Senior federal Labor MP Chris Bowen has refused to say whether he knew Australian intelligence agencies were spying on top Indonesian officials under the Rudd government.
The relationship between the two nations is in turmoil after whistleblower documents revealed the Defence Signals Directorate in 2009 targeted the personal mobile numbers of the Indonesia leader Susilo Bambang Yudhoyono and his wife, as well as eight others in the president's inner circle.
Mr Bowen, who held a number of key portfolios including immigration in both the Rudd and Gillard governments, refused to answer questions about his knowledge of spying operations.
"It would be highly irresponsible for me to do so," he told reporters in Canberra on Tuesday.
Prime Minister Tony Abbott and Foreign Minister Julie Bishop had to act "proactively" to deal with the fallout of the claims.
"It's an important priority for Mr Abbott and the foreign minister to be dealing with this and to make sure this relation is on an even keel," Mr Bowen said.
Australian Greens senator Scott Ludlam says Mr Abbott should apologise immediately, and that there should be a thorough parliamentary inquiry conducted by the Senate's legal and constitutional affairs committee.
Australia's relationship with Indonesia was at its lowest ebb since 1999, Senator Ludlam said, adding there was no telling what damaging information had yet to be released.
"That's why we think the Australian government should put its foot forward and actually act in transparency and disclosure rather than waiting for these things to happen, then reeling about without much to say," he said.
Independent MP Andrew Wilkie, a former intelligence analyst, says Indonesia's denial that it spies on Australia is a "fantastic proposition".
"They knew we were spying in and on them, we know they're spying in and on us," he told Sky News.
Mr Wilkie described as "theatre for public consumption" a certain amount of what was going on now between Jakarta and Australia.
Independent senator Nick Xenophon says the government will have to address the spying claims to break the diplomatic impasse.
Australia needs Indonesia's friendship and cooperation on a range of issues including people smuggling.
"I would have thought the government needs to distance itself from any actions of a previous government," he said.
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