Prime Minister Scott Morrison has attempted to rescue an Australia-Indonesia free trade agreement during a meeting with Joko Widodo in Singapore.
Scott Morrison has come face-to-face with one of the most sensitive foreign policy challenges facing Australia during his debut on the world stage.
The prime minister has met with Indonesian President Joko Widodo on the sidelines of the East Asia Summit in Singapore, as he attempts to rescue an Australia-Indonesia free trade agreement.
The mood at the brief Wednesday morning 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 two-way 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 will be no deal while Australia considers the Jerusalem move.
“It can be signed any time but when you will sign it … depends on Australia’s position (on the embassy),” he told Indonesian media in Singapore on Tuesday.
The two leaders were also expected to discuss the threats of terrorism, radicalisation and foreign fighters returning from the Middle East.
Mr Morrison will later meet New Zealand Prime Minister Jacinda Ardern for the first time as leader.
The pair are bound to discuss the issue of sick asylum seeker children on Nauru.
For years, New Zealand has offered to resettle at least 150 refugees detained on the remote Pacific island.
Mr Morrison recently signalled he may finally be open to accepting the deal, before quickly ruling it out again.
About 30 asylum seeker children remain on Nauru.
The federal government has quietly been evacuating families to Australia for medical treatment over recent weeks, but is adamant they will not stay in the country.
