Australian Prime Minister, Scott Morrison, whose government faces a crucial by-election that could weaken its grip on power, said on Tuesday Canberra was open to recognizing Jerusalem as Israel’s capital and shifting its Embassy there.
Such a move, which would follow U.S. President Donald Trump’s controversial decision in December to do just that, would reverse decades of foreign policy and inflame tension with some of Australia’s Asian neighbours.
Indonesia, the world’s largest Muslim-majority nation, and Australia are due to sign a trade deal this year.
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.
Mr Morrison’s openness to recognizing 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.
The by-election is in the Sydney harbourside seat of Wentworth vacated by former prime minister Malcolm Turnbull, who was ousted in a party-room coup by members of Morrison’s Liberal party, the senior partner in a Liberal-National coalition, in August.