A joint exercise involving fighter jets of the Indonesian air force and the RAAF in Darwin has been put on hold.
The ABC understands Indonesian government officials ordered the action after President Susilo Bambang Yudhoyono suspended cooperation with Australia on people smuggling.
The air exercise, which was due to begin today, would have involved eight Australian FA-18 and six Indonesian F-16 fighter jets flying over the Top End.
More than 200 defence force personnel from both countries are in Darwin for Exercise Elang AusIndo.
Yesterday, RAAF 75 Squadron Wing Commander Peter Mitchell said a tactical relationship with Indonesian armed forces was important.
He stressed the relationship between Australian and Indonesian pilots was friendly.
"We do not get into the policy and the diplomatic issues," he said.
"We really enjoy working together."
The fighter jets were going to operate out of Darwin RAAF base and take part in practice dog fights.
An Australian Defence Force spokesman acknowledges the situation could change but says any decision would be made by the Australian or Indonesian governments.
♞ ABC
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