Labor is concerned the approach could undermine the prospect of a two-state solution between Israel and Palestine.
"We are committed to a two-state solution, but frankly, it hasn't been going that well - not a lot of progress has been made", he told reporters on Tuesday during a press conference in Canberra.
Facing a domestic backlash and the threat of foreign trade retaliation, Australia's Prime Minister on Tuesday appeared to slow-peddle a controversial decision to move the country's embassy to Jerusalem, saying he would first consult with allies.
This claim has prompted debates in Australia and overseas, as the status of Jerusalem has been one of the key stumbling stones for negotiating a Palestinian-Israeli peace deal. Following Donald Trump's move, Guatemala and Paraguay also moved their embassies, but the latter reversed the relocation three months later.
Mr Morrison confirmed he had discussed the matter with Wentworth Liberal candidate Dave Sharma, a former Australian ambassador to Israel, but said he had canvassed a range of opinions since becoming Prime Minister.
Like Mr Morrison, Indonesia's President Joko Widodo is facing an election next year.
"Indonesia asks Australia and other countries to support peace talks. and not take steps that would threaten that peace process and stability of world security", Marsudi said.
Australia may be the next country to officially move its embassy in Israel to Jerusalem.
Mr Morrison said the source of Australia's energy doesn't bother him and he isn't interested in an ideological debate.
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Nothing like that ever happened, that was clearly not the use for it, and so I stopped checking it off", she said . Harvard did not call Warren "a person of color" and hire her to to teach law because of her Native ancestry.
However Indonesian government has not made any representations to Australia about the free trade agreement or whether it was in jeopardy, Foreign Ministry spokesmanArrmanatha Nasir said.
The by-election is in the Sydney harbour-side seat of Wentworth vacated by former prime minister Malcolm Turnbull, who was ousted in a party-room coup by members of Morrison's Liberal party, the senior partner in a Liberal-National coalition, in August.
Census figures show 12.5 percent of people in Wentworth are Jewish, a significantly larger proportion than elsewhere in Australia.
Israeli Prime Minister Benjamin Netanyahu said he had recently spoken to Morrison and welcomed the Australian policy shift.
S., which had already moved its embassy to Jerusalem.
But Morrison denied the United States influenced his announcement.
Palestinians, with broad global backing, want East Jerusalem as the capital of a future state they hope to establish in the occupied West Bank and the Gaza Strip.
There have been many diplomatic efforts to realize a two-state solution, but the last US-led Palestinian-Israeli peace talks came to a halt in April 2014, under the Obama administration.
Israel claims all of Jerusalem as its united capital, while the Palestinians who hold a competing claim, argue that the Arab-majority eastern part of the city is the future capital of their desired.