INDONESIA'S ambassador in Canberra will immediately return to Jakarta following claims Australia had tapped the phone of President Susilo Bambang Yudhoyono.
Indonesian Foreign Minister Marty Natalegawa announced on Monday afternoon the ambassador would be recalled.
"It's nothing less than an unfriendly act," Dr Natalegawa said of the spying claims.
Indonesia's Coordinating Minister for Legal, Political and Security Affairs Djoko Suyanto earlier said he would demand Australia make a public explanation about the claims and make a commitment that it would not monitor the phones again.
Top secret documents from Australia's Defence Signals Directorate, leaked by fugitive US intelligence whistleblower Edward Snowden and published by the ABC and The Guardian, list 10 officials and their phone details - beginning with President Susilo Bambang Yudhoyono and wife Ani.
Air Marshal Suyanto also said Indonesia would review the exchange of information with Australia and "all other cooperation".
Australia's Foreign Minister Julie Bishop will be told the issue will have a negative impact on the countries' bilateral relationship.
Dr Natalegawa emphatically condemned Australia's alleged actions.
"It is, I want to make it absolutely clear, an unfriendly act unbecoming of relations between strategic partners," he said.
"It violates every single decent and legal instrument I can think of; national in Indonesia, national in Australia, international as well.
"It is nothing less than an unfriendly act which is already having a very serious impact on bilateral relations."
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