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Tensions between Indonesia and Australia have escalated after Indonesia officially downgraded their relationship. It was the result of Tony Abbott’s refusal to apologise over allegations Australia tapped phone calls involving President Yudhoyono and his wife.

Some commentators are suggesting the Indonesian government is merely trying to take a strong stance in the lead up to the 2014 Presidential Elections. But given that the diplomatic reaction has been so severe, others are concerned that this will significantly harm Indonesia-Australia relations for some time to come. So why has Indonesia been so offended?

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