Indonesia on Monday recalled its ambassador to Australia over claims that Australian spy agencies tried to listen to the phone calls of President Susilo Bambang Yudhoyono, the foreign minister said.
Marty Natalegawa said the envoy was being called back to Jakarta for "consultations" after secret documents leaked by US intelligence fugitive Edward Snowden named the president as well as his wife and senior ministers as targets of the surveillance.
"This is an unfriendly, unbecoming act between strategic partners," the minister told reporters in Jakarta.
"This hasn't been a good day in the relationship between Indonesia and Australia."
Djoko Suyanto, the coordinating minister for legal, political and security affairs, said Jakarta also planned to review cooperation in all areas with Canberra.
The documents, that named the president and nine of his inner circle as targets of the surveillance, were obtained by the Australian Broadcasting Corporation and The Guardian newspaper.