11/20/2013 02:01 EST | Updated 01/23/2014 06:58 EST

Indonesia says Australia has agreed to stop wiretapping; Jakarta "downgrades" relations

JAKARTA, Indonesia - Indonesia's intelligence agency chief says Australia has agreed to stop wiretapping following outrage over reported eavesdropping on senior Indonesian leaders' phones.

Norman Marciano told reporters Wednesday that he has been communicating directly with Australia's intelligence agency and that he has been assured the wiretapping has stopped and will not resume.

He spoke before attending a meeting called by Indonesian President Susilo Bambang Yudhoyono to discuss the issue with Foreign Minister Marty Natalegawa and Indonesia's recalled ambassador to Australia.

Natalegawa on Wednesday said that Indonesia has "downgraded" its relations with Australia and is reviewing bilateral co-operation on issues with its neighbour.

A day earlier, Yudhoyono criticized Australian Prime Minister Tony Abbott for not expressing regret over the reported spying that took place under a previous government in 2009.