Although Mosuisse's (Scott Morrison) government has made concessions on Jerusalem's status, Indonesia's trade minister, Rugida (Enggartiasto Lukita), failed to say when Australia's trade agreement with Indonesia will be signed, casting a new shadow over the deal.
According to the Australian newspaper, a trade agreement between Australia and Indonesia was expected to be signed last month, but Mosuisse suddenly announced plans to relocate the Australian embassy in Israel from Tel Aviv to Jerusalem, causing resentment in Indonesia. Indonesia has links with the Palestinian government and does not recognize Israel.
Mosuisse later decided to suspend the relocation of the embassy, saying Australia identified West Jerusalem as Israel's capital as part of a foreign policy shift to support Israel. In response, Indonesia issued a more relaxed statement.
On December 21, Indonesian Trade Minister Lujda said the bilateral free trade agreement between the two countries will not be signed before the end of the year, and he is not sure when it will be formally signed. "when it comes to when (it will be signed), the foreign minister will arrange it because it is relevant to the foreign minister's policy," he said.
In response to Indonesia's trade deficit of US $7.5 billion (10.5 billion Australian dollars), Lujda expressed support for a trade agreement. Indonesia has struggled to boost exports because of high tariffs on exports, he said; if Indonesia had more trade agreements, the situation would be eased.
Australia's trade minister, Birmingham (Simon Birmingham), only said it was a good deal, but could not disclose the date of signing. "Indonesia's leaders have been openly and privately endorsing the benefits of this agreement, and we welcome it," he said. This agreement is good for both of us and will facilitate the flow of trade and investment, create more opportunities for Australian exporters, and strengthen Indonesia's economic development. "
The Australian newspaper also recently reported that Australian trade agencies have advised the government to close its offices in the Middle East and invest more resources in Indonesia. A few weeks ago, Mr Mosuisse announced that he would open a new trade office in Jerusalem.
