Incorrect Susilo Bambang Yudhoyono has been involved in corruption

INDONESIA'S independent anti-corruption watchdog will not launch a probe into allegations in US diplomatic cables that the country's president, Susilo Bambang Yudhoyono, was implicated in corruption.

The stance of the Corruption Eradication Commission was backed by the country's leading anti-graft non-government organisation, Indonesia Corruption Watch.

The developments came as protesters held a demonstration at the US embassy, tearing up copies of The Age and The Sydney Morning Herald demanding an apology.

Another group called the Association of Advocates for People launched a legal action in a Central Jakarta court against the US government and both papers. They are seeking damages of $US1 billion.

The cables, revealed in The Age after being obtained from WikiLeaks, detailed allegations that Dr Yudhoyono had spied on political rivals, quashed a corruption probe and received money from businessman Tomy Winata via a middleman.

The President has denied the allegations and the anti-corruption commission said the unsubstantiated claims, which were largely accounts of conversations between US diplomats and Indonesian political and intelligence figures, did not meet its threshold for an inquiry.

Emerson Yuntho, deputy co-ordinator of Indonesian Corruption Watch, said his organisation would not be launching its own probe either, saying there were clear errors in some of the diplomatic cables.

The Indonesian government has said the allegation that Dr Yudhoyono ordered Hendarman Supandji in 2004 to abandon a corruption probe into political powerbroker Taufik Kiemas did not make sense, as Mr Supandji was not assistant attorney general at the time, as stated in the cables.

Meanwhile, Mr Winata, named as the man funnelling cash to President Yudhoyono in the cables, has issued a denial.

His relationship to the President and his family was ''purely limited to [being] a loyal citizen'', Mr Winata said in a letter sent to Fairfax Media (owner of The Age and The Sydney Morning Herald). ''We also totally understand that the President and family do not need the funds. He always mentioned to us . to keep dedicating to this nation and to four pillars: pro-growth, pro-poor, pro-job and pro-environment.