Australia's FM criticises Indonesia's border control as people-smuggler controversy escalates

Australia's foreign minister, Julie Bishop, criticised Indonesia on Monday for not better securing its borders after Australia was accused of paying people smugglers to turn back to Indonesia.

Last week, Prime Minister Tony Abbott refused to deny allegations that Australian customs and navy officials had paid a group of people smugglers 30,000 U.S. dollars to turn their boat of asylum seekers back to Indonesia.

The Opposition, Greens Party and independent MPs called for an independent inquiry on Monday into the allegations but Bishop, in a move sure to further strain relations between Canberra and Jakarta, told News Corp that Indonesia needed to stop the flow of boats across its border.

"The best way for Indonesia to resolve any concerns it has about (Australia's) Operation Sovereign Borders is for Indonesia to enforce sovereignty over its borders," she said.

"Operation Sovereign Borders is necessary because Indonesian boats with Indonesian crews are leaving Indonesia with the express intention of breaching our sovereignty, facilitated by illegal people-smuggling syndicates."

Bishop's Indonesian counterpart, Retno Marsudi, has sought a formal explanation after a police chief on the Indonesian island of Rote, where the boat carrying 65 asylum seekers and six crew returned, alleged each of the crew he arrested were carrying 5,000 U.S. dollars each, which they said had been handed to them by Australian officials.

The regional director of the United Nations' refugee agency said on Sunday the 65 asylum seekers had been interviewed and had corroborated the allegations that payments were made.

Bishop said she welcomed the outcome of Indonesia's inquiry.

"I look forward to hearing the full results of Indonesia's investigation of the people-smuggling crimes committed in Indonesia, including any breaches of passport and visa laws, and establishing whether the captains and crews of these boats are part of people-smuggling syndicates or are paid by them," she said.

Greens immigrations spokesperson Sarah Hanson-Young said on Monday that Australia's "very, very delicate situation" with Indonesia would not be helped by Bishop's criticism.

Australia's ambassador to Jakarta, Paul Grigson, only returned to his post last week after being withdrawn by the Australian government in response to the April 29 executions of two Australian drug smugglers by Indonesia.

Hanson-Young said the Greens will ask the Australian Federal Police to investigate the matter while the Opposition has called on the auditor-general to open an inquiry.

Labor senator Doug Cameron said on Monday the government needed to address the matter properly.

"It's quite clear that the coalition engaged in a cover-up or they are absolutely stupid," he said in Canberra. "Probably a bit of both."

On Friday, Abbott dodged multiple opportunities to deny Australia was using government funds to entice people smugglers to return to Indonesia.

He instead said the only thing to focus on was that no asylum seeker boats had been intercepted in Australian territory in April or May, fulfilling his election promise to "stop the boats."

Minister for Immigration and Border Protection, Peter Dutton, originally said no money had been paid but has since reverted to saying no comment would be made on "operational matters." Endi