Israel on Joko radar

PM discusses embassy move in tense meet with Indonesia

SCOTT Morrison has confronted one of the most sensitive foreign policy challenges facing Australia during his debut on the world stage.

The Prime Minister yesterday met with Indonesian President Joko Widodo on the sidelines of the East Asia Summit in Singapore, as he attempts to rescue a bilateral free trade agreement.

The mood at the brief meeting appeared far more frosty than when the leaders last met.

Indonesia – the world’s most populous Muslim nation – is furious at a recent announcement that Australia might move its embassy in Israel to Jerusalem. The leaders were due to sign a major twoway trade pact while in Singapore, but finalising the agreement has been put on hold until the issue is resolved.

Indonesia’s Trade Minister Enggartiasto Lukita confirmed there would be no deal while Australia considered the Jerusalem move.

“It can be signed any time but when you will sign it ... depends on Australia’s position (on the embassy),” he said.

The two leaders were also expected to discuss the threats of terrorism, radicalisation and foreign fighters returning from the Middle East. Mr Morrison was also scheduled to meet New Zealand Prime Minister Jacinda Ardern for the first time as leader, where the issue of sick asylum seeker children on Nauru was up for debate.

For years, New Zealand has offered to resettle at least 150 refugees detained on the remote Pacific island.

Mr Morrison was also scheduled to meet Chinese Premier Li Keqiang – the first with a Chinese leader in a year.

Escalating tensions between the US and China and disputed territorial claims in the South China Sea have emerged as key issues at the Singapore summit.

Some countries have also expressed concerns about the rapid pace of Chinese developments throughout the IndoPacific.