Trade Deal Won't Suspended over Morrison's Position on Shifting Israel Embassy to Jerusalem, Says: Enggartiasto

Jakarta, MINA — Indonesian Trade Minister Enggartiasto Lukita on Tuesday (Oct 16) denied a report that Jakarta was considering putting on hold a trade pact with Australia over a proposal by Canberra to recognise Jerusalem as Israel’s capital., The Straits Times reported.

Asked whether Indonesia was postponing its comprehensive economic partnership agreement with Australia over the proposal, Mr Lukita told Reuters in a text message there was “no such thing”, adding that the deal was on schedule to be signed this year.

Australia’s ABC News had cited a senior Indonesian government source as saying that Prime Minister Scott Morrison’s indication of his support for moving Australia’s embassy in Israel to Jerusalem had met with a frosty reception in Indonesia, with Jakarta reportedly mulling over whether to put the imminent trade deal with Canberra on hold.

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The landmark free trade agreement was supposed to be signed before the end of the year, but the senior Indonesian government source said the pact was now in doubt over Mr Morrison’s position. The agreement was cemented during Mr Morrison’s first international trip as Prime Minister.

Australia’s ambassador in Jakarta has sought an urgent meeting with officials from the Indonesian Foreign Ministry to explain. However, given that one of Indonesia’s foremost foreign policy positions is support for a Palestinian state, Mr Morrison’s declaration in support of Jerusalem as Israel’s capital has not gone down well in Jakarta.

It has the unintended effect of making it difficult for Indonesian President Joko Widodo to pursue a positive relationship with Canberra. Mr Joko has been pressing his government to conclude a free trade agreement with Australia, and has even proposed that Australia be allowed to join the Association of South-east Asian Nations (Asean).

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A senior Indonesian source told ABC News that Indonesian Foreign Minister Retno Marsudi had been “bombarding” her Australian counterpart, Ms Marise Payne, with concerned messages.

Both foreign ministers were due to meet in the Indonesian capital on Tuesday (Oct 16). The source said the recently sealed, but not yet finalised, trade deal could be suspended.

Prime Minister Morrison told Parliament during Question Hour he had been in touch with Mr Joko to discuss his position, as had the two foreign ministers.

“This is a regular part of our management of these foreign affairs relationships and I am pleased to be able to explain very clearly the nature of the announcements I have made today and I have been very pleased with the response that (we) have received from President Joko Widodo and we’ll continue to work closely and cooperatively with our allies and with our partners all around the world on these issues,” Mr Morrison . (T/RS5/RS1)

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Mi’raj Islamic News Agency (MINA).