Foreign Affairs Minister Julie Bishop has refused to be drawn on whether Australia would cut its Indonesian foreign aid budget following the execution of Australians Andrew Chan and Myuran Sukumaran.
Ms Bishop on Monday afternoon welcomed Australia's ambassador to Indonesia, Paul Grigson, at her electorate office in the Perth suburb Subiaco.
He had flown out of Jakarta the previous night after being recalled from his post.
Ms Bishop said the main purpose of the meeting was how to "manage the fallout" of Mr Grigson's recall, a move she said was unprecedented for Australia.
But the media gathered were quick to ask if the government had any plans to impose sanctions on Indonesia.
"The discussion on the aid budget is a matter for the [Expenditure Review Committee] and the cabinet and those discussions are ongoing," she said.
"Having the ambassador here means we can now move to the next stage ... we will now discuss the short, medium and long-term consequences."
She said how long Mr Grigson stayed in Australia would depend on what issues arose in Indonesia.
"[Indonesia] is our largest post overseas ... and the ambassador's presence is important, which is why recalling the ambassador sends a significant signal," she said.
"The recalling of an ambassador is a sign that the Australian government was very displeased and dismayed at the failure of the Indonesian government to hear our pleas for clemency for Mr Chan and Mr Sukumaran, but it's also an opportunity for us to consult with the ambassador about the ongoing relationship.
"For the past three months the focus of the relationship has been on seeking a stay of execution and hoping that President Widodo would change his mind about the execution of the two Australians – and indeed, the others.
Ms Bishop said part of the work would involve going over the details of the past few months.
"I do want to take this opportunity to pay tribute to the work of the ambassador, the previous ambassador and the consular staff, particularly the consular general in Bali, who have been working around the clock for many, many months," she said.
"They will be as dismayed as the Australian government that we were not able to achieve another outcome."
She said Australia and Indonesia were close friends and neighbours, co-operating across a wide range of areas including combating people smuggling and the drug trade, as well as in education, commerce and trade, scientific research and law enforcement.
She said more than 20 Australian agencies and departments had formal arrangements in terms of treaties, operational frameworks and dialogues with their Indonesian counterparts.
"It's a very deeply engaged relationship and we have been through an exceedingly difficult time," she said.
So we must manage the fallout; we must manage the ... consequences of this – the relationship is important and that's why the ambassador is here."
Ms Bishop also mentioned the Australian Federal Police's media conference to answer questions about its involvement in the arrests of the Bali nine.
She said this had highlighted the complexities and sensitivities Australian police faced when Australians committed crimes in countries with the death penalty.
"I believe the statement has given us some insight into the challenges that continue to occur whenever Australians commit [these] crimes," she said.
