Jakarta: The signing of the Indonesia-Australia free trade agreement, due in Singapore next week, will "revolutionise" business relationships between the two nations according to the Australia-Indonesia Business Council.

AIBC national president Phil Turtle admitted to some nerves that the signing of the deal could be delayed, after the Morrison government flagged last month that it might move Australia's embassy in Israel from Tel Aviv to Jerusalem.

Scott Morrison talking Australia-Indonesia business in September. Credit:AAP

But Mr Turtle said he was delighted the deal was set to be signed.

Labor Treasury spokesman Chris Bowen welcomed the imminent signing of the deal, but lashed the Morrison government for putting the deal at risk with the embassy move "thought bubble".