Indonesia today described as "mind-boggling" a report that Australian spies targeted Jakarta during a trade dispute with Washington, as a new espionage row erupted during a visit by US Secretary of State John Kerry.
Ties between Canberra and Jakarta have sunk to their lowest point for years in recent months over previous allegations that Australian spies tried to tap the phones of Indonesian President Susilo Bambang Yudhoyono and his inner circle.
Jakarta recalled its ambassador from Canberra and suspended cooperation in several areas, including on the sensitive area of people-smuggling, following the allegations.
As Kerry visited Jakarta today as part of an Asian tour, tensions flared over new espionage allegations in a weekend New York Times report, which said Australian spies targeted Indonesian officials during a trade dispute with the United States.
The report, based on a document from US intelligence leaker Edward Snowden, said that the spies listened in on conversations about trade between the Indonesians and their US lawyers and offered information they gleaned to the US National Security Agency.
"I find that a bit mind-boggling and a bit difficult how I can connect or reconcile discussion about shrimps and how it impacts on Australia's security," Indonesian Foreign Minister Natalegawa told reporters at a press conference alongside Kerry.
Indonesia has been embroiled in trade disputes with the US over its exports of shrimp and clove cigarettes in recent years.
Australian Prime Minister Tony Abbott has refused to confirm the report, but defended the country's intelligence -gathering today as "to save Australian lives, to save the lives of other people".
However Natalegawa said that it was "a little bit too much and begs some kind of serious question about what this is all about".
"I think there is a very important and fine distinction between to listen to one another and to listen in," he added.
Responding to a question about the report, Kerry said: "I completely understand, as we do in the United States, how there are concerns... Regarding this issue, which is challenging for all of us."
"I'd just make it clear to everybody.. The United States does not collect intelligence to afford a competitive advantage to US companies or US commercial sectors," he added.
Leaders from US allies have been angered by allegations that the NSA monitored their telephone calls, while outrage in the United States has centred on the news that the NSA swept up "metadata" from private calls by ordinary Americans.
