Australia formally recognizes Jerusalem al-Quds as Israeli 'capital'

"Australia now recognizes West Jerusalem, being the seat of the Knesset and many of the institutions of government, is the capital of Israel," Prime Minister Scott Morrison said on Saturday.

"We look forward to moving our embassy to West Jerusalem when practical," he told reporters in Sydney.

In May, US President Donald Trump sparked international outrage when he relocated the US embassy from Tel Aviv.

Jerusalem al-Quds was occupied by the Tel Aviv regime during the Six-Day War in the 1967, and is deemed the capital of a future Palestinian independent state.

Australia's move is set to draw backlash from neighboring Indonesia, the world's most populous Muslim nation, and other majority Muslim nations.

On Friday, the Australian government warned its citizens to “exercise a high degree of caution" while travelling in Indonesia.

Scores of Australians preparing to travel to the tourist island of Bali and other tropical island destinations should "exercise a high degree of caution," the Department of Foreign Affairs warned in a public notice.

“Demonstrations have been held in recent weeks around the Australian Embassy in Jakarta and the Australian Consulate-General in Surabaya," it said.

"Protests may continue at the Embassy in Jakarta or at any of Australia's Consulates-General in Surabaya, Bali and Makassar," the department said.

The Indonesian government reacted angrily last month, when Morrison initially hinted at the idea of both recognizing the occupied city and moving the Australian embassy there.

In the meantime, Palestinian Ambassador to Australia Izzat Abdulhadi called on Muslim countries to apply “boycott measures” to Australia in reaction to the move.

He said Muslim states should "withdraw their ambassadors" and take some "meat and wheat" style "economic boycott measures" if the move went ahead.

Morrison's unexpected announcement in October came days before a crucial by-election in an electorate with a strong Jewish representation, a poll his party subsequently lost.