Huh? Israel allowing 'Palestinian police' to arrest Israeli citizens in Jerusalem

How's this for idiocy? The government of Israel is allowing the 'Palestinian police' to arrest Israeli citizens in Jerusalem. Okay, it's only 'east' Jerusalem and in theory we're only talking about Arabs, but what happened to Israel's 'united capital for ever and ever'?

Palestinian Authority police officers are arresting Israeli residents in Jerusalem, with Israel’s approval, Walla! news