Indonesian free-trade agreement deal still on track

The bilateral free trade deal was not discussed in a recent exchange between Scott Morrison and Indonesian President Joko Widodo.

Indonesian President Joko Widodo.

The issue of the bilateral free trade deal was not discussed in a recent exchange between Prime Minister Scott Morrison and Indonesian President Joko Widodo ahead of the Coalition’s foreign policy shift, government sources have said.

The ABC reported there is speculation Jakarta could reconsider the deal after Prime Minister Scott Morrison said he would consider moving the Australian embassy to Jerusalem.

Indonesian Foreign Minister Retno Marsudi has been meeting with the Palestinian Foreign Minister Riyad Al Maliki today and may give a statement on the issue of Australia afterwards.

“During his meeting with President Jokowi at Presidential Palace, [Palestinian Foreign] Minister Malki conveyed his highest appreciation for the commitment and support of the Government and People of Indonesia for Palestine,” the Indonesian Foreign Minister tweeted yesterday.

The Indonesian trade minister has also said there are no plans to suspend the IA-CEPA Australia Indonesia trade deal over Mr Morrison’s announcement he is considering moving the Australian embassy in Israel from Tel Aviv to Jerusalem.

The Palestinian Ambassador Izzat Salah Abdulhadi, has told The Australian the Council of Arab Ambassadors will release a statement tomorrow calling for a meeting with Prime Minister Scott Morrison and Foreign Minister Marise Payne to explain Australia’s position on Jerusalem.

The Council of Arab Ambassadors is a group of 15 Middle Eastern Ambassadors in Australia.

Indonesia is the largest Muslim country in the world, and the free trade deal with Australia will be its first.

“I have been in direct contact with President Joko Widodo over the course of last night and through this morning,” Mr Morrison told parliament on Tuesday. “I have been pleased to be able to explain very clearly the nature of the announcements that I have made today.

“And I have been very pleased with the response that I have received from President Joko Widodo.”

The embassy move proposal was announced on Tuesday ahead of the Wentworth by-election, which has a large Jewish population.

Mr Morrison said he looked forward to going to the ASEAN, APEC and G20 summits in coming months and talking about his ideas of doing things differently in the Middle East.

The free trade deal with Indonesia is set to unlock education opportunities in the Asian country, which has a workforce of more than 130 million people but half of them only have a primary school education.

Additional reporting: AAP