Scott Morrison hoses down fears of Indonesia rift over embassy plan

Prime Minister Scott Morrison has played down reports Indonesia is considering suspending a likely trade deal, over a plan to consider moving Australia’s embassy in Israel from Tel Aviv to Jerusalem.

Asked by Labor leader Bill Shorten in Question Time about the reports, Mr Morrison said he’d spoken to the Indonesian President about the proposal and he was “pleased with the response”.

Labor has raised concerns about a possible breakdown in relations with the Muslim nation since the prime minister flagged the possible foreign policy shift.

There are fears Jakarta would join with Arab states in protesting the idea to recognising the contest Jerusalem as the legitimate Israel capital.

Mr Morrison said he’d spoken to Joko Widodo overnight, as part of the countries’ management of the relationship.

“You don’t unilaterally makes these decisions,” Mr Morrison said.

“I’ve been very pleased with the response.”

Under the proposal, Australia would not change its support for a two-state solution to the Israeli-Palestinian conflict.

It comes just months after Mr Morrison and then Foreign Minister Julie Bishop ruled out moving the embassy, and former PM Malcolm Turnbull refused to walk away from the long-held policy.

As part of the policy re-think, the prime minister has also announced a possible hard line stance against Iran, and saying “without prejudice” Australia will re-examine its support for the Iran nuclear deal, abandoned by the United States.

Watch the story on Channel Nine TV News with a news report by Lane Calcutt • Political Reporter.