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Hundreds of protesters in Jakarta pelted the Australian embassy with eggs on Friday, as an escalating spying row spread to the business world when an Indonesian state-owned firm froze plans to buy an Australian company.
And in a blow to Jakarta’s efforts to present a tough stance on the issue, Indonesia’s former spy chief said tapping national leaders’ phones was “normal” and dismissed official anger at the scandal as an overreaction.

	The wiretapping is clearly a betrayal and an unacceptable act

	Ismail Yusanto, Hizbut Tahrir Indonesia
The allegations that Australian spies targeted President Susilo Bambang Yudhoyono, his wife and ministers in 2009 has sparked a snowballing diplomatic crisis.
Jakarta recalled its ambassador from Canberra earlier this week and suspended co-operation with Australia in the sensitive area of people smuggling.
On Friday about 400 protesters from nationalist and Islamic hardline groups descended on the Australian mission in the capital Jakarta, the second straight day a rally has been staged at the mission.
They threw eggs, flour and tomatoes at and over the wall of the heavily fortified compound, while a huge contingent of police stood guard.
“Burn, burn, burn down Australia, right now,” shouted members of the hardline Islamic Defenders’ Front, who were wearing traditional Islamic skullcaps and white robes.
“The wiretapping is clearly a betrayal and an unacceptable act,” said Ismail Yusanto, of Islamic group Hizbut Tahrir Indonesia, adding the Australian embassy should be shut down.
In the city of Malang, East Java province, scores of protesters demonstrated outside the local government offices and set fire to an Australian flag.
In a sign the spying row was starting to damage business ties between the major trading partners, a state-owned Indonesian company said it had suspended talks to buy an Australian cattle breeder.
Rajawali Nusantara Indonesia, which is charged by the government with looking for cattle-breeding opportunities in Australia, is the first company known to have frozen a business venture due to the spying allegations.
Communications director Budi Perbawa said that due to the “sensitive issue between Australia and Indonesia” the company had decided to postpone plans to acquire a cattle breeder in Australia.
He declined to name the company the Indonesian firm had been planning to acquire.
The beef trade between Indonesia and Australia is important, with Australia a major supplier of cattle to Indonesia, which relies on imports of the meat.
The news came after Trade Minister Gita Wirjawan reportedly warned this week that ongoing talks on a trade deal with Australia could be suspended due to the escalating row.
Indonesia has reacted furiously to the spying reports, based on leaked documents from US intelligence fugitive Edward Snowden, but ex-spy chief AM Hendropriyono played down the seriousness of the allegations.
“For intelligence, it’s normal,” he told Australia’s Fairfax Media, referring to the reported Australian attempts to spy on the conversations of Yudhoyono and his confidantes.
“Pickpockets are supposed to pick pockets,” he told Indonesian news website Liputan6.com.
The former army general, who headed the agency from 2001 to late 2004, also batted aside comments by Foreign Minister Marty Natalegawa that Indonesia would never tap the phones of Australian politicians.
And he criticised the angry reaction from Indonesian leaders to the scandal, telling the Indonesian news site: “I think this is an overreaction to a failed Australian intelligence operation. The reaction is a little too much.”
The documents leaked by Snowden showed that Australia’s electronic intelligence agency tracked Yudhoyono’s activity on his mobile phone for 15 days in August 2009, when Labor’s Kevin Rudd was prime minister.
At least one phone call was reportedly intercepted.
Australian Prime Minister Tony Abbott has said he regrets any embarrassment caused but has so far refused to apologise, further infuriating Jakarta.


Anti-Australia protests in Indonesia as crisis spreads to business 

Indonesian activists burn a mock of Australian national flag during a protest against spying in front of the Australian embassy in Jakarta, Indonesia, on Friday. Photo: EPA

Abbott adviser's 'porn star' jibe at Indonesian minister stokes spying row

Protesters in military uniforms chant slogans outside the Australian Embassy in Jakarta yesterday as the spying row escalated. Photo: AP

Marty Natalegawa

Indonesians burn Australian flags over spying reports

Anti-Australia protesters shout slogans while holding a placard, reading 'expel Australian diplomatic members', during a rally in front of the Australian embassy in Jakarta on Thursday. Photo: AFP 

Anti-Australia protesters burn a paper with the US flag pictured on it during a rally in front of Australian embassy in Jakarta. Photo: AFP