(Transcript from SBS World News Australia Radio)
Indonesia has repeatedly warned against the policy, which is part of Operation Sovereign Borders, the Coalition's regional action plan against people smuggling.
In an unusual step Indonesia has ramped up the pressure by issuing a statement warning the policy could jeopardise the relationship between the two nations.
The Indonesian Foreign Ministry has warned that the Australian government's plan to turn back asylum seeker boats could risk cooperation and trust in joint efforts aimed at combating people smuggling.
Just days before talks between Tony Abbott and Indonesian President Susilo Bambang Yudhoyono, Indonesia Foreign Minister Marty Natalegawa released details of his discussions with Australia's Foreign Minister Julie Bishop in New York.
Mr Natalagawa says unilateral measures taken by Australia could potentially risk the close cooperation and trust between the countries.
And comments by Former Foreign Minister Alexander Downer are unlikely to help the situation.
Mr Downer told the ABC, Indonesia needs to take a look at its own actions and adopt a more mature approach to the problem.
"Indonesian flagged boats with Indonesian crews are breaking our laws bringing people into our territorial waters. This is a breach of our sovereignty and the Indonesians need to understand that. Instead of a lot of pious rhetoric about the Australian Government threatening their sovereignty. A solution to this needs to be worked out in a mature and constructive way as it was during the Howard years."
Tony Abbott says he remains confident Australia will be able to work with Indonesia on the asylum seeker issue without violating its sovereignty
Mr Abbott has told Fairfax radio, Australia will work closely with Indonesia to stop the flow of boat arrivals in a way which fully respects Indonesia's sovereignty.
"This is a broad and deep relationship which is going to get broader and deeper over time and the last thing that anyone should want is to have Australia's relationship with Indonesia defined by this boats issue which I am sure will be but a passing irritant."
Interim labor leader Chris Bowen says its obvious that Australia's long term relationship with Indonesia is under threat and has been made worse by Mr Abbott and Mr Downer's comments.
Mr Bowen says Mr Natalgawa's comments are extremely concerning.
"This step is an extraordinary one on behalf of the Indonesian government. It is unprecedented in its impact and it is unprecedented in its scope. This is a measure taken by the Indonesian Foreign Minister clearly on behalf of the entire Indonesian government. Now this has been made worse by Prime Minister Abbott claiming again that this is simply a passing irritant. And Mr Downer's comments were particularly provocative and typically arrogant."
While the government cannot legally turn back boats in international waters, it can legally turn back asylum seeker boats intercepted within 24 nautical miles of the Australian coastline, provided it is safe to do so.
This is what happened under Operation Relex, the Howard government's version of Operation Sovereign Borders.
However the legal niceties are unlikely to impress Indonesia and it appears the meeting in Jakarta is likely to become a major test of the government's foreign policy skills.
