Australia's Agriculture Minister has postponed a planned trip to Indonesia in light of a spying row.
The Indonesian government has reacted angrily to news Australian spies tapped the phones of the Indonesian president, his wife and inner circle.
Federal Agriculture Minister Barnaby Joyce said in a statement he has been having ongoing talks with Indonesia about visiting the country but in the circumstances agreed to postpone a trip planned for next week.
A state-owned Indonesian firm has reportedly 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.
Mr Putro did not name the Australian companies involved and said RNI had already started talks with a New Zealand firm as an alternative candidate.
The president of the West Australian Pastoral and Graziers Association, Rob Gillen, says 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 told the ABC
"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."
Mr Gillam said the repercussions of halting cattle purchases would be much greater in Indonesia than Australia.
Meanwhile, hundreds of protesters gathered outside the Australian embassy in Jakarta on Friday, with some protesters throwing eggs and tomatoes over the wall of the compound.
The protesters were mostly members of hardline Islamist groups. There were clashes with police, who pushed protesters back with canes, and one tear gas canister was fired.
