Indonesia has warned Australia that moving its Israeli embassy to Jerusalem could undermine the peace process with Palestine.

Indonesian Foreign Minister Retno Marsudi said she had conveyed her country’s opposition to such a move to Australia.

“Indonesia encourages Australia and other nations to continue to support the peace process and not conduct any action that could undermine the peace process and global security,” she said after talks with visiting Palestinian Foreign Minister Riyad al-Maliki.

Palestinian Foreign Minister Riyad al-Maliki, left, talks to journalists during a joint press conference with Indonesian Foreign Minister Retno Marsudi.

AAP

Earlier, the ABC reported Indonesia was considering pulling its imminent trade deal with Australia over Mr Morrison’s new position on Israel.

Australian Prime Minister Scott Morrison floated the idea of moving the embassy just days out from a by-election in one of Australia’s most Jewish electorates.

Mr Morrison faces Question Time on Tuesday.

AAP

Indonesia is the world’s largest Muslim country and a strong supporter of Palestine.

Indonesian Foreign Ministry spokesman Arrmanatha Nasir declined to comment directly on the reports.

But Prime Minister Scott Morrison faced a fiery question time over the potential fallout of the embassy move.

Indonesian Foreign Minister Retno Marsudi with with visiting Palestinian Foreign Minister Riyad al-Maliki.

AAP

“Is the prime minister aware of the reports that Indonesia is reconsidering its trade deal with Australia as a result of the prime minister’s rushed announcement today? How many jobs could be at risk as a result of the day’s foreign policy on the run announcement about moving the embassy?” Opposition Leader Bill Shorten asked.

During Question Time, the Prime Minister said he’d already spoken with the leader of the world’s largest Muslim nation.

“I have been in direct contact with President (Joko) Widodo over the course of last night,” he told Parliament on Tuesday afternoon.

Indonesian President Joko Widodo

AFP – Sep 21, 2018

“I have been pleased to be able to explain very clearly the nature of the announcements I have made today and I have been very pleased with the response that I have received from President Widodo.”

Mr Morrison said he’d be seeking feedback when he attends several international summit in the next few months.

“That is actually how you make decisions. You consult with your friends, with your neighbours, with your allies,” he said.

“You do not unilaterally make this decision.”

Mr Morrison said he looked forward to going to the ASEAN, APEC and G20 summits in coming months and talking about his ideas of doing things differently in the Middle East.

Indonesia is Australia’s eighth biggest trading partner, with investment valued at nearly 12 billion dollars last year, according to Department of Foreign Affairs.

The free trade deal with Indonesia is set to unlock education opportunities in the Asian country, which has a workforce of more than 130 million people but half of them only have a primary school education.

Wtih AAP