Jakarta a ‘consideration in Israel decision’

A review of the potential relocation of Australia’s embassy in Israel will consider the impact on the trade deal with Indonesia.

Trade Minister Simon Birmingham. Picture: Kym Smith

Scott Morrison’s review of the ­potential relocation of Australia’s embassy in Israel will consider the impact of the decision on the bilateral trade deal with Indonesia, Trade Minister Simon Birmingham has suggested.

The Prime Minister publicly clashed this week with his predecessor, Malcolm Turnbull, who said the decision to consider moving Australia’s embassy had been received badly in Indonesia, the world’s largest Muslim nation.

Mr Turnbull’s rebuke of the decision came after he represented Mr Morrison at a meeting with Indonesian President Joko Widodo.

Senior Indonesian government sources and Indonesia experts say Jakarta could be tempted to delay the signing of the bilateral free-trade deal — which was expected to be signed as soon as this month — if Canberra followed through with the embassy move.

Senator Birmingham was asked whether the review, which is yet to begin, would consider any fallout on the trade deal.

“In terms of the embassy decision, well, that will be a full and thorough and proper and considered process,” he told Sky News.

“It will be made in the national interest. We agree (the trade deal is) on track and we’re going to keep working to get it signed by the end of the year.”

The government was unable to provide information on the review’s terms of reference or timeline at Senate estimates last week.

Bill Shorten said the Prime Minister was trying to have a “bet each way” on the embassy issue by suggesting “I only said I was going to talk about the idea, I didn’t ­really mean it”.

“Australia should make its own decisions — of course it should. But … someone probably would have told Mr Morrison that if you’re going to make a decision of this dimension, understand why no one’s made it for 70 years. There might be a good reason.”

Israel has made it clear it expects the Australian government to follow through.

Brigadier General (retired) Yossi Kuperwasser, a former head of the research division at Israeli Defence Force Intelligence, said if Australia did not follow through, it could have serious consequences.

“I think as an Israeli, it would be a very strange move if Australia ultimately decided not to move to Jerusalem. It could be very dangerous,” he said.