Indonesian President Susilo Bambang Yudhoyono allowed journalists to listen in to a conversation with Australia's leader Tony Abbott, the BBC reported.
Australia's ABC quoted top-level Indonesian sources as saying the eavesdropping was a "mistake."
Reporters were apparently in the same room as Mr Yudhoyono during the call and one of them recorded the exchange.
The two leaders are due to meet this week, with tension still high over claims of Australian spying. (more)