Jakarta: It may seem like time is running out and the obstacles are piling on, but one of the most influential members of Indonesia's government says the Australia-Indonesia free trade deal will still be signed this year.
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Luhut Pandjaitan, who is the Coordinating Minister for Maritime Affairs and a former chief of staff to the President Joko Widodo, told Fairfax Media on Friday that "there is no thought of cancelling it" [the free trade deal] and he predicted that it would still be signed this year.
The comments come amid small protests outside the Australian embassy in Jakarta earlier this week, with a larger protest due to be held on Friday afternoon.
The terms of the free trade deal were finalised by Widodo and and Prime Minister Scott Morrison in Jakarta in August, but the signing of the deal - which was due to take place in Singapore earlier this month - was delayed because of ongoing disquiet over Australa's possible move of its embassy in Israel from Tel Aviv to Jerusalem.
Indonesian Foreign Minister Retno Marsudi has been particularly scathing of the proposed move, describing it as a "slap" to Indonesia's face according to leaked text messages.
That proposal, announced during the Wentworth byelection, triggered disquiet in majority-Muslim Indonesia, which holds the Palestinians' quest for a homeland dear.
But on Friday, Luhut said "it still will be [signed] this year ... Regarding the moving of Australia's embassy [to Jerusalem], well we disagree, we condemn it. But the signing [of IA-CEPA, the Indonesia-Australian Comprehensive Economic Partnership Agreement] is another thing".
"It is a loss for us if it is delayed. But we disagree with them. They're also thinking about it. They also have domestic politics. In my opinion the President has been very firm."
"However if we disagree would we continue fighting with them [Australia]? I don't think so. We have to separate [the issues]. But the Indonesian government's position is very clear, we disagree [with the possible embassy move]."
Luhut's comments carry weight because he is a senior member of the cabinet and a key adviser to Widodo and will give hope to the Morrison government that the deal will be finalised before Christmas.
Trade Minister Enggartiasto Lukita, one of architects of the deal, has previously said it was ready to be signed at any time - before subsequently having to clarify that final sign off was being delayed by Ms Marsudi's foreign affairs ministry.
Protesters gathered outside the Australian embassy in Jakarta on Monday, Tuesday and Wednesday this week, and also on Wednesday outside the consulate in Surabaya, to voice their opposition to a possible move of the Australian embassy in Israel.
The first protest, on Monday, saw about 200 people gather outside the embassy. They chanted "Palestina, Palestina" and "Independence, Independence" and that the "status of Jerusalem is status quo" - that is, that Jerusalem should not be recognised as Israel's capital, and that Australia's embassy should not be moved.
On Wednesday, a small fire was lit on the street outside the embassy and as many as 500 people are expected on Friday.
"Our presence in front of the Australian embassy is concrete support to Indonesia government," the protesters said, "our presence here is to strongly protest Australia's plan to move its embassy from Tel Aviv to Jerusalem".
Domestic politics also featured heavily with protesters criticising presidential candidate Prabowo Subianto - who will face Widodo in the forthcoming April election.
Last week, Prabowo said that Indonesia should respect Australia's sovereign right to move its embassy - though he indicated disagreement with the potential shift.
The comments have been seized on by Prabowo's political opponents in the Widodo administration and have caused a headache for the opposition.
Morrison has said that a review of the embassy move was due to be completed by middle of December, with a decision expected soon after that.
