]”. One Indonesian parliamentarian has also called for Indonesia to revoke the ability of Schapelle Corby to be given parole. Parliamentarian Taslim Chianago told Republika newspaper that Indonesia should stop her being given parole “to heal the wounds” of the Indonesian people who see drugs, terrorism and corruption as extraordinary crimes. But the minister for law and human rights, Amir Syamsuddin, who must sign off on the parole application said in other media: “Our law clearly stipulates the process of parole, so she will not be affected”. In Jakarta, police armed with riot shields and tear-gas formed a defensive line in front of the Australian embassy to stop members of the Islamic Defenders Front moving forward. The embassy was pelted with eggs earlier on Friday, and a photo of Prime Minister Tony Abbott and an Australian flag were set alight in front of the compound.

A senior member of Hizbut Tahrir called for Australian ambassador Greg Moriarty to be expelled. He told supporters it was regrettable that the bombing of the building in 2004 was not more successful. Loading A fake coffin bearing a photo of Mr Abbott was laid on the street outside the embassy. The protesters later dispersed. with AAP