Scott Morrison intends to review the location of Australia’s embassy in Israel before Christmas as he tries to salvage a free trade agreement with Indonesia.
Mr Morrison attempted to rescue the stalled Australia-Indonesia trade pact when he met Joko Widodo in Singapore on Wednesday.
It was their first face-to-face encounter since Mr Morrison announced he was considering moving Australia’s embassy in Israel to Jerusalem.
Indonesia – the world’s most populous Muslim nation and a key Palestine supporter – is furious at the potential relocation.
The leaders were due to sign the two-way trade deal this week but finalising the agreement has been put on hold until the embassy issue is resolved.
The mood at Wednesday’s meeting on the sidelines of the East Asia Summit appeared frosty at first but tensions eventually thawed.
President Widodo asked for details of the potential Jerusalem move and a time frame for the review.
Mr Morrison told reporters an internal review of the embassy shift was under way.
“There will be consultation … and that will go through the process of our national security committee and cabinet.”
Asked whether the review would conclude before Christmas, he said: “That’s our intention.”
Despite Indonesian ministers confirming the embassy and free trade deal issues are inextricably linked, the prime minister said they were raised separately.
“The two issues were not linked in any way shape or form in our discussions,” he said.
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