"There are more than 10,000 [asylum seekers] in Indonesia today. If they are let go to Australia, it will be like a human tsunami."
Mr Tedjo - an outspoken politician - said it was "no big deal" if trade relations with Australia fell apart following the executions of Andrew Chan and Myuran Sukuraman.
He said Australia was the nation that benefited most from the agreement, not Indonesia.
"Australia will in fact receive pressure domestically if it stops its livestock exports to Indonesia since Indonesia is Australia's main market," Mr Tedjo said.
The minister also labelled Australian Foreign Minister Julie Bishop's earlier request to spare Chan and Sukuraman in exchange for three Indonesia drug smugglers held in Australia as "unethical".
He said Australia needed to respect the laws of Indonesia.
The Bali Nine pair have spent their seventh night at Nusakambangan - Indonesia's "Death Island" - awaiting the outcomes of appeals made by other prisoners who are scheduled to be executed alongside them.
Chan and Sukuraman were sentenced to death after they were caught trying to smuggle drugs from Indonesia to Australia.
They have spent the past 10 years inside Kerobokan prison in Bali.
Chan converted to Christianity and became a pastor while behind bars.
Sukuraman trained as an artist, even teaching other inmates how to paint.
- Daily Mail