Australia will announce a decision on shifting its Israel embassy from Jerusalem to Tel Aviv in December.
Foreign Minister Marise Payne insists Australia's controversial proposal to move its embassy in Israel to Jerusalem won't overshadow an upcoming meeting with her Indonesian counterpart.
Senator Payne will on Friday attend the Bali Democracy Forum which will be hosted Indonesian Foreign Minister Retno Marsudi.
Labor's foreign affairs spokeswoman Penny Wong asked Senator Payne if the government flagging a possible embassy shift from Tel Aviv to Jerusalem - first raised during the Wentworth by-election - would be discussed in Indonesia.
"Will the minister seek to undo the damage done by Mr Morrison's decision to put domestic political interests before Australia's national interest?" Senator Wong said in question time.
Senator Payne said a review of the embassy location was ongoing and confirmed Prime Minister Scott Morrison would announce the outcome in December.
The proposal cast doubt over a free trade agreement with Indonesia, which has the largest Muslim population in the world.
While Senator Payne wouldn't be drawn on when the deal with Australia's northern neighbour will be signed, she did say it couldn't be "conflated" with the embassy issue.
"It will be signed when it is ready to be signed," the foreign minister said.