PM’s meeting with Joko Widodo comes after Indonesia’s trade minister says there will be no agreement while Australia considering embassy move

This article is more than 1 year old

This article is more than 1 year old

Scott Morrison will attempt to rescue the Australia-Indonesia free trade agreement in his first meeting with Joko Widodo on the sidelines of the Asean summit in Singapore.

Indonesia’s trade minister, Enggartiasto Lukita, has confirmed there will be no deal while Australia considers moving its embassy in Israel from Tel Aviv to Jerusalem.

“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, according to the Nikkei Asian Review.

Indonesia – the world’s most populous Muslim country and a strong supporter of Palestine – is furious at the potential relocation, which was announced during the Wentworth byelection.

Morrison plays down Israel embassy spat ahead of Indonesia trade talks Read more

The Australian prime minister and the Indonesian president are expected to discuss the threats of terrorism, radicalisation and foreign fighters returning from the Middle East.

Morrison will also meet New Zealand’s 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.

Australia’s leader 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 been quietly evacuating families to Australia for medical treatment but is adamant they will not stay in the country.

Morrison will also meet China’s Premier Li Keqiang. Escalating tensions between the US and China and disputed territorial claims in the South China Sea have emerged as key issues at the Singapore summit. Some countries have also expressed concerns about the rapid pace of Chinese developments throughout the Indo-Pacific.

But the prime minister is being careful not put Australia’s key trading ally offside. Morrison has dampened any expectations of confronting Beijing over its treatment of Muslim minorities or contested claims in the South China Sea.

He has also indicated Australia may be willing to help fund one-off projects through China’s Belt and Road initiative, despite signing a rival deal with Japan and the US.

Victoria bows to pressure to release Belt and Road deal with China Read more

Morrison will also meet his Indian counterpart, Narendra Modi. The pair are expected to discuss the revival of an Australia-India-Japan-US security quadrilateral, informally known as the Quad. India is believed to be holding out on committing to the deal, which is designed to counter China’s growing influence in the region.

They will also discuss an ambitious 16-nation free trade deal known as the regional comprehensive economic partnership. It’s understood India is proving a major hurdle to the deal – which would be the largest free trade pact – being progressed.