The Federal Trade Minister Mark Vaile has warned Indonesia it would violate international trade rules if it imposes trade bans on Australian goods.
The Indonesian Association of National Importers has called for a boycott of Australian goods, amid anger over the decision to grant temporary visas to 42 Papuan asylum-seekers.
Mr Vaile says the call ignores Indonesia's obligations as a member of the World Trade Organisation.
"Media reporting seems to indicate that maybe the Indonesians might be going to toughen up on some of their import requirements.
Well all I would say is that all members of the the WTO need to remember the responsibilities they have to shoulder as members of the WTO under the rules based trading system."