Indonesian President Joko Widodo with former Australian PM Malcolm Turnbull. Credit:Amilia Rosa

Denpasar: Former prime minister Malcolm Turnbull has taken a thinly-veiled swipe at the Morrison government's decision to consider moving the Australian embassy from Tel Aviv to Jerusalem, warning of a “very negative reaction” in Australia’s near neighbour and a risk to the national interest.

And Mr Turnbull, following a half-hour meeting with Indonesian President Joko Widodo in Bali, also expressed confidence that the Indonesia-Australia free trade agreement would be signed in a matter of weeks, despite the diplomatic brouhaha.

In a rebuke of Mr Morrison’s proposal, which was floated during the Wentworth byelection, Mr Turnbull pointedly distanced himself from the idea.

“The conclusion that I took, and my government took, after very careful and considered advice was that a policy that is well over 40 years old, 50 years old, should remain exactly the same as it is,” he said.