There is little doubt that the Indonesian Government was aware that Australia was 'observing' it and others in the region. In the same manner, Indonesia undoubtedly observes Australia and others.

Both of these realities probably long pre-date both incumbent governments.

The current mess appears to have been caused by two significant factors.

1. Australia bugged SBY - the President and his wife among other senior government officials. No wonder he's pissed off. That signals that Australia doesn't trust him, and/or that Australia thinks the maintenance of Indonesia's relationship with Australia isn't a priority for him and his government.

During SBY's Presidency, all Australian Prime Ministers have gone out of their way (and rightly so) to build trust and a relationship upon which both people and both countries could rely. There was and still is a lot at stake - all now in jeopardy.

I don't think that SBY is particularly surprised by the spying - however I think he is insulted and hurt by it. With an election on the horizon, he needs to react in a suitable, publicly acceptable manner - and he can't be blamed for this, particularly when Tony Abbott's behaviour (and that of his advisors and minders) is also driven by their perception of public opinion (i.e. delivering the stupid pre-election promises).

2. Abbott and Bishop's hopeless handling of the matter hasn't helped. How is it that when the US bugged Germany's Angela Merkel, President Obama had a personal conversation with her, presumably pledged that it wouldn't happen again, and the whole matter appears to have 'blown over'?

Now that's powerful, sophisticated and effective diplomacy - clearly beyond the capability of Australia's current government.

To Indonesia I say, please be patient and understand that you are dealing with a very weak and unintelligent government that is drunk with testosterone that makes it impossible for it to 'do subtlety'.

This will pass with time. A new President will emerge after the Indonesian elections that will allow Indonesia to reapproach Australia with some stringent 'rules for an effective and renewed relationship.' Australia will agree because Abbott needs to be seen as being able to recover from this disaster. Cooperation will be re-established between the countries on refugee boats, live animal exports and military cooperation.

The people in the street will forget, but governments won't. It will take Australia a long time to recover from this.