An Indonesian official has criticised Tony Abbott as "unethical" for sidestepping allegations the Australian navy paid the crew of a boat carrying 65 migrants to return to Indonesian waters.
Australia's prime minister did not deny the payment claims in a radio interview on Friday.
He said officials were being "incredibly creative" in responding to asylum seekers.
Agus Barnas, spokesman for Indonesia's co-ordinating ministry for political, legal and security affairs, said Abbott's comments could be interpreted as endorsing bribery and might encourage people smuggling.
Australia has a policy of turning back and refusing to resettle any migrant who arrives on its shores by boat.
The boat's captain and five crew members say they were each paid $US5,000 ($A6,450) after being intercepted by an Australian navy ship on May 20.
