Aust hints at Jerusalem flip flop
The Morrison government has told Indonesian ministers there is ‘‘less than 5 per cent’’ chance it will go ahead with a divisive new policy on Israel, in a comment that could clear the way for a diplomatic retreat to seal a A$16.5 billion (NZ$17.6b) free trade agreement.
Indonesian Trade Minister Enggartiasto Lukita has been assured there is very little chance Australia will move its Israeli embassy from Tel Aviv to Jerusalem after a ferocious reaction to the idea from Muslim countries.
The private message suggests Prime Minister Scott Morrison might restore the government’s previous stance on Israel after the blowback to his policy shift, which is being described as a ‘‘captain’s call’’ that has hurt the Coalition. Others within the government insist the remarks do not signal official policy and that Morrison is prepared to move the embassy if it is in Australia’s national interest, despite the protests from Jakarta.
Exporters are worried the dispute over Morrison’s decision on Israel has delayed a new trade deal with Indonesia, a big customer for wheat and beef whose two-way business with Australia is worth $16.5 billion a year.
Indonesian president Joko Widodo raised the issue with Morrison during talks in Singapore on Wednesday, reiterating the Indonesian argument against the embassy move.
Morrison emerged from the meeting to insist the embassy review and the trade deal were not linked in his talks with Joko, although the Indonesian government issued a statement later that emphasised a two-state solution between Israel and Palestine.
Asked whether his review of the policy on Israel would be done by Christmas, Morrison said: ‘‘That’s our intention.’’
The Indonesian Trade Minister sharpened the dispute over the trade deal by saying the timing of the agreement was now linked to the decision on Israel.
‘‘It can be signed anytime, but when you will sign it . . . depends on Australia’s position’’ on the embassy, Lukita told reporters on the sidelines of the East Asia Summit in Singapore.
Indonesian Foreign Minister Retno Marsudi had stressed that ‘‘if Australia insists on moving its embassy to Jerusalem, the signing will be delayed,’’ Lukita reportedly added.
Fairfax Media has been told that an Australian minister advised Lukita there is only a small chance of the embassy move going ahead, raising expectations in Jakarta that Morrison will reconsider his stance.
Defence Industry Minister Steve Ciobo, who was trade minister before Morrison became prime minister, met Lukita in recent weeks at a defence event in Indonesia.
Fairfax Media was told Lukita said to Ciobo: ‘‘Don’t ask when it will be signed.’’
Ciobo replied: know.’’
In one account of this conversation, Ciobo is said to have told the Indonesian Trade Minister: ‘‘About the possibility, I cannot say 100 per cent we will move, but, I guess, the possibility is less than 5 per cent.’’
This account was disputed by some in the Australian government, who said Ciobo did not speak for Morrison.
Asked by email if Ciobo had said there was a ‘‘less than 5 per cent’’ chance, a spokeswoman for Ciobo said: ‘‘As a matter of principle, minister Ciobo doesn’t comment on his conversations with foreign ministers.’’ – Fairfax ‘‘Enggar, I