"Indonesia encourages Australia and other nations to continue to support the peace process and not conduct any action that could undermine the peace process and global security, " she said after talks with visiting Palestinian Foreign Minister Riyad al-Maliki. The Liberal candidate contesting the by-election on Saturday is Dave Sharma, a former Australian ambassador to Israel who has floated the idea in the past. Wentworth is home to a significant-sized Jewish community and a Sharma loss in the election means Morrison would lose his one-seat majority in Parliament, leading critics to accuse Morrison of playing politics with the country's foreign policy.
"We're committed to a two-state solution, but frankly it hasn't been going that well, not a lot of progress has been made, and you don't keep doing the same thing and expect different results", Morrison told reporters after calling an unexpected press conference. "I believe if they country proceed with the plan, its neighbouring countries in ASEAN must register a very, very strong protest against the Australian government", he warned.
One senior source told the ABC yesterday trade talks could be off following Mr Morrison's announcement. Indonesia's trade minister, Enggartiasto Lukita, denied Australian media reports on Tuesday that Jakarta was considering putting the pact on hold over the possibility of Canberra changing its stance on Israel.
When Morrison became prime minister in August, he made his first overseas trip to Indonesia, a near-neighbour that is the world's largest Muslim-majority nation and an ardent supporter of the Palestinian cause.More news: Facebook says hackers accessed 29 million users' data
Last December, US President Donald Trump reversed decades of US policy by recognising Jerusalem, enraging the Palestinians and upsetting the Arab world and Western allies. "I hope Australia would reconsider that position before taking action".
Morrison, an evangelical Christian, denied the potential embassy switch was motivated by domestic politics, his religious beliefs, or that Australia's main strategic ally, the USA, had influenced the decision.
Morrison's openness to recognising Jerusalem and moving Australia's embassy there comes four days before a by-election in Sydney where his centre-right coalition faces the risk of losing its tenuous hold on power.
Mr Morrison is expected to make an announcement on Tuesday as part of a foreign policy statement on Israel, in Canberra. "It has not come up in any discussion that I have had with the president or officials".
US President Donald Trump drew worldwide criticism past year when he reversed decades of American foreign policy by recognising the ancient city as Israel's capital.