Indonesia free trade deal on hold while Australia considers Israel embassy move, minister says

Australia will decide by Christmas whether to move its embassy in Israel to Jerusalem, Scott Morrison says, as Indonesia confirms the potential move has stalled a free trade deal between the two countries.

Trade Minister Enggartiasto Lukita confirmed the stance yesterday on the sidelines of the ASEAN summit in Singapore where Prime Minister Morrison met with his Indonesian counterpart Joko Widodo today.

“It can be signed any time but when you will sign it … depends on Australia’s position (on the embassy),” Mr Lukita told Indonesian media yesterday, according to the Nikkei Asian Review.

Mr Morrison acknowledged the trade deal was “not in a position to be signed at this point” today following a “friendly and respectful conversation” with President Widodo.

The Prime Minister told reporters in Singapore he would announce a final decision on whether to move Australia’s embassy in Israel to Jerusalem by Christmas, but said the issue of the move and the trade deal were “not raised in connection” when he met with the President this morning.

“On the issue of the trade agreement, there was an absolute understanding of the great opportunities that this presents for both countries,” Mr Morrison said.

“The final text of that is still being brushed, so that’s not in a position to be signed at this point. And we discussed that we’ll be looking for an opportunity to do that and that’s a matter still to be determined.”

Read the article by Claire Bickers in the Herald Sun.