He further claimed that Australia's decision on Jerusalem al-Quds would not change the country's longstanding support for the so-called two-state solution to the decades-long Israeli-Palestinian conflict.
"We're committed to a two-state solution, but frankly, it hasn't been going that well, not a lot of progress has been made, and you don't keep doing the same thing and expect different results", Morrison said Tuesday morning, speaking from Parliament House.
Israeli Prime Minister Benjamin Netanyahu said he had recently spoken to Morrison and welcomed the Australian policy shift.
Indonesian Foreign Ministry spokesman Arrmanatha Nasir declined to comment on a report by Australian broadcaster ABC that Jakarta was considering putting off a trade deal due to be signed soon with Australia on hold over Morrison's comments.
"The short-term political gain that could be secured by moving the Australian embassy from Tel Aviv to Jerusalem would surely be outweighed by the detriment both to Australia's global standing and in its relations with Arab and Muslim-majority countries and the worldwide community more broadly", the delegation said according to the Times of Israel. US President Donald Trump's daughter, Ivanka Trump, attended the ceremony.
"Australia should be open-minded to this", Mr Morrison said.
Australia is considering recognizing Jerusalem as Israel's capital and shifting its embassy there, Australia's Prime Minister Scott Morrison said Tuesday, receiving backlash from the worldwide community. "I believe if they country proceed with the plan, its neighbouring countries in ASEAN must register a very, very strong protest against the Australian government", he warned. Australia makes its decisions about its foreign policy independently.
Morrison came to power in August after a revolt by hardline conservatives in the Liberal party ousted his more moderate predecessor, Malcolm Turnbull. The Liberal candidate contesting the by-election on Saturday, Dave Sharma, is a former Australian ambassador to Israel who has floated the idea in the past.
Census figures show 12.5% of people in Wentworth are Jewish, a significantly larger proportion than the rest of the country.
Morrison denied that the United States or the by-election had influenced his announcement.
The US Embassy became the only foreign embassy in Jerusalem in May, but Netanyahu has attempted to persuade others to follow suit.
He said no decision had been made and he was simply being open to the suggestion. This move was followed by Paraguay and Guatemala, but Paraguay soon went back on the decision and moved its representatives back to Tel Aviv.
"But three days out from the Wentworth by-election, it's pretty blatant".
A Palestinian capital in East Jerusalem has always been regarded as indispensable to Palestinian statehood by its supporters. Israel regards all of the city, including the eastern sector that it annexed after the 1967 Middle East war, as its capital.